What led O Bifão to file for bankruptcy protection and the transformations the restaurant has undergone in recent decades.

One of the most traditional restaurants in Vale do Sinos, O Bifão, had its request for judicial reorganization approved by the Court last Thursday (30). The judge in charge of the Regional Business Court of the District of Novo Hamburgo, Alexandre Kosby Boeira, accepted the request made by the restaurant. According to the law firm Medeiros, Santos & Caprara , which advises the establishment in the process, the company's liabilities amount to R$ 6 million, of which R$ 4.5 million are taxes.

The deadline for submitting the recovery plan was set by the judge for November 20th, the same day that O Bifão will celebrate its 67th anniversary. "A period of negotiation with creditors will begin, and after the recovery plan is approved, it will be defined how and when the payments will be made," explained Robson Lima, consultant for the law firm hired by the restaurant, in a statement.

The sheer volume of debt is striking and contrasts sharply with recent news about the restaurant. In 2013, the Novo Hamburgo Commercial, Industrial and Services Association (ACI) announced on its website that the establishment had been awarded a bronze medal in the Rio Grande do Sul Quality and Productivity Program (PGQP). "A recognition that values the company's management system," the text on the organization's website stated.

Although the bankruptcy filing was made during the coronavirus pandemic, the establishment admits that the difficulties are longstanding and have accumulated over several years.

"The problems faced by traditional restaurants are nothing new. Difficulties in collecting taxes have been ongoing for almost two decades. Coupled with various economic crises and unsuccessful marketing strategies, these issues pointed to the need for alternatives," Lima adds.

One of the marketing strategies that was initiated (in 2000) and discontinued by the restaurant (in 2018) was the sale of frozen products under the brand in dozens of supermarkets and hypermarkets in the Vale do Sinos and the Porto Alegre Metropolitan Region. This action involved a strong marketing campaign, with tasting kiosks at the points of sale and messages on billboards. The report questioned whether the frozen food operation was unsuccessful or contributed to the increase in debt, but the consulting firm chose not to respond.

Those who frequented the restaurant recently may also have noticed another service that was interrupted. The private parking lot that the establishment had on a plot of land next to the restaurant has closed. According to Lima, "the property next to the establishment, where the private parking lot was located, had to be made available to settle debts, but it wasn't enough. It's important to emphasize that this location did not belong to the restaurant, but to one of the partners."

The restaurant building has also undergone significant renovations and expansions in recent decades, in addition to the company implementing modernization processes in its service. The kitchen, for example, which used to be on the right side as you entered the establishment, was moved to the back of the building, and tables were added to the vacant space. Furthermore, the waiters abandoned notepads and pens and began recording orders with electronic devices. The consulting firm was also questioned about the impact of these improvements on the company's finances, but chose not to respond.

Lima, however, admits that there have been changes in the restaurant's management recently. Since 2019, Rejane and Janice Corrêa da Silva, sisters and heirs to the business, have been responsible for its management. Janice also issued a statement: "The family started this business, family members have managed it until now, and it is up to the family to solve the problems and correct the course. This is not the time to find fault. We are returning to the business, looking to the future."

Regarding the pandemic's role in the restaurant's crisis, the consultant explains that "the inability to open to the public required the business to adopt firmer restructuring measures," which resulted in the filing for judicial reorganization. Furthermore, Lima says that O Bifão "had to lay off eight of its 19 employees."

The consultant emphasizes that "judicial reorganization, by itself, does not solve the company's problems, but it is a great tool added to management." According to Lima, "during this period of negotiations, it is crucial that the company takes advantage of the time to do what we call 'homework'."

The consulting firm assures that the establishment "is operating and selling normally through various delivery platforms, landline phone orders, and counter orders." Last week, a digital menu was launched for distribution via social media and WhatsApp.

Other internal processes have also been adopted recently, including "cost reduction, changes to packaging (thermal, compact and with brand identification) and also strengthening the brand and products through stronger campaigns on social media. All this without changing the famous concept of the place, but reinforcing consumer engagement," informs the consultant.

History

Serving meals since 1953, O Bifão became famous for offering generously portioned steaks with a homey and informal service. One of the restaurant's best-known items, besides the meat, is its traditional potato salad with mayonnaise, which has a touch of mustard that sets it apart.

Especially between the 1980s and 1990s, the establishment was a traditional family lunch spot on Saturdays, when it was normal, and even part of the ritual, to wait for a table for about an hour.

"I got used to seeing lines at the door to try our recipes and seeing children everywhere. Bifão was born to serve families," recalls Janice, daughter of the founders Manoel Corrêa da Silva and his wife Jures, in a statement.

Beloved by a large part of the Vale do Sinos community, the restaurant has been receiving expressions of support during this difficult time, according to Lima.

"The restaurant reports that it has not noticed any drop in revenue after the recovery announcement. On the contrary, it has perceived a great deal of affection for Bifão and commitment from the community to continue buying in order to help and perpetuate the brand, which is a heritage of the region, not only of Novo Hamburgo but also of Greater Porto Alegre and Vale do Paranhana," the consultant informs in the text.

Source: Gaúcha ZH