Cajun spot replacing Le Gallo Rosso

[Robin Garr]

While we are on the topic. Lets be honest. How many restaurant owners here locally actually sell their business and concept (minus any real estate if they own their own building)? How many restaurants locally have actually changed owner hands, remained relatively the same, and stayed in business? I dont know, but Im guessing very few.

True that, although 610 Magnolia is a primo example. Perhaps Havana Rumba and Mojito as well, although the sale was to a partner. Or Zen Garden, but the sale was to a partner and quality dropped. Good point!

Your snark would have more gravitas, though, if you had gone to schools that taught how to use the apostrophe.

Bam.

While we are on the topic. Lets be honest. How many restaurant owners here locally actually sell their business and concept (minus any real estate if they own their own building)? How many restaurants locally have actually changed owner hands, remained relatively the same, and stayed in business? I dont know, but Im guessing very few.

True that, although 610 Magnolia is a primo example. Perhaps Havana Rumba and Mojito as well, although the sale was to a partner. Or Zen Garden, but the sale was to a partner and quality dropped. Good point!

It's a great point. Very few restaurants carry enough goodwill in the community to truly have value. It seems they are often so tied to the personality of the founder/chef that when he or she wants to leave the concept dies. I've looked at several offering docs for restaurants for sale and really all you are buying is used equipment and perhaps a building.

[Robin Garr]

...I think the title of this is a bit unfair.

+1
Yeah, in truth this may be the worst title for a thread I've seen in a decade on the forum.

Okay, guys, I have ears to hear, and I know how to use them. I've changed the title at the top of this thread, the one that shows from outside.

Now, I've been trying to clarify my position throughout this thread (and also on Facebook), and I'll let me make another, updated, effort. I have now heard from Annette Saco, owner of Le Gallo Rosso, and from Dustin Staggers, who's a forum member also and tells us he may post something today. I do not believe either of them is in the wrong.

However, it's going to be hard to convince me that it's all good when a landlord's apparent greed sets up a situation in which people are hurt. Yes, Ms Saco was trying to sell the place, and yes, she had no legal expectation beyond the end of the month. And yes, Mr. Staggers is eager to get into the property and start his new business.

But the transaction was handled "inelegantly" at best. In my opinion, Ms Saco was victimized by the landlord's speed and greed. And while I have no real gripe with Mr Staggers, the lesson that I would take from this, if I were ever in a commercial sale negotiation, I'd try my best to look beyond the landlord to the previous lease-holder to ensure that full communication was taking place and that no one was going to get a nasty surprise.

I don't know how I can be any clearer than that.

Don't know any of the players involved, but I would certainly consider the landlord's current actions when trying to predict how he/she would conduct themselves in the future.

[Robin Garr]

Don't know any of the players involved, but I would certainly consider the landlord's current actions when trying to predict how he/she would conduct themselves in the future.

Thinking back on it, the "Greedy Landlord" theme plays out fairly regularly on the Louisville dining scene: A popular eatery, apparently thriving, suddenly disappears <blink> when a new suitor comes along and flashes a few large bills.

Let's see ... Allo Spiedo was a "Primo" example (inside joke there), but not the only one. Anybody remember MoFlav? Or the quick series of eateries that ran in and out of the space at First and Oak? Who remembers other bad examples? Post 'em, please!

[Robin Garr]

Don't know any of the players involved, but I would certainly consider the landlord's current actions when trying to predict how he/she would conduct themselves in the future.

Speaking of which, the landlord's name and company haven't surfaced, as far as I can see. Does anyone know who the owner is?

I guess the best current example (other than the source of this thread, of course) is Limestone, although I'm not aware that any newcomer is forcing them out, only that they can't reach an agreement on the lease renewal.

[Robin Garr]

I guess the best current example (other than the source of this thread, of course) is Limestone, although I'm not aware that any newcomer is forcing them out, only that they can't reach an agreement on the lease renewal.

Yes, it's sad to see Houston re-posting Limestone's ad every few months.

I do think Limestone is a little different, though, because as I understand it, Jim is in an ownership position. If a buyer came along and offered cash for a quick turnover, he'd be happy to pocket the money, even if a little miffed about having to shut down abruptly. I might be wrong about Jim's stake, but I don't see him as being in a position to be blind-sided as Annette apparently was.

Tell me if I'm wrong. It won't be the first time!

I do think Limestone is a little different, though, because as I understand it, Jim is in an ownership position. If a buyer came along and offered cash for a quick turnover, he'd be happy to pocket the money, even if a little miffed about having to shut down abruptly. I might be wrong about Jim's stake, but I don't see him as being in a position to be blind-sided as Annette apparently was.

As in ownership of the building? I don't believe so - 99% sure he's purely leasing the space.

For me it's pretty easy. The current owner could have avoided this by renewing the original lease for a year, or two years, whichever it was instead of going month-to-month. If they were planning to sell the restaurant a new owner would have been required to assume the lease and indeed, the location with a lease would have been a selling point. Who would buy this restaurant and then want to immediately move away from it's loyal patrons?

I feel for the owner on a personal level, but "lease piracy" is a pretty harsh term when already on a month-to-month.

I do think Limestone is a little different, though, because as I understand it, Jim is in an ownership position. If a buyer came along and offered cash for a quick turnover, he'd be happy to pocket the money, even if a little miffed about having to shut down abruptly. I might be wrong about Jim's stake, but I don't see him as being in a position to be blind-sided as Annette apparently was.

As in ownership of the building? I don't believe so - 99% sure he's purely leasing the space.

Pretty sure Jim- like most of the local restaurants I know- owns Limestone the business, the recipes, and all the business equipment, but rents his space from the center landlord. He might sell the business, but if the buyer wants to keep it in the same space, they have to negotiate a lease with the landlord, or as pointed out, sometimes the existing lease is transferable to the new restaurant owner.

Speaking of which, the landlord's name and company haven't surfaced, as far as I can see. Does anyone know who the owner is?

From the WDRB article - http://www.wdrb.com/story/25987415/new- ... allo-rosso -
"Geraldine and James Harrah, the building’s owners, did not immediately return a phone call Thursday."

[Robin Garr]

From the WDRB article

D'oh!

http://www.wdrb.com/story/25987415/new-orleans-themed-restaurant-to-replace-le-gallo-rosso -
"Geraldine and James Harrah, the building’s owners, did not immediately return a phone call Thursday."

I'll try a little harder to get in touch.

I think the use of the word "greed" is way excessive.

The landlord owns a piece of expensive property.
The restaurant is really worth very little (see TP's post) and has unsuccessfully been for sale for months.
The landlord has a chance to get a five year lease as opposed to a month to month lease.

I see nothing greedy, disloyal or improper about accepting a five year lease since he has to pay taxes, maintain the building, and possibly a mortgage if it sits empty.