日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語Fran?ais
World
Home / World / Americas

Bay Area restaurants struggling, high rents

By LIU YINMENG in Los Angeles | China Daily USA | Updated: 2018-12-24 23:05
Share
Share - WeChat
File Photo: San Francisco. [Photo/IC]

Skyrocketing commercial rents exacerbated by a high cost of living in the Bay Area have taken a toll on some restaurant owners in San Francisco, forcing them to deal with the inability to meet the bottom line.

“It’s a losing proposition to open a restaurant in San Francisco these days,” said Erik Reese, a restaurant specialist from TRI Commercial, a real estate company based in Northern California.

“You are paying out 10 to 15 percent of your revenue in rents. The landlord is making all the money, but you are the one working,” Reese said. “It’s a lopsided balance.”

Hans Hansson, president of Starboard Commercial Real Estate, said that in addition to the mounting rent, several other factors contributed to the pressure of breaking even and operating a successful restaurant in San Francisco.

First of all, the cost of building a new restaurant has tripled in the past three years along with a steep increase in material costs. The average cost of opening a new restaurant in San Francisco is now around $750,000, he said.

The biggest challenge for some existing restaurants are the rising rents, which are likely to double when a building changes ownership.

“That’s substantial, because the ability to pass that on to the customers is tough, because there’s a certain price point, particularly in Chinatown, that people are willing pay for Chinese food,” Hansson said.

The rent for restaurants is calculated in amount per square foot, Hansson said. In Chinatown, that means the rent could easily go from $6,000 to over $10,000 a month for an average-size restaurant, he said.

“If a 2,000-square-foot restaurant is available in Chinatown, and again, in one of the better locations, that’s probably $6 to $8 a square foot per month,” Hansson said. “If it costs $6 a foot, then it would be $12,000 in rent, as a starting point, to $16,000. For a 2,000-square-foot restaurant that’s not uncommon.”

The other big problem is labor costs. San Francisco has a minimum wage of $15 an hour. Employers also have to pay mandatory health care benefits for their employees, per San Francisco’s 2008 Health Care Security Ordinance.

According to the San Francisco Chronicle, the 2018 set-aside rate is $1.89 per employee per hour worked for businesses with 20 to 99 employees, and $2.83 per employee per hour worked for businesses with more than 100 employees.

Further exacerbating the difficulties is the high cost of living in San Francisco. Hansson said a lot of restaurant owners are finding it hard to keep their employees, even with the minimum wage hike.

“Chinese restaurants used to be able to bring a lot of chefs from overseas, but it’s a struggle now to get those people to come here, particularly with the high cost of living here,” Hansson said.

According to Reese, roughly 200 restaurants in San Francisco shut down in 2017.

Although it’s not clear how many of those closed are Chinese restaurants, Reese said part of the problem is that landlords are pumping rents up.

“The best thing for people to do if you want to have a restaurant: buy the building,” Reese said.

Most Viewed in 24 Hours
Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 久久国产精品久久 | 欧美黑人性暴力猛交免费看 | 国产精品毛片在线 | 91私密视频 | 国产一级片网站 | 亚洲精品色 | 国产碰碰 | 日韩视频观看 | 亚洲精品三级 | 天天操夜夜操天天操 | 亚洲精品免费在线观看 | 91久久综合 | 国产91网| 91久久亚洲精品一区二区 | 国产午夜一区二区在线观看 | 国产精品久久久久久久久久久久 | 91在线视频免费观看 | 天天拍久久 | 天天摸天天做天天爽 | 久久久无码精品亚洲日韩按摩 | www国产成人免费观看视频,深夜成人网 | 欧美精品h在线播放 | 九九九国产在线 | 亚洲欧美v国产一区二区 | 国产视频福利 | 五月天黄色网址 | www.av在线| 国产在线精品一区二区三区 | 久久久久久久久久爱 | 精品久久免费视频 | WWW.亚洲最大夜色伊人 | 成人在线一区二区 | 国产九九精品 | 色情综合色情播五月 | 欧美黑人乱大交 | www.天堂av.com | 亚洲蜜芽在线精品一区 | jyzzjyzzjyzz日本在线观看 | 亚洲h | 一区二区三区回区在观看免费视频 | 亚洲欧洲精品视频在线观看 |