SLA Really Helping Hurricane Sandy Business

State Liquor Authority Says Yest to Extensions for Liquor   License Holders

      The State Liquor Authority (SLA) will extend renewal periods for liquor license holders in hurricane affected areas so that these businesses can meet filing and payment deadlines. Current licensees in New York City and the counties of Westchester, Rockland, Nassau and Suffolk, who are due for renewal in October and November, will receive an automatic 60 day grace period after the expiration date, during which they may continue to operate. The Governor also announced an extension for the time frames in which retailers can pay distributors for deliveries made just prior to the storm.

Additional SLA related relief initiatives include:

·      Free License Replacement - The SLA will provide, free of charge, replacement license certificates for those lost or damaged due to Hurricane Sandy.

·      New Year’s Eve Permits - The deadline for applying for New Year’s Eve “all night permits” will be extended for licensees in the affected areas from November 16, 2012 to December 1, 2012.

·      Temporary Licenses - Businesses currently operating on temporary licenses (temporary retail permits), may request to have these licenses extended for an additional 30 days.

·      Special Event Permits – Upon request, full refunds will be provided for events cancelled due to Hurricane Sandy. Permittees seeking to reschedule an event will be issued new permits at no additional cost, regardless of whether the event is moved to a new location.

·      Deficiency Letters – Applicants who filed applications during the week of Hurricane Sandy, or who received a deficiency letter during that time, will have 40 days, rather than the regular 20, to correct the deficiencies.

·      Conditional Approval Extensions - Any applicant whose license application was conditionally approved during the week of Hurricane Sandy will be granted an additional 60 days to meet the conditions of approval, with further extensions considered upon request. Typical conditions of approval include obtaining workers’ compensation and disability policies, authority to collect sales taxes, certificates of occupancy, and photographs showing an establishment is ready to open. Similarly, conditions of approval for alterations will be extended for an additional 60 days.

·      Deferral of Civil Penalties – Licensees owing civil penalties due during the period of October 26, 2012 to November 30, 2012, are granted an additional 30 day extension from the original due date.

·      Extension of Retailers’ Time to Pay Distributors - Retailers will have an additional 15 business days to submit payment to wholesalers for deliveries made in affected areas. The SLA’s website provides extension dates for each segment of the industry (beer, wine and liquor), at http://www.sla.ny.gov/.

For additional information regarding SLA related Hurricane Sandy relief or to request a refund or temporary permit, please contact the SLA atsandyrelief@sla.ny.gov or call (518) 474-3114.

DEC Extensions for State Permits and Fees for Affected Businesses

Governor Cuomo also announced the Department of Environmental Conservation (DEC) will waive fees and extend application deadlines for state permits for 30 days beginning today. These waivers and extensions will apply to businesses in Westchester, Rockland and Orange counties, Long Island, and New York City. This will help those businesses meet deadlines for submitting permit applications for minor modifications and renewals, obligations in consent orders and payment of regulatory fees.

These relief efforts for businesses include:

·      DEC is granting an extension for application submissions for minor permit modifications and permit renewals.

·      The agency is preparing a General Order to specify requirements for generators of hazardous waste to comply with, to allow for hazardous waste generated by the storm damage to be properly disposed of without incurring the fees and taxes for a specified period of time.

·      The state will extend the due date for regulatory fees which include fees for tons of regulated air pollutants emitted by facilities subject to the Title V operating permit program.

                     ·      DEC is extending deadlines for compliance with obligations in agency-issued 

                    orders on consent for respondents. In addition, DEC will reschedule routine                                                   cases on the hearings docket

Craft Beer, It's HOT!!

 New York's is showing breweries and wineries some real love. The legislation will protect an important tax benefit for small breweries that produce beer in New York, exempt breweries that produce small batches of beer (regardless of location) from paying an annual State Liquor Authority fee, and create a Farm Brewery license that will allow craft brewers to expand their operations through opening     restaurants or selling new products.

1.    Protects a Vital Tax Benefit for New York State's Breweries

Under the agreement, any brewery that produces 60 million or less gallons of beer in New York would be eligible for a refundable tax credit applied against New York State personal income and business taxes. The credit amounts would be 14 cents per gallon for the first 500,000 gallons produced in New York, and 4.5 cents per gallon for the next 15 million gallons produced in the State.

2.    Exempts Small Breweries from Paying Annual State Liquor Authority Fee

The legislation will exempt breweries that produce brands of 1,500 barrels or less annually (regardless of location) from the $150 annual brand label fee. 

3.    Creates a Farm Brewery License to Promote Growth of Craft Breweries

The agreement includes creating a "Farm Brewery" license that would allow craft brewers that use products grown in New York State to operate in a similar fashion to the state's farm wineries, leading to increased demand for locally grown farm products as well as expanded economic development and tourism.

The new license would allow Farm Breweries to grow in the following ways:

·      Increasing Retail Outlets for New York Products: The legislation would allow Farm Breweries to sell New York State labelled beer, wine, and liquor at their retail outlets. In addition, Farm Wineries would also be permitted to sell New York State labeled beer for off-premises consumption.

·      Allowing Farm Breweries to Open Restaurants: The legislation allows Farm Breweries to obtain licenses to operate restaurants, conference centers, inns, bed and breakfasts or hotels on or adjacent to the farm brewery.

·      Increasing Tastings: The legislation would allow both Farm Breweries and Farm Wineries to conduct tastings of New York State produced beer and wine at their premises.

·      Selling Related Products: The legislation would allow farm breweries to sell beer making equipment and supplies, food complementing beer tastings, souvenir items, and additional products similar to those allowed under the Farm Winery statute.

In order to receive a Farm Brewery license, the beer must be made primarily from locally grown farm products. Until the end of 2018, at least 20% of the hops and 20% of all other ingredients must be grown or produced in New York State. From January 1, 2018 to December 31, 2023, no less than 60% of the hops and 60% of all other ingredients must be grown or produced in New York State. After January 1, 2024, no less than 90% of the hops and 90% of all other ingredients must be grown or produced in New York State. The beer manufactured under these guidelines would be designated as "New York State labeled beer." The legislation is modeled after the 1976 "Farm Winery Act," which spurred the growth of wine production in this state, including the creation of 249 farm wineries and tripling the number of wineries.

4.    Exempts Farm Wineries, Distilleries and Breweries from Burdensome Tax Filing Requirements

The legislation exempts Farm Wineries and Distilleries as well as Farm Breweries from a costly and burdensome tax filing requirement. Currently, all beer, wine, and liquor wholesalers here in New York are required to report sales made to restaurants, bars, and other retailers. However, as Farm wineries, distilleries and breweries are small, often family owned operations, they have struggled to afford the costs of complying with this annual reporting. The burden imposed on them by this filing requirement outweighs the benefit received by the State Tax Department, as purchases from farm wineries, distilleries, and breweries account for a very small percentage of the state's total beer and wine sales. These businesses are already required by law to maintain sales records which the Tax Department may obtain upon request, making the additional mandatory filing requirement not necessary.

Questions to Ask When Buying a Business

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  Buying an existing business can be a great way to become your own boss without going through the headaches of startup. 
  To begin, you'll want a business broker on your team. A good broker will find companies that are up for sale and that meet your criteria. April Summars is a very knowledge business/restaurant broker.  She knows what is available and  can even find businesses that aren't advertised for sale but whose owners may be willing to sell.
  Now that you have your broker and her team here are some questions to consider:
  
  
  Is the industry in growth mode, or is it mature or in decline?
  
  
  Is its target market growing or shrinking? 
  
  
  Are its target customers undergoing demographic changes, such as aging, loss of disposable income, or other transitions that could put the business at risk?
  
  
  Is the business's customer base growing? 
  
  
  Is the business adequately diversified, or is it overly dependent on one or two big customers?
  
  
         How does this business compare to competitors in its industry?
  
  
         How many competitors are there?
  
  
         What are their strengths and weaknesses?
  
  
  Are  new business  moving into the area?
  
  
          What kind of staff does the business have?
  
  
  Do employees have skills that are difficult to find elsewhere?
  
  
  Are their wages average, above average, or below average for the industry?
  
  
  What benefits does the company offer?
  
  
   Is there a lot of turnover at the company?
  
  
  How long have key employees been with the company?
  
  
  Are key personnel likely to stay with the company after a change in ownership?
  
  
   What is the company's reputation in the industry and the community?
  
  
  
  
  Businesses are often up for sale because of problems the owner may try to hide.
  You can do research online as well as  ask around in the community to learn as much as you can about the reputation the company has among customers, vendors, and prospects.
  
  
  Also keep in mind while all of this has it’s importance and it’s place your operational and managerial style has a big impact on the businesses bottom line. If a business is not doing well it is because of a managerial issue of a great business concept  in the wrong location?
  
  
  As a business broker I can help you find answers to most all of your questions.
  
  
  Call and let’s get started today!
•      646.246.8476

The Big 4 for Restaurant Site Selection Success

              

               The Big 4 in Restaurant Site Selection Success

Choosing the right restaurant location is critical to the success of your restaurant. The restaurant business is very challenging to be successful in and having a strong location will enhance your chances for success. The key factors to consider in choosing the proper location are as follows:

1) rent affordability,

2) demographics match your concept requirements,

3) trade area draw and

4) major market generators in the neighborhood.

1) Rent Affordability – This means that you can afford the rent you will be paying. Frequently operators pay more rent then they should and this can contribute to you going out of business. Restaurant operators should not pay more than 6% to 8% of their sales in rent. This 6% to 8% factor also includes any additional costs you may be paying the landlord which may include real estate taxes, fire insurance and CAM charges (common area maintenance costs) which include security, gardening, common area utilities and maintenance costs, etc. This means that if you are doing $600,000 in yearly sales your rent should be no more than $48,000 ($600,000 sales x 8% = $48,000) in yearly rent.

2) Demographics Match Your Concept Requirements – Demographics are the population statistics in the neighborhood of your proposed restaurant within a given radius of your site. In researching your concept you want to make sure that the neighborhood population can financially support your restaurant. The demographics include the following factors:

a) per capita income – the yearly earnings per person,
b) household income – the yearly earnings per family household,
c) education level – education levels are classified as high school diploma,     undergraduate degree and graduate degree,
d) percent of income available for spending on food purchases away from home,
e) a breakdown of ethnic mix in the area and the number of people living in the area.

3) Trade Area Draw – This is the distance an average customer will travel to come to your restaurant. Most neighborhood restaurants draw customers from a one mile radius of the site.

4) Major Market Generators in the Neighborhood – Ideally you want to have a mix of the following in the immediate area of your restaurant – a) a strong residential population, b) a strong retail area with lots of foot traffic and vehicular traffic and c) strong traffic generators such as hospitals, theaters, colleges, shopping centers and tourist attractions. Right now in NYC, tourist are driving most restaurants business.

You can not compromise in choosing the right location as this can be a make or break factor in your future success.

Your Restaurant Business Plan to SUCCESS!

Your Restaurant Business Plan to SUCCESS! 

If you plan on opening a new restaurant, bar, club or other business it is essential that you prepare a comprehensive business plan. A business plan is necessary for raising money from investors, getting third party financing and/or getting approval from a prospective new landlord to lease a new space.

The essentials of a business plan should include the following:
1) summary of the concept, 2) demographic study, 3) operational and financial information on the principals and 4) financial projections.

1. Summary of ConceptThis includes a definition of the physical characteristics of the operation discussing the format of the operations ( full service, self service, take out, etc.) and the type of operation ( i.e. breakfast/lunch, Italian, Mexican, deli, etc.) and whether alcohol will be included and if so the projected sales of alcohol compared to food sales. Other items include a definition of who are the customers, number of seats, square footage, hours of operation, licenses needed, a copy of the menu including pricing and sketches and floor plans for the business.
    
2. Demographic StudyThis includes a definition of the trade area of the business which is the distance the customer will travel to come to the business. For example the trade area draw for a neighborhood breakfast & lunch operation only may be a 1 mile radius whereas a popular dinner house operation may have a trade area draw of up to a 30 mile radius. The demographic study will give you the following statistical information within the trade area you are studying: total population, population broken down by age, household income, per capita income, ethnic mix, education levels and how much money is spent for food away from home, etc.
    
3. Operational and Financial Information on the PrincipalsThis includes personal financial statements, current credit reports, 2-3 years most current tax returns and resumes on each of the principals of the business. Also included in this section are the resumes of the key management personnel for the business.
    
4. Financial ProjectionsIncluded in this section should be the following:
   1. The projected guest check average per person for each meal.
   2. A breakdown of the food sales based on in house sales; take out sales, delivery sales, banquet and catering sales, if any.
   3. A projected source and use of funds schedule including where the money is coming from (i.e. bank loans, investors, etc.) and a detail of the use of funds. Make sure when allocating the use of funds you include the following categories: purchase price, remodeling costs, deposits, marketing costs, training costs, rent during remodeling period and most important a reserve for contingencies (at least six months payroll). 
   4. A projected Income and Expense Statement for a 5 year period. When making projections use conservative assumptions as there are so many things that can go wrong when running a business.

A well put together business plan will give you the opportunity to fine tune your business, approach investors and landlords as opportunities present themselves and enhance your chances for success.

Tricky Lease Clauses.....

       Don't Give Yourself A Stroke Over Your Office Lease

A leasing transaction can be a stress inducing ordeal if you do not have good tenant broker, correct information and an understanding of the transaction process. Having these things by your side can help ensure you will emerge with your dream office space without having a stroke or feeling the need to commit murder!.  

One little clause ......

Hidden in the fine print is an overlooked phrase which states why the original possession date can be delayed for  weeks. "Pending landlords build-out completion". Possession date will be given "Upon substantial completion of landlords work"  Don't give your self a stroke, always have a great commercial real estate attorney review your lease and below are some additional guidelines that might help. 

Stress relieving suggestions:

1. Have your landlord give you the "letter of completion" two weeks before the work is scheduled to be completed instead of simply a few days before.

2.  Make sure that every couple of days you or someone from your team visits the site to check on landlords work progress. Not in an intrusive way, but simply let folks know that you appreciate what they are doing to help you and be willing to cooperate to the extent which this is possible.

3. Don’t order your moving truck until you receive the ‘Letter of completion' from landlord.  

4. Be flexible.  Relax.  Let the professionals go through their paces.  A good tenant broker will remain next to you until you've fully moved into your new space. 

5. Have a contingency plan with regards to your current office situation.  If you are renting, you may be able work with your landlord to do a ‘Month to Month’ lease after your lease end. Do this in order to avoid becoming a 'holdover tenant'.

The Terrifying Line in Obama's Speech That Everyone Missed

His Agenda: President Obama's convention speech got rough reviews, and rightly so. He offered little but tired bromides and recycled promises. But critics overlooked one promise that will guarantee an even bleaker future.
There was plenty to dislike in Obama's speech. The language was flat, his delivery languid. The speech was stuffed with standard Obama chestnuts about the smallness of politics, the corrupting influence of money in politics, and how cynicism is our worst enemy.
Instead of stirring rhetoric filled with hope and promise, Obama pledged that under his leadership, "our path is harder" and "our road is longer."
Seriously? After four years of the worst economic recovery since the Depression, falling incomes, lower-paying jobs, increased hopelessness and exploding debt, all Obama has to offer is that he'll make this nightmare last even longer?
He also told the public that they "elected me to tell you the truth" not to "tell you what you wanted to hear," but then proceeded to hide inconvenient truths while filling the public's ears with sweet nothings.
For example, he pledged government help for everyone who could possibly want or need it, but managed to avoid any mention of the hard truth that the national debt just topped $16 trillion and entitlements are unsustainable.
He said he'd spend money saved from ending the wars in Iraq and Afghanistan on roads, bridges and schools. Even the liberal press wasn't buying this one. As the AP pointed out, Obama "laid claim to a peace dividend that doesn't exist."
Obama promised to "take responsible steps" that would "keep the promise of Social Security." But he failed to mention that the only options he's left on the table are raising taxes or cutting benefits. That may not be what people want to hear, but it's the absolute truth.He trotted out his supposed plan to cut deficits by $4 trillion over the next decade. But his actual plan — the budget he presented in February — would add $3.5 trillion in deficits, according to the Congressional Budget Office.
Then Obama said he'd create a million new manufacturing jobs, recruit another 100,000 math and science teachers, cut tuition growth in half, and reform the tax code. All by magic, apparently, since he's provided no detailed plans on any of this.
But while everyone was picking apart these and other flaws in Obama's speech, they overlooked the most frightening line of all. That was when Obama promised that he'd pursue "the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one." That promise might have made liberal hearts swoon. But as Amity Shlaes explained in her outstanding history of the era — "The Forgotten Man" — it was precisely FDR's "bold, persistent experimentation" that was largely to blame for the length, depth and severity of the Great Depression.
Convinced that the government had to do something, FDR tinkered and experimented, she said, figuring that if he didn't "get it right the first time ... maybe he'd get it right the second time." But the very arbitrariness of FDR's actions, she found, made it impossible for businesses to make plans. And so, as FDR's bold experiments increased, business activity decreased and markets froze.
"From the point of view of a business," Shlaes said in a 2009 interview, "it is annihilating to hear Washington uncertain, and that itself retards recovery because you really don't know what to expect."
If Obama wants to conduct experiments, he should get a job as a high school science teacher, and not use the entire nation as guinea pigs, particularly when we already know how his tests will turn out.
http://news.investors.com/ibd-editorials/090712-625080-terrifying-promise-obama-made-.htm?ven=OutBrainCP&fromcampaign=1