The explosion of delivery apps, rising labor costs and the seemingly endless number of new competitors has made it even more challenging for restaurants to make it these days.
Twin Cities restaurateur Matty O'Reilly is hoping a new membership program he launched this week will help restaurants like his have a better chance.
Borrowing inspiration from Netflix and gym memberships, he is offering a limited number of memberships to his four restaurants — Bar Brigade and Foxtrot Burger Spot in St. Paul, Sandy's Tavern in Richfield and Republic in Minneapolis. For $99 a month — or $1,000 a year — members will be able to get one free menu item per day at any one of those spots.
"I really don't know how it's going to go," he said. "But I see very little risk in giving it a try."
It is a model he hasn't seen before for restaurants and one he thinks can bring a more consistent cash flow to restaurants year round, especially during slower months. And he hopes it will help turn occasional customers into regulars, who may also bring their friends and buy more food and drinks beyond the free item.
"All we want to do is to see people more frequently," he said. "Converting people to come to your restaurants is harder than it's ever been because there are so many more restaurants than ever."
For now, he's capping the number of memberships at 50 to make the sure the economics work out the way he expects. The deadline to sign up is the end of this month. But if it goes well, he may open up more memberships next year.
O'Reilly's four restaurants are doing well right now, he said, with sales up year over year at two of them, flat sales at another. He took over management of the fourth, the 80-year-old Sandy's Tavern, and reopened it at the end of November.