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No you wouldn't. These businesses failed for a reason, buying them for pennies on the dollar helps on the cap ex but not on op ex, or payroll. But it would be
by rootsudo 6y ago
No you wouldn't. These businesses failed for a reason, buying them for pennies on the dollar helps on the cap ex but not on op ex, or payroll.
But it would be fun.
- luckylion 6y agoThey failed for a reason, but who hasn't gone into a shop that doesn't run well and thought "I know how to fix this", that'd be the chance. If I was rich, I'd personally buy a super market, simply because they do so many things that annoy me as a customer and I'd like to try and change them and see whether one can do better.
- cgriswald 6y agoI know just such a store. I looked into opening a competitor, but the margins were extremely ugly and there were other complications. Years later by pure chance I became friends with someone who, another year later, I learned had worked at the store. He confirmed not only what I discovered for myself, but also that this particular store was basically a rich person’s hobby and probably didn’t actually make money.
- raverbashing 6y ago"Doesn't run well" but maybe not for the reasons you think. Yes your local coffee shop might have some quirks compared to a local Starbucks but their lack of efficiency is not on the store per se, rather than Starbucks has: a) bigger leverage in rents b) effective lower corporate tax c) more streamlined supply chains And then you think, why are not people buying mom and pop shops and running them independently with high efficiency? Because it is hard
- hiharryhere 6y agoEver seen Marcus Lemonis on The Profit? Great TV show.
- scarface74 6y agoAnd this is why you would lose your shirt. Supermarkets are low margin businesses.