y' vei for its 100 0 percentowned ”
yhnny Mountain gold’ mine

i Skyline chairman and chief

a executive officer Ron Shon said
in an interview Monday that he
expects to make a decision soon
*ontwhich, if any, of the pro-
: posals. will be accepted. He said:
the choice will be made on the’
_ basis of “which is best for the

- shareholders”.

\

The proposals. the company is

"considering. come from major
" minitig companies, Shon stated.

“Combining with one of the ma-
-jors: would have. positive

‘benefits. The property is large,
and rapid development is possi-

. -ble only through a joint venture

Business Beat ~

Part 2 of a two-part series

The restaurant business is regarded by
many as the ideal way to enter business
for themselves. There is no doubt a suc-
cessful restaurant can be a.rewarding
enterprise in many ways. The odds
against success, however, are high.
Eighty percent of new restaurants fail

within three years. . a
Some owners don’t rec ognize, until donations and materials have been invested in the project, but still more is needed to add

. north : ‘of Stewart, Skyline.
2 Resources is currently mulling
: series’ of joint. ‘venture’,

_ . ty, “would be a logical partner,
. Proposals

. ‘last ‘week Cominco chief ‘ex-

‘Teportedly stated that use of the
‘gold mill at Johnny Mountain

‘Snip. ore up a_ considerable

the only mine in production out

. Northwest. At its peak last sum-

Terrace Review — Wednesday, March 22, 1989 13-

"i ithough it has ‘been sug:
gested. that Cominco, which |
owns the adjacent Snip proper-. |}

ecutive Bob Hallbauer indicated
that thére would be several prob-
lems with sucli an agreement. He

would involve either moving the

altitude or relocating the mill at
the Snip site.
- The Johnny Mountain mine is

of several gold properties in the

mer after a production decision
was announced, Skyline shares
were trading.on the Vancouver
Stock Exchange at about $17.
The current value is just over $7.

While Northwest Community College carpentry students Brian Wright (left) and Gene
Moore (right) work on the Fire Safety House, project coordinator, Ray Tremblay (center),
checks out their progress and begins a new list of required materials. The second floor will
go on next and then interior and exterior finishing will be completed. To date, $14,000 in

the finishing touches. If you think you can help, contact the flre-department at 635-2251,

by. Phil Hartt, too late, that 3 restaurant is first of i" _ The Fire Safety House should be completed sometime In May when It will be used to
, 4 business and not just a way to gratify simulate a real fire to show people what to do In the event of an emergency.

. Manager, Terrace | a5 urge to play host or to demonstrate :

¥ ue

‘Federal cunt their Cooking skills. Others may fave’*® Me cenit Bat ele | 3 bins :
. Development Ban recognized that a restaurant is a business rains x

"but miscalculated the time and effort, and most of all the
managerial skills, required for its success..

In some instances, restaurants have failed because they were
the wrong type for their location — a gourmet or family: -
restaurant, for example, where a lunch bar or fast. food outlet
would have been more appropriate.

In others, the menus have-been too ambitious, requiring the

owner to carry longer inventories with correspondingly. higher
risks of spoilage than could be afforded.

_. Finally, many restaurants have failed because they were inade-
quately funded. A new restaurant, like any other business, re-

* quires funds to carry it through the opening period and sub-
sequent adjustments in its operations until it finds its right place
in the market. But funding for a restaurant is not as readily
available from outside sources as it is for other businesses
because of the high mortality rate. /

These and related hazards can be overcome by detailed plan-
ning based on extensive market surveys. The starting point should
be to determine what type of restaurant is most in demand —
gourmet, family, ethnic or other — and where it can be best
located. Type and location established, planning should then ex-
tend to choice of menu, range of prices, lay-out and decor...

The restaurant business is so competitive that there is an effec-
tive limit to which many prices can be raised and still continue to .
generate repeat business. However attractive the decor, con-
venient the location or willing the service, most patrons also have
their own idea of what a meal is worth, whether five courses. at a
gourmet restaurant or a hot club sandwich at a lunch bar. And
they’ll not willingly pay more. In these circumstances the profit-
ability of a restaurant, whatever type it might be, often depends
on how effective the owner is in holding down costs as distinct

from raising prices,

In these circumstances, the difference between losing money,
breaking even or showing a profit depends on how effectively the
costs of each item on the menu can be controlled. More is in-
volved here than knowing how to buy the ingredients, how to
quickly prepare and store the dishes. The restaurateur has also to
know how to gauge the market, make productive use of leftovers,

and hold spoilage to a minimum.

The key to a‘successful restaurant business is a continuing at-

tention to detail. It’s not enough,

cords of the purchase and sale of food and beverages. The
records should also be continually verified by personal inspection.
So it is with other aspects of a restaurant’s operation: all require

on-the-spot management.

Such attention to detail can be time-consuming to the point of
drudgery. But it’s worth the effort to make the restaurant a suc-
cessful one. And it will be successful if properly planned and

funded, and carefully managed.

AN.

af

+f

for example, to keep daily rec-

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a