News-Press Forces Time Off

Not quite layoffs, but close, it has come to our attention that the News-Press is forcing employees to take a week off of work - unpaid - in order to post pone additional layoffs. Thanks to LeeCountry 24/7 for this one:

The move is intended to avoid further layoffs. The News-Press let go between 50 to 60 employees last month.

“Undoubtedly, people are upset,” said David Plazas, Community Conversation Editor at The News-Press. The furloughs will effect everyone from the top down, so even Publisher Carol Hudler will have to eat an unpaid week of downtime. “Everybody needs to feel the pain,” said Plazas. “We’re looking ahead to try to make sure we don’t have to make other cuts. My hope, my optimism is we won’t have to go any further.”

News-Press workers have to take the week off before March 29.

I have friends who were affected by the News Press’ slew of cuts last month. Although I’d like to say “I hope things get better soon,” there seems to be no end in site for the economy as a whole and print publications in specific. The world (readers and advertisers) has been transferring to digital mediums for some time and this, is unacceptable to larger, slower news and print organizations who have been used to doing business a certain way. Is there hope? Definitely! I know of at least one publication that is doing phenomenally, thanks in part to it’s heavy use of technology to increase efficiency and productivity, as well as increase advertisers’ spend (through the use of online advertising through their website).

Kona Grill Closing, Naples FL

Just read some terrible news. Kona Grill in Naples (at the Coastland Mall) has closed its doors. According to the article I found about the Kona closing on Naples Daily News:

NAPLES — Kona Grill, an American grill and sushi bar, announced that it has closed its restaurant in Naples, a press release on the company’s Web site reports.

The company is expected to take an impairment charge during the third quarter of 2008, although the specific amount has yet to be determined.

“Although we are disappointed to have closed our Naples restaurant, we believe it was the prudent choice for our business as we seek to navigate through some very challenging times in our industry,” said Marcus E. Jundt, Chief Executive Officer of Kona Grill.

This seems to be another eery underscore of both the local and national dwindling economies. Locally, the real estate market has been rocked by falling values and too much inventory, particularly in Lee County. Nationally, big business and banks are being threatened every day.

It seems just yesterday Kona was opening its doors. In fact, the restaurant wasn’t even open for 2 years:

Kona Grill, an American cuisine and sushi bar coming to Coastland Center mall in Naples, will be able to serve liquor, despite a city ordinance barring restaurants from selling wine or beer within 500 feet of each other.

But the late hours that are the upscale restaurant’s trademark were shot down Wednesday by the Naples City Council in the name of fairness.

Perhaps if the City of Naples had decided to allow the late nights, for which many places in Naples are able to stay afloat, things would have been different.

But, what can we learn from this debacle?

First, even the big guys, who - at first plan - are able to lease very valuable real estate and target a sophisticated market, make mistakes. And those mistakes are just as easily made, or avoided, by small businesses, so do your homework and plan for the future.

Second, with things slowing down you don’t HAVE to hold on. Cut your losses, if something just isn’t working out from a financial or resource point of view, concentrate your efforts and energy in a portion of your business that is showing returns.