Dish

Closed for Business

In truth Mayya faced an uphill battle. A restaurant isn't going to make anyone rich, unless you're a mogul who buys and sells or the place is like Joe's Stone Crab, a 100-year-old gold mine. Even with a modest input of cash (say $200,000 to open properly), a restaurant will struggle to break even in its first year. When millions of dollars are involved, the restaurant hardly is going to break even, let alone turn a profit, for years. It's exponential: Increase the investment and the chances to fail are significantly greater because you start with that much more (1) debt, (2) investors wanting to see some action, and (3) pressure to prove the eatery was worth so much brouhaha to begin with. Once a restaurant wastes millions of dollars, it's difficult to get anything back other than prestige or local fame. As investment opportunities go, restaurants are big-time losers, and Mayya's backers and proprietors would have been better off playing stocks, even in the current bear market.

Jeremy Eaton
Jeremy Eaton

Despite all the analysis and reasoning, when it comes to defining why a certain restaurant succeeds or fails, the stock analogy works as well as any other. A consumer can do as much research as he wants. But in the end whether the client bites depends on what kind of vibe the product is giving off. In Mayya's case the vibe was less vibrant than it was vitriolic. And we didn't bite.

« Previous Page
 |
 
1
 
2
 
All
 
My Voice Nation Help
0 comments
 
Loading...