The Cost of Operating a Restaurant in New York City

This week the New York Times published an article investigating the costs of operating a restaurant in NYC versus the rest of the country. Among factors considered were rent per square foot, cost of produce and labor, and regulations. The author found that all of these factors are individually more expensive in New York City than other parts of the country, and in sum combine to create a prohibitively expensive business environment for restaurateurs. The article, which can be found here, succinctly characterizes the very difficult business of operating a food business in New York City. Of particular note was the increased price of produce in NYC versus the West Coast. It is well worth a read for current operators, those considering the industry, or the generally curious reader.

Veggie Grill Raises Additional $22 Million in Funding

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The West Coast vegan chain Veggie Grill recently announced that they have received an additional investment to the tune of $22 million. With this money the chain plans to expand beyond its 28 units on the West Coast into new markets including the Midwest and East Coast. Steve Heeley, Veggie Grill’s CEO, also indicated that the brand is evaluating nontraditional locations for expansion such as airports and college campuses. Fueled by this new round of investment the chain expects to double in size by 2019. The growing demand for meatless food options – especially among college students and Millenials – makes this seem very reasonable.

You can read more about the expansion of Veggie Grill here.