The Daily Rail: Restaurant Closes Permanently After Backlash from a Facebook Post

Thursday, October 12, 2017


Today's Specials: 


BUSINESS: We Analyzed 437,013 Supplier Purchases Last Month... Here's What We Can Tell You About Pricing [Sponsored by Orderly]

Orderly took a look at over 437,013 restaurant supplier purchases last month and real purchases made by over 4,100 restaurants in the US in the last 30 days. The first thing they found was that 92% of restaurants are overpaying for their supplies. Here’s what you can do about that.




Fires Burn Wine Counties

California is facing the worst firestorms in the state’s history as restaurants, hotels, and wineries have been devastated. The damage is most likely to impact the wine and tourism industry most drastically as Sonoma and Napa vineyards are engulfed in flames. Here’s how you can help. 

Small Country, Big Cup

Iceland is the smallest nation to qualify for the World Cup with a surprisingly small population of 340,000 people. This infographic shows the top 10 smallest nations to reach the World Cup. And as Iceland goes for the 2018 World Cup, the U.S. men’s soccer team failed to qualify for the first time since 1986. Ouch.

Infographic: Iceland Is The Smallest Nation To Reach The World Cup  | Statista

Technology, Meet Extreme Laziness

Walmart is testing a shopping service that allows delivery staff to stock the food right into your kitchen. In a Walmart blog post, the brand explains that the process revolves around a “smart lock” that shoppers must install for delivery people to get a one-time passcode. You then get a notification that your delivery is taking place and can monitor it on the app.



Why it matters to you: An Arizona restaurant has closed indefinitely after a political Facebook post backfires.

When restaurants get political, there are bound to be negative repercussions from people on both sides of the aisle. The NFL has drawn much scrutiny over its reaction to the kneeling protests by many football players during the national anthem, causing some restaurants to ban showing any NFL games. A local Arizona restaurant is dealing with major backlash after posting a politically-charged statement on their Facebook page against the NFL players recent protest during the national anthem. Cup it Up American Grill has now closed indefinitely after their Facebook post went viral urging people that disagree to share with their friends to never dine at their restaurant. The post has led death threats to owners and staff and threats to burn the restaurant down.  

Following the immediate firestorm of unhappy and angry customers, the restaurant posted a sign on their doors that they will be permanently closing as a means of safety to their staff. Other restaurants refusing to play NFL games have had different experiences, where guests have supported their decision.

Keep in mind that your core loyal following may have identical views on topics, but does not represent the entire public. Restaurants posting these messages about current issues need to consider whether the potential firestorm is worth the hit to business. For establishments refusing to show games, we recommend not posting politically charged statements on social media and attempt to keep the arguments to a minimum. This restaurant in Arizona proves once again that politics and the service industry do not mix, and that it’s best to save political debates for your personal social media accounts.



Why it matters to you: It’s only bad news if you aren’t growing.

More bad news for the casual dining segment. While fast food stocks are soaring and fast casual is dipping but not free falling, it’s casual dining that is dropping like a stone. With big players like Dine Equity (owner’s of Applebee’s and IHOP), Brinker International (Chili’s, On The Border, etc) and Buffalo Wild Wings stocks all tumbling by double digits, you would think no one is even dining out anymore.

In the sports-themed segment, the news is even worse with BWW being joined by other players like Champs/Fox & Hound and Ignite’s Brickhouse Tavern with double-digit stock price losses. The irony is that the fast food giants make up three of the top ten stock performers on the S&P.

So, what does this all mean? Nothing if you are running your location(s) well and are experiencing growth. If that’s the case, you aren’t subject to the same judgments the big chains face. Their performance is based on a variety of factors from new openings/development to same-store sales comparisons.

However, they are running hundreds of restaurants and you run much fewer. Therefore, if you are doing well and experiencing even modest growth, keep up the good work. However, if your sales are eroding, then you may need to reconsider how you operate and be proactive. Only you can ensure your success through a great guest experience and solid operations. What are you doing to make that happen?