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To: marcher who wrote (82636)	8/3/2008 4:49:08 AM
From: Chispas	Respond to of 116555

So you want to own a restaurant? . Chris "Koz" Kozlowski, August 3, 2008 Well, now's your chance because I can bet that most restaurants are for sale. There may not be a "For Sale" out on the front lawn, but the way the economy is going, I wouldn't be surprised if most are willing to negotiate. Today, restaurants are battling challenges that no one outside of the industry would begin to imagine. Rents, utilities and workforce – these are just the tip of the iceberg. However, the cost that we pay for food definitely tops the list. "Food cost" is the term we use for the price a restaurant pays for the food that comes in to the establishment. We buy food just like everyone else. However, the belief is that restaurants get these goods at a discounted price over the rest of society. This is a myth. As a restaurant, we pay about 10 percent more for goods than most at your local supermarket when we go through our purveyors. The reason for this is that there are transportation costs associated with getting it to an establishment. With gas prices as high as they are these days, they pass this cost on to the restaurant. Most restaurants then absorb this cost since they would not make it if they passed a 3 percent "transportation tax" on the final bill. The transportation costs are not the only thing affecting restaurants. You are probably somewhat familiar with ethanol. This is a gas additive that is made from corn. Corn is directly tied to a majority of items that a restaurant needs to be in business. Not only is corn consumed in its raw form, but it is used as an ingredient to make many of the items you eat and drink in your home today. Even the best beef that you can eat today is corn-fed, not grass-fed like some may lead you to believe. Ethanol is one of the biggest problems to adversely affect the restaurant business today. This new fuel source actually costs more to produce than it does to burn. The farmers finally got their big break when they were able to get the tax incentives to turn their crops into fuel. It was a good idea in theory, but once food prices go up enough and people see that ethanol really doesn't work, there may be a correction in the marketplace. Corn is a great crop for farmers to grow, but it is starting to hurt the wallet of the consumer who relies on it for everyday life. For those restaurants that have the luxury of going to their local supermarket, this is the best way to save a buck or two on food. The best prices on most average goods can be found at your local supermarket. This spring, milk cost $18 and change for 91/2-gallon containers. That was just over $4 a gallon where you could buy it at your local supermarket for under $3 per gallon. The reason I bring up supermarkets is that their prices don't increase as quickly as most purveyors. This is typically due to the buying power that supermarkets have over some of the smaller distributors. The rising cost of food is going to turn restaurants into dinosaurs, at least for the independent owner/operators. The chains have the buying power to position themselves better to get a lower price on items such as flour. If fuel continues to rise and the ethanol problem isn't addressed soon, your favorite restaurant could be turned into another empty office space. Many of them already have. Chris "Koz" Kozlowski is the chef and owner of the Orchard Street Chop Shop in Dover. He is also the vice chairman of restaurants on the N.H. Lodging & Restaurant Association board of directors. He resides in Farmington with his wife and two sons. fosters.com