(I've decided to use the South Park disclosure - wouldn't it be totally ironic if I received a copyright infringement notice for using a fiction disclosure? - "all characters, even those based upon real people, are fictional." I think that should take care of it.)
People frequently ask me why le Potemkin Cafe closed. I can, and perhaps will, one day, write a manifesto on how it was doomed from day one, and then back up the claim with at least 150 specific examples, but one huge component was the inability to control the most easily-controlled expenses. Which are the easiest to control? the ones for items which don't bring you any money. The things you don't sell. The things which you have to buy but get you basically nothing. Except praise at your exquisite taste in over-the-top expensive plateware.
The picture above features a cream pitcher used in le Potemkin Cafe. I forgot to include something to give scale, so please just trust me when I tell you this pitcher is about 4 inches high at its tallest point, and probably holds 3-4 ounces of cream. (just under half a cup). I borrowed it one day, and now it sits in my house as a reminder.
I'm unsure of how much education to offer here on the topic of restaurant economics. Let's just say that after an eternity in the restaurant business, I know to ask "how much would it be to...." when I'm about to ask if we could possibly have enough water pitchers for every server in the building to have their very own.
Profit margins in restaurants are extremely thin. razer thin. This is why so many restaurants have failed in the recession. It isn't just about getting butts in chairs, it's about making money on what those people buy. You can only lower your prices so much, and then you have to reduce quality. And then there's nothing left you can do. You can't lower prices, you can't reduce, you just have to close. It's sad, but it's the reality.
One way to prevent this is to control costs very tightly. When I worked at le Potemkin Cafe, we (the servers) used to compare how Chef Napoleon did things compared to our previous employers.
An example: a restaurant I worked in when they opened 11 years ago opened with amazing food and wine and horrible, crappy, industrial-issue silverware. But they couldn't afford nice silverware. I think it was about 3 years ago when we went in to eat at this restaurant, and the entire staff was thrilled and buzzing over the purchase of their beautiful new silverware. Imagine - waiting 8 years for new and pretty silverware.
And that restaurant is still open.
On with this cream pitcher. Now, just as a point of reference, there are loads of cream pitchers a restaurant can buy. My personal favorite is something like this. It's simple, with clean, straight lines. No useless decoration, it's something which won't easily become dated. As a matter of fact, this was the cream pitcher in a restaurant where I worked in the year 2000 (which, incidentally, is also still open), and I still think the pitcher looks nice after 10 years.
This little pitcher costs about $3.35 each, purchased in a case of 36. I know for some restaurant mangers, even this will seem way too expensive, but I think it's worth it for that extra bit of charm. The least expensive cream pitcher, which you will certainly recognize instantly as the one used at many, many restaurants, costs around $1.10 at Wasserstrom.
Now, compare that to the cost of the cream pitcher at the top of this post, which cost $26 each. yes, you read that correctly: twenty-six dollars. Does that illustrate any point to you? Every time a server breaks a pitcher, which trust me, is going to happen at least once a month, if not more, the person who was stupid enough to shell out $26 for a cream pitcher is going to have a small aneurysm.
Why would anyone purchase a $26 cream pitcher for a restaurant before it's ever sold anything? I have no idea. No realistic idea, anyway.
Other examples: enormous, old-fashioned, bulky menu covers were ordered for the restaurant. We had three different varieties - a large wine list cover, a multi-page cocktail cover, and a regular dinner menu cover. These menu covers were ordered to the tune of $30,000 from what we were told. In under a year, the faux leather covering of the menu began to wear away from the cardboard underneath. Just the action of ordering these menu covers before opening shows a lack of understanding about the restaurant business, because you can usually get a liquor company to pay for most of all of your menu covers if you mention liquors by brand name.
Each dinner plate, and we used about 4 different styles, depending on the dish, cost an average of $38. EACH. I don't know how many of each plate we owned, but I can tell you that in the back room were stacks and stacks and stacks of extra plates that we would never need no matter how busy we would ever become. By the time the restaurant had re-branded itself and purchased an entirely new and different run of plateware, we calculated there might be as much as $100,000 in un-used plateware sitting in storage, wrapped in plastic wrap.
We used sugar cubes instead of packets, and of course, not the plain old square cubes, but the rustic-looking ones that fetch a higher price. The Winds Cafe has used these sorts of sugar cubes forever - I remember going there in high school and being completely charmed by how cool the sugar looked, white and raw rough sugar cubes, sitting in a glass jar (this was years before raw sugar become de rigueur in restaurants and coffee shops. Every so often, our CdC (Chef du Cuisine) would trot off to Whole Foods, where he would pay $8 for a 7 ounce box of rough-cut sugar sugar cubes. Now, these same cubes can because purchased for as little as $2/pound if bought in bulk. CdC was paying $18/pound by going to Whole Foods. That is nine times as expensive. Bear in mind also that this is something for which we don't charge - it just comes with coffee, and the price should be built into the coffee, but when you are talking about paying $18 a pound for sugar cubes, if you want to maintain a 30% food cost, you have to calculate somewhere that you need to recover $54 from your sugar cubes. And of course, you have to factor in that for every 10 people who plop a cube into their coffee or tea, there is one child who eats all of the cubes or a little old lady who folds them all into a napkin and stashes them in her purse.