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Maybe their drinks are REALLY expensive?

And, yes, it can be that way. Many times it is not understaood by the applicant that they mean all sales, and not just the liquor sales. Once the TABC does their renewal then they should see the amounts.

Keith B wrote:Maybe their drinks are REALLY expensive?

And, yes, it can be that way. Many times it is not understaood by the applicant that they mean all sales, and not just the liquor sales. Once the TABC does their renewal then they should see the amounts.

IF they are still in business. Around here, new restaurants (not chains) are lucky to make it past the first year.

A "Non-profit" mexican restaurant?

Could be the owner's need tax rightoffs so they set up this company to provide losses to offset their profits or other income from other businesses.

Sounds like they did a poor job of projecting their income.

sjfcontrol wrote:A "Non-profit" mexican restaurant?

Even if it's free you pay for it later that night, feel the burn.

sjfcontrol wrote:A "Non-profit" mexican restaurant?

My thoughts exactly.

mojo84 wrote:Could be the owner's need tax rightoffs so they set up this company to provide losses to offset their profits or other income from other businesses.

No idea what the situation is with this Mexican restaurant but if they wanted to pass through losses they shouldn't have formed a non-profit.

On the other hand, I know a coffee shop run by a non-profit as a fund raising venture. All the workers are volunteers and they get some things donated, so a significant portion of the sales go toward the cause.

At first I thought they only used the word nonprofit in their name. I did not realize they had actually structured it as a nonprofit corporation. I didnt do any research as I cannot that interested.

I still suspect it is part of some type of tax avoidance scheme.

mojo84 wrote:At first I thought they only used the word nonprofit in their name. I did not realize they had actually structured it as a nonprofit corporation. I didnt do any research as I cannot that interested.

I still suspect it is part of some type of tax avoidance scheme.

I did a Google search on ESTRELLA NON PROFIT CORPORATION.

I came up with several non-profits under the Estrella name that are from different states throughout the country.

I don't know if they are related to the same corporation.

Some of them of HOAs, Community Improvement, Family Services, Photography, etc.

http://projects.propublica.org/nonprofi ... /860937965" onclick="window.open(this.href);return false;
http://www.estrellafamilyservices.org/" onclick="window.open(this.href);return false;
http://www.nycsalt.org/index.php#mi=2&p ... 2&a=0&at=0" onclick="window.open(this.href);return false;
https://www.guidestar.org/organizations ... ativa.aspx" onclick="window.open(this.href);return false;

If it is a brand new restaurant, how do they know they derive 51% of their revenue from the sale of alcohol for on premises consumption? If it's new, it would be entirely correct to ask "51% of what, exactly?" I would think that it would take at least 6-12 months to know how your revenues break out.

The Annoyed Man wrote:If it is a brand new restaurant, how do they know they derive 51% of their revenue from the sale of alcohol for on premises consumption? If it's new, it would be entirely correct to ask "51% of what, exactly?" I would think that it would take at least 6-12 months to know how your revenues break out.

When a business applies for their initial license they are asked what percentage of revenue will be from the sale of alcohol. If they answer more than 51% then they are given the RED license. After 12 months they will have to show revenue receipts for the permit.

Keith B wrote:

The Annoyed Man wrote:If it is a brand new restaurant, how do they know they derive 51% of their revenue from the sale of alcohol for on premises consumption? If it's new, it would be entirely correct to ask "51% of what, exactly?" I would think that it would take at least 6-12 months to know how your revenues break out.

When a business applies for their initial license they are asked what percentage of revenue will be from the sale of alcohol. If they answer more than 51% then they are given the RED license. After 12 months they will have to show revenue receipts for the permit.

Maybe they have experience from their other restaurants.

Keith B wrote:

The Annoyed Man wrote:If it is a brand new restaurant, how do they know they derive 51% of their revenue from the sale of alcohol for on premises consumption? If it's new, it would be entirely correct to ask "51% of what, exactly?" I would think that it would take at least 6-12 months to know how your revenues break out.

When a business applies for their initial license they are asked what percentage of revenue will be from the sale of alcohol. If they answer more than 51% then they are given the RED license. After 12 months they will have to show revenue receipts for the permit.

There's a place I go a few times a month that had a 51% red sign license until their first renewal, when they correctly switched to the blue sign based on actual sales. Fortunately the owner is simpatico and posted the 51% signs in a way that provided a defense to prosecution.