Tuesday, April 13, 2010

Restuarants that can take the heat could see upturn

By Megan Donovan

ROXBURY – After a pipe burst and caused severe water damage, a 30-year-old southern style staple, Mississippi’s, was no more. Owner Jim LaFond-Lewis saw the damage as a symbol he should get of the business, so he took the insurance money and put his popular cafeteria style restaurant up for sale.

“I had fallen out of love,” Lewis said.

Lewis says his interest in Mississippi’s began to dwindle as his restaurant’s sales declined. That was in March 2009.

Nationwide sales in the service sector dropped in 2008 and 2009. Figures from the US Department of Labor showed more job loses than gains per month during those two years. But according to the latest reports from the U.S. Department of Commerce, an increase in sales revenue and jobs has been shown in January and February 2010.

Massachusetts is projected to register $12.4 billion in sales for year ending 2010, but only those who have survived months of losing sales will benefit from a projected turnaround.

Lewis cites significant drops in his customer base, the majority of which comes from corporate catering jobs, during 2008 and 2009. With no partners or peers in the business, Lewis could only draw from himself to motivate his employees and finance developments within his restaurant.

“There are expectations in a restaurant, especially in a one-of-a-kind restaurant,” said Lewis. “If you aren’t continuously expanding and planning new ventures, you’re business will suffer.”

Other business owners in the area have seen a decline in customers. Butterfly Coffee has been serving muffins and lattes to fewer and fewer students and commuters, who account for 80 percent of its business.

“Over the summer it’s dead,” said Amelia Walker, barista at Butterfly Coffee.

Abdillahi Abdirahman, owner of the coffee house, says he has struggled with bills, even though he has close ties to his customers.

“Sometimes I can’t make payroll,” Abdirahman said. “I give them what I can under the table, until we make the money back.”

Abdirahman says he works up to 18 hours everyday and makes other sacrifices to cut costs.

“I haven’t gotten paid in months,” Abdirahman said. “It’s as if I am running a non-profit for the community.”

When asked why he started his business, he replied: “That’s what I ask myself.”

Some businesses say they are fairing well, though, amid tough economic times. Restaurants who have focused on take-out and delivery are some who have been able to tough out the last two trying years.

Jasvin Saini, a manager at AK’s Take Out & Delivery, which has three locations, one in Roxbury Crossing, says business has slowed significantly, but they are still able to pay bills.

“It’s very bad, but we are surviving,” Saini said.

Ideal Sub Shop on Dudley Street, which has been co-owned by Antonio Rosa for 35 years, says they are as busy as ever. One of their secrets: using family as labor.

“It keeps wages low and allows us to spend more on the best meat and best ingredients,” Rosa said.

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