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SAN DIEGO (KGTV) - A pair of recent restaurant closures are highlighting some of the struggles owners are facing as the industry grapples with major shifts in the way it does business.Last month, Brooklyn Girl in Mission Hills and Urban Solace in North Park both closed their doors. Facebook posts thanked long-time customers but gave few answers as to why.Industry experts think it's a sign of bigger problems in the hospitality sector, as rising costs and changes in people's behavior are combining in a "perfect storm" of problems.RELATED: El Pollo Grill to open new location in Chula Vista"These are seasoned operators, people who have been in business for a long time. And for one reason or another they're just stumped," says Stephen Zolezzi, the President and CEO of the Food and Beverage Association of San Diego.His association tracks the total number of licenses given out in San Diego to food and beverage vendors. Zolezzi says over the last three years, there's been an increase of 300 licenses. While that may make it seem like the industry is growing, Zolezzi sees it differently."Previous years, we've seen increases of 1,000 or 2,000 licenses," he says.RELATED: Restaurant closing in Coronado highlights uncertain future for Orange AvenueZolezzi says the cost to operate a restaurant is becoming too expensive to manage. The prices of rent, insurance, and goods have all gone up in the past year. There are also higher labor costs because of minimum wage hikes and low unemployment creating favorable hiring conditions for employees.But cost isn't the only factor."Customer loyalty, today, is really at a low," says Zolezzi. His members say diners now would rather go to multiple places once than become regular, dependable customers at a few spots."You could be doing everything right," he says. "Great food, great service, great value; but the customers just move on because there's something else."RELATED: New east Chula Vista shopping center quickly taking shapeAnother factor is the rise of delivery apps like GrubHub, DoorDash and Postmates. Zolezzi says these apps can charge restaurants as much as 30% of the total bill, plus delivery fees, to carry their food. That cuts into already razor-thin margins and in some cases cause restaurants to lose money on each delivery order."If you don't have that factored into your business plan, it could create a negative," he says.Zolezzi says it's now up to the industry to adapt, as restaurant owners need to constantly reinvent their location, menu, and marketing to bring in more customers. 2568
SAN DIEGO (KGTV) — A jury has reached a verdict in the civil trial between NFL star Drew Brees and a San Diego-based jeweler. A jury Friday found local jeweler Vahid Moradi liable for fraud, awarding Brees ,130,767 in damages in his lawsuit against Moradi.The Brees family accused Moradi and his company, CJ Charles Jewelers in La Jolla, of selling Brees and his wife several supposedly investment grade diamonds that would appreciate in value 150 to 200 percent.RELATED: Closing arguments being held in civil trial between NFL star Drew Brees and San Diego-based jewelerThat wasn't the case, according to Brees, who says Moradi lied about the true value of the diamonds. Between 2012 and 2016, the Brees family says Moradi sold them million in diamonds. But when they took those diamonds to an appraiser in 2017, they were told the diamonds are worth million less than what they paid.In one instance, Brees' attorney Rebecca Riley said Moradi sold the NFL star a diamond for .1 million that was actually worth .75 million. Riley pointed to another purchase in which Moradi allegedly claimed a diamond was from Europe when it was from an Orange County dealer.RELATED: Drew Brees sues La Jolla jeweler: Opening statements in San Diego civil trialBrees told jurors during trial that he and Moradi had developed a close friendship beginning in 2003 when he started purchasing watches from Moradi's store. Around 2008 or 2009, Brees says Moradi started advising him to invest in diamonds.Riley said Moradi represented himself as an expert and betrayed Brees' trust."Drew trusted Moradi," Riley said. "He held him in esteem. He believed him to be a friend."Moradi's attorney, Peter Ross, says the Houston-based jeweler the Breeses consulted was a "con man" who scammed the couple."How could he possibly know that Drew Brees had been ripped off?" Ross asked the jury. "He couldn't. But he had accurately sized up Drew Brees to be an easy mark."Ross added that any discrepancies between what Moradi paid for the diamonds and what the Breeses paid was standard markup in the industry to cover business expenses. 2124
SAN DIEGO (KGTV) - A local family says they were fighting to get back thousands of dollars in family heirlooms. They only got answers, they say, after Team 10 stepped in. "It makes me sick. It's really emotional," said Jill Robertson of Escondido. We interviewed Jill with her son, Jon, and his girlfriend, Megan Gielczyk. Jill and Jon shared with us a few of the limited old pictures they could find of their family heirlooms.She pointed to a photo of her late father wearing a ring. It was one of the pieces of sentimental jewelry that she said her family had given to local jeweler Mark Himmel to redesign. Jon said he was planning to use one of the rings to propose to his girlfriend but he added that the proposal and engagement were put on hold because Himmel hadn't returned their jewelry. Records verify that Himmel operates Sa-Ling Jewelry Imports Incorporated in San Diego. The Robertsons said it was Aug. 12 when they gave him a down payment to redesign thousands of dollars in family jewelry. They said they had expected to have the job completed in two to three weeks, but we met with them almost two and a half months after they wrote out a down payment check."There's evasion. He's constantly evading," said Jill. Jon's girlfriend, Megan, told us Himmel hung up the phone on her. San Diego police confirm they showed up to Himmel's home, where he operates his business, to try to get answers. However, no one came to the door. Two days after Team 10 left Himmel a voicemail, the Robertsons said they got a priority mail package with some of the heirlooms, but not all of them. They said there was no explanation for the wait time or behavior. It was early last week when Team 10 started making calls and leaving voicemails for Himmel. None of Team 10's calls were returned.We made a second attempt to visit him in-person this Thursday and were successful. He told us he's sending out the remaining pair of earrings on Thursday and he will soon send a remaining gold nugget."It took two months this time because I handmade the ring," he told us.He spoke to Team 10 later over the phone. He said he was responsive to the Robertsons about his slight delays. He sent us what he said was a screenshot of a text exchange from mid-September when he notified them that the job would likely take another three weeks and they thanked him. A representative with the California Franchise Tax Board notified Team 10 that Sa-Ling Jewelry Imports Inc. in San Diego was suspended on 07-03-2017 for unpaid liability with a current billable balance of ,336.81. The Better Business Bureau verified that the Robertsons filed a complaint. The BBB reported to Team 10 that it's the first complaint against Sa-Ling Jewelry, which has been in business for many years. 2810
SAN DIEGO (KGTV) - A man says his car was stolen while he was picking up a delivery order from a Subway in Clairemont. Luis Riveramerced said he was working for Postmates, a food delivery app, on Tuesday when he stopped at the Subway in Clairemont Town Square.“All I had to do is grab the bag and take off,” he said.So he felt comfortable leaving his car running, expecting to be in and out in a few seconds.“If I know it’s pick-up only, then I'll let my car run. I’ll just grab it,” he said.But while he was inside, he noticed part of the order was missing. As he was waiting for the order to be fixed, surveillance video captured a man peeking into the store, getting in his car and driving away.“I was like wow,” he remembered thinking when he went back outside. “I wasn’t expecting somebody to jump in my car right in front of me and take off like that.”He called the police but by the time they got there, the driver was long gone.“You put a little bit of trust and now I will never do that again,” said Riveramerced.A Navy veteran, he said he’d been working for Postmates for a few weeks. He is now using his mom’s car to continue delivering orders.Anyone with information is urged to contact the San Diego Police Department. 1239
SAN DIEGO (KGTV) - A new report is calling for San Diego County jail reforms to address mental health issues and inmate suicides.From 2014-2016, 17 people have died by suicide while being held in a San Diego County jail facility, according to an investigation?by Disability Rights California (DRC).By this rate, the group says San Diego County's rate of inmate suicide is "staggeringly" high compared to national, statewide, and local data. During this three-year period, the county's rate of 107 deaths per 100,000 was double the national rate of 50 per 100,000, the group says.More: TEAM 10 INVESTIGATIONS"People with mental health needs and their families deserve better," DRC Attorney Rebecca Cervenak said. "Without appropriate community services and improved conditions, people will continue to suffer."The report says four aspects contribute to the high suicide rate: over-incarceration of people with mental health needs, lack of jail oversight, failure to provide mental health treatment and harmful solitary confinement, and a lack of efficient suicide prevention.DRC spoke with jail staff, inmates, and San Diego Sheriff's Department (SDSO) leadership as part of their investigation.The SDSO said they welcome feedback regarding the jail system and will work to improve procedures, but had a number of concerns with how data was gathered and recommendations were formed: 1409