Sunday, November 11, 2012

What True Thai has in common with you

Like just about everyone else, True Thai is short on cash. This may surprise you. "Anna, how can you be short on cash when True Thai is always busy?!" That question is actually very easy to answer.

Like most people in this country, True Thai lives on a budget. So long as we stick to our budget, we do OK. We were doing OK right up until January of this year. That is when a clause in our lease with Seward Redesign that we had not noticed kicked in and suddenly our rent doubled to almost $16,000 a month. Divided by 189 (our seating capacity), that's $84 a month per chair.

I guess that does not sound like much if you're a landlord, but that is a lot of rent to pay. So much so we were having trouble paying it. By summer, Seward Redesign had a choice: evict us, or lower the rent. They chose to lower the rent a little, but we are still paying a lot of rent and that's why we're tightening our belts and trying to be more efficient. We even had to raise our prices, but that didn't really cover much more than the increase in food costs we've experienced.

So if you were wondering why Anna couldn't buy a food truck without a payment arrangement, now you know. Maybe I am sharing too much, but I think regular customers like to know what is going on with their favorite restaurant.