New York University's independent student newspaper, established in 1973.

Washington Square News

New York University's independent student newspaper, established in 1973.

Washington Square News

New York University's independent student newspaper, established in 1973.

Washington Square News

Profit, inventory loss during Sandy increase damage to restaurants

After being closed for a week due to Hurricane Sandy, many of lower Manhattan’s eateries are struggling to recuperate. Even though they may look normal on the outside, these restaurants have suffered major losses in rent, payroll and product inventory.,

Scott Wang, manager of Pop’s of Brooklyn on East 8th and Greene streets, said his establishment suffered from losses in sales and inventory, as they had to throw everything away.

“We lost about $15,000 in sales in a week,” Wang said. “That’s an average of $2,500 a day. As far as products, we lost about $5,500 to $6,000 of inventory.”

Wang also said Pop’s is still losing out on business because the storm has wiped out its Internet connection.

“We are still suffering from no Internet because of the storm,” Wang said. “Without the Internet we cannot accept credit cards. That affects business because [if] people don’t have cash, they walk away.”

High Heat Pizza, Burgers & Tap on Thompson and Bleecker streets was fortunate enough to salvage its inventory because owner Waldy Malouf has a second establishment, Beacon, on 56th Street between 5th and 6th avenues.

“I know that without the luxury of [having] another space, it would have been impossible, but we were able to salvage more than others were,” said director of operations Jeffrey Skiba.

As far as payroll losses, Skiba said managers were still paid, but employees lost between $300 and $400 for the week.

In addition to having to dispose of its entire inventory, popular Thai brasserie Cafetasia, also located on East 8th Street, experienced a great loss in sales and rent.

“I make $8,000 [in sales] a day, and we were closed for five days, so it comes out to $40,000,” said Sopanut Sopochana, Cafetasia’s owner. “I still have to pay the rent and rent comes out to $22,000 a month. The rent alone, when you divide by 30, is $733 every day.”

Even though the restaurant was able to reclaim their inventory, Skiba said businesses have not been the same because the rest of New York is still recovering from Sandy’s damage.

“Because this neighborhood, especially on the weekends, relies on people coming from Long Island, New Jersey and elsewhere to come in and party at the restaurants and bars, it can be a while before it comes back to life,” Skiba added.

With the assistance of patrons, many restaurants are donating portions of sales to Hurricane Sandy victims through charitable organizations.

Shake Shack, located on 23rd Street and Madison Avenue, will be donating $2 to the American Red Cross for every $5.50 Rally Shake sold until Nov. 11.

In addition, Guy’s American Kitchen and Bar, located on 44th Street between 7th and 8th avenues, will donate 50 percent of all proceeds from Nov. 12 and Nov. 13 to the American Red Cross for Hurricane Sandy relief.

Tanay Hudson is a contributing writer. Email her at [email protected].

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