Quote:
Originally Posted by Steveo
You are assuming that the only revenue the business makes goes to payroll. I have to assume the business is profitable above the payroll and operational needs, or at least it has the potential after some reasonable time. Now as far as why Pepper and Waldo don't work there - it could be a simple matter of they make more at Lowe's and car repair then what they need to pay for the people that replace them at the restaurant, particularly if you take benefits into effect.
I'm not seeing this as hard to understand as you are.
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Steve, please read my previous post- I am not making the assumption that their revenue goes to solely to payroll. By bills I refer to rent, food cost, heat electricity, advertising, maintenance, etc. It is a brutal business to be in and quite frankly, it is even tougher when you are an absentee owner.
I really don't want to be using WPs as an economic example- it is just the thought that entered my head when I read the post about them working other places. From what I have heard, they are nice folks. I have eaten at the old location on more than one occasion and enjoyed some great Lobstah rolls.
The only way time will help them become profitable or more profitable is if they build the business up or if costs go down. Unless they own the real estate and are about to pay it off, costs will not go down significantly.
IMO, there are few businesses that can cut costs to become profitable anyway. So they have to build business- in their industry through advertising, both paid and word of mouth (again IMO, this is more important ie. this forum). I went to the website
http://www.waldopeppers.net/ that had a temporary menu and directions posted earlier this summer (see post by Don in other thread) but that is now just showing a parked notice and even advertising Chilis restaurant.
Help me understand- if I had a business that was profitable enough to pay me as much as a job at Lowes along with benefits, I sure would be working at my own place, building that up, not toiling at Lowes. This is only my opinion and I only posted originally because I kept reading it and scratching my head.