Restaurant seeks community support
|
|
Restaurant Phoebe owners Debbie and Aaron Millon sit at a window table in the Montpelier eatery. STEFAN HARD/TIMES ARGUS |
Toolbox
By SARAH HINCKLEY Times Argus Staff - Published: February 12, 2009
MONTPELIER – Before resorting to shuttering the door to Restaurant Phoebe, owners Aaron and Debbie Millon are reaching out for help from their community.
In this economic downturn, restaurants are struggling. Restaurant Phoebe, located on State Street in Montpelier, is no exception. But before throwing in the kitchen towel, the couple decided to ask friends, neighbors, patrons and foodies for financial assistance.
When chef and owner Aaron Millon sat down recently and realized he didn't have enough money to pay his 18 employees, he decided to write a letter asking for help.
"I will not let Restaurant Phoebe close unless somebody tells me it must, or I feel the quality of our ingredients must be compromised due to cost," he wrote in the letter that was sent to hundreds of people via email. "Despite this resolution, I would rather ask for the financial support from our community."
People who received the letter forwarded it on to others, and people from as far away as California responded. So far, although letters and calls of support have come back to the couple en mass, few people have made offers of financial support.
"We were looking at selling," said Debbie Millon, who also works as a director of the Bellwether School in Williston. "We're hitting the slow time now. Because of everything that happened, we don't really have the cash built up to move forward."
She admits a recent case of embezzlement by an employee, in which the restaurant lost about $2,000, was not a major catalyst to the crunch. It is as though the perfect storm has hit. Sales are decreasing because of the struggling economy and fewer people choosing to dine out. Local vendors and farmers, on which the restaurant relies to serve local and seasonal fare, are also struggling.
"They are tightening up themselves," said Debbie Millon, explaining that previously, payments could be made at the end of the week or once the product had been used. Now vendors need payment on delivery. "Both of those things are affecting our cash flow."
Restaurant Phoebe opened on Sept. 11, 2006 and seems to have hit hard times only recently.
"When we opened we were jammin'," said Aaron Millon, noting the business grew throughout 2007, but saw a decrease in 2008.
Sticking to a philosophy of slow food, local ingredients and supporting Vermont vendors is key to the business and not something the Millon's are looking to change.
"It's not just a burger," said Aaron Millon, about one of the lower cost items put on the menu. "The cows are five miles away. The people who grow and love those cows come in here to eat… It's what needs to happen if we want to keep ourselves on the planet."
Asking for community support has become another model of supporting businesses that is taking off in Vermont.
"It's a great way to bring capital to the business, as well as invest in the local economy," said Vicky Tebbetts, vice president of Vermont Hospitality Council, a division of the Vermont Chamber of Commerce. "Those who are being creative are those who realize they have to do something different."
There are 900 members of the state chamber, many of which are restaurants. Tebbetts said she has not heard of restaurants struggling and closing on a large scale in Vermont.
Others who have gone before the Millon's in asking their community for help, are realizing success from the venture.
"We have this built-in community of people who are financially invested in our success," said Sharon Deitz, owner of The Bee's Knees in Morrisville. "There's quite a number of community-supported enterprises in Vermont right now."
When the restaurant she owns took over her apartment in the same building, Deitz knew she needed to expand. She came up with a plan, with the help of the owners of Claire's in Hardwick, another community-share business, and put a letter in the restaurant requesting financial help.
Deitz was able to raise about $100,000 by offering $500 and $1,000 gift certificates in exchange for $90 of food per quarter for the next five years. People who were willing to loan the business $5,000 now get 10 percent off their purchases at the restaurant.
"It's not just borrowing money from the bank, it's this shared sense of accomplishment," said Deitz, who also had people contribute labor for the expansion in exchange for gift certificates to the restaurant. "It's spread out so we don't have a huge liability up front… We're still in the second month of this, so it's hard to say how it's really going to come out."
Deitz closed the doors to the restaurant for at least two weeks over the holidays to complete renovations and opened again after the start of the new year.
"Business has been great since we re-opened," said Deitz, noting sales in January are 70 percent over last year's sales at the same time. "Those are the signs that it's a good model to get people involved."
That is why the Millon's are looking to the community to be a part of their enduring success. Though they've yet to hammer out the details, Debbie was meeting with like-minded folk this week to figure out what kind of packages Restaurant Phoebe can offer the public.
"To have hit the economy when we did was such a crusher for us – but it forced us to tighten up our model," said Debbie Millon. "In some ways that was great, it forced us to line up our numbers."
For more information about how to get involved to support Restaurant Phoebe, contact them at dine@restaurantphoebe.com or call 262-3500.
19