Paul,
No that is true to some extent, but that is why you have to look at the role management is playing. If you expand to quickly you run into exactly what you are talking about. You saturate the market and have no room to grow. In addition, if your concept is fadish, then you run into the possibility of exactly what Red Losbster did. By the way they were bought out and are still around, but the lure of seafood is not across the board. That is precisely what you have to be aware of.
In addition, if you had invested in it and dined there from time to time, you could forsee the potential problem and get out before the loss.
You bring up some valid points, but the restaurant stocks I like aren't as fadish as seafood. In the U.S. we love our steaks and a good one can't be beat. In addition, with Boston Chicken it caters to the on the go person. I'm from Chicago and people are on the go. You can buy a great meal with all the fixings at a reasonable price.
You can have your reservations, by all means. I on the other hand will profit from my belief in the stomach of the American people.
Thanks, I enjoyed having to defend my point. I was good.
Scott
P.S. Just saw your other reply and as I said above they are still going. However, my point is your local Red Lobster had to start doing bad before it closed. If you eat there from time to time, once a month maybe you can see it slipping. At our local Lonestar Steakhouse, on the weekends the wait is over 2 hours. I try to eat there or at least try to eat there once a month. If the wait dropped to 15 minutes then theres a problem. |
