Upcoming Riyadh Restaurants - continued

Investors display continued interest in restaurants

Amid the most recent recession, when the nation’s economy and its restaurants were struggling, lenders and investors
largely steered clear of the slumping foodservice sector.

But post-recession, investors began putting dollars into dining. After years of steady sales growth and unit expansion, many venture capital
and private equity firms see restaurant companies as potentially lucrative investments with solid payouts when sold privately or taken public.
And with the U.S. Federal Reserve keeping interest rates low, traditional lenders are eager to lend to restaurant chains that are equally eager
to take advantage of attractive borrowing terms.

Better yet, with so many investors and lenders focused on restaurants — most notably, the fast-casual and quick-service segments —
competition for their business has created a very favorable environment for restaurateurs.

“It’s a borrower’s market, and that’s driving competition among lenders,” says Richard Henderson, vice president of franchise at Direct
Capital Corporation, a CIT Company. Essential in landing those customers, he adds, is making the process easy and quick. “These
companies want access to capital to be simple. So if the process gets difficult, borrowers will walk away and find a lender that’s easier to
deal with.”

In recent years, fast-casual chains have been courted by restaurant investors of every stripe, hoping to simultaneously share in their strong
profits and help accelerate their growth. Emerging brands such as Project Pie, Piada Italian Street Food and Mendocino Farms have taken
on private equity partners in order to grow.

The jaw-dropping first day performance of the initial public offering (IPO) of Shake Shack is an extreme example of investor interest in
fast casual. Shake Shack raised approximately $112 million from the offering, but the company is now valued at over $1.5 billion, not bad
for a 63-unit chain. Other fast-casual chains that have completed IPOs over the past few years include Zoës Kitchen, Noodles & Company,
and Potbelly Sandwich Works.

According to Darren Tristano, executive vice president of Technomic Inc., such market enthusiasm is emboldening restaurant companies
to go public earlier than in years past.

“The vision for a lot of restaurant companies 10 years ago was basically let’s grow this to a fairly large size, let’s prove it and then let’s do
an IPO,” Tristano says. “But we’re seeing a new model for success developing, and it doesn’t go that far. With Shake Shack, it was let’s
grow it, do an IPO and cash out. That has a lot of companies thinking they want to do the same.” But not every chain is raising money
through IPOs. Large, mature chains need capital to shore up their market positions by updating their restaurants’ look, equipment and
technology offerings. Franchisees are also looking for capital to fund acquisitions of stores that are being sold by other franchisees and by
their corporate franchisors.

Restaurant franchisees are enjoying some of the best terms they've ever had from lenders, and easy access to debt financing is fueling
activity in the M&A markets. Henderson says store reimaging and tech upgrades, particularly in quick service, also present major capital
needs for franchisees that lenders are happy to fund. Modernization such as freestanding kiosks at which customers can customize their
meals — notably McDonald’s Create Your Burger units — and big data-gathering loyalty programs help brands record and cater to customer
preferences through highly targeted mobile marketing. Improved payment options like chip and pin cards are also appealing to customers
not wanting to carry cash, and improved security in those cashless systems builds confidence and return visits.“Sales bumps resulting from
new trade dress and technology improvements — such as POS systems and mobile-ordering and payment platforms — give lenders
confidence they’ll get a good return on their money,” Henderson adds.

When 20-unit Your Pie went hunting for capital, it wasn’t for growth or store remodels. Chief executive Bucky Cook wanted to invest in the
human resources his fast-casual, brick oven pizza chain needed to direct its growth.

“We needed to fill out the org chart with deeper talent,” says Cook, whose company partnered with a private equity firm. “We had a lot of
operational experience, but we needed more people who have the frame of reference for building a franchise company.”While it’s clear
investors want to partner with restaurant companies, at least one expert in such private transactions advises his clients to be fully prepared
for such meetings. Joe Chandler, an attorney at the Fennemore Craig law firm in Phoenix, recommends operators vet all potential suitors
expressing interest in the brand. “Don’t wait to discover potential problems after the fact,” he says. And if the operator is actively pursuing
private investment, be well prepared with a great sales pitch “because you’ll probably get only one shot at convincing them yours is worth
their investment.”

Tristano agrees, saying that unsophisticated restaurant brands rarely impress moderninvestors.

“You can’t fly by the seat of the pants when you want Catterton to come in and give you $15 million,” he says.

How The Ritz-Carlton Is Attracting Locals And Millennials With Food And Drink

The role of food and beverage at luxury hotels is more important than ever as brands try to differentiate themselves among all demographics,
particularly millennials. “A lot of this focus stems from the popularity of food-driven reality television series as hotel guests are looking for
the latest and most interesting approaches. That often means celebrity chefs who are pushing the envelope get called upon by these hotel
brands to offer their guests unique, unbridled experiences,” he says.

At properties where Sandoval and Ritz's managers collaborate, they draw from community tastes while reinforcing current drinking and
dining trends: shareable plates; freshly sourced ingredients; experienced mixologists who go through a universal training program; and
local craft beers, spirits, and wines that can be also bought from the guest room honor bars.

Where Sandoval isn’t involved, Ritz managers are themselves using liquor lore to create a sense of place. At the perennially filled-to-capacity
Punch Room in Charlotte, NC, they poached a bartender with a cult following from one of the area’s top bars and triumphantly publicize
the awards he earns for the bar and himself. They styled Ft. Lauderdale’s restaurant to celebrate the Burlock bag, invented there during
Prohibition to furtively tie and sink bottles of rum beneath offshore boats. Corporate executives say they've started serving some drinks
at lower-than-premium prices to lure locals, whose presence they hope will help drive future banquet and overnight bookings.

“We’re seeing a greater variety of people coming because we’re competing with the local bars,” says David Murphy, who heads up bar
and restaurant development as corporate vice president for food and beverage design and development. “They’re not hotel prices.”

Murphy says he’s watched his bars and restaurants get busier and louder and the average age of his patrons drop dramatically. He says l
ocals who used to come for special occasions once or twice a year are coming much more frequently, and on average, guests are dining
in three nights out of four. It used to be the reverse.

Consultants applaud this food-and-drink focused strategy and say it’s proved successful for chains from Kimpton Hotels & Restaurants to
Four Seasons Hotels and Resorts. But let’s be honest. The Ritz lags about a decade behind the proverbial curve in emphasizing fun F & B
programs to energize new audiences. For decades the majority of hotel chains disregarded their mostly money-losing restaurants, directing
attention to breakfast and putting any old manager in charge of dining. As the conventional thinking went, guests would go out for lunch
and dinner, and the revenue-generating food came out of the catering kitchen.

Starting as far back as 40 years ago, lifestyle hotels emerged as places where you might actually want to stay in and order drinks at the
bar or meet friends for dinner. As these bars and restaurants began keeping more of their guests’ money in-house, they grew more
concept-driven and quality-focused, and residents of host cities began to notice. Hoping these locals will bring in meetings or stay with
the company when they travel, hotel franchise owners have increasingly outsourced F&B to experts who bring pizzazz, cache and marketing muscle.

But at The Ritz-Carlton, there’s a very fine line between past and present, which may explain why executives failed to keep pace with their
peers. As a top-rated hotel with excruciatingly high standards and a traditionally traditional clientele, the Ritz needed to make the brand
appealing to flavor-seeking locals and millennials without alienating its core constituency.

When decorators updated the Philly hotel’s overall look this year and last, it wasn’t too hard to bridge generational gaps. The hotel is housed
in a 1908 neoclassical bank building that gloriously contains the central casting Ritz-Carlton requisites you might expect: exterior Ionic columns,
9,000 tons of marble and a 101-foot central dome that was once the biggest in the western hemisphere. A completely contemporary aesthetic
might have been jarring. So designers lightened up the heavy drapery and furniture, re framed historical photos, added amenities a modern
traveler would demand and softened the color scheme to match the color of money (I’m not making that up). Managers also retrained their
staff to be admittedly less stuffy yet endlessly polite.

Back on the F&B level, the answer to the young-vs-old, local-vs-traveler question for the famously laid-back Sandoval is options.

“Here, we use a lot of spices, herbs and chilies, and the older clientele may not like that. But there’s also a grill and you get to pick your
marinade and sides,” he says. “We have chef’s specialties, too. As for the sharing concept, the newer generations, they get it, they like it.
The older generation, it’s new for them. Also, we have a lot of business people; with them, you’re not going to start sharing your salad.”

International food and beverage consultant Bob Puccini thinks Sandoval, a sometimes client, does a good job making both his local and
his hotel patrons happy. But even the most attentive chef can’t be in 45 restaurants at once, so Puccini cautions that most celeb-run hotel
restaurants start to feel like the corporate chains that they are. To counter that, the sbe hotel management agency and the brokers and
consultants at Thomas Hospitality Group are picking out well-loved chefs from each hotel’s community and offering them space for a third,
fourth or fifth restaurant. He thinks that trend will continue, as will the still-surging popularity of bar and restaurant-centric hotels.

“Dining out is like going to the movies was in the '50s and '60s. It’s a form of social entertainment. Hotels are finally figuring out how to
do what restaurants have been doing for years. But they can’t do that under the old rubric,” he says.

Outsourcing Hotel Food & Beverage

Why should hotels outsource, or challenge a traditional operations model? The most common answer is to maximize profitability.
Industry-wide, Food and Beverage revenue represents over 25% of total hotel revenue yet generating a meaningful profit margin in
F&B (which is difficult to measure with accuracy) can be challenging. In many hotels (particularly lifestyle and boutique hotels) F&B can
be an integral part of the guest experience, and a large source of revenue (and maybe profit) for the hotel. But unlike other, less visible
departments, outsourcing F&B can be more challenging, yet also more rewarding.

In addition to increased profitability, there are other factors that can be favorable to outsourcing. For many properties, enhanced F&B
can contribute to the overall identity of a hotel that the hotel by itself (and current management company) cannot. This identity can help
to attract local customers who may never have considered eating or drinking at the hotel; and for hotel guests for whom great F&B may
be a deciding factor in where to stay. In mixed-use projects with a residential component, this identity and presence may also help to
position and ultimately sell real estate ("have room service prepared by x"). Another benefit of bringing a third-party into a hotel is that
it can complement, or fill a void, with other existing outlets that may be self-operated. Examples may include a high-end celebrity
chef driven restaurant to go along with a more traditional, three meal a day restaurant.

Out-sourcing this key area can have numerous risks as well, with the biggest risk being loss of control over operations (in the event of a
full out-sourcing, such as a lease). Examples we have seen include reputational risk to the hotel due to poor service/reviews, health
department issues, and financial issues with the partner. While an agreement may outline a process and remedies for the hotel owner,
separation and execution of remedies, may be easier said than done. These risks need to be weighed against the possible benefits.

Before going down the path on an outsourcing, a hotel owner needs to do their homework. To assist with these assessments, the owner
may need to bring in outside expertise. Project team members may include a real estate broker, who has knowledge of the local
restaurant market and can provide a dose of reality to a situation (even though brokers sometimes see things through rose colored
glasses); attorneys with experience in negotiating similar deals; and other F&B consultants or asset managers who can identify solutions
to many operational issues.

The first step is an internal assessment (both financial and operational) of the proposed operation. The financial assessment should
focus on the "before" (i.e. current performance) and "after" (i.e. with an outsourced opportunity). This exercise should encompass a
full hotel profit and loss statement, and not just departmental profit. At one hotel that I recently reviewed, the P&L statement reflected a
break-even at the F&B departmental level, but upon further analysis (due primarily to undistributed costs that were tied to the
restaurant), the "actual" loss was over $300,000/year. This exercise should be as detailed as possible, and may get to individual staffing
levels to uncover the true operating profit or loss of outlets.

From an operations perspective, the owner should understand how the proposed operation fits into the overall mix of other outlets
within the hotel (or in a mixed-use complex, other operations within the complex). Would the proposed operation compete, or
complement other outlets? Is there a risk of sales erosion (perhaps by meal period)? From an operational perspective, an owner needs
to understand how the proposed operation fits into the hotel. Additionally, the internal assessment needs to look at the facility
(proposed space). Does the space have its own kitchen? How is it accessed by patrons? A restaurant in a poor location, with limited
visibility and foot traffic, may not be successful regardless of who is operating it!

An internal assessment is only part of the equation. An owner needs to undertake a local market/competitive market assessment. What
is in the current market? What is missing? What is doing well? Who is dining where? Does my hotel and proposed outlet even have a
chance of attracting the local market? Who is operating restaurants and making deals? Is anything changing in the local market or
surrounding neighborhood? As mentioned above, is the management company amenable to losing some control of an operation, and
what are the risks and benefits to ownership?

The internal assessment must also take into consideration the relationship with the hotel management company, from an operational,
financial and contractual perspective. Operational issues can include union versus non-union workforces, understanding the applicability
of brand standards (which may be defined currently, but will likely change over time), rules of conduct within the hotel
(including employee entrances) and allowable differences in uniforms and appearance standards. Financial issues can include
understanding cost allocation models that may need to arise (i.e. bathroom cleaning, garbage, etc.). Contractual issues can include is
outsourcing allowable under the terms of the Hotel Management Agreement (HMA), how will an outsourcing impact the management
company financially (i.e. gross restaurant revenues may decrease and become rental income), and possibly performance test and
termination issues. Additionally, liquor license issues should be identified early in the process to understand restrictions that may exist.

From an owner's hotel investment perspective, while maximizing profitability is a key factor, any decision to outsource F&B services, or
otherwise, should also consider the owner's investment time horizon and ability to contribute capital. With regards to capital contribution,
each ownership group needs to be prepared to deploy capital (and sometimes defer other capital projects) to execute on an outsourcing
strategy. Additionally, before executing on an outsource opportunity, the owner should discuss the opportunity with their lender, as
lenders typically view these agreements as encumbrances on their collateral.

The output of these assessments should help to frame operating parameters that can work along with hotel operations, and a sense of
buy-in from all parties on a path to proceed upon for some sort of outsourcing agreement. Below is a summary of the most common
types of agreements.

Lease Agreement

Lease agreements essentially create a Landlord/Tenant relationship where the restauranteur (i.e. the tenant) leases space within the
hotel (i.e. the landlord) for a defined space or spaces. The lease agreement typically spells out payment terms, usually in the form of
rental income, which may have fixed and variable components. The variable component is typically expressed as a percentage of revenue
above a "break" point. The Lease Agreement also typically spells out how various expenses, such as utilities, refuse, and other overhead,
will be treated. From a hotel owner perspective, key attributes to a lease include the credit-worthiness of the tenant, and exit strategy if
business does not go as expected over the term of the lease.

Management Agreement

Under a typical management agreement, the hotel brings in a 3rd party to oversee the F&B operations. Typically, the employees (with
the possible exception of key personnel, such as a General Manager or Executive Chef) remain as employees of the hotel management
company, but are executing on the third party's concept.

Licensing Agreement

A licensing agreement is similar to a management agreement, but may include more brand names and trademarks. A prime example of
a licensing agreement may be a full-service Starbucks in a hotel lobby that is staffed by hotel employees.

Consulting Agreement

A consulting agreement may allow for a 3rd party (such as a local, well-known chef) to provide advice on a restaurant's operations.
This typically includes menu development (which may occur several times a year), as well as staff training and design input. While the
section above makes the various forms of agreements seem separate and delineated, it is not uncommon to see hybrid agreements.
An example might include a management agreement with a minimum payment to the owner in the form of a "deemed rent" that can
shed some of the risk of the operation. Regardless of the structure, there are several other considerations that need to be addressed in
each form of agreement (and even considered beforehand). These include:

Term and Termination

Owners prefer to have as much flexibility as possible if things do not go well, and security if things do go well. The negotiation process
of each of these agreements will likely cause some compromises to be made. If flexibility is a key issue for an owner, it may be beneficial
to include upfront termination fees and formula for termination for convenience (or upon sale).

Fee Structure

The owner needs to avoid (or minimize) fee payments to both a third-party manager, and the hotel manager. Additionally, incentive fee
structures should be well-defined and not require a PHD in Physics to calculate. Our preferred formula is a Return on Investment calculation:
e.g. if the Owner makes x% on their invested capital (which may increase over time), then the Manager should participate (within reason)
of the profits thereafter.

Services to be Provided, or Not Provided

Items to consider include branded or themed banquets and catering menus, room service, etc.

F&B outsourcing, if done with appropriate due diligence (surrounded by qualified advisors or asset managers) can add significant value
to a hotel owner through increased profitability and asset visibility. However, every opportunity needs to be evaluated carefully to mitigate
risks and to ascertain specific nuances of an individual hotel or local marketplace.

CONSUMER TRENDS - Movie theaters focus on food
Cinemas go far beyond popcorn in effort to serve customers elevated menu offerings

While restaurant operators are preoccupied with trying to figure out how to grow business in a flat environment, movie theaters, bowling
alleys and other recreational outlets are expanding the variety and quality of their food — and stealing restaurant customers in the process.

According to the latest data from The NPD Group Supply Track, which tracks products shipped from leading food-service distributors to
each of their operators, in the year ended June 2016, total broad line sales moving through participating distributors grew to nearly
$91 billion dollars, an increase of just over 1 percent.

While eating and drinking establishments contributed 53 percent of the overall sales growth, recreation posted the highest percentage
increase. The fastest-growing operator segments within recreation include movie theaters, amusement parks, cruise lines, and bowling
alleys.

“It shows that there are emerging trends and new and unique places for consumers to go,” said Ann Roberts, vice president at The NPD
Group, Supply Track. “It does impact the restaurant industry.”

Movie theaters in particular have increased food-service spending 20 percent compared with a year ago, according to the Supply Track
data. It’s no longer just popcorn, pizza and pretzel bites ordered from the concession counter: Many major movie-theater chains now
offer full chef-driven menus complete with alcoholic beverages and seat-side service.

The largest food categories being purchased by movie theaters include chicken, frozen fries, cheese, bacon, ground beef patties, and
carbonated soft drinks, which all posted double-digit gains in the year ended June 2016. Among the fastest-growing food and ingredients
at movie theaters are biscuits, tortillas, breakfast sandwiches, stuffed chicken breast and jams/jellies/spread.

Consumers have also increased their food-service visits to movie theaters. According to NPD data, food-service visits to U.S. movie
theaters have increased 8 percent in the year ended June 2016, compared with the same period year ago.

Additionally, NPD’s most recent Eating Patterns in America report reveals that consumers are spending less on products and more on
experiences, a shift that may be contributing to more consumers choosing to visit movie theaters with restaurant-like food. “It’s the
experience,” Roberts said. “They are offering some unique items.”

40% of the overall profit of cinema halls comes from food and beverages
While cinemas are expanding their menus and hiring hospitality staff to give customers a wholesome experience, they also make
significant profits from it. Cinemas have to share ticket sale profits with the films' production houses, but they get to keep almost all the
profit from selling food and drinks. An industry insider tells us, “The profit from food and drinks is far higher than from the tickets sold.
For every ticket sold, a cinema hall gets only 25% of the profit, while for food and beverages, the profit is around 50%." Another industry
rep says, "Without food and beverages, there would be no theater business. The food business in cinemas is better than in a restaurant
because in a restaurant, you can't ask your customer to leave after they are done eating. But in cinema halls, they won't stay after the movie."

Movie Tavern

Founded in 2001, Dallas-based Movie Tavern is a self-proclaimed “cinema eatery” that has 24 locations in 10 states offering chef-driven
menus with premium food and drink delivered seat-side.

“By combining the movie-going and restaurant experience, we really are able to provide a great entertainment option for a wide variety
of guests,” said Danny DiGiacomo, Movie Tavern vice president of marketing. “Everyone is so time-sensitive. We package it into one
location stop … that’s one of the big drivers.”

The menu at Movie Tavern is focused on tavern favorites like burgers made with 7 ounces of freshly ground beef on a brioche bun,
made-to-order chicken tenders, flatbread pizzas and fried artichoke hearts. To create craveable offerings that are easy to eat in the dark,
the chain draws on a culinary team made up of chefs and movie theater experts, as well as partnerships with broad-line distributors and
national food brands.

“We’re doing things that a lot of upscale casual-dining restaurants don’t do anymore, like continuing to focus on quality and fresh
ingredients,” said Joe Marcus, Movie Tavern’s senior vice president of culinary and guest experience. “Whenever possible, we want to
offer our guests menu items and ingredients cooked from scratch. All of our marinades are made in-house, and we use a fresh,
never-frozen burger patty as our standard. Additionally, we only use fresh poultry products that are never pre-breaded or battered.”

Like many restaurant chains, Movie Tavern tries to inspire repeat visits with a loyalty program. The chain’s free membership comes with
benefits such as complimentary popcorn upon signing up, a free movie ticket for each member’s birthday, and free invitations to special e
vents and advance screenings.

Increasing Food and Beverage Revenues in Hotels

There are many reasons why hotel Food and Beverage profits are not what we would like them to be. Foremost among them is usually

the fact that revenues are not as high as they might be. The lack of separate identity and entrances for outlets has a negative impact

but for the most part, hoteliers aren't the street fighting promoters our free-standing restaurant counterparts are. This is quite

understandable, after all, why should we focus so heavily on Food and Beverage when the time and money spent it will never be as

profitable as the Rooms Division?

There are some subtle differences that make a lot of sense. Think about how you'd spend your finite promotional dollars if you had a

choice between promoting the hotel in its entirety or just a profitable restaurant outlet. Clearly, it makes more sense to advertise the

hotel and its services or to have the sales staff either build commercial room demand or pursue group room bookings. These items have

profit margins in excess of 75 - 80%.

A hotel's Food and Beverage department is an exception if profit exceeds 20%. In both cases, as hoteliers must admit, administrative,

marketing, maintenance, and utility expenses are not deductions from these margins. Unlike our restaurant counterparts who must bear

all these expenses directly, we shuffle them off as Unallocated Expenses. In the end, it makes sense because most hotel Food and Beverage

revenues are driven by the Rooms Department's level of activity and our buildings and operational structures are not such that some

expenses can be isolated cost-effectively. Can you imagine the time required to allocate the credit card commission expenses for Food and

Beverage charged to the guest rooms from those having to do with the Telephone Department and room sales?

So what do I think the answer is to Food and Beverage profitability in a hotel environment? Increase hotel guest usage, increase hotel

guest average checks, and increase outside patronage from the community. You say those things are obvious but do you have a

mini-business plan for each of your Food and Beverage outlets? Does it address those items? Is it funded, are all the departments'

employees involved and excited about it? Are the key players motivated with incentives to make the plans succeed?

Mini-business plan? You know, like the one you have for the hotel; revenue and expense goals in detail, staffing plan, capital budget,

menu plan and outlet market plan. These are not all new things, everything but the menu plan and outlet market plan should be in your

hotel's annual business plan, so preparing a mini-plan for each Food and Beverage outlet should not be a monumental task.

I refer to these plans as mini-plans because they can be three small lists: standard hotel procedures, one-time promotions, and advertising.

Standard hotel procedures are simple things like having the reception staff mention the outlets to register guests and having the bell

staff mention that night's restaurant specials while the guest is a captive audience. Hyatt has a promotion titled something like,

"The Winner is...". Its based on the envelope they open for the Academy Awards and is a small folded-over card that the server opens

and entitles the guest to anything from a 10% to 50% discount on dinner. These cards are handed out by the receptionist registering the

guest.

Other standard items are elevator displays, in-room promotions, and promotional cards given with restaurant and bar checks. Why not

room service sales messages adjacent to the emergency telephones at the swimming pool? One hotel we work with in Denver promotes

its seafood buffet with a tasteful fish-shaped card stock flyer hanging on the guest room shower heads for arriving guests. Nobody misses

seeing it and reading it!

Standard hotel procedures must include services, attitudes and amenities that are very appealing to the hotel's guests. Services are kind

of obvious but attitudes are a little tougher. Rather than exclusively hiring experienced servers look for people with a positive, cheerful

outgoing attitude who either have experience or are trainable. A cheerful good attitude will overcome a lot of service and even quality

problems, assuming they are short-term! Your servers must enjoy their patrons, thank them for coming, ask them if they will be in tomorrow,

how their room is, etc. In short, they must care. It will help the food and Beverage outlets and the hotel in general.

Amenities are a more exciting and creative issue. Sure there should be an assortment of newspapers at breakfast and with room service.

But what about a heated pot of coffee so that the patrons don't have to wait to be bothered by, "...more coffee?" every few minutes?

Can you promote your restaurant or coffee shop as the area's power breakfast meeting place? Offer cut fruit with every order for the health

conscious and thick slab bacon or whatever is locally popular for the heavy eaters. Why not free shoe shines as patrons leave and for people

waiting for a table or for joiners? Dare to be different and work hard to find out what your hotel guests and surrounding community want.

Who eats at Perkins and Bakers Square and why? What is so good and unique about them that can't be copied?

One-time promotions are tried and true methods of attracting more business. Most people repeat the same ones year after year.

Mothers' Day, Fathers' Day, and the list goes on. Why not start some new traditions for your restaurant or bar that are annual if not

monthly? This morning's paper mentioned monthly and weekly poetry readings at several Twin Cities bars and restaurants. It seemed like

most of them were at slow times on slow days. Imagine free unique entertainment where the patrons entertain themselves and spend a

little money! Are poets big drinkers? Anita Blatz at the Chart House in Lakeville is an expert at creating and executing promotions. She

puts together big promotions around holidays or creates them out of thin air then goes out and gets others to either donate goods or

services for the exposure or to buy booths and space from her. She is a hotelier that the restaurateurs stole from us. The only promotion

she ever failed at was one I created to name a remodeled hotel restaurant! One of the keys to Anita's success is a sourcebook she keeps

so that she always knows sources for products and ideas, good and bad.

Advertising for food and beverage outlets ranges from the basics like the Yellow Pages and entertainment directories to such media as

radio and television. Any media that can be obtained for free is good as long as one has some control over it. Trade-outs are always a good

idea. The best trade a Food and Beverage manager can arrange is rooms for advertising! Next to that, a beverage for advertising is good

if it can be obtained on some multiple like four advertising dollars for one beverage dollar. Doing joint promotions with media outlets is

especially effective if one can obtain extra advertising unrelated to the promotion at a later time in order to stay in the audience's mind.

Never forget the power of good press releases. These should be done for all conventions, banquets, menu changes, new entertainment,

etc. Invite the press in to try new menus and to witness promotions. Charities are good tie-ins. In an Econo Lodge, we manage we have a

Charity of the Month where we donate 1% of the hotel's revenues to charity. For the past two months, it has been the Shriners Hospital and

for the next few months, it will be various parts of the Athletic Department at the University of Minnesota. A similar program at a hotel

restaurant will raise the outlet's profile in the community over time and accomplish worthwhile things. There are obviously direct benefits

if the charity is selected wisely. Let me be candid, other charities need money, too, but they aren't next door to our hotel!

As a final point let me emphasize the value of employee involvement. They should be involved in brainstorming sessions to create ideas in

every area affecting revenues and expense control. They know more about the customers and the operations than management and owners

do. More importantly, when they have bought into the promotional ideas they will be good at delivering the product and service to the

patrons but also at going out and promoting it.

Significant long-term increases in Food and Beverage revenues can only be achieved with the staff's enthusiastic understanding and support.

And that's not limited to Food and Beverage Division employees; Rooms Division employees may be the only employees to have any contact

with your in-house guests during their stay if you don't get them into the outlets.

SushiSamba Owners Stiffed Early Investor Out of Millions, Lawsuit Claims

The brother who sank money into the tony raw fish eatery SushiSambawhen first spawned, is suing for $3 million, claiming he was not given his proper cut of the business.

Brian Johnson, the brother of co-owner Matthew Johnson, invested $1 million for the brand’s expansion from its initial Park Avenue location to Miami Beach and Greenwich Village 15 years ago and the owners then failed to make him an equal partner, denying him millions, according to a lawsuit filed April 8.

Owners Matthew Johnson, Shimon Bokovza and Danielle Billera approached Brian, an Ohio-based chiropractor, when they didn’t have enough capital to open the new locations, court papers said.

Brian gave the needed funds with the understanding he would be made an equal partner.

He realized that something was fishy when instead, he received a minnow-size seven percent stake in the Miami Beach restaurant and four and three quarters percent in the Greenwich Village location at Seventh Avenue and Barrow Street, according to the lawsuit.

The owners then allegedly went behind the Ohio chiropractor’s back to sell a 50 percent stake in Miami Beach, netting “millions of dollars in individual gains,” according to court papers, while Brian "received nothing as a result of the transaction."

The chiropractor also claims that hundreds of thousands of dollars from his investment were used to open a failed Chicago location without his consent.

The high-end fusion restaurant — which combines Japanese, Brazilian and Peruvian cuisine — now has locations in New York, Miami, Coral Gables, Las Vegas and London.

The original restaurant, once featured in a “Sex and the City” episode, closed in 2014 after opening in 1999.

SushiSamba spokeswoman Joanna Cisowska said the business could not comment on the specific details of pending litigation, but that "there is absolutely no truth to the allegation and the owners will defend against this frivolous lawsuit."

Both Brian Johnson and his lawyer did not return requests for comment.

wine_and_roses_owners_are_back.html

Owners of small businesses such as restaurants, whose employees are now incentivized and encouraged to sue the business owners for alleged violations of the federal Fair Labor Standards Act (FLSA).

Aggressive lawyers entice workers to file lawsuits on a contingency basis – – no cost to workers at all; the lawyer will receive one-third of the award if they win, nothing if they lose. Many millions of dollars have been awarded by courts for failure to pay overtime, benefits, and properly collect and distribute tips. Business owners are the latest class of litigation targets who must proactively protect their assets from such potential lawsuits and other challenges.

At the same time as business owners examine their own employment practices and compliance with labor laws, they should also consider whether their personal and business assets are exposed to such potential litigation and to creditors. Compliance with labor laws is prudent, but court cases are filed every day, whether or not the plaintiffs’ claims have merit. Even if you “win” in the litigation, you will have spent a great deal of time and money on legal fees. And if you are not successful in the litigation, you may be held personally liable. A judgment against you would endanger your personal assets, e.g., your home, savings, etc.

Business owners should be aware that in the event of a judgment against them, they may lose their personal assets, as well as real estate and business assets. A judgment can be the result of any adverse lawsuit, whether based on employment claims or otherwise, such as injury, negligence or routine business disputes. Insurance may offer limited protection. It is critical for business owners to protect their assets, including their real estate and their personal property, from any potential legal claim.