Monday, April 30, 2012

I used to be a people person...

Fact:
If you run a restaurant/bar, everyone knows how to run it better than you.  You are just a greedy bastard.


Name:
Email:
Subject:  My visits there
Comment:  When I first went there a year or so back, it was such good food, I got stuffed peppers (4 of them then) and the philly steak salad. As time has gone on & taking our kids skating next door, we would come over on a Sat night to have a couple drinks & a bite to eat. Now you get only 2 stuffed peppers, instead of 4,  once I tried to order the philly steak salad & you did not have steak. 3 times in a row we tried to order potato skins as an appetizer and you were out of them, and then most recently when we were there you have raised all your prices, some by over $2 which is crazy. You had a nice place & good food when it was available, however now you are getting a bit big for your britches raising  prices, with not having the food on the menu readily available, and as an owner your not the friendliest owner around either. Instead of trying to think that you are somebody by walking around doing not much, try making sure you have the things you need to make the food on the menu & taking your prices back to reasonable before you have no one there anymore


My Rebuttal (If I could, this individual choose not to allow a way for us to respond):  
The menu was updated two years ago, we eliminated items and adjusted prices to inflation, this is what restaurants do.  Thanks for noticing :)



Saturday, March 31, 2012

Economics of the Restaurant Dollar

I've been noticing lately that when it comes to restaurant reviews there are generally four different adjectives that are used by customers to describe the prices at various establishments. They are as follows:

1. Expensive
2. Overpriced
3. Pricey (as in 'a bit pricey')
4. Reasonable

No one will ever use terms such as 'fair' or 'accurately priced' and God forbid anyone ever refer to a place's prices as being 'cheap.' I think this is mostly due to not understanding where the money goes that they spend.

I actually have lots of thoughts on this but I'll save those for another post some day. However I do want to quickly review the general costs associate with every dollar that comes into the registers.

So have you ever wondered where the money you spend at a Restaurant goes? How much of it is profit versus expenses? Well here is a quick breakdown in terms of ours as well as many other restaurants pricing models.

+$1.00 Gross income into the register
-$0.09 take an immediate 9% and give it to New York State for sales tax.
-$0.30 for employee wages, most restaurants aim for a 30% payroll cost vs gross sales. Most are actually higher.
-$0.15 on average we pay 15% of our gross to utilities, ie water gas electric
-$0.02 for insurances. Restaurants and bars carry lots of liabilities from fire, to disability to general liability all the way to workplace injuries. Basically when you're serving the public and employing the public you need to be insured to your eyeballs.
-$0.02 property/city taxes. Some people say that you never really own your property, you just lease it from the government.
-$0.05 mortgages, maintenance, service, repair, upgrades. The restaurant industry requires that you use a lot of equipment. From computers for the front of the house, to freezers, stoves, etc for the back of the house. Then there are repairs and updates and paying for the building in general.
-$0.33 Cost of Goods Sold. Our target for pricing is so that every meal you have, the items you consumed cost 33% of what you paid for. Most places target this 33% to be the standard. This factor is not a variable and the prices customers pay are not an arbitrary number. They are formula driven to fit this percentage so that restaurants can maintain a profit margin.

So add those up, you get $0.96 of expense for every dollar you receive in the restaurant industry. Leaving you with only $0.04 in profit out of that $1.00 payment.

Now Uncle Sam comes along and takes his cut in the form of corporate income tax. Which as of April 1, 2012 is the highest in the world at just over 29%. Meaning that of your $0.04 profit, the government gets $0.01, leaving you with $0.03 net profit.

So in real terms what does this mean? Say you have a seemingly successful restaurant that grosses $1,000,000 this year... Which for all intents and purposes is a very successful year. You as the business owner walk home with a whopping $30,000 for the year. Not horrible but certainly not going to get you that private jet you had your eye on when you opened your restaurant.

Oh and by the way, you'll probably be putting in up to 80 hour work weeks on a regular basis to earn that $30,000 and to make sure employees are not giving away your shirt.

Side Note: If you were keeping track, you might have noticed that the Government gets $0.10 out of every $1 you make. So in my example where the business grosses $1,000,000 and nets only $30,000... Uncle Sam gets $100,000 just for being a nice guy... And if you don't give him his due cut, he takes your Restaurant.

Tuesday, March 27, 2012

I'm back, with a new complaint: Why do I pay more for beer?!

Beer delivery just came in from a local distribution company, the same company that we have been dealing with forever, who also services all other restaurants, bars, gas stations, beer stores and grocery stores. There wasn't a problem with the order, or the service, but there was something I noticed yesterday when I was buying some groceries for home that has had me somewhat annoyed over the past 24 hours.

You see, the liquor and beer distributors work in a sort of monopoly like manner when it comes to the products they sell. For example, if you wanted to buy Budweiser, there is only one distributor in the region that has the rights to sell Budweiser. So in a sense, that particular distributor has a monopoly on each particular brand that they sell. If you want to buy Budweiser Beer, you have to buy it from that distributor in one way or another. No matter where you buy it, a restaurant, gas station or beer store, all those businesses bought their Bud from the same distributor.

Why is this? Well it's not necessarily the fault of the distributor. From my understanding of how the setup works, Beer & Liquor companies sell their rights to their products to individual distributors. They never give two different distributors in the same region the rights to sell their products at the same time. This would cause competition in the market which inturn would result in price reductions. Therefore, companies like Budweiser are able to maintain their pricing models and never let competition alter their costing.

I think their argument why this is ok, is due to that there are multiple different beers in the market. And if you didn't like the price of one, then you can purchase a different brand of beer.

Whatever, fine, kudos to them for figuring out how to back into a legal monopoly.

Anyway, this all now brings me to my original point, and the issue that caused me the frustration yesterday. And being in the restaurant business, this is a point that most people outside of the industry, more specifically outside of the pricing and purchasing side of the industry don't understand and refuse to believe.

It is more expensive for Restaurants/Bars to buy liquor and beer from the distributors, than it is for individuals to purchase beer from a grocery store, which gets its beer from the distributor. Meaning that in this particular case, factory direct does not result in savings, and in all actuality results in far higher costs.

Let me explain futher:

Yesterday I was at the supermarket and saw that 28, 12oz bottle cases of Labatt Blue were on sale for $16.99, which by all means is a pretty good deal. This grocery store, purchased this beer from the distributor that I use to buy my beer for my restaurant, and they are selling the case, at a profit none the less, for $16.99.

Today, I received my invoice for my weekly beer purchases from the same company that sells to this grocery store. I see that I am being charged 21.45 for 24, 12oz bottle cases. Meaning that it is essentially $5 less for me to go out and buy a case of beer at a grocery store, than it is for me to buy directly from the distributor... not to mention that I would get 4 more bottles.

So why wouldn't I just go out and buy beer from the grocery store and sell that if it's cheaper? Well, because it's illegal. In New York State, as a restaurant or bar you must purchase all liquor and beer from certified wholesalers who have a license to sell to retailers.

All in all, it's just annoying.


Tuesday, October 6, 2009

Golf Promotion gone bad

This is a good one.

I just got in a heated argument with 65 year old guy that resulted in him screaming at me, and threatening to leave and take all his friends with him. I said, that is fine with me, so he left.... but his friends stayed. :) hahaha

We have a promotion for golfers that if they come in and bring their scorecard, we offer them a buy one get one free drink special on their first drink.

Meaning that they have to purchase their first drink to receive the the second free drink.

This guy came in with a drink chip, and insisted that he get another free drink because he has a golf score card and is technically purchasing a drink with his drink chip.

My argument was that he actually wasn't purchasing the drink chip, that it could have came from someone who gave it two him days ago, so he still had to purchase a drink to receive a free one.

This resulted in him telling me I treat my customers like shit because I don't honor a drink chip.... My response was, how does giving customers a free drink constitute treating them like shit. He then responded by saying because the promotion is buy one get one free and he has a drink chip that is equivalent to buying a drink, so he should still get another free drink. I then responded that he actually didn't buy that drink chip, so technically he bought nothing in regards to this promotion, so he is not entitled to a buy one get one free discount.

From here, the argument got even more confusing. He started arguing that the drink chip is considered a legal tender because at some point it was purchased. My response was not necessarily because you might have received that drink chip yesterday in another buy one get one free promotion, which indicates that it is not the same as purchasing a drink.

Ultimately, he started yelling at my mom and my bartender janet, who are both over 65 so I had to ask him to leave. All his friends stayed and are here right now making fun of him.

Also, and for the record, I gave him a free drink just like he wanted, but he continued to be a jerk regardless.

They come in all shapes and sizes I guess.

Wednesday, September 16, 2009

What day is it?

Where has the time gone.

It appears I have not posted much in the past year. No real reason for this other than that I got lazy and let the posts slide.

But a lot has happened, and I don't really know where to begin.

I guess I will just list some thoughts, and come back at a later date to explain.

  • Planned, Designed and Organized large expansion to the Restaurant.
  • Approvals began in October 2008, and we received final approval in April 2009.
  • Construction began in June 2009.
  • Construction estimated to be completed in July 2009.
  • It is now September 2009 and we are still under construction.
  • New kitchen has been growing and growing.
  • Everyone excited about the addition.
  • Brought Pub Trivia to Buffalo!
  • Took on more of a role at the business.
  • Rainy Summer of 2009
  • Perpetually oscillating door for staff.
  • Life is good!

Thursday, May 7, 2009

Bar League... Football??!!!

What a great concept!

The term "bar league softball" is commonly refers to a group of people who are old and out of shape, pretending to once again be athletes while playing the game of slow pitch softball. Don't get me wrong, I do love this concept, and I myself even patron several 'bar league softball' teams. However there is something lacking from the luster of a sporting event that provides only limited amounts of actual activity.

Luckily for me, I was fortunate enough to stumble upon 'Bar League Football.'

Much like bar league softball, bar league football is a group of past their prime individuals who once were athletes trying to relive the glory of their younger days. However this game involves actual physical activity! You are required to run, catch, jump and all those other things that you only have to do on chanced occasions while playing softball. And best thing about it, is that you get to do it every play!

It's kinda like a club sports team in college. You get together with a bunch of friends every week, run around for a while, and then after the game (sometimes during the games) you have a few drinks with the people you're playing against. Stress levels are low, and fun levels are high... and better yet, you may actually even get a good workout from it!

If you're in the Buffalo, NY area and looking for a fun coed league to join for some laid back football on the weekends, I highly recommend M/ile Sports.

They're good people and do a good job of keeping things loose and fun.

Friday, July 18, 2008

Mother Russia

I just returned from spending a week in Russia then passed by far too quickly.

A close friend from home who now lives in St Petersburg Russia was getting married. So I opted to take full advantage of the opportunity presented and made the trip over. What an incredible experience it was. I truly feel I got as much out of my trip as possible, both on the late night social scene as well as the daily cultural aspects.

All in all there is too much to speak of independently but I have created an outline to help speedily tell the tale of my journey. It goes as follows:

§ Fri July 4:

o Flights from Buffalo to St Petersburg

o (Buffalo to DC 1.5 hours)(DC to Frankfurt 7.5 Hours)(Frankfurt to St Petersburg 3 hours)

§ Sat July 5:

o Arrive in St Pete's

o Luke’s friend/ co employee DAN SELL MET me AT THE AIRPORT.

o We TOOK THE SUBWAY UP TO VLADIMIRSKAYA WHERE I MET the rest of the group.

o WE ATE AT YOLKI-PALKI, a Russian chain restaurant

o Irina and I TOOK ALEK HOME because he was falling asleep at the table AND THEN CAME BACK to meet the group.

o WE WALKED AROUND THE CITY FOR A WHILE, THEN TOOK THEM TO THEIR APARTMENTS AND Luke, Irina and I TOOK OFF to prepare for a night on the town. We went to the newests hippest night club in St Pete’s called “Sand” located right on a dock on the Gulf of Finland. Typical night club, included pool (only one I saw in St Pete’s) Miami like scene.

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§ Sun July 6:

o Woke up in bed (futon with Alek) went to meet wochensky’s…. they were 2 hours late, Al and I had to wait in the rain.

o Walked through a RUSSIAN MUSEUM with Wochensky clan,

o Museum contained RUSSIAN ART FROM ICONS TO EARLY SOVIET ART. Luke was our tourguide, I was our pace car.

o Dinner with Ilya and Igor and entire Wochensky Clan - RESTAURANT TARKHUZ

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o After dinner we took a Canal cruise as a group, Pierre, Ed and myself enjoyed Pirva

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o After the canal cruise, we parted ways with the Wochensky’s and Luke, Al, Aaron and I went to see Luke’s office

o At the office we had some cappuccino, champagne and played table hockey.

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o My friend Maya from Swarthmore Met us there with some students and friends of hers and we all headed out to Dacha bar,

o Luke, Al and Irina went home early leaving Aaron and I to hanout longer. We had one drink and Dacha then headed outside to a Baltica Beer Garden.

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o I dropped Aaron off at 4am PYCCR039and stayed in a Hostile with the Swarthmore clan. The room I stayed in had 10 bunks, with 9 of them being full. I didn’t pay because I showed up so late.


§ Mon July 7:

o In the morning two germans came in to stay at the hostile and were surprised when one of the bunks they paid for was occupied so I had to quickly bolt out of the hostile before being noticed.

o Called luke on Maya’s cell phone and was off trying to find my way back to Lukes apartment.

o Once outside I realized I had no idea where I was, or how to get back to the metro or to find Luke’s apartment.

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o Asked several people if they spoke English, no one did. Eventually found the metro by wandering around the city for a while and then managed to make the necessary transfers to get to Luke’s metro stop.

o successfully made it back to Luke's apartment on my own, GOOD WORK!

o Daytime activities, late in the afternoon we headed back into the city to show for shirts and ties for luke. But didn’t buy anything. Stopped at a Sushi restaurant for dinner, then met up with Luke’s family.

o Luke, Ina and I took IRINA TO THE TRAIN STATION where we ran into her cousin who she hadn’t seen in ten years.

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o After the train station, we returned to the apartments to drop off Ina, and Luke, Al and I went out to an Irish Pub to meet with his friends from Ohio State.

o We were all going to call it an early night around 1am, but then the guy from Nebraska who had left an hour earlier to catch a train called saying that all trains were cancelled until 6am. So he wanted to go out in the city until it was time for him to catch the train.

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o Al and Luke when home to bed, I went out with the other two guys to Marstall, a popular bar in the city.

o Stayed in the city at the Ohio State guys apartment that night. (went to KFC on the way home)

§ Tues July 8:

o Woke up in Ohio State apartment, took my first cold shower.

o Luke and Al met me there with a change of clothes, and we decided that I needed to have a cell phone from now on seeing that I have already created a trend of winding up in random parts of the city on my own.

o We then left to meet the Wochensky clan and TOOK THE METRO TO THE SUBURBAN TRAIN AND TOOK IT OUT TO PETERHOF WHERE WE WALKED AROUND THE PARK WITH THE FOUNTAINS AND SAW THE GULF OF FINLAND.

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o WE GOT BACK IN to the city around 6pm AND THEY WENT TO THEIR APARTMENTS, and we picked up Mike Brady who had just flown in.

o Night Time activities, "Bachelor Party". Molly's pub, Marstall, and that other place. Where we went at 4am and haggled on the street for 15 minutes until they allowed us to enter the club and not pay full price.

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o Cecala and Brady first real night out in St Pete’s. Dropped Cecala off with his wife at 7am. We got home around 8am.

o KFC on the way home. Delicious everywhere in the world.

§ Wedsneday July 9:

o Woke up early in the afternoon…Hungover as hell

o Al left early in the morning to meet Wochensky clan to visite the Hermitage, we all yelled at him belligerently for no reason in the morning other than the fact we were all still drunk and had just gotten in.

o Went across the street from Luke’s apt to the mall were we had a Business Lunch (Cucumber salad, Soup, Meatloaf, Home fries and tea… saved my life.)

o After lunch, went shopping with Luke, picked out cuff links, ties and went to pick up his suit pants.

o Suit pants were mistakenly given to the wrong person. But they got them back the next morning.

o Wednesday night, Met with Ilya, Dacha and Igor to go to dinner at the restaurant over looking St Pete's. Great view, stayed there to watch the sun set… but it never did. Left around midnight. Lindsay Ehinger met up with us this night for dinner.

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o Luke, Al, Brady and I all went back to Luke’s apartment in Kamandanskee for an early night in to recuperate. (Cab driver played Blues in his car, first time I heard any music other than techno being played.)

§ Thursday July 10:

o Goal of the morning was to get everyone’s bags to the train Station

o Luke left early in the morning to meet Wochensky clan at the apartments and start taking cabs filled with bags to the Train Station.

o Brady, Al and I were to take the Metro directly to the train station and meet Luke.

o Leaving the apartment, we realized we didn’t have keys to lock the door so we had to leave Al at the Apartment.

o Brady and I then attempted to go to McDonalds for breakfast. Failed at our attempt, the menu is very different in Russia than it is in the US. Left starving and defeated

o Took the Metro and met Luke at the Transtation. Aaron and Becky met us there.

o Accumulated a tower of bags, the required the assistance of Luke, Axel, Brady, Aaron and Becky all to move to the temporary holding room.

o Waiting in Line for the luggage storage room, the attendant said it was full. Luke finagled with him until he allowed us all to put the bags in there.

o From there, Brady and I left to go to the Hermitage for a speed tour with a private guide. But first stopped at Sbarro pizza, where the employees spoke English. Got food and were happy.

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o At hermitage, Saw original works from Monet, Rembrandt, Da Vinci, Picasso, etc.

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o From the Hermitage met with Luke’s family near the Church of the Spilled blood. Had Brick oven Pizza.

o From there left to go to the Train station via Metro, made it a few minutes early so Brady and I went to the store to buy some beer and vodka.

o Long lines at the cash out so we had to run to the train, and barely made it aboard

o Overnight Train to Cherepovets, drank a few beers which is apparently not allowed on the trains. The police came down and yelled at us. We had 6 people, all foreigners in the room drinking beers. As they were yelling at us, we just all pulled out our tickets thinking they were asking to see them. Luke was laughing at us.

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o On the train realized that the vodka I purchased was Smirnoff… I failed to sound out the writing on the bottle before buying it. I was devastated, but turns out we didn’t need it.

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o Very hard to sleep in the cabins at night. Each time the train stopped it would get very hot and smelly as the circulation system would turn off. Eventually, Brady, Myself, Cecala and Dan were all just laying in pools of our own sweat stripped down to our boxers. Pretty funny image.

§ Friday July 11:

o Arrive in Cherepovets Train Station around 7am in the morning.

o Take cabs to hotel and check in. The hotel was very much like a college dorm. Each room had one single bed, a desk and a bathroom.

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o There were even hall monitors, that you had to hand a card to each time you wanted to go to your room, you would hand them a card, and in return they would give you room key. Then when leaving your room you would turn your key back in and they would give you back your card. The room keys had a hefty keychain so that you could not take it out of the hotel, similar to gas station bathroom keys.

o After napping for the rest of the morning, met up around 1pm with Irina’s brother Sasha and his wife and friends. They then gave us a walking tour of Cherepovets. Sasha spoke a little English, but his wife’s friend Nelly once lived in South Carolina for some time and spoke fluent English. Helped tremendously with the translation and communication.

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o Cherepovets is a small city, primarily based around the steel industry, not many exciting sites.

o After walking around the city for a while, looking at some churches and seeing the general sites, we headed to a restarant/bar on the outdoor deck/patio. Alexe and Nelly served as primary interpreters and we ended up having a good time with the help of beer.

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o Prompted us to head out to the clubs that night, inspired by Alexe.

o Returned to the hotel for quick PTA and then headed out for the night.

o 1st stop was Dacha night club… weird dude with glass and sharp objects

o 2nd stop was Safari night club, met up with Sasha and his posse and ended up pulling a late night.

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o I stayed to the very end, where I was falling asleep in the bar. So Dan taught me how to say a sentence to the cab driver, that would get me home on my own. I rehearsed the sentence over and over until I felt confident enough to try it out. Once I walked outside the club, I flagged down the cab and said the line.

o Luckily he dropped me off where I needed to be, however the hotel was locked so I couldn’t get in.

o I ended up having to call luke at 4am on his wedding day saying that I was locked out of the hotel. Luke being tired and annoyed just told me to knock on the door. Apparently the security guard was asleep as he came promptly as I knocked and let me in.

§ Saturday July 12:

o Woke up dead to the world at 11am, only due to my friend Lindsey knocking on my door. Her train had arrived earlier that morning and was trying to find what was going on.

o I was in an extreme stated of dehydration and substantially hungover, so I couldn’t move or talk.

o From my bed, I pleaded for Linzo to take my wallet and go get me a bottle of water. She returned in about 15 minutes with a magical liter of water and some pastries. I managed chug the water and choke down some of the food. After taking some Ibuprofen I was feeling ok again and back in action.

o While still being in bed however, before my miraculous recovery, Luke and the wedding camera came in to find me. He was hoping to find me in rough shape knowing that I had woken him up at 4am that morning. He got his wish.

o Once I felt a little better, I peeled myself out of bed and crawled into the shower.

o A nice warm shower helped me rejuvenate further and I was good to go.

o From the hotel room, went down to the lobby and met the group to get on our tour bus. The bus was hot and it wasn’t long before I fully sweated through my shirt. But eventually I surpassed the cusp where my shirt was fully soaked through at which point I began to cool down.

o Luckily, everyone was sweaty and smelly. Like camping.

o Took the bus to do some Pre wedding activities, namely performing tricks to win earn the bride from her family. Tricks included getting everyone off the bus (which was pulled over by Alexe dressed as a police officer) and lining up as a big heart in the road.

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o Other tricks included dancing and excessive amounts of champagne drinking.

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o Then off to the official ceremony for the wedding. Official ceremony was like a glorified court service, followed by dancing gypsies, bears and more champagne. We all gave our flowers to the bride and groom and proceeded back onto the bus.

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o Next stop was the big suspension Bridge spanning the river. Here we launched champagne corks off the bridge and the new bride/groom tossed a bottle into the river below which symbolizes something. Can’t remember what. They also placed a lock on the bridge to symbolize their union. It was very sunny and a nice cool breeze on the bridge, I did not want to leave.

o From the bridge we headed to the reception at Club Europa. The reception consisted of many acts performed by dancers and singers, some acts involved audience participation. The cycle was performance, dancing by the wedding invitees, food, performance, dancing, food. It was actually a lot of fun.

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o Wedding only had Vodka and Wine. No beer.

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o Once the wedding was over a small group of us decided to once again burn the midnight oil and head out the club Diamond for late night festivities. There they had a huge mural of the Philadelphia Skyline which was very exciting. Also I had a mojito which was soo delicious. No drinks in Russia include ice, so having a mixture of ice and mint tasted delicious and refreshing. The night was very fun thanks to Ilya and Dacha’s translation efforts and once again ended late.

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§ Sunday July 13:

o Woke up early early early to catch the bus for the religious ceremony. Actually it was 10am, but seemed extremely early.

o Traveled two hours to get to a small quaint church in the hills of Russia. The bus ride was fun as we all seemed to pick up our conversations where we left off the night before.

o We spent the day walking around the country side, by a large river complete with river boats. Even visited an old monastery, very relaxing and pleasant day. No drinking occurred, until lunch…

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o Stopped at the only restaurant in town for the final wedding/group meal of the trip. Had traditional soup and pork meals followed by some tea.

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o Getting back on the bus, after having walked around all day and now with a full stomach we all crashed for the 2 hour ride back to Cherepovets.

o Once back in Cherepovets we stopped at the grocery store to pick up some snacks for the train ride and headed to the station.

o There we ran into everyone we had met over the past few days and were able to say our good byes one last time. And finally set off back to St Petersburg at 11pm.

o Brady and I shared an compartment with two young Russians. It was hot again, but by now we were exhausted and just wanted to sleep. So that is what we did.

§ Monday July 14:

o Arrived in St Pete's early in the morning.

o Stopped by Ilya and Dacha's apartment, took my last cold shower, went for breakfast at a café

o Then took a cab to the airport.

o Flights home from St Petersburg to Buffalo (very painful) arrived in Buff at 1am

o (St Pete’s to Frankfurt 3 hours)(Frankfurt to Chicago 9.5 hours)(Chicago to Buff 1.5 Hours)

o Lost my luggage, went through Security 3 times in St Pete’s airport, twice in Frankfurt, once in Chicago.


So that there is my trip in a nutshell.


Thanks to Luke and Irina for the hospitality and the great week of parties.

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