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With a so-so
winter season over, and the sluggish summer season upon
us, many restaurateurs are throwing in the dish towel.
Restaurant
brokers say a large number of eateries throughout South
Florida and the Treasure Coast have been quietly put up
for sale.
“This is the highest number of listings I’ve
had in 10 years,” said Tom Prakas, a veteran restaurant
broker with the Prakas Group in Boca Raton. Prakas
said he has about 100 South Florida restaurants listed for
sale, almost double last year’s number.
“There are more
restaurants available
(for sale) than there have been in years,” agreed Richard Lackey, a restaurant broker ‘ Prakaswith
the Lackey Cos. in Palm Beach Gardens.
Lackey and Prakas
don’t want to give up names just yet. Restaurant owners like to keep sales a secret to
maintain their hold on staff and customers. But it’s no surprise that a number
of the restaurants that are up for sale are
clustered in the Palm Beach Gardens area.
With a high failure
rate (between 80 percent and 90 percent), owning a restaurant
is never an easy venture, even in the best of times.
“But now you
have the economic hardships on top of it,” Prakas said. “I
try to be an optimist, but I don’t see any bright spots. Commodities prices (for food) are going up, and there’s a fuel
charge on all restaurant deliveries.”
With sky-high gas
prices, there’s another new problem for restaurants: finding adequate help, said Alan Koch, a restaurant broker with Score
Realty Inc. in Palm Beach Gardens.
Koch said many restaurants in northern
Palm Beach County hire workers who live in Martin or St. Lucie counties. These days, the prospect of driving a long distance to work a few hours and hope for tips doesn’t seem like such a great HeaT
Lackey and Koch noted that eateries led
by seasoned restaurateurs, such as John
Spoto or Jim Taube, are doing well despite the downturn. And restaurants at the very high end, including
well-known brands, also are OK, Prakas said.
Originally posted 2008-07-07 00:00:00. Republished by Blog Post Promoter