Our first business venture - The Red House

RxR · 2 Mar 2020 at 22:44

mjt said:
NZ

Yes, thanks. But if I can get a more local area I can find the local newspaper and let them know. If I was a local resident, I'd want to know why one of my favourite places was being forced to shut down.

dowie · 2 Mar 2020 at 22:47

wez130 said:
Not a problem in itself, however, we still have 6 months left on our lease, we have found somebody willing to take over the lease meaning that the landlady wouldn't be out of pocket, but she is insisting that we can't pass it on to a new lessee, but she is insisting that we forfeit our $10k bond as we will be inevitably breaching our lease, she said that we will have no other obligations but we will be liable for any legal fees. Then she's said that she will negotiate a new lease with the people we have found to take over.

Have you already put the people in contact with her? I mean screw that tbh.. Why do her any favours if she's just going to do that in return.

mjt · 2 Mar 2020 at 22:52

RxR said:
Yes, thanks. But if I can get a more local area I can find the local newspaper and let them know. If I was a local resident, I'd want to know why one of my favourite places was being forced to shut down.

Google it. I’m not sure if OP wants me to post it.

RxR · 2 Mar 2020 at 22:57

mjt said:
Google it. I’m not sure if OP wants me to post it.

Fair enough. I'll just make mention that useful services are public utilities, and proper interest exceeds that of only its providers.

Would you want to head over for a nice meal with a friend only to find out it was shut down and no-one had told you it was even going to possibly happen?

Customer care, it never ends. Especially when you are being forced out through no fault of your own.

Edit. Especially when you have ratings of 4 stars, 4.8 stars, etc as The Red House does, and on trip advisor sites like tripadvisor.com.au

wez130 · 2 Mar 2020 at 23:31

I'd rather deal with things my own way @RxR. Thanks for your concern. We are still trying to find solutions to this situation, it should be so simple, we can't afford to stay open, this other big company want to come in and start a new lease from now, they even offered to start paying from March 1st and let us stay till 18th March to honour our last couple of bookings. It's just the landlady making everything 10x more difficult. We just want some closure to this whole ordeal.

HungryHippos · 2 Mar 2020 at 23:39

wez130 said:
I'd rather deal with things my own way @RxR. Thanks for your concern. We are still trying to find solutions to this situation, it should be so simple, we can't afford to stay open, this other big company want to come in and start a new lease from now, they even offered to start paying from March 1st and let us stay till 18th March to honour our last couple of bookings. It's just the landlady making everything 10x more difficult. We just want some closure to this whole ordeal.

Does seem quite petty from the landlady, especially as you have found someone willing to sign a new lease, they wouldn't lose anything really.

Good luck to you, hopefully you can get a solution that works. What are your plans once you've wrapped up there?

RxR · 2 Mar 2020 at 23:40

wez130 said:
I'd rather deal with things my own way @RxR. Thanks for your concern. We are still trying to find solutions to this situation, it should be so simple, we can't afford to stay open, this other big company want to come in and start a new lease from now, they even offered to start paying from March 1st and let us stay till 18th March to honour our last couple of bookings. It's just the landlady making everything 10x more difficult. We just want some closure to this whole ordeal.

I understand your concern. You are being dealt with harshly. I did try to let the nz herald newsroom know. However, their website contact form verification timed out.

RxR · 2 Mar 2020 at 23:46

@wez130 Your restaurant is the kind I would have advised my adult kids to visit. They have been to NZ several times. Under changed ownership? They would have to provide an equally high quality of service as you have been providing.

Regy53 · 3 Mar 2020 at 05:33

Sorry to read this, followed you guys on fb looked a great place . Such a shame landlady is so selfish and selfless. Most landlords are mind you

Maccy · 3 Mar 2020 at 08:20

Gutted to hear this @wez130

Martynt74 · 3 Mar 2020 at 08:53

Yeah really sad to hear it, i sometimes thought about this thread and wondered how you'd been getting on.

sanaxe1 · 3 Mar 2020 at 09:00

wez130 said:
I'd rather deal with things my own way @RxR. Thanks for your concern. We are still trying to find solutions to this situation, it should be so simple, we can't afford to stay open, this other big company want to come in and start a new lease from now, they even offered to start paying from March 1st and let us stay till 18th March to honour our last couple of bookings. It's just the landlady making everything 10x more difficult. We just want some closure to this whole ordeal.

You need to try to get the other potential Tennant to put the offer to the landlord that they want X amount of years from now. And they won't be interested in 6 months time, you need to go in with a position of strength that you are the only thing stopping her from earning even more money not that you just want to hurry up and go.

randomshenans · 3 Mar 2020 at 09:27

Really sorry to hear this Wez! Enjoyed reading the journey and just sorry it's ended up this way.

dowie · 3 Mar 2020 at 10:56

wez130 said:
I'd rather deal with things my own way @RxR. Thanks for your concern. We are still trying to find solutions to this situation, it should be so simple, we can't afford to stay open, this other big company want to come in and start a new lease from now, they even offered to start paying from March 1st and let us stay till 18th March to honour our last couple of bookings. It's just the landlady making everything 10x more difficult. We just want some closure to this whole ordeal.

Is there any way, in the contract, you guys can somehow sublet to them until the end of your lease - like essentially don't give up the lease and don't incur penalties... they sign a short lease with you and sign up to a lease with the landlady from the time yours ends?

413x · 3 Mar 2020 at 11:17

Sad news.

Its such a shame and just shows how hard it is for individuals even with a decent product and market understanding to get established.

Was great reading your build log.

peterwalkley · 3 Mar 2020 at 11:47

I'm sorry to read this wez, you worked so incredibly hard. It is a notoriously tough business to be in.

Much as there's a lot of hate for the landlord being a ****, the drop in trade caused by the roadworks must be a big contributing factor.

randomshenans · 3 Mar 2020 at 12:10

dowie said:
Is there any way, in the contract, you guys can somehow sublet to them until the end of your lease - like essentially don't give up the lease and don't incur penalties... they sign a short lease with you and sign up to a lease with the landlady from the time yours ends?

I'd imagine this is what has been proposed. I know a lot of contracts have a no sub leasing policy due to lack of control over the party then leasing, so wouldn't be surprised if this wasn't allowed. I don't get why they're being such bell pieces about it though if it literally makes zero financial impact on them as a landlord.

Ryan-3 · 3 Mar 2020 at 12:18

They're just trying to push for more money. They're not out of pocket by just acting like a normal human. Just pure greed.

Sorry to hear about this OP. Looked like a great place you had too.. I really hope you get it all sorted out.

wez130 · 3 Mar 2020 at 21:27

The company has already emailed the landlady expressing their wishes to take over the building and land with the current terms etc and extend it for at least another year after our lease would have ended. They have offered to pay any legal fees required to get it sorted too. We're still waiting on a response. If by some miracle she becomes human and lets them take over, then we'll make some money from all the assets, even if we do still lose the bond, (legally we shouldn't, but for now, i'm preparing for the worst), we will buy a food truck / trailer, we've already seen one we want but we aren't in a position to buy it yet, but once assets are sold, we could. We hope it doesn't sell before we have the money for it.

https://www.trademe.co.nz/business-...tail/mobile-food-drink/auction-2555467676.htm

A lot less risk, we can travel all over the country to events, much more profit too.

FISHGUTS · 3 Mar 2020 at 21:56

As a fellow catering business owner I'm really sorry to hear about you shutting down.
Unfortunatly the brutal truth is catering is a waste of time for the rural middle of the road unless you have a niche or something alongside.
I have followed your journey from the start, but the way the forums are I didn't want to offer a negative comment, or dismiss your dream. Plus I don't know your market.
Unless we had other business, we'd have given up long ago(full every day too).
With Corvid19 on the way. I expect to just pay 22 full/partime staff wages for the year for nothing in return.
Good luck & well done for giving it a bash. Onwards & upwards!

Oh and for all those gobbing off about landlords. One of my companies that sustains said catering company with employees is a commercial rental with no employees.
It isn't all black or white.