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New steakhouse in "restaurant row"

Discussion in 'Area Restaurants, Dining and Food' started by cobymom, Apr 19, 2011.

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  1. MJD

    MJD New Member

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    MJD, Jul 20, 2011
    #21
  2. flynnibus

    flynnibus Well-Known Member Forum Staff

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    it amazes me still that people can start businesses (especially resturants) and NOT have enough funding to run for a period of time. Who thinks a new business is going to be profitable in the first month??

    The guys got 6ms free rent, and couldn't pay even the first month rent?? I thought the rule of thumb was up to 2 years for a restaurant to get established. They apparently blew their wad just getting setup and had no money left to actually pay the ongoing expenses.

    This just reaks of very poor management and planning. I can't believe they actually got loans with such a biz plan.
     
    flynnibus, Jul 20, 2011
    #22
  3. Mr. Linux

    Mr. Linux Senior Member & Moderator Forum Staff

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    The end of the article quotes the tenant as saying that he had over 60 employees at that location. Now, I'm not a restaurant guy and have never run a restaurant, but *60* employees for a place that size seems quite excessive. No wonder he couldn't pay the rent when he had all those other crazy expenses...

    Of course, that number could be normal but like I said, I'm clueless when it comes to that...
     
    Mr. Linux, Jul 21, 2011
    #23
  4. mdcrim

    mdcrim Member

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    The comments are pretty hilarious...
     
    mdcrim, Jul 21, 2011
    #24
  5. flynnibus

    flynnibus Well-Known Member Forum Staff

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    yeah - people thinking rent should be optional or something... amazing.

    The guy is either
    - a moron who shouldn't be allowed to open a business
    or
    - a guy who thought he could cheat others to get what he wanted

    Since it wasn't his first property.. I would lean towards the latter then the former. He knew what to plan for, and didn't do it.

    I'm dumbfounded that banks give people these loans.
     
    flynnibus, Jul 21, 2011
    #25
  6. Villager

    Villager Ashburn Village Resident

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    I totally agree.
     
    Villager, Jul 21, 2011
    #26
  7. snoopy

    snoopy Senior Member

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    I thought I saw that Pho resturant (that was next to Ice Rink ) is moving to this complex ?
    Any update ? or does anyone know where they are moving to ?
     
    snoopy, Jul 22, 2011
    #27
  8. Capricorn1964

    Capricorn1964 Well-Known Member

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    Maybe they were not ALL full time employees? Maybe the numbers consisted of SOME full time (managment and core workers) and rest part time? I've seen the size of that restaurant and perhaps they had a lot of folks in the kitchen? Maybe 20-25 working one shift and another 20 another shift, perhaps? I don't know..

    Im grasping here but I think this guy had unrealistic expectations when running this restaurant and not having enough cashflow because everyone knows it takes roughly three years to break-even while trying to establish a restaurant. Im aware-via HBS reviews- that for every restaurant that is successful, two to three fail. Largely because of poor cashflow forecasting and planning.

    6 months free rent is largely generous according to my brother's brother-in-law who owns a restaurant himself.
     
    Capricorn1964, Jul 23, 2011
    #28
  9. Squishie

    Squishie New Member

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    According to their website, the new location has opened. It must have been re-opened in the past two days, since that was the last time I checked. They are in this complex.
     
    Squishie, Jul 29, 2011
    #29
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