Is the closure of your favorite bar or restaurant imminent?

[swissie]

On 4/24/2020 at 11:11 AM, Leaver said:

Unusual times, indeed. 

 

I agree, many of the leases are designed to fail.  When you say, "long spells" I don't think Pattaya, or Thailand for that matter, would have seen a spell of turmoil quite this long before. 

 

With slim pickings for landlords looking for tenants, it will be interesting to see if many of them value their current tenant at all, by offering a greatly reduced rate for an amount of time, or some other type of rent negotiation.    

 

For those landlords looking to evict, keeping deposit, key money etc, they would have to weigh up if it's worth taking the gamble on being able to get another tenant in the next 18 months or longer, as opposed to a short term gain and having their property vacant. 

 

Some big losses coming for business owners and landlords here. 

I would think that most of the Landlords are highly leveraged. They will have to service their mortgages. If not, .........?
The thaught, that some day the Banks will own 50% of all Bars/Massage Parlors/ and other "Houses of Ill Repute" brings a smile to my face.

 

[jacko45k]

7 hours ago, swissie said:

I would think that most of the Landlords are highly leveraged. They will have to service their mortgages.

Where do you get this idea from? I believe many of the properties are owned outright by wealthy people who bought them a long long time ago. They may have taken loans out against them, but even that would seem unnecessary when such high rents and deposits can be asked for. I think you are applying a Western perspective where nobody owns anything themselves. 

 

I know plenty of condo owners who sit on empty properties waiting for a good tenant, or price shift and they tell me it is so cheap as not to be an issue. 

Edited April 26, 2020 by jacko45k

[Rimmer]

A flame has been removed

[fhickson]

On 4/21/2020 at 12:41 AM, fforest1 said:

This is a good idea......Close down 100%.....And pay zero rent and zero utilities........And if things get good again...Boom.......Your back in business and you have saved a whole pile of money.......

easier said then done.

 

more likely that owners hold on as long as possible trying to outlast the downturn or running on "hope". throw in the towel at the worst possible time, probably just before things turn back the other way.

 

by that time its real hard to jump back in, even if you can still afford to.

 

one of the drawbacks of owing your own biz where you get emotionally invested and attached whether you realize it or not.

[Leaver]

15 hours ago, swissie said:

I would think that most of the Landlords are highly leveraged. They will have to service their mortgages. If not, .........?
The thaught, that some day the Banks will own 50% of all Bars/Massage Parlors/ and other "Houses of Ill Repute" brings a smile to my face.

 

There are some very wealthy Thai's that own commercial property here, freehold.  Sure, there would be property that have mortgages over them, but I wouldn't say "most" have.  

[TaaSaparot]

Mr. Egg of Le Pub posted this today, and its well worth a read, to understand what bar owners are looking at.

 

 

[scubascuba3]

30 minutes ago, TaaSaparot said:

Mr. Egg of Le Pub posted this today, and its well worth a read, to understand what bar owners are looking at.

 

 

It's a good post, but he should of thrown in the towel immediately conserved funds until this has blown over and then re-emerged maybe 1 year. In the meantime get a retirement visa 12,500 baht

[Leaver]

4 hours ago, TaaSaparot said:

Mr. Egg of Le Pub posted this today, and its well worth a read, to understand what bar owners are looking at.

 

 

In his post, he said he had a good landlord.  He's lucky, he still has a chance. 

 

How many here will not have understanding landlords, and will be evicted next month, or in June? 

[redwood1]

13 hours ago, Leaver said:

In his post, he said he had a good landlord.  He's lucky, he still has a chance. 

 

How many here will not have understanding landlords, and will be evicted next month, or in June? 

Mr Egg does make some good points........

 

Ok we all know that countries all over the world are being heavily pressured to conform  to world wide draconian Corona lockdowns and restrictions  ....Only a few countries like Sweden seem to be doing things a different way.....

 

 The Thai government can still show it supports the economy and the business community in Thailand by doing some of the thing Mr Egg mentioned.. 

 

If the government does nothing for the small businesses in Thailand then I guess they are just fine with seeing massive numbers of small businesses closing most likely forever.....

[Leaver]

8 hours ago, redwood1 said:

If the government does nothing for the small businesses in Thailand then I guess they are just fine with seeing massive numbers of small businesses closing most likely forever.....

They can't even arrange food parcels for their poor and hungry on a national level.  Do you really think they are going to have assistance packages for those in business, and also extend that to farang own businesses?  I don't think so.    

[Leaver]

On 4/28/2020 at 5:23 PM, scubascuba3 said:

It's a good post, but he should of thrown in the towel immediately conserved funds until this has blown over and then re-emerged maybe 1 year. In the meantime get a retirement visa 12,500 baht

Not just in Mr. Egg's case, but surely that would depend on the length of time left to run on the lease. 

 

Probably a good idea if nearing the end of a lease, but if at the start, or the middle, there will be some difficult decisions to make.  

 

if at the start, pretty much screwed.  If in the middle, you would be running at a loss and working for nothing, to get to the end of the lease and then try to sell and recoup some funds.  

[Leaver]

On 4/26/2020 at 2:12 PM, fhickson said:

easier said then done.

 

more likely that owners hold on as long as possible trying to outlast the downturn or running on "hope". throw in the towel at the worst possible time, probably just before things turn back the other way.

 

by that time its real hard to jump back in, even if you can still afford to.

 

one of the drawbacks of owing your own biz where you get emotionally invested and attached whether you realize it or not.

With a 12 to 18 month downturn looming, depending on the length of the lease left, many would be operating at a loss, and throwing good money (their savings) after bad.

 

You make a good point about a bar owner being "emotionally invested."  I know some are close to their staff, and I don't mean in the sexual sense.  Perhaps if they walked away, there is a possibility they could secure a better and bigger premises, in a better location, and with cheaper rent, when the tourists start returning.  A lot will depend on the length of the lease yet to run.  

[TaaSaparot]

Contrary to what some posted on here, Cafe Pitini has re-opened.

[Leaver]

12 minutes ago, TaaSaparot said:

Contrary to what some posted on here, Cafe Pitini has re-opened.

Great news. I consider it one of my favorite places.  

[Halfaboy]

For your info: Italian restaurant Big Bella (Second Road - opposite Soi 6) was two days ago closed for a period of three months.

Edited May 1, 2020 by Halfaboy
sp

[champers]

3 hours ago, Halfaboy said:

For your info: Italian restaurant Big Bella (Second Road - opposite Soi 6) was two days ago closed for a period of three months.

That's a shame. They were doing deliveries and takeaways, presumably not enough to stay open.

Little Bella Italia, on Naklua Rd Soi 33, closed about a year ago. It is a beer bar now.

[scubascuba3]

8 hours ago, Leaver said:

Great news. I consider it one of my favorite places.  

Yes Pitini used to be my favourite for a couple of years, now prefer Hungry Hippo by miles, sit in from Sunday

[Leaver]

15 hours ago, scubascuba3 said:

Yes Pitini used to be my favourite for a couple of years, now prefer Hungry Hippo by miles, sit in from Sunday

I guess the owner is stuck in Pattaya with ill health for the next 12 to 18 months, and beyond.

 

https://www.bahtsold.com/view/pattaya-s-number-1-farang-restaurant-is-for-sale--387708

[redwood1]

Burger King Soi 7 and beach road still open....

[redwood1]

A new month and almost no Indian Restaurants have called it a day... 

[chrisandsu]

25 minutes ago, redwood1 said:

A new month and almost no Indian Restaurants have called it a day... 

Indians are not stupid . Highly likely the restaurant is for a business visa or a front for other things like money lending . 

[scubascuba3]

8 hours ago, Leaver said:

I guess the owner is stuck in Pattaya with ill health for the next 12 to 18 months, and beyond.

 

https://www.bahtsold.com/view/pattaya-s-number-1-farang-restaurant-is-for-sale--387708

I heard he was selling, always seems to sell the restaurants he sets up, Robins Nest, Chunky Monkey. Very popular and he does have a good flare for food, quality and pricing

[TaaSaparot]

Is that not Soul Beer Town before it got a facelift?

 

 

https://www.facebook.com/groups/1713919678636665/permalink/3573382099357071/

 

The takeover price was 6,900,000.00 THB but that price came now down to 5, 900, 0000.00 THB. It just had a makeover of 500k THB. The rent is with 300k THB prepay for 1 year is 120k THB per month and without prepaying 150k THB per month. It is easy to earn because the daily revenue is over 40k THB. There is NO key money involved. The present owner will provide due to the Coronavirus period the first 3 months free of rental. The first rent to pay is August 2020.

 

 

[kinyara]

Just looking at restaurants reopening this morning, the always popular Surf Kitchen on Jomtien Beach Road is back in business with a banner promotion of 15% off on menu prices. 

[Halfaboy]

Also the barber salon Faded (on Beach Road) has reopened. Discount 20% on all regular prices.... 

[HashBrownHarry]

2 hours ago, TaaSaparot said:

Is that not Soul Beer Town before it got a facelift?

 

 

https://www.facebook.com/groups/1713919678636665/permalink/3573382099357071/

 

The takeover price was 6,900,000.00 THB but that price came now down to 5, 900, 0000.00 THB. It just had a makeover of 500k THB. The rent is with 300k THB prepay for 1 year is 120k THB per month and without prepaying 150k THB per month. It is easy to earn because the daily revenue is over 40k THB. There is NO key money involved. The present owner will provide due to the Coronavirus period the first 3 months free of rental. The first rent to pay is August 2020.

 

 

Daily revenue 40K, hmmmm - on the occasions i've been in there never appeared to be too busy.

 

Was much better with previous owner for sure.

 

 

[topt]

On 5/2/2020 at 5:15 AM, scubascuba3 said:

Hungry Hippo by miles, sit in from Sunday

Can you confirm I can sit in for a breakfast tomorrow am. Even though they have A/c?

[scubascuba3]

Just now, topt said:

Can you confirm I can sit in for a breakfast tomorrow am. Even though they have A/c?

Confirm

[kinyara]

Watching to see when The Pattaya Beer Garden reopens, will it go for it ahead of the alcohol ban being lifted? It does good food trade and has always done steady business on alcohol free days when I've been in. Easy spacing by design and they could phase in re-staffing levels in line with demand. 

 

That place will be one of my barometers of the state of things this low season. 

[TaaSaparot]

5 hours ago, kinyara said:

Watching to see when The Pattaya Beer Garden reopens, will it go for it ahead of the alcohol ban being lifted?  

Spoke to one of the staff yesterday, who is up country, and she said they had not been informed when it would be opening.