JACKSONVILLE, Fla. – The restaurant business can be brutal.
Even restaurants that are able to fill seats every night can struggle to stay open amid challenges like staffing and food costs.
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One new, and popular, Jacksonville spot on the Southside is getting a lot of attention and being applauded by some for its transparency after sharing in detail its struggles and why it chose to change how it seats customers.
It started when 14 Prime, an upscale steakhouse on Gate Parkway owned by Jacksonville-based V Pizza, put out last week that all parties of two people will be seated at the bar.
“Our first suggestion? Call your favorite friends, family members, or coworkers and make it a party of four or more—because amazing meals are meant to be shared," a post read, noting it has just over 100 seats. “And if that’s not in the cards, we get it. There are many wonderful restaurants in town with larger dining rooms and more available tables for two. Ruth’s Chris, III Forks, and Cowford Chophouse all have seating capacities of 300+ and are great choices for a special night out.”
According to a Facebook post from 14 Prime, the initial news was received well by its followers, but some people got angry about the change when it was published by a blog.
So the restaurant decided to explain in detail why the change was made and pull back the curtain on exactly how much money it was losing — $20,000 a month — as well as the other options that were on the table.
The post on Monday said the restaurant has been open for 30 days and even with 100% sold-out reservations, 14 Prime is operating at a big loss. The post was accompanied by a photo of an email from its accounting department.
“It was an analysis showing the projected loss of 14 Prime if we continue on the path we are on. Remember, this is based on 100% sold-out reservations. And adding additional tables isn’t an option without really crowding the space and changing the experience,” the post states.
The restaurant explained that “prime cost” is the term used for the food cost plus the cost of the labor to run the restaurant, and theirs runs right at 74%.
“The food cost is right at 40%. Meaning that of all the money you spend with us, 40% goes to the cost we pay for the food,” it wrote.
The other part of prime cost is labor, including all the salaries of kitchen staff, waiters, waiter assistants, and management.
“$400,192 of the total monthly projected revenue of $540,800 goes to food cost and labor. That leaves $139,608 left to pay the rest of the bills,” which includes rent, debt, insurance, equipment, uniforms and more, a cost of $160,000 a month, it wrote.
“We are three owners from Jacksonville. We built 14 Prime because we wanted to bring an authentic fine dining experience to our hometown, and we think we have done that. But just like you, if you worked 60–70 hours a week at a job and rather than getting a paycheck, they said at the end of each month, “you owe us $20,000”… you’d make a change as well," the post reads.
The restaurant said it had four options: lower the quality of food, pay the staff less, raise the prices or optimize the seating.
“We did not set out to make a decision to be elitist or piss people off. As a matter of fact, we looked at everything we could to find a way to break even without sacrificing the quality of food, the pay of the employees, or raising the prices,” the owners wrote.
It said changing the seating allows 14 Prime to get an extra 34 customers per night and takes the restaurant from a $20,000 loss per month to a $16,000 per month profit with no other changes.
“I can tell you that no restaurant wants to go out of business, but about 80% of all new restaurants fall to that fate within their first 3 years of opening because to make every customer happy typically comes at a loss (literally),” the post states.
14 Prime said there have been some cancellations, but some of the tables were rebooked by larger parties.
14 Prime said it still plans to put parties of two at tables and booths when possible, as well as try to accommodate every disability or special circumstance.
“We just don’t want to say to the general public that you “may” be sat at the bar for a reservation, then people get angry when they are actually sat there. We would rather give the worst-case scenario and try as hard as possible to get them into tables and booths when we can," the restaurant wrote. “This is a long post, but I wanted to share more detail. It doesn’t mean you will agree with it, but we are certainly not making decisions trying to make people angry intentionally… we are just trying to make policies that will ensure we are here for you to celebrate this year’s anniversary—as well as many more to come!"
More than 160 people commented on the post, and some commenters commended 14 Prime for explaining in detail the decision.
“I have to say, I was a little irritated when I read the post the other day about bar seating. But the level of transparency and vulnerability you’ve taken here, as well as the rationale on why has changed my mind!” one commenter wrote.
But others didn’t have the same take.
“Considering how many years V has been in the restaurant industry, it is shocking that they didn’t thoroughly research this ahead of time. It is also shocking that they think any business is going to be profitable right away,” another commenter wrote.
“Y’all are doing something wrong because this is not common practice in ANY classy establishment,” someone else said.
Another commenter said the transparency and honesty make them excited to try the food, with another person saying, “All this commotion, I’m going tomorrow to see if the food is worth it.”
