RAINFOREST CAFE Message Board

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Non-Tech : RAINFOREST CAFE

RAIN 6.142

-3.1%

Dec 16 3:59 PM EST

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To: ShugNite who wrote (4607)	5/17/1999 9:10:00 AM
From: Lee L.	Read Replies (1) of 4704

Shug, The market seems to be punishing RAIN because of its poor management and SSS decline. With decreasing SSS, all of that cash on the books will eventually evaporate... won't it? Last year, I thought RAIN was a no-brainer. I think the family-oriented concept still has a lot of potential. However, decreasing SSS indicate that customers are not returning after their initial visits. After my first visit to the RFC at Tyson Corner, my wife vowed that we would never ever go back. A two hour wait, restaurant noise and mediocre/poor service did not make-up for the furry animals and good food. So what happens to RAIN once the store expansion stops? They start to loose money and then eventually start closing stores. When they sell all of those fish tanks and animatronic animals, I bet they won't get ten cents to the dollar. This of course is a worse case scenario, but it seems to reflect the market's feeling towards RAIN right now. Good luck on RAIN. I'm still a bit sore after riding this one down from 15 to 7 last year.

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