Quote:
Originally Posted by OldDutch
I never get this. Don’t businesses have to show the bank a 5 year business plan? It’s similar to the Smith closing down by my work. All this time and energy into renos, menu,hiring staff then poof in less than a year.
Maybe owners getting cold feet when they see how slow things are off the hop?
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Business plans mean nothing when reality doesn't reflect the foot traffic that you expect, despite your best projections.
The Spanish restaurant beside 80th and Ivy - Las Canarias are possibly going to have to close as well. They are just running out of money and can't afford the staff costs from what I heard.
They have only been open 3 months in that location.
The issue is rent is astronomical in this city. Rates get set by the boom years and landlords and property taxes and op costs don't go down enough in lean years.
To be successful, you need very deep pockets - millions of dollars to ride out the first few years until your brand and marketability gets established in the conservative food culture here in Calgary.