How to help a struggling restaurant?

Question

I am the Director of an Economic Development Corp where we awarded a grant to a local (small town) restaurant. It has been open for 5 months but is struggling - big time. We are a very small town, isolated by distance and "word of mouth" takes only one or two days to make the rounds.

There are several things working against this restaruant:

1. Quality of food is no better than the local "favorite" (it is tasty, but not better)
2. Portion sizes are smaller
3. Price is higher
4. Menu is about the same (with same or similar choices)

My delimma is that we will require our (substantial) grant to be repaid if it fails and I don't want to see that happen.

Is it my place to speak to the owner - suggest menu changes and serving ideas that may help compete in a "tough crowd" environment?

How could I approach the owner to say that changes are needed? They have already closed the doors for one week, due to no money to pay their payroll taxes. I want to help.

Answer 1

Send me an email ... you can send an email from my profile. I work with some SBDCs on things like this. I have some ideas.

Answer 2

I would ask the owner to a casual meeting where you can discuss the restaurant. I would start with, "How's business going?" and go from there. Tell the owner that you noticed the doors closed, and that you would like to helpin any way you can.
Maybe bring the business plan that they (hopefully) submitted, and discuss where they are on and off target with their goals. Remind them that you are concerned because its your job to be, and that you want to see every business in town be successful. Have a discussion and brainstorming session, because you never know how they may be feeling. They may feel like a total a**, but they may be motivated to change if they see you having positive feelings about their business. Good luck!