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Rent Put Beef O'Brady's Franchisee In Hot Water

Tribune photo by CLIFF McBRIDE

Jim Tomko owns a Beef O'Brady's franchise in St. Petersburg. He said the high purchase price of the franchise and rent drove him to bankruptcy.

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By MICHAEL SASSO | The Tampa Tribune

Published: November 28, 2008

Name:Jim Tomko

Business: T&T Beef's, a franchisee of Beef O'Brady's, 226 37th Ave. N., St. Petersburg

Filed Chapter 11 bankruptcy Nov. 5

Jim Tomko's Beef O'Brady's restaurant has been more than holding its own lately. It's the rent increase in recent years that drove him to bankruptcy, he said.

Tomko, 42, had been selling for Raymond James Financial when he got the urge to start his own business. After scouring the Bay area for franchises, from a smoothie chain to a company that delivers radiators, he settled 18 months ago on Beef O'Brady's.

The Beef's location he bought, just off of Fourth Street in St. Petersburg, had been operating since 2002, so he figured he'd have steady business from Day 1.

But his restaurant's overhead costs are growing faster than his sales, even though, after 18 months, Tomko has improved operations to the point that sales equal the best year of the previous owner.

The rising costs include rent that went from $6,000 to $9,000 in recent years and natural gas costs that doubled from $500 to $1,000 a month.

He also now admits he paid too much for the business.

Beef O'Brady's parent company, based in Tampa, has been supportive, introducing cheaper meals to bring in customers, including a $5.99 build-your-own-burger special.

Tomko continues to operate Beef's in bankruptcy and hopes the judge will allow him to get out of his lease and look for better space.

"I'm looking all up and down Fourth Street," he said. "The question is: Will landlords lower the rent?"

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