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Reminds me of this excerpt from Iacocca: [...] my father had opened a hot-dog restaurant called the Orpheum Wiener House. It was the perfect business for someb
by shrikant 15y ago
Reminds me of this excerpt from Iacocca:
[...] my father had opened a hot-dog restaurant called the Orpheum Wiener House. It was the perfect business for somebody without much cash. All he really needed to get started were a grill, a bun warmer, and a few stools.
My father always drilled two things into me: never get into a capital-intensive business, because the bankers will end up owning you. (I should have paid more attention to this particular piece of advice!) And when times are tough, be in the food business, because no matter how bad things get, people still have to eat. The Orpheum Wiener House stayed afloat all through the Great Depression.
- randomdata 15y agoHowever, food production was one of the worst businesses to be in during the great depression. Food prices plummeted to well below cost of production rates. Combined with some extraordinary environmental events around the same time, farmers were hit hard – really hard. However, in this recession, it is one of the best businesses you can be in. Prices haven't been this strong in a long, long time. Goes to show there are no absolutes in life.
- jackpirate 15y agoThe farming and restaurant businesses are completely different. Low food prices hurts farmers, but helps restaurant owners.
- randomdata 15y agoAbsolutely. They are, however, both in the food business, which is what the quote said to be in. As seen by the farmers of the time, the fact that people need to eat doesn't mean that you will survive hard times.
- ido 15y agoAnd when times are tough, be in the food business, because no matter how bad things get, people still have to eat. Seems strange to me, after all when I don't have money I cook at home.