3 ms·
If you're starting a business you need the resources and the financial fundamentals in place to keep the doors open. If you're renting a space you can't afford,
by blueridge 3y ago
If you're starting a business you need the resources and the financial fundamentals in place to keep the doors open. If you're renting a space you can't afford, or you're spending beyond your means for supplies, or your menu is too broad, or your opening hours don't make sense...you can only compensate by increasing costs for so long—people will go somewhere else.
"I really like the food, I like the space, but I can't keep buying a $15 bottle of juice and a $22 sandwich with a single slice of meat, and I don't know why I'm on the hook for all of these extra fees..."
One of our local eateries recently closed their doors because they just couldn't make it work. They ruined goodwill with customers by substantially increasing the cost of everything, every few weeks: sandwiches, drinks, small baked goods, small bags of chips, etc. On top of that, they added one service charge after the next, and it always came with a plea to help them stay open.
But they made a lot of bad decisions along the way, like opening up a fancy organic eatery in a part of town with no foot traffic and no parking, by taking on even more debt to expand their space and open up another pop-up store before they had got the basics rights with their first location. Fewer and fewer people came to visit and that was that.