Kind Landlords Keep Businesses Going
June 3rd, 2009
Reduced rent and giant $4 burritos full of fresh ingredients allows one small restaurant to survive while others go under
by Richard Markosian
Using his family's age-old Peruvian fire roasted chicken recipe, Juan Baquerizo realized his dream of opening his own small restaurant. Almost overnight K-Rico was a hit with customers filling his small space. "I was doing easily over $1,000 per day," he says, and it appeared K-Rico Mexican and Peruvian would be around for years to come. Then everything changed overnight.
"We watched it happen right there," Juan said pointing to a wall where a tv mount sits empty. "When the stock market tumbled in September, everyone decided to stay home and stop going out." Juan blames the media for spreading fear that has lead to so many small businesses like his hitting such hard times.
The signs of hardship for small restaurants are everywhere around Juan's restaurant on 300 West and 2100 South. Down 300 West, another new development called 18th Street Center is full of the remains of other resturants that didn't make it: Slo Joes BBQ, Rumbis and a Hawaiian BBQ restaurant. "They couldn't survive because their rent was too high and the landlord don't want to lower it for them," Juan says. Rent in the 18th Street development--that is now nearly empty--is $3,000-$5,000 per month, according to Juan, and he says the Hawaiian BBQ lasted less than three months. His regular rent is just $1500 per month and he is working with the landlord on a month-to-month basis.
The small strip mall where K-Rico is a located is in an island of locally-owned businesses in a sea of chain-stores--Home Depot, Best Buy, Costco, Wal-Mart, Lowes and Sam's Club can all be found within one-mile. Crazy Jim's and AMT Printing are beside (Is this next to, on either side of or just in the same mall as K-Rico) Juan and they too are managing because their landlord is "working with them on rent." Juan says if it weren't for his landlord he would have been out of business months ago.
"It's really bad. It's about half as good as it used to be and now I really don't know from one month to the next if we will be able to stick around," he adds.
One month later I visited Juan again. His restaurant is empty except for his friend Elizebeth and her two little girls. I ask Juan how he's doing now. He tells me his previous Friday was very good with $650 in business. One menu item is keeping his head above water, his giant $3.99 Carne Asada Breakfast Burrito. "They sell very well, but beef is expensive," he adds.
happy customers
On three visits I have tried three different menu items. One taste of Juan's chicken and I immediately understood why he is risking his house and savings on his restaurant dream. It's moist and full of flavor and certainly the best $4 lunch found anywhere in the area. The size of the $5 chicken burrito amazed my wife; she could only eat about half--there was still enough left over for another meal. Why such large portions? Juan says his customers expect a lot of food for a little money and that is what is keeping him in business.
Elizebeth Basaldua tells me she and her daughters eat at K-Rico at least once a week: "You can find similar food in other places, but it will cost you double."
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