Valentina's owners stealing tips

[Al Czervik 1228]

5 minutes ago, deft said:

Selling pickles, if in stock, and the too loud, annoying music experience that doesn’t pare well with bbq.  Sign me up! 

 

[ztejas 43244]

18 minutes ago, gofuckyourself said:

Can't sell what you don't have.

One of the many problems was they didn't order/prepare enough food, particularly considering their sales expectations.

We live nearby and you'd show up at 2 pm on a weekend and everything was sold out, yet they're open until 10. No food and no sales yet (not) paying 8 staff to stand around.

I heard they had an issue with keeping pickles available.

[CooterBrown 17875]

By not keeping pickles in stock, they made more money since they were still covered in the menu prices but not provided to the customer.

Maybe Miguel should’ve listened to that employee more often.

[ztejas 43244]

3 minutes ago, CooterBrown said:

Maybe Miguel should’ve listened to that employee more often.

That employee's name?

Aaron Franklin. 

[texasdago 7550]

This would have saved his business

[4th and 5 4910]

I went with 3 guys, waited 30+ minutes in line, waited 30+ minutes for our food. How is that even possible for BBQ?

We ordered well over $100 in bbq. Specifically asked for pickles and onions.

We got neither.

Then asked the obviously IQ challenged food runner for pickles.

They gave us a small ramekin with maybe 3 pickle slices in it.

[utee94 15742]

1 hour ago, 4th and 5 said:

I went with 3 guys, waited 30+ minutes in line, waited 30+ minutes for our food. How is that even possible for BBQ?

 

Mickelthwait scoffs at your miniscule wait time.

[texasdago 7550]

2 minutes ago, utee94 said:

Mickelthwait scoffs at your miniscule wait time.

...and Yet Mickelthwait is run by good people (AFAIK)

[irishtexan 11442]

1 hour ago, 4th and 5 said:

I went with 3 guys, waited 30+ minutes in line, waited 30+ minutes for our food. How is that even possible for BBQ?

We ordered well over $100 in bbq. Specifically asked for pickles and onions.

We got neither.

Then asked the obviously IQ challenged food runner for pickles.

They gave us a small ramekin with maybe 3 pickle slices in it.

I mean, that's actually fast for them. That was pretty much the average wait both in line and for food at the trailer. Never understood why it took so long to get the food once you ordered. Why couldn't they do it like every other bbq joint where they cut the meat as you order it? Never made sense to me. 

[HenryJames 65868]

2 hours ago, 4th and 5 said:

Specifically asked for pickles

Think I found the problem.

[Jerry Callo 8658]

1 hour ago, irishtexan said:

I mean, that's actually fast for them. That was pretty much the average wait both in line and for food at the trailer. Never understood why it took so long to get the food once you ordered. Why couldn't they do it like every other bbq joint where they cut the meat as you order it? Never made sense to me. 

Line wait was due to one cashier.  Cashier had to take order, take payment, and grab orders of chips and queso.  Horribly inefficient.  The kitchen couldn't even keep up with that. 

[C-Man 26992]

16 hours ago, Jerry Callo said:

Line wait was due to one cashier.  Cashier had to take order, take payment, and grab orders of chips and queso.  Horribly inefficient.  The kitchen couldn't even keep up with that. 

Yeah, that was my one experience with Valentina's at the trailer. Long wait in line, which is typical for a high-end BBQ place. However, most long trips through the line end with food on your tray as you walk away from the counter to go sit down and eat. Not there. Food was damn good, though.

[dcbc 14388]

8 hours ago, C-Man said:

Yeah, that was my one experience with Valentina's at the trailer. Long wait in line, which is typical for a high-end BBQ place. However, most long trips through the line end with food on your tray as you walk away from the counter to go sit down and eat. Not there. Food was damn good, though.

Shorter line and shorter wait, but Stanley's is like that.  One cashier for dine-in and one for to-go.  Line hack is to call in your order from the line and go have a drink at the bar.  But you end up eating your food out of a styrofoam container, which isn't ideal.  But if you wait in line, it's reasonably quick, you speak your soup in a loud, clear voice, you pay, and your food comes out to you pretty quickly, and you have a chance to order your drink at the bar while you wait.  It's not the worst.

Edited May 3 by dcbc

[Anastasis 23375]

https://austin.eater.com/2024/5/3/24148321/valentinas-tex-mex-bbq-new-owners-inkind-sale-wage-theft-allegations

The CEO of Austin-based hospitality tech company InKind, Johann Moonesinghe, is in the process of buying outValentina’s Tex Mex BBQ in Buda. He tells Eater in an email on Wednesday, May 1, that his restaurant group is “likely [going to] end up being the owner” of Valentina’s.

 

In an email to Eater, dated on April 27, Moonesinghe stated that Valentina’s landlord “locked them out for breach of their lease and significant past due rent,” on April 26, and of the reported debt, claimed that the restaurant owes his company InKind, a senior creditor, roughly $1.5 million. InKind is a mobile app that provides restaurants with loans through a credit system.

Edited May 4 by Anastasis

[Anastasis 23375]

Pretty sure that inkind is the company that was selling $100 for $50 gift cards a while back. Is this some kind of predatory loan racket to come in and target over extended businesses? Or just a one off. 

[Jerry Callo 8658]

41 minutes ago, Anastasis said:

Pretty sure that inkind is the company that was selling $100 for $50 gift cards a while back. Is this some kind of predatory loan racket to come in and target over extended businesses? Or just a one off. 

I doubt that Inkind really wants to be running a barbecue joint.  They will have the same issues as Valentina's - costs, labor, customer base.  They're likely trying to recoup as much of their investment as possible.  They probably want to sell it, but I suspect they'll have to shut it down eventually.

[DalTxHornFan 3084]

58 minutes ago, Anastasis said:

Pretty sure that inkind is the company that was selling $100 for $50 gift cards a while back. Is this some kind of predatory loan racket to come in and target over extended businesses? Or just a one off. 

I've investigated other failed restaurants.  What some lenders do is to freely advance money with no collateral but take direct control of all future credit card receipts.  They pretty much have you by the balls at that point.  Doom loop.

[Shaggy3.0 1695]

44 minutes ago, DalTxHornFan said:

I've investigated other failed restaurants.  What some lenders do is to freely advance money with no collateral but take direct control of all future credit card receipts.  They pretty much have you by the balls at that point.  Doom loop.

i'm dumb (as if you all didn't know that).

please explain.

 

[DalTxHornFan 3084]

20 minutes ago, Shaggy3.0 said:

i'm dumb (as if you all didn't know that).

please explain.

 

It is like a factoring arrangement.  In a normal factoring arrangement, a company will sell specific existing customer accounts receivable and will immediately get cash from the lender, say 65% of the face value. 

What I have been seeing in some restaurant deals is that the borrower is selling future credit card collections for cash today.  And the "lender" typically requires the store to use their credit card payment system, so that the "lender" has total control.  Like I said, pretty much a doom loop when a company gets involved with a "lender" like that. 

Edited May 4 by DalTxHornFan

[elfenix 34168]

payday lending, but for businesses

[tx 3 putt 76159]

6 minutes ago, elfenix said:

payday lending, but for businesses

I know some people in this business. They are stupid rich

[Spaulding Smails 1551]

2 hours ago, Anastasis said:

https://austin.eater.com/2024/5/3/24148321/valentinas-tex-mex-bbq-new-owners-inkind-sale-wage-theft-allegations

The CEO of Austin-based hospitality tech company InKind, Johann Moonesinghe, is in the process of buying outValentina’s Tex Mex BBQ in Buda. He tells Eater in an email on Wednesday, May 1, that his restaurant group is “likely [going to] end up being the owner” of Valentina’s.

 

In an email to Eater, dated on April 27, Moonesinghe stated that Valentina’s landlord “locked them out for breach of their lease and significant past due rent,” on April 26, and of the reported debt, claimed that the restaurant owes his company InKind, a senior creditor, roughly $1.5 million. InKind is a mobile app that provides restaurants with loans through a credit system.

There's tons of open liens on the business associated with the tenant finish-out construction as well.  I can't believe how the lender let them get away with opening without paying for construction in full.  So, just to recap, they owe a construction loan, they owe InKind $1.5M, they're "significantly past due on rent", and who knows how many other vendors they owe.  How does that happen in less than a year of being open unless there's significant fraud / embezzlement going down?  And how do these lenders let it get this far out of whack?  Predatory lender or not, how does InKind let an obviously struggling business accrue $1.5M in what I'm assuming is unsecured debt?

[elfenix 34168]

most mind blowing thing with factoring is the 'confession of judgment.' they already have a judgment against you, all they have to do is file it and they win!  it was a holy shit moment first time i saw one of those

Edited May 4 by elfenix

[DalTxHornFan 3084]

I had a late lunch meeting there maybe two months ago.  I was waiting in the parking lot and watched their provisioning at the back dock.  No, it wasn't a Sysco truck, it was two minivans offloading plastic bags of food from HEB.  I thought that it looked inefficient and thought that it might be a one off, but now I'm guessing that was the only company they could do business with by then.

[DalTxHornFan 3084]

1 hour ago, Spaulding Smails said:

There's tons of open liens on the business associated with the tenant finish-out construction as well.  I can't believe how the lender let them get away with opening without paying for construction in full.  So, just to recap, they owe a construction loan, they owe InKind $1.5M, they're "significantly past due on rent", and who knows how many other vendors they owe.  How does that happen in less than a year of being open unless there's significant fraud / embezzlement going down?  And how do these lenders let it get this far out of whack?  Predatory lender or not, how does InKind let an obviously struggling business accrue $1.5M in what I'm assuming is unsecured debt?

So far, no repercussions at Buda EDC.  Main Street Buda is thriving.  Not really sure why they needed to go all out on Valentina's.  That is a big space.  Something along the line of a food court like Liberty Hill's Main Street Social would make more sense.  And guess what?  That place is privately financed!

 

Edited May 4 by DalTxHornFan

[DalTxHornFan 3084]

1 hour ago, Spaulding Smails said:

There's tons of open liens on the business associated with the tenant finish-out construction as well.  I can't believe how the lender let them get away with opening without paying for construction in full.  So, just to recap, they owe a construction loan, they owe InKind $1.5M, they're "significantly past due on rent", and who knows how many other vendors they owe.  How does that happen in less than a year of being open unless there's significant fraud / embezzlement going down?  And how do these lenders let it get this far out of whack?  Predatory lender or not, how does InKind let an obviously struggling business accrue $1.5M in what I'm assuming is unsecured debt?

There is all kind of due diligence screw ups going on here.

Calling out to @YGIFS here, but the Buda EDC is using hotel tax revenue here.  They should be accountable to somebody.

Edited May 4 by DalTxHornFan

[SizzleChest 8275]

2 hours ago, DalTxHornFan said:

It is like a factoring arrangement.  In a normal factoring arrangement, a company will sell specific existing customer accounts receivable and will immediately get cash from the lender, say 65% of the face value. 

What I have been seeing in some restaurant deals is that the borrower is selling future credit card collections for cash today.  And the "lender" typically requires the store to use their credit card payment system, so that the "lender" has total control.  Like I said, pretty much a doom loop when a company gets involved with a "lender" like that. 

 

[DalTxHornFan 3084]

1 minute ago, SizzleChest said:

 

Perfect analogy!   I was thinking the same thing when I posted this morning.  What a great movie!

[Deej 76511]

If only they could have convinced all of their customers to tip the staff 300% every visit, they might just have made it. 

[Deej 76511]

Seems like all these pitmasters who want to expand would actually save money by paying someone who knows how to run a restaurant to actually, you know, run their restaurant.

[jimmyjazz 45513]

3 minutes ago, Deej said:

Seems like all these pitmasters who want to expand would actually save money by paying someone who knows how to run a restaurant to actually, you know, run their restaurant.

At least find someone who knows how to source pickles.

[Deej 76511]

1 minute ago, jimmyjazz said:

At least find someone who knows how to source pickles.

[Deej 76511]

On 4/30/2024 at 12:18 PM, CooterBrown said:

By not keeping pickles in stock, they made more money since they were still covered in the menu prices but not provided to the customer.

Pickle and diming their customers. 

[jimmyjazz 45513]

5 minutes ago, Deej said:

Pickle and diming their customers. 

 

[Shaggy3.0 1695]

3 hours ago, DalTxHornFan said:

So far, no repercussions at Buda EDC.  

 

the same buda edc will subsidize another, larger boondoggle.  the tap-in restaurant noted in a a previous post.

one spectacular fail was not enough.  second public fail on the way.

thank you sir, can i have another?

 

3 hours ago, DalTxHornFan said:

Calling out to @YGIFS here, but the Buda EDC is using hotel tax revenue here.  They should be accountable to somebody.

absolutely

[Deej 76511]

Does Buda have enough people to support this shit? I'm not driving that far to eat.

[4th&Five 41457]

The last location was too far for me. Haven’t been since they left the gas station. 

[DalTxHornFan 3084]

16 minutes ago, Deej said:

Does Buda have enough people to support this shit? I'm not driving that far to eat.

Main Street Buda has a pretty cool scene going on.  Nate's would be a good place to have a Surly event.

[Gil Bang 25865]

8 hours ago, Spaulding Smails said:

There's tons of open liens on the business associated with the tenant finish-out construction as well.  I can't believe how the lender let them get away with opening without paying for construction in full.  So, just to recap, they owe a construction loan, they owe InKind $1.5M, they're "significantly past due on rent", and who knows how many other vendors they owe.  How does that happen in less than a year of being open unless there's significant fraud / embezzlement going down?  And how do these lenders let it get this far out of whack?  Predatory lender or not, how does InKind let an obviously struggling business accrue $1.5M in what I'm assuming is unsecured debt?

1.5 for T.I.?  That's a shitload.  Did they lease a building that was completely unsuitable for restaurant use?

[CooterBrown 17875]

The last location was too far for me. Haven’t been since they left the gas station. 

I haven’t been since they left Star Bar.

[Anastasis 23375]

5 hours ago, jimmyjazz said:

At least find someone who knows how to source pickles.

And pay their taxes. 

[Jerry Callo 8658]

2 hours ago, Gil Bang said:

1.5 for T.I.?  That's a shitload.  Did they lease a building that was completely unsuitable for restaurant use?

It looks like a brand new building.  It might not have been finished out at all. 

[Spaulding Smails 1551]

2 hours ago, Gil Bang said:

1.5 for T.I.?  That's a shitload.  Did they lease a building that was completely unsuitable for restaurant use?

Worse than what you said.  No clue on the total amount of the construction loan for TI, but I'm guessing it was closer to $2M based on what I know about the project.  It was a quasi white box situation, so just a shell with extensive finish out.  

Here's the kicker... The $1.5M is ON TOP of the construction loan.  That's my point.  They've accrued an additional $1.5M in debt to InKind PLUS unpaid rent PLUS I'm guessing unpaid vendors in less than a year.  

[Shaggy3.0 1695]

27 minutes ago, Spaulding Smails said:

Worse than what you said.  No clue on the total amount of the construction loan for TI, but I'm guessing it was closer to $2M based on what I know about the project.  It was a quasi white box situation, so just a shell with extensive finish out.  

Here's the kicker... The $1.5M is ON TOP of the construction loan.  That's my point.  They've accrued an additional $1.5M in debt to InKind PLUS unpaid rent PLUS I'm guessing unpaid vendors in less than a year.  

so there's a story here.  the press should look into it.

 

[DalTxHornFan 3084]

10 hours ago, Jerry Callo said:

It looks like a brand new building.  It might not have been finished out at all. 

Pretty much a shell with a concrete floor, as I recall.

[Texzilla588 769]

Worse than what you said.  No clue on the total amount of the construction loan for TI, but I'm guessing it was closer to $2M based on what I know about the project.  It was a quasi white box situation, so just a shell with extensive finish out.  
Here's the kicker... The $1.5M is ON TOP of the construction loan.  That's my point.  They've accrued an additional $1.5M in debt to InKind PLUS unpaid rent PLUS I'm guessing unpaid vendors in less than a year.  

Plus his taxes which I expect are fed and state issues. Plus his liens. Plus whatever comes from his labor investigating.

Miguel and wife are up the creek.

[closetojumping 62132]

18 hours ago, Texzilla588 said:

Plus his taxes which I expect are fed and state issues. Plus his liens. Plus whatever comes from his labor investigating.

Miguel and wife are up the creek.

I've followed this thread for the bizarre train wreck quality it brings. Until this post, it never really hit me that there could be personal finance issues at stake here. What part of the debts that you guys are calculating would pierce the corporate veil?

[Jerry Callo 8658]

I've followed this thread for the bizarre train wreck quality it brings. Until this post, it never really hit me that there could be personal finance issues at stake here. What part of the debts that you guys are calculating would pierce the corporate veil?

There are most certainly personal guarantees on some if not most of the debt. Also, some tax liability and department of labor liability could have personal ramifications.

[Steel Shank 9405]

It was disappointing when the moved to Buda. This may just push me over the edge. 

[HenryJames 65868]

I pushed your mom over the edge last night.