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Struggling to Survive: The Small Family Owned Restaurant

March 29, 2012 | Comments: 0 | Views: 203

Each and every one of us has one that we love. For some, it may be the hole in the wall family establishment right around the corner, or the local pub that we enjoy grabbing some beers from after a long days work. However your locally owned spot does business, they all share one commonality: stiff competition from large corporations are threatening to put them out of business.

Most people are unaware of the obstacles that our local favorites are facing. The "Mom and Pop" establishments no longer have the tools to compete with some of the giant corporate chain restaurants that are rapidly expanding into their territory. Laws and taxes no longer give adequate favor to the small business owner, which puts them at a major disadvantage when trying to stay afloat.

So I'm sure you're wondering, what are some of the things that are threatening these small restaurants to the point of extinction? Land/Lease laws are just one of the many things hurting small business. There is no legislation in place that favors the landholder to sell to a small business, and generally the smaller businesses will actually get a less favorable deal than large corporations. Corporations have the power to make guarantees on future projects to help lower the price of the lease or the cost of the build substantially. Also, food and alcohol suppliers charge smaller restaurants much more based on the size of the orders they have. Large corps can strike major bulk deals to substantially lower the costs of their food.

There are numerous other obstacles that your local restaurant is facing, but the real question is; what is a realistic solution to help these businesses compete? Well, tax incentives would immediately provide relief to help these owners match up against larger competitors. For example, tax breaks should be given to small business for every new employee hired, if it met a certain standard of hours worked. Tax incentives should also be given to encourage land/lease owners to rent or sell to small businesses, to encourage food suppliers to give fair deals to small businesses, and for construction companies to give accurate quotes that will not jeopardize the future of the small business. Will these things happen? Probably not, corporations have way too much pull in Washington to allow the government to even the odds. I can assure you one thing, if something isn't done soon, then there will be very few companies that can rise up to compete with the massive companies, which could begin to create a monopolistic system. Do you want a future with no competition, fixed prices, and no additional success stories? I know I don't.

Douglas R Vann

Source: EzineArticles
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