Talk of The Villages Florida - View Single Post - Prices are to high
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Old 09-03-2007, 12:36 AM
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JohnZ JohnZ is offline
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Default Re: Prices are to high

Additional costs are probably true? It is absolutely true. Business start-up costs in TV for a free standing unit like Bob Evans...should be about 10-20% more than your average Bob Evans (architectural requirements, landscape and other stuff) based on my own experience. This is true for other free standing restaurants on TV properties. I would also guess that Bob Evans does not own the land and they pay a very hefty lease for it....verrrry hefty. Most restauranteurs and franchaisors benchmark profit margins as a percentage of sales and set prices accordingly (market competition notwithstanding). Return on investment (ROI) includes the variable cost of start-up....and that too is factored in to menu prices. Buy a cup of coffee in Manhatten.....and we wonder why it costs so much? Don't be quick to fault Bob Evans for the high price of an omlette. ....they are not ripping you off.....it's simply the cost of doing business here being passed on to us the consumers. If it's a corporate owned store....and the RIO is not met (i.e price and volume) ....say bye-bye to Bob Evans in TV. Simple as that. It's business.
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