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They keep them going as long as they are profitable. They track a metric called “store contribution” which is the profit sent to corporate after all the store
by itchyouch 8y ago
They keep them going as long as they are profitable. They track a metric called “store contribution” which is the profit sent to corporate after all the store expenses. The highest volume stores are grossing about 40+k/week with contributions in the realm of 500-700k/yr from one example I know of.
Moderate stores are doing around 25k/week. Stores below 10-15k/week tend to be at risk of shutting down or having the location changed. A 15k/week store can become a 30k/wk store just by getting a drive through.
There is also a distinction between “community” stores and higher volume profit stores (eg by highway entrance). Community stores get to be a little less profitable but build a “second home” for those in the community to hang out at, while non-community stores bring in profit by being in a high traffic area.
- masonic 8y agoTwo SV locations that I used regularly (Alma Village in Palo Alto, Hacienda center in Sunnyvale) have closed this year alone.