Failing Deli

Discussion in 'Growing and Managing a Business' started by Sean489, Oct 4, 2014.

  1. Sean489

    Sean489
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    Guys I'm a young inexperienced business owner. I bought a Deli I had worked at from previous ownership that seemed incompetent and to have lost interest. Figured my work ethic alone would be enough to trigger a turn-around. business has continued to drop off, and is becoming more and more of a struggle. Our profitable months are the summer months and carried us through our first winter although we went with out pay for 2 months. We are now approaching our second winter and are losing money already everyday. I don't project we will survive to even January at this rate.
    I was ambitious and never saw it coming to this and had my father sign a personal guarantee of the rent. If we close he would owe about 150k on the remainder of the lease, which I cant live with. Does anyone own a Deli or have an advice on basic things to do? We raised breakfast prices and I now realize they may be a turnoff and that may have been the wrong move. Our lunch sandwiches are $4.49 for heroes + additional for Cheese, lettuce tomato etc. Total price comes to $5.84 w/cold-cut+ch+L+T. A very reasonable price and we have a handful of customers during the hours of lunch that we used to have steady lines. I don't know what to attribute it to and wonder if advertising digs us further into a hole at this point. Afternoon business has also completely declined while we do exactly what the past ownership has.
    We offer Cold-cut sandwiches, Several types of Chicken, Cold-cuts, Chopped Salads, Daily Soup, Breakfast sandwiches, mac+pot+coleslaw + other salads in salad case, chips, coffee. I don't know what else I can sell Beer would be profitable but take time to get licensed and cost further money. NEED TO DO 12k a week to minimally profit, we were doing 13,500-15900 in summer months. Down to under 11k already and steadily going down each week. Sounds easy to say make new sandwiches, new menus, new options But without a demand I fear we would throw out wastes and invest further money we may not see back.
     

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