Restaurant Owners Beg For Your Business (But Still Raise Prices)

Added: 2026-05-31

[00:00:00]The industry is completely it's completely restaurants in general don't work anymore. Pubs don't work anymore.

[00:00:06]Cafes don't work anymore. Hotels don't work anymore.

[00:00:09]>> And when I say they don't work, people are still coming. It's not about being quiet or being busy.

[00:00:14]>> Cost of living has made less people come out. But even if people do come out, >> it's just too expensive to run a business now. Everything has risen around you from business rates to NIC, all the things that you've heard of every other operator. I think I saw Jason Aston saying that businesses used to make 15 20% or something.

[00:00:33]>> Recently over the last 10 years I know a lot of people that are happy to make nothing so just to break even.

[00:00:38]>> I saw an interview with Tom Kage a few months ago >> and he said that currently his business is running at 110%. Now everybody I speak to is >> is echoing that.

[00:00:48]>> They are 10% overbreaking even. That's not sustainable for more than a few months. And the catastrophe that you're seeing in the industry is because people haven't got any money.

[00:00:56]>> And I know I know I know everybody CNN, Fox News, EVERYBODY'S TELLING YOU, DON'T WORRY. THE THE THE WAR IS GOING TO STOP.

[00:01:07]Don't worry. It's going to get better.

[00:01:09]We're going to start seeing a lot MORE MONEY IN YOUR POCKET. WHEN?

[00:01:14]It's not going to happen, guys.

[00:01:17]It's not going to happen, guys. Listen, I don't want to be the bearer of bad news, but I'm here to tell you they're lying to you. Listen, we're going to talk about why these restaurants are now telling you guys, uh, please support us. Uh, um, we we KNOW THAT WE'RE OVERCHARGING, BUT WE STILL NEED YOUR help to stay in business. SO, PLEASE COME AND SUPPORT BECAUSE IF WE GO OUT OF BUSINESS, if we go out of business, if we go out of business, it's your fault.

[00:01:50]Well, we're going to jump right into it, guys. My name is Orlando. Welcome to the channel, guys. Make sure you hit that like and subscribe button. It really does help OUT THE CHANNEL. WE'RE TRYING TO GET TO 200,000 SUBS, AND I CANNOT get there without your help, guys. So, IF YOU GET VALUE FROM any of my videos, please, please hit that subscribe button. Also, too, guys, you know what I'm about to say. I have a newsletter and it's completely free. How can you beat free? You cannot, guys. You're going to get the same thing you get here in the newsletter just in more detail.

[00:02:19]We're going to break things down like the housing market, real estate investing, layoffs, saving, budgeting, all those things again in greater detail. And if you need any type of financing, guys, that deals with commercial or investment properties. I'm your guy. I've been a lender FOR ALMOST 20 YEARS AND I CAN ASSIST you with that.

[00:02:37]That information is in the description and the pin comment, guys. Let's jump straight to it. Listen, I don't know if you guys have been noticing, but restaurants are now charging you double, triple than what they were charging you 3 to four years ago. YOU KNOW, NOW THEY'RE NOW they're adding fees like kids fee, dining fee, administration fee. Oh, oh, oh. Group fee. Matter of fact, some restaurants are now adding gratuitity automatic. Yeah, it doesn't matter if you have one party, two party, it doesn't matter. They're going to add gratuitity. And here's the thing, they won't even put it on the front door.

[00:03:17]They won't put it on a sign that says, "Hey, look, we charge you." No, no, NO, NO, NO. WHY WOULD THEY DO THAT? Because they would LOSE BUSINESS. SO INSTEAD, WHAT THEY DO IS THEY catch you after after you purchase. In fine fine print, it says we charge 18 to 20% CUITITY. OH, >> COME ON.

[00:03:41]>> AND I KNOW WHAT YOU'RE THINKING. WELL, ORLANDO, WELL, I won't be going there again. They should make sure that they tell us all the things they're going to CHARGE US EXTRA. WHAT HAPPENED TO THE DAY WHEN YOU CAN just go to a place and eat. Well, those days are gone, sir. And listen, you don't have to take my word for it. You can take the words of the people who own the businesses. They're telling you, "Listen, we got to do what we got to do. And what WE GOT TO DO is we got to charge you more."

[00:04:09]>> Oh, hell no.

[00:04:11]>> You think that a $20 MEAL IS WHAT we're going to serve here? We can't afford that, sir. We have to charge you 40 a piece. If you pay it, you deal with the consequences.

[00:04:24]>> Get ready. So, if you knew that you couldn't afford to go out in in general, IN GENERAL, IT HAS NOTHING to do with this particular restaurant, but if you knew that your budget said, "Hey, sir.

[00:04:38]Hey, ma'am. Don't do it." You saw our account, did you? Let's look at this together in the mirror. Your account says, "Not today."

[00:04:48]YEAH. YOUR ACCOUNT SAYS, "NOT TODAY."

[00:04:50]BUT I HEAR people at the back saying, "An Orlando, we don't believe you. We We don't believe you. What is going on with restaurants? I I'VE HEARD SOME RESTAURANTS CLOSING, BUT I DIDN'T HEAR that they were having a hard time.

[00:05:03]Well, this is what I'm here for. Let me show you. I >> can tell you that businesses are definitely struggling and many are closing their doors. Just take a look at this place. The tables are empty.

[00:05:14]They've had one customer all evening long. And I'm told this is becoming the new normal for many restaurants.

[00:05:24]Everything is expensive. It's not easy to go out and eat anymore. The case of Big Tomato was $110.

[00:05:35]>> And you know the lemon people asking to put their water, the case of the lemon is $80.

[00:05:42]>> It used to be $25.

[00:05:45]>> That's tough.

[00:05:45]>> Ra Purab says this past Mother's Day she witnessed something she can't forget. On Mother's Day, I remember a family of four came to the restaurant and the parents, they didn't eat.

[00:05:57]>> Only the the kids eat.

[00:06:00]>> And I feel so bad. It was a Mother's Day and the mother didn't eat.

[00:06:04]>> That that's that's that's sad. It really is. But the real question that I have for that is why didn't THEY EAT AT HOME?

[00:06:12]GOTTI GOT INSTEAD of you rather spend $80 at a restaurant where you can't eat with your children.

[00:06:24]YOU RATHER SPEND $80 RATHER than taking $80 in cooking at home.

[00:06:30]>> Awkward. So awkward.

[00:06:33]>> Now I know I know what you're going to say. Orlando, it's Mother's Day. That the mom doesn't want to cook. And I get that. I get that. You can't cook a bag in a dinner. I mean, you you can't you can't get together some some pasta AND SOME GARLIC BREAD and and call it a night.

[00:06:52]>> I'm not even thinking about that right now, to be honest with you. I'm >> I thought it was it's the thought that counts and and you just saw the lady say it's it was sad. It it was sad because her point, what she's talking about is it's sad that you have to DO THAT, BUT WE'RE HAPPY THAT YOU CAME HERE AND used your last here.

[00:07:15]WE'RE happy that you did that. Mhm. And people think that I'm plain. People think that this is not real. They think THAT THERE'S NO WAY someone would go and spend all of their money, their last on a restaurant.

[00:07:29]>> That's so dumb. IT MAKES ME MAD. WHEN I SAY TO YOU ALL THE TIME, GUYS, that well, you know, people will give me sobb stories about, "H, Orlando, Orlando, I just couldn't afford it. I I I THERE'S NO WAY I CAN afford it. I'm trying and I can't save. Orlando, I'm trying, but I can't budget." And I and I'd scratch my head AND BE LIKE, YOU KNOW, budgeting just takes you're just giving your time and putting the information together.

[00:07:58]So, it it doesn't cost you anything.

[00:08:01]I mean, it does if you don't DO IT, BUT BUT YOU know what I'm saying? It doesn't cost you anything. Fact. And then you tell me a story about how you can't save and there there's no money left over.

[00:08:15]You go, you see where I'm going with it there? There's no money left over.

[00:08:20]But then I look into your accounts. I SAY, "GO AHEAD AND GIVE ME THE give me the pi graph."

[00:08:29]What's this?

[00:08:30]What's this? I see Chipotle door Door Dash.

[00:08:36]H your favorite Greek restaurant. OH, WOW. SO, YOU HAD ALL THE money for that, but you didn't have any money to pay your rent. You You didn't have any money to pay your utilities. You didn't have enough money to pay your bills. You are one pathetic loser.

[00:08:58]No offense. But here is the moral of the story.

[00:09:01]You guys are spending your money on the restaurants. The restaurants are raising the prices on you, MAKING YOU SPEND MORE money on the restaurant, and they're still losing. The restaurant IS LOSING.

[00:09:13]YOU BOTH ARE in a lose lose situation.

[00:09:17]>> Don't be a fool.

[00:09:18]>> In Westwood, we are seeing more than 20 small businesses closed recently on the citywide. Even more than that, >> Ruse Farahanipu is Rana's husband and the CEO of the West LA Chamber of Commerce. He also owns Deli Greek on Persian Square. He says restaurants are being crushed by a lousy economy, high tariffs, heavy regulations, and a city that allows street vendors to sell in front of restaurants.

[00:09:47]>> Unfair competition. The street vendors, they get a waiver from the state. The state allow them to do that. He says some menu items are sometimes sold at a loss just to keep the doors open.

[00:09:59]>> Some of the item they are give us a zero margin. Some of them they gave us a tiny margin. The margin for restaurant is not like before.

[00:10:08]>> Both Ruse and Ra urge people to vote for candidates who support small businesses.

[00:10:13]And he adds >> also the people in the neighborhood, >> they need to realize if they are not supporting their own beloved restaurants or the hospitality businesses, they're going to be gone sooner than they believe.

[00:10:26]>> You heard the gentleman. He said, "Listen, we can't keep up with the chips AND DIP PRICES. WE CAN'T keep up with ketchup. We can't keep up with the with the lemon prices. They're ridiculous."

[00:10:38]In all honesty, we have to pass it on to you. But hey, hey, you better support us because IF YOU DON'T SUPPORT US, WE'RE GOING TO BE out of here.

[00:10:48]>> Not my department.

[00:10:49]>> The question is, who do you have loyalty to? I'm not saying that these restaurant owners aren't going through a hard time.

[00:10:55]I'm not saying that at all. What I'm saying to you is why are you paying THE PRICES? YOU DID JUST hear he say he's going to raise all the prices. SO, I JUST HEARD SOMEONE TELL ME THE OTHER DAY FOR AN appetizer it WAS $50.

[00:11:08]>> THAT'S CRAZY. NOW, now listen, listen, listen. I don't know about you, but an appetizer $50. An appetizer. So, what's the dinner going to be? WHAT'S THE THIS IS ONE PERSON. One appetizer. Mhm. And then you guys think to yourself, well, um, it's my favorite place. I love this place. They They make the best chicken Alfredo.

[00:11:35]I I I love it. I love it. And so you're willing to pay $40 for that, RIGHT?

[00:11:40]BECAUSE THEY SAY THAT'S HOW MUCH IT COST HIM to make it. And you heard the man said, you know, some of the items that we we we put on here, we're not making we're not making any money on that. I mean, I didn't see the proof. I mean, maybe he's talking about ice.

[00:11:55]I I don't know what he's talking about.

[00:11:57]Maybe maybe there are items on there that they don't have any margin on. And these are the items that they use to get you through THE DOOR SO THAT YOU CAN STILL OVERPAY. MHM.

[00:12:08]>> Uh do you believe me yet?

[00:12:10]>> I think this is a great opportunity for Orlando University. Now listen guys, I just want to call something out that I've been seeing that I've been seeing you guys been doing over and over and over again. And I just want to call it out. I've been seeing you guys figure out a way to shortcut to shortcut going to the restaurants. You guys are saying they are too expensive. I hear you. You say they're too expensive, SO I HAVE TO GET MY food elsewhere. So, you guys are m You guys are buying plates off of Instagram.

[00:12:45]YOU YOU GUYS ARE BUYING PLATES OFF OF FACEBOOK. WHAT? Let me ask you a question. Do you think it's a good idea to buy a plate of to buy a plate of meat, greens, and and all other types of stuff, chicken out of a trunk of a MAN'S CAR? I'M JUST ASKING FOR A FRIEND. You think that's the opportunity that you've been looking for to pay less? But what if I told you that's going to cost you more money? Listen, listen. I I I know.

[00:13:17]I know. I know. Listen, I know there's I know there's plenty of people who love trunk food more than the next person.

[00:13:27]I I know I know I I KNOW IT. BUT WHAT IF I told you you don't know what they're doing in their kitchen?

[00:13:35]>> WHAT IF I TOLD YOU THERE'S NOTHING good that comes out of you buying Instagram food or food out of someone's KITCHEN THAT YOU DON'T KNOW HOW THEY PREPARED IT. There is no health board. There is no no agency that's looking after it.

[00:13:53]You're buying $6 plates and the only thing that's going to come good from it is food poisoning.

[00:14:00]Now, let me ask you this. You decided to buy a Instagram food plate. You thought it was a great idea. Now you have food poisoning and you're now going to the emergency room. But remember, you don't have health insurance.

[00:14:16]Now, let me ask you this. Did you Did your shortcut help you or did it hurt you? Some of you guys are playing yolo loose and fast with your own health to save a dollar.

[00:14:32]And you're doing all of this to avoid from cooking. Let's make that perfectly clear. YOU'RE DOING ALL of this to avoid cooking yourself and saving money.

[00:14:44]>> That's stupid. Use your common sense.

[00:14:48]>> I don't think restaurants should exist because hear me out.

[00:14:52]>> If the tipping thing is such a big damn deal where it's like, oh, if you don't tip, then mind you, the people work for this person at this restaurant, but they don't pay them enough money. If that's necessary, if you can't pay them a reasonable amount of money to do a job, >> maybe you just shouldn't be open. If you can't make a profit selling the food and paying your employees if any other business was doing this, it would just close.

[00:15:20]>> And we made it acceptable to like, no, just take the money from the customers while still overcharging for food.

[00:15:27]>> You shouldn't be open. Restaurant just shouldn't exist if that's the case.

[00:15:30]>> And see, here's the thing. Here's the thing, guys. I know I know these guys. I I was talking about the plates, all right? And I know I know some people get a little emotional with that because they're like, "Arlando, THIS IS THE ONLY WAY I CAN START MY BUSINESS, my restaurant business." And I always say to people, "Do you really know how the restaurant business is?"

[00:15:51]BECAUSE I I see it every day. I've done tons of loans on restaurants.

[00:15:58]Tons of loans on restaurants. You know what they have in common? Most of them fail.

[00:16:02]>> Don't everybody believe in Google? Go Google that. See what I'm talking about.

[00:16:06]>> Out of all the property types that can fail, restaurants are restaurants is on the top of that list along with hospitality. Hotels. AND HERE'S THE THING. WHAT ARE THE TWO MOST things that people want to do? They want to start a restaurant and they want to run a hotel.

[00:16:24]GO FIGURE.

[00:16:27]AND I TELL PEOPLE all the time, yeah, may maybe you do cook good for your family. M maybe you do have a special recipe that people would love, but it's just not cooking.

[00:16:39]It's a business. And anyone can tell you who runs a business. It's just not what you're really, really, really good at.

[00:16:48]It's a multitude of things. And here's the thing, most people don't have money to hire those people for those things because you're starting a business. So, you have to know how to do those things and enjoy doing those things to make sure those things happen. It's just not cooking mac and cheese. It's just not cooking salmon. It's just not cooking a meal that everybody says, "Wow, this is spectacular."

[00:17:16]Because if you do do a great meal, let's say you're really good at making spaghetti and you make spaghetti really good, but the customer service is horrible. You guys add extra fees, you and you can the food can be good, but if everything else is bad, no one will come.

[00:17:37]>> These ain't opinions, these are facts.

[00:17:40]You want to know who feels a recession first?

[00:17:44]Restaurants.

[00:17:46]Not Wall Street, not the news.

[00:17:49]>> Yeah.

[00:17:49]>> Restaurants.

[00:17:51]Because the second people get nervous about money, they stop going out to eat >> as they should.

[00:17:56]>> First it's appetizers, >> then desserts, then alcohol, then suddenly people are sharing meals. And you can literally watch it happen in real time. A packed Friday night turns into, "Hey, why is it so slow tonight?"

[00:18:13]Then it becomes why has it been slow for three weeks?

[00:18:17]>> You know people think restaurants are just food. No, restaurants are like the heartbeat of the economy.

[00:18:24]>> When people feel good, restaurants are full. When people are stressed, restaurants feel it immediately.

[00:18:31]>> And the scary part, most restaurant owners are trying to smile through it while quietly wondering how they're going to pay everybody next week.

[00:18:42]You know, restaurant people know exactly what I'm talking about.

[00:18:45]>> But the question is is if that's the case, if the business is that bad and the business is rough. I get it. I get it. I I just told you my experience. So, I know it's rough. But this is my thing.

[00:18:57]The information everybody knows about a restaurant is there. And let me tell you this, it's only gotten worse.

[00:19:05]That stat that you see of 70% of restaurants close within the first 10 years. Mhm. That's true. And it GETS WORSE. AND BUT HERE'S THE THING. That information has been available for years and years and years. That's that WAS AVAILABLE WHEN I STARTED WHEN I started doing lending.

[00:19:32]But people still throw in their life savings into a restaurant. PEOPLE STILL SAY, "WOW, THIS IS A good business to get into, even though it has low margins." That's a great idea.

[00:19:47]>> I'M WITH THAT. AND I UNDERSTAND. LISTEN, if you love cooking, you love cooking.

[00:19:52]But you have to understand, you have to understand as a business owner, a restaurant owner, that it was going to be like this. that the economy was going to hurt the restaurant business and the industry bad and you continuing to raise prices will have a bad effect on how many people come to YOUR ESTABLISHMENT BECAUSE THEY DON'T HAVE THE money either. And the people who do show up and say, "Yeah, you know what? I can't afford this, but I'm going to go ahead and pay $50 for an appetizer." Well, those people I can't help.

[00:20:29]THOSE people I can't help. They want to spend their money and they want to fail and they don't care about budgeting.

[00:20:36]They don't care about savings and they want to yolo it. So those people, hey, listen, do as you please.

[00:20:44]Anyway, guys, it's going to get worse before it gets better. I say that all the time because that is the truth. Gas prices are going to continue to go up.

[00:20:52]Everything's going to go up. The war, I know that they're saying is going to end, but obviously that's not happening.

[00:20:58]So, make sure that you get your credit together. Make sure you're saving. Make sure you're budgeting. Make sure you're doing all of these things so that when you get into a bad situation, you have something backing you up. THAT'S WHAT WE WANT. AND THEN WE can use that to snowball you into something. Something that you can be proud to say, listen, I did this. I started this. This is where I AM WHEN BEFORE A COUPLE of years ago, I was here. That's what I love to see.

[00:21:27]But if you love content like this guys, please join the Patreon. We do exclusive videos over there. You will love it.

[00:21:33]Also too guys, also too, you won't get all of your information from this one video. I need you to watch this video right here. Yes, this one right here. It will give you information on the housing market, financial news, and get you to your first rental property. I will see you guys on the next one. Thanks.