Fred’s Bar and Grill, a favorite of residents for over a decade, filed for bankruptcy yesterday after a failed “free food” experiment proved too costly to its owner.
“I don’t understand,” said owner Fred Grimes. “Once we began the free-food program, we had lines around the block. I had to hire extra staff and stay open later to handle the demand. You would think that with all of the new business, the restaurant would have been doing great.”
Indeed, business was up sharply, with over 1,000 customers being served daily -- a jump of more than 750 from the days when Grimes would charge people for their meals. However, Grimes also found his costs increasingly dramatically, while revenues withered away to almost nothing.
Going ever deeper into debt, he was forced to shutter the restaurant yesterday.
Grimes said he got his idea for the free-food program from the newspaper industry’s move to on-line publishing. “They put all of their stuff on the web for free, so people no longer have to buy the paper,” Grimes said. “If it worked for them, why didn’t it work for me?”