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Why some make it and others dont

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Jeff T

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Why some make it and others dont

by Jeff T » Sun Nov 23, 2008 5:15 pm

With the economy in a nose-dive reflected by several restaurants closing, why is it that some seem to be booming?
Toast on Market for example has a 1to 2 hour wait almost every weekend. Texas Roadhouse (I know its a chain) is packed almost every night. Any thoughts?
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Shawn Vest

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Re: Why some make it and others dont

by Shawn Vest » Sun Nov 23, 2008 7:41 pm

my humble opinion is based on the same reasons some survive in good or bad times

Quality and consistency of service and products
Ability to change
Knowing your customers/market

Familiarity plays a big role in chain survival in my opinion though, the average consumer is much more likely to "stick to what they know" in hard economic times, rather than "risk" trying a restaurant they've never been to - just my opinion, though

shawn
Without question, the greatest invention in the history of mankind is beer. Oh, I grant you that the wheel was also a fine invention, but the wheel does not go nearly as well with pizza. D Barry
www.ctownpizzaco.com
850 MAIN 812-256-2699
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RonnieD

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Re: Why some make it and others dont

by RonnieD » Sun Nov 23, 2008 8:51 pm

chains survive by playing to the lowest common denominator and playing safe serving generally bland, inoffensive food that everyone can feel safe and secure eating. They thrive via the "something for everyone" theory. Familiarity is big too. They also survive because the company as a whole can take a hit if a single store struggles. They can prop that store up until business stabilizes.

Indie's survive thanks to loyal customers and a host of other quirky qualities (i.e. low-percentage food costs, small labor forces- especially in family-operated stores, visibility, reputation, niche-markets, etc.) However it is always a race against time in turbulent times like these. How long can you hold on and how much can to shave away before it catches you. As we have already seen, even the best run, most popular stores can fall victim to the perils of a bad economy. If there is one thing I have learned, it is that there is NO certainty in any indi endeavor, ever. You better bring your A-game every single service.
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La Center, KY
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AshleyChesman

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Re: Why some make it and others dont

by AshleyChesman » Sun Nov 23, 2008 8:58 pm

As we know, there have been TONS of closings in the past couple of weeks. Unfortunately, Melillo's is one that will be closing at the end of the year. While we were busy most of the time (there was the occassional slow night), it came down to the cost of everything INCREASING that we couldn't keep up with. A $7 or MORE fuel charge on each delivery just isn't something that can be passed to the customer....it comes straight out of the bottom line. Not only were fuel charges a bother (especially when gas is at a 4year low), but the prices on food constantly increased and are currently at an all time high (at least for us) My calamari has increased by $5 a case since September 20th. My eggplant is up $4 a case and the list goes on and on. You can only charge so much before people just start coming in. Take sodas, for example (there was a post on this awhile back). I charge $2 per soda, and when someone sits down and has three or four or more refills, I lose money. I can't charge more than $2 because that's just nuts.

It is sad because, like I said, we were busy most of the time. Lunches were full and turned, and most dinners were a constant steady. There was a mention of Texas Roadhouse, which is a chain. Since they (as a whole---all locations) buy TONS of product, they get great deals. When we buy five cases a week compared to their HUNDREDS, it makes a difference in price. I can sometimes go to the store and buy product for cheaper than from my suppliers...that's a problem.

My two cents....Good luck to those hanging on!
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Brand M

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Re: Why some make it and others dont

by Brand M » Mon Nov 24, 2008 5:27 am

Location plays a major role in today's economy.Off the beaten path can be the death of a good establishment.
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Shawn Vest

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Re: Why some make it and others dont

by Shawn Vest » Mon Nov 24, 2008 5:11 pm

off the beaten path is relative though

for us we're off the path for most Louisvillians,
but our Clark County residents love that they can drink good beer close to home

the NABC is a great example,
build it and they will come
Without question, the greatest invention in the history of mankind is beer. Oh, I grant you that the wheel was also a fine invention, but the wheel does not go nearly as well with pizza. D Barry
www.ctownpizzaco.com
850 MAIN 812-256-2699

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