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In recent weeks, we've been digging into the tough reality of Houston restaurants surviving on razor-thin margins.
Running a restaurant takes relentless grit, and operators prove that daily. They're constantly innovating, finding new ways to attract first-time customers and keep their regulars coming back. Without that hustle, they risk joining the growing list of restaurants that have closed for good.
One trend we've noticed this year: restaurants and bars moonlighting as coffee shops during off-hours. Jun becomes Third Place by day. Rabbit's Got the Gun turns into Cariño Coffee. The Kennedy has partnered with Chapola Cafe and now New Heights Coffee Roasters.
For Jun and Rabbit's Got the Gun, it was a way to diversify revenue. But for the Kennedy, the pivot was essential after business slowed earlier this year. And it's working, said owner Andres Quiroz.
"People would rather spend money on specialty coffee than specialty cocktails, so we're just trying to accommodate and have something for everyone," Quiroz explained.
Alcohol sales have been sliding for several reasons, while coffee remains a steady staple. Matcha, in particular, is booming across shops. And of course, alcohol is pricey — one reason some high-end restaurants are embracing BYOB.
It may seem unusual for a tasting-menu restaurant not to serve its own alcohol, but Houston spots like Hidden Omakase and Tatemo have flourished by allowing guests to bring their own bottles, avoiding the heavy costs of stocking and serving alcohol.
Research backs this up. A University of Houston study found BYOB can be a savvy marketing strategy. It lowers barriers for spending-shy diners while encouraging them to splurge on food.
These are just a couple of ways restaurants are adapting to rising costs. What strategies are you seeing? I'd love to hear from folks in the industry; reach me at sonia.garcia@houstonchronicle.com
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