2 ms·
> There’s so many restaurant openings and closings for so many decades that I think it’s a pretty good indicator of their price dynamics. There have been many
by nemothekid 6y ago
> There’s so many restaurant openings and closings for so many decades that I think it’s a pretty good indicator of their price dynamics.
There have been many startups that have opened and gone bust in the past 15 years. I don’t think I would say that startups have terrible profit margins. In the context of tech startups the understood answer is that their product sucked. I think the same is true for most restaurants - I think running a restaurant is underrated and if the food is bad or atmosphere is terrible people just won’t go no matter how low the price is.
If restaurants were struggling solely due to low profits they would look a lot more like MoviePass or WeWork. Incredible demand but unsustainable business model. Most restaurants are more like Blockbuster. No demand while trying maintain fixed costs.
- lotsofpulp 6y agoTech startups are not very comparable to restaurants. Restaurants have limited capacity, limited ability to scale, usually pay rent (so any success can be partially sucked up by the landlord), and have limited times of the day and week to earn most of their money. To support terrible profit margins (relative to the risk), I also would look at the financial status of restaurant owners/operators, who by and large, aren't in the higher end of the income scale. Almost no one tells their kid to grow up and aspire to be a cook or open their own restaurant (unless they already have a a trust fund).