This morning I had breakfast at a new restaurant in Calgary called Red’s in Ramsay (Facebook page) who also happens to be a client. Earlier this year I was able to arrange construction financing for the company and this morning had the privilege of seeing how great a job they did. This is their second location to be opened and you would understand why if you have ever been to their first location on 4th Street – always busy and definitely the place to go.
If you have read my blog you would know that hotels (motels) and restaurants are the hardest deals to get financing for (aside from gas stations which are basically impossible). In this case, the borrower was strong and not only had a track record but also had done the work to know in advance what the next several years need to look like in order to be successful. This is not always the case and even less so with deals that are this size (less than $10,000,000).
As I sat with a friend who is in the construction business we were not only impressed by the quality of the work done but also the vision the business has for how they see themselves in the local community and how they interact with their customers. The principal of the business thought the community could really benefit from having a restaurant like this on their street corner and because the community is well positioned to be re-developed this business is a great start in the right direction.
Restaurants can be risky. Being a first mover in a community that needs to be (and is in the process of) re-developed can be risky but the pay offs can really be worth it. Not only does this business seem well suited to be profitable they also are a signal to others that it is worth investing in communities.
One should not attend even the end of the world without a good breakfast. ― Robert A. Heinlein
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