When Houlihan Business Brokers handled the sale of Dish in Mahopac from one restaurateur to another in June, the deal marked a signpost in the recovery of a sector that after September 2008 had slowed to the crawl of escargots.
“There”™s no question we”™re busier in 2011,” said Gerry Houlihan, president of Bronxville-based Houlihan Business Brokers. “It”™s a buyer”™s market, if you”™re smart and know what you”™re doing. With experience, there”™s real opportunity out there.”
Houlihan parsed the last decade in chapters, saying, “From 2002 to 2008 we sold 70 percent of our listings. Then the world ended in September 2008. In 2009 and 2010, we sold less than 50 percent. This year is definitely an improved picture.”
Dish could be the template for HoulihanӪs business model of, effectively, mastering the recipe before serving the souffl̩.
Dish sold to Georges and Eileen Zidi. He is from France and worked as a chef in Michelin-rated restaurants in that country. In 1984, he opened Maxim”™s of Paris in Chicago. Eileen Zidi has participated in all aspects of restaurant “front room” hospitality at Peter Pratt”™s Inn in Yorktown Heights for 20 years and also has been an agriculturist at sustainability-focused Cabbage Hill Farms in Mount Kisco. Executive chef Marc Rosenberg studied in New York City and has worked in world-class kitchens locally and internationally.
“If the guys are good at what they do and have the cash reserves, in general what I”™m hearing is that sales are up and things are looking up,” Houlihan said.
The landlord, who must agree to the new tenant, remains a major behind-the-scenes factor, though just one of many restaurant-centric variables ”“ parking, ventilation, fire codes ”“ that figure hugely into the Houlihan Business Brokers workday.
Paul Ficalora, who specializes in restaurant sales for Houlihan and who steered the Dish deal to fruition, said, “Most landlords are reasonable; however, unfortunately some are not. With Dish, the deal made sense for all parties. In this case, they will also keep the brand name. They sought the same concept, so it did not make sense to change. Dish sold quickly because it was an attractive and well-executed food concept that was profitable with increasing and well documented sales.” And, he said, “Both parties were extremely diligent and cooperative in implementing a seamless transition.”
Houlihan said the rule of naming the place tends to differ from the Dish equation, with 75 percent to 80 percent of new owners bringing in their own names and visions.
Many restaurateurs possess a can-do attitude that is not stifled by a failing eatery as a new home. “Why buy a restaurant and pay key money when no money was being made?” Houlihan asked rhetorically. “A restaurant with a lease in place and a liquor license has value even if it is not making a lot of money. Very, very few restaurateurs are able to turn a shoe store into a restaurant. There”™s no guarantee of approvals and the odds are against you.” Among the workaday variables with huge implications: four times the electricity required for a restaurant (400 amps vs. 100 amps for a nonfood store) and a ducting hood that, in Ficalora”™s words, “can be prohibitively expensive and require approvals.” He, too, stressed that approvals for such work are never a given. The company brochure, which features a knife-and-fork photo and the business tag “Brokers and Restaurant Consultants,” breaks down concerns for sellers (ideally in possession of an assignable 10-plus-years lease); for buyers (Americans With Disabilities Act compliance); and a best-case scenario bullet-point list.
As for filling the dining room floor, “The good restaurateurs have made adjustments,” Ficalora said, citing a recession-born trend. “They”™ve gone to smaller plates and a lower-priced menu ”“ moving toward the atmosphere of a bistro, trattoria or café.”
Houlihan and Ficalora recently closed similar restaurant deals including the 808 Bistro in Scarsdale, Frankie and Fanucci”™s in Hartsdale and The Cookery in Dobbs Ferry. Their current 11 active listings span Westchester, Putnam and Rockland counties. Ficalora, who closed the Dish deal and who sat down recently with Houlihan to discuss the restaurant-real estate business picture, is also working on projects in Manhattan. Past deals have included Holy Smoke BBQ ”“ “Home of sinfully fine fare” ”“ The Lantern Restaurant, both in Mahopac, and Johnny Rockets on Route 22 in Scarsdale.
Houlihan specializes in restaurants, but the firm also handles commercial real estate via a 10-year relationship with Houlihan & O”™Malley Real Estate Services, itself 30 years in business and also based in Bronxville.
Well Done Bill!