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How many of these burger joints own the building they operate in? This is a very shallow look at economic forces. And ignores some of the bigger squeezes happe

How many of these burger joints own the building they operate in? This is a very shallow look at economic forces. And ignores some of the bigger squeezes happening. The number of landlords continues to decline as real estate is consolidated in fewer hands. And worse, the number of landlords that abdicate their roles to real estate management companies grows every year, and the percentage of properties in an area run by a given management company continues to grow as well. This creates a level of “collusion” that didn’t really exist 30 years ago. Our current market abhors competition, and regulators and courts have increasingly sided with the bigger business. Inflation was a huge problem 10 years ago. It’s why I stopped renting.

kortilla 3y ago
>How many of these burger joints own the building they operate in? Roughly half. Nearly all of the locally owned ones. >Inflation was a huge problem 10 years ago. It’s why I stopped renting. No it wasn’t. At least not by any quantitative measures.
- AstralStorm 3y ago
  Rental prices and estate prices have been rising since at least 2010. So much longer than 10 years, but the prices have not risen commensurate to this with a multiplier like they did lately. So, the inflation story is most certainly a lie. The businesses started to charge more because they had an excuse in (a minor) supply shock and fuel price rises. But it's just that, an excuse. Worst case pure inflation is about 10% while the increases are... a lot. Especially in some sectors. The situation is "so bad" for some corporations they're instituting stock buybacks. :) So stockholders are getting rich.
  - kortilla 3y ago
    You’re bending over backwards to make your narrative fit. These burger restaurants are a blend of major national chains and completely local ones. The local ones absolutely are not “instituting buybacks”. This is not some corporate conspiracy. The fed’s comments on inflation have made it very clear there is a labor shortage in the services sector that is driving up costs there quickly. Starting hourly rates at these restaurants are now $20/hr, up from $15 a couple of years ago, and that’s still not enough. Each one of them has hiring signs and is clearly short staffed.
htss2013 3y ago
Commercial leases are for like 5-10 years. Why do you think they all simultaneously renegotiated higher rent in 2022?

kortilla 3y ago

>How many of these burger joints own the building they operate in? Roughly half. Nearly all of the locally owned ones. >Inflation was a huge problem 10 years ago. It’s why I stopped renting. No it wasn’t. At least not by any quantitative measures.

AstralStorm 3y ago
Rental prices and estate prices have been rising since at least 2010. So much longer than 10 years, but the prices have not risen commensurate to this with a multiplier like they did lately. So, the inflation story is most certainly a lie. The businesses started to charge more because they had an excuse in (a minor) supply shock and fuel price rises. But it's just that, an excuse. Worst case pure inflation is about 10% while the increases are... a lot. Especially in some sectors. The situation is "so bad" for some corporations they're instituting stock buybacks. :) So stockholders are getting rich.
- kortilla 3y ago
  You’re bending over backwards to make your narrative fit. These burger restaurants are a blend of major national chains and completely local ones. The local ones absolutely are not “instituting buybacks”. This is not some corporate conspiracy. The fed’s comments on inflation have made it very clear there is a labor shortage in the services sector that is driving up costs there quickly. Starting hourly rates at these restaurants are now $20/hr, up from $15 a couple of years ago, and that’s still not enough. Each one of them has hiring signs and is clearly short staffed.

htss2013 3y ago

Commercial leases are for like 5-10 years. Why do you think they all simultaneously renegotiated higher rent in 2022?