Manuel’s Tavern having to raise prices to cover inflationary costs

By Maria Saporta

In an open letter to customers, Manuel’s Tavern owner – Brian Maloof – is letting folks know the iconic Atlanta gathering spot is reluctantly raising its prices.

Maloof said he tried to hold off raising prices as long as he could.

“Unfortunately, starting next month, we will have to implement an across-the-board percentage price increase…” Maloof said. “We will continue to monitor neighborhood prices to ensure we remain competitive while maintaining large portions, stiff drinks, free parking and free event space.”

In a text exchange Thursday evening, Maloof estimated the prices would rise between 4 percent and 6 percent. He shared the letter he would be posting Tuesday morning on Facebook about the upcoming change in Manuel’s pricing.

“This letter is to inform our regular customers of these changes and the reasons behind them,” Maloof said. “It is not about padding our pockets but ensuring our future survival.”

Manuel’s, established in 1956, has been a popular hangout for politicians — especially Democratic ones — journalists, government workers, community leaders, clergy and police officers.

Manuel’s, at the corner of North Avenue and North Highland, has survived multiple challenges over the past several years.

In late 2015, Manuel’s closed for nine months (reopening on its 60th anniversary – Aug. 6, 2016) to undergo a needed renovation while a developer bought the property for an adjacent residential development.

Then in December 2020, Maloof let the community know the tavern was in danger of closing its doors because of declining sales during Covid combined with rising insurance and liquor license fees.

A “GoFundMe” effort launched by longtime customer Angelo Fuster raised more than $187,000 – significantly more than the initial $75,000 goal – allowing Manuel’s to stay open.

Although the Covid pandemic is behind us, Maloof said inflationary pressures have led to them having to raise prices.

In the Facebook letter, Maloof explained his current situation (in italics):

Our approach to pricing has worked well for years, keeping our customers happy and Manuel’s profitable. However, as inflation persisted, our cash reserves began to diminish dangerously low. So, we had to expand our targeted price increases to even more top-selling food and beverage items.  Unfortunately, the decline in our financial resources has continued.

At the same time, our staff faced the pressures of inflation and requested pay increases, which we quickly granted. It became apparent that everyone was struggling with the financial impact of inflation. I also noticed a slight decrease in tip percentages, and our sales began to slow. Ununderstandably, customers were tightening their spending. It felt like a perfect storm was brewing.

In response, we dug deeper into our cash reserves, expanded pay raises, and re-evaluated prices more frequently. Meanwhile, our suppliers raised their prices substantially, and we scrutinized every invoice to track these increases…

We were caught in a big storm of unchecked inflation with dwindling cash reserves. All of our vendors were raising their prices at an unprecedented rate, and it became clear that we needed to raise our prices more aggressively to stay afloat.

It is unusual for a business enterprise to openly announce that it is having to raise prices. When asked why he decided to be so public about it, Maloof quickly texted back.

“I feel like it’s what Dad would want me to do,” he said of his larger-than-life father – the late Manuel Maloof. “It really is a big change for us.”

Maloof added that he and his wife have had to loan the business $60,000 in the last three months, and that was no longer sustainable. His biggest increases have been labor, property taxes and food costs.

“It is my hope that inflation will ease, and prices will return to pre-Covid levels,” Maloof wrote. “If that happens, we will adjust our prices accordingly.”