And very sad for Stephanie Balest, brother Brian Balest and chef Shane Robertson who took a leap of faith to revive a Knoxville icon.

Yes, very sad.

I had both "ok" and bad experiences at the S&W; the renovation was astounding----with the oft-noted exception of the bizarre lighting. Quite simply, the S&W couldn't compete.

One wonders why the S&W was not restored as an affordable cafeteria. Are the rents on Gay Street too high to support such a model? Is there simply a restaurant 'bubble'? Or is it the current economy?

Interesting question. It said in their bankruptcy filing that the rent was $10,000 per month. It also said their 2010 revenues were a little over $1 million. That would make occupancy expense as a percent of gross receipts about 12%.

A google survey of restaurant brokers and industry experts shows that rents range from 5% to 8%, and should be about 6% as a standard. One broker said 8% or over is a big red flag.

So there you go. The Mrs. and I have also wondered a little about their menu and the market for it as in who it is supposed to appeal to at those prices (and execution and the sometimes spotty service). Not sure what kind of high-end menu would cover that kind of rent, or if there would be a market for it downtown, or if you could do enough volume with a more value priced menu with the somewhat limited seating.

I'm sure there are a million other factors that we don't know anything about. You also have to wonder if they are somehow another casualty left behind in the wake of Haslam's march to the governor's mansion, and who will be next.

I found it curious that the lawsuit is a liability. Wouldn't you have commercial general liability insurance to cover that? Looks like they have been digging a deep hole for a while - unpaid worker's taxes among other debts? Never went there myself, but the retro idea sounded like a good thing.

We ate there several times, and I enjoyed it until the last time, when my food was horrible. How can you mess up a Cobb salad?

Still, I'm really sad to see this happen and I hope something good goes into that wonderful space.

I loved their lunch buffet.
It was good food, reasonably priced.

I don't eat at places like S & S, but am highly skeptical of the quality one can expect. To compare generica, and especially chains that trough their food, to what Tomato Head does is a stretch IMO. That said, I have heard at least two people tell me in the last few days that they thought S&W should have been a cafeteria, but I think it's just nostalgic to think that concept can work today and produce good, affordable food, and also be profitable. I don't know what would work there, but maybe nothing would, at that rent.

speaking of new cafeterias, here's an interesting model.

there's an endless number of articles on the web about the so-called 'demise' of cafeterias, particularly in the new york city area. here's an interesting one. be sure to read the comments that follow it.

there are also many articles on the continued existence of thriving cafeterias in many areas, notably the southeast. it seems to be a class issue, related to the economic cleansing of downtowns and unaffordable rent. we also don't have many lunch counters left in department or variety (five and dime) stores - if the latter exist at all ..

IIRC, the Morrison (cafeteria) conglomerate which used to own Ruby Tuesday had a major unit that operated federal contract dining facilities, the same way Halliburton (and most East Tenn. employment) feeds off the federal teat. Don't believe it was quite as lucrative for Morrison as it has been for Cheney's favorite firm, though, but I suppose someone could "fact check" it.

I never fully bought off on the concept, except for at schools and other such dally institutions. Always felt rushed through the line and pressured to choose what to eat/ buy before even seeing all the choices down the line.

Looking at the $10K/mo. rent and the 6% occupancy expense standard, a restaurant would have to do $2 million in gross receipts per year.

According to Ruby Tuesday's most recent annual report, their 656 company owned restaurants averaged $1.8 million each in annual sales.

So, the rent sounds high for a restaurant.

Interesting linked post, michael. I'll buy that the near demise of the working class and fast food restaurants are easily enough to kill the cafeteria format. Frankly, with the cheap cost of buying a large flat teevee, a decent dedicated sound system, blu-ray player, and renting or downloading movies, I don't see how movie theaters survive. I guess it's young people having to see the newest, latest thing as a social event out. For old farts like me who don't care what's new, the movie experience is far better at home and a fraction of the price of a matinee. But it's us old farts who have the cash.

I'd still bet that modern chain cafeterias use processed food to the hilt. It's just economics. Sadly. Food deserves more than just pure capitalism, with subsidies added in the wrong directions.

The Ian's Pizza concept over on the solidarity link looks like it could be a fit if they could get the numbers to work out. I'd go downtown instead of Oak Ridge for a decent pizza experience. A little bluegrass on the side wouldn't hurt anything.

when in texarkana tx be sure to visit Bryce's Cafeteria. it used to be downtown, but i believe it's now on the strip.

and another great chain in the midwest. i've eaten in the one in Richmond, IN.

Not from me. Though I should say it's at least OK. I prefer Savelli's, and it of course ain't grand.

I'm betting Balest, Balest, Robertson, etc. wish they had the same landlords NAMA has at their new locaton on the other side of the downtown theater, City of Knoxville. I'm sure the City can be flexible on the rent.