[Muncle]

Originally Posted by GatbTester

Longevity has much to do with knowing how to run a business; however when the developer takes such a huge cut right off your bottom line every month, perhaps the knowledge that one needs is when to NOT sign a contract. True many businesses fail in the first year, but giving back some 8-9% each month is ridiculous as well. Knowing where to open one's store has more to do with future success than anything else. The developer's greed has caused many a business to go down the drain.

It's not like TV is the only company that take a significant % of a tenant's business. It's very common. In KC, JC Nichols, the owner/developer of the Country Club Plaza and many other facilities, has been doing it for years. I would certainly think Disney does it and wouldn't be surprised if the Atlanta Underground, Detroit Ren Center, and other such facilities had similar arrangements. Many of these place kick out under-performing stores.

[diskman]

Originally Posted by Muncle

It's not like TV is the only company that take a significant % of a tenant's business. It's very common. In KC, JC Nichols, the owner/developer of the Country Club Plaza and many other facilities, has been doing it for years. I would certainly think Disney does it and wouldn't be surprised if the Atlanta Underground, Detroit Ren Center, and other such facilities had similar arrangements. Many of these place kick out under-performing stores.

from what i have been reading i think Morse family probably gouging comercial tenants

[Living the Life]

Originally Posted by GatbTester

Longevity has much to do with knowing how to run a business; however when the developer takes such a huge cut right off your bottom line every month, perhaps the knowledge that one needs is when to NOT sign a contract. True many businesses fail in the first year, but giving back some 8-9% each month is ridiculous as well. Knowing where to open one's store has more to do with future success than anything else. The developer's greed has caused many a business to go down the drain.

It appears that many here make comments about "the developers cut" without knowing facts about retail leases or how they are put together. To be clear, I am not a Villages employee....but always assuming that the Villages takes a cut and that is the reason for failures is absurd. Most commercial retail leases have clauses for a percent of sales over a certain revenue figure...but not from dollar one. Most business people would be happy to write a check if they had achieved the level of revenue required for the percent to be paid. If someone has a lease to pay a percentage at dollar one, it is probably due to a negotiated fixed amount per month...plus the percentage. As Donald Trump said it's all in the art of the deal finding the terms that will provide a happy balance between the person signing the lease and the developer providing the lease.

[Bogie Shooter]

Originally Posted by diskman

from what i have been reading i think Morse family probably gouging comercial tenants

Are you reading the TOTV? Does anyone really know the real story, that is posting on this thread?

[aln]

Why is the title of the thread "why do so many restaurants FAIL...".
Actually, we should consider why so many are successful.....
TooJays, McCalls, Pauly's (3 locations now), Bravo, Subway, J Rockets, Thai Ruby, The Tea Plantation, Beef O'brady's, Starbucks, Marguerita Republic, Bourbon St, Panera, Ruby Tuesday, RJ Gators, Vk Japanese Steakhouse, Mo's, Outback, Carrabas', ChickFilet, Seafood Galley, Sonrise, The Village Eatery, Crispers, SteaknShake and on and on (sorry for those I missed).
With all the successes, there's probably a valid reason for failing other than rent. IMHO

[GatbTester]

I have to agree that having a less than stellar business plan, hiring young kids to work all types of hours, and expecting a great living to come to their doors because of their location has been the downfall of many businesses here in The Villages. Many business owners either rush into a storefront representing a product or service that may be a difficult sell to our senior citizens. I believe that more study is needed by perspective retailers of the perils they may face as well as is there product or service "good." Take for example the quick demise of "Whiskey Creek," "The Copper Pot," and the "Old Time Bakery."

[jtdraig]

You make good points and the characteristics of the successful restaurants that seem to have staying power would make a good overview for future success. However, too many really have failed and struggled over the past four years. So, it is worth trying to see what makes a success and what causes failure. I would submit that the business environment and certainly the rapid judgment spread on line does a lot to make or break a restaurant fairly or not. Restaurants opening here have to do their due diligence and they should be assisted by the Leasing Agents. Closed storefronts that continue to remain so don't do much good and become a drag on the reputation of the Town Squares. Everyone comes in here with a deal on rent and other charges so it's a level playing field (perhaps). The difference in what makes a restaurant a success is in their menu selections, prices, kitchen management, service management, and prompt resolution of complaints. If a restaurant has this together at opening, they most likely have a chance. If they do not, they have a greater chance of failure and inability to recover from a mistake. There doesn't seem to be a happy medium.

[mountainlegacyhomes]

They fail due to GREED, the high rents required by the Villages, which far exceed the national average, along with a required % of their sales, kill all the businesses. Prices reflect those issues, and in turn, with such high prices, they fail. Previous owner of 3 restaurats in the Altanta market, I can assure you with such demands from the landlord, failure will always be the outcome. Until this changes within the Village Managment we are going to continue to see them come and go, sad I think!

[OutsiderWithInterest]

.

[chuckinca]

Lousy food

[SABRMnLgs]

I have never been a business owner so perhaps I am speaking out of a cocked hat, but I have been reading a lot of posts that blame "rent" (yeah, a 4 letter word) as one of the reasons a business closes.
Again having no idea about a business, may I offer this suggestion. Build your own place. You pay only for the land and construction. Then the place is yours, lock stock and soda fountain.
I have read where a number of doctors offices were built by them and their partners. They answer to no one except possibly their partners.
How bout this. 5-6 business owners get together and purchase a parcel of land. Say that piece of property on 466 by the Fresh Market place. They pool their money, buy the property and build on it to suit themselves. They bought it, they own it, they build it. Nothing to answer for from the Villages as the property is now their's do with whatever (as long as they are in state code).
There would be a large initial outlay of monies, yes, but no rent and no one with their hand out looking for a "deal" on rent. Eventually, it would pay for itself if the business were run properly. Or am I being too logical and simple?

[oldguy]

I had a chili dog there, lots of chili, onions and cheddar cheese, set me back a whole @$2.40. A good all beef hot dog. I dont think that is a high price for a dog. Also, I dont use my credit card for a 2 dollar purchase. I think you just want travel miles, that is your complaint.

[oldguy]

I eat there all the time, and $2.40 for a chili dog is a great deal. I pay cash for 2 dollar purchases, and burger king serves their food on a paper, what is the problem? Its a fast food place, do you understand that. But they have great food. Even my wife likes the place. That is really something!!!!! Please dont ever go to Big City Grill. I dont want to hear you or your complaining wife ruin ours and others good eating experience!!

[zcaveman]

Originally Posted by oldguy

I had a chili dog there, lots of chili, onions and cheddar cheese, set me back a whole @$2.40. A good all beef hot dog. I dont think that is a high price for a dog. Also, I dont use my credit card for a 2 dollar purchase. I think you just want travel miles, that is your complaint.

Where is there??

[katezbox]

Originally Posted by SABRMnLgs

I have never been a business owner so perhaps I am speaking out of a cocked hat, but I have been reading a lot of posts that blame "rent" (yeah, a 4 letter word) as one of the reasons a business closes.
Again having no idea about a business, may I offer this suggestion. Build your own place. You pay only for the land and construction. Then the place is yours, lock stock and soda fountain.
I have read where a number of doctors offices were built by them and their partners. They answer to no one except possibly their partners.
How bout this. 5-6 business owners get together and purchase a parcel of land. Say that piece of property on 466 by the Fresh Market place. They pool their money, buy the property and build on it to suit themselves. They bought it, they own it, they build it. Nothing to answer for from the Villages as the property is now their's do with whatever (as long as they are in state code).
There would be a large initial outlay of monies, yes, but no rent and no one with their hand out looking for a "deal" on rent. Eventually, it would pay for itself if the business were run properly. Or am I being too logical and simple?

SABR,

You are being logical - but, yes, also a bit oversimplified. Yes, the landlord makes a profit on properties rented. But he (sorry business gals) also assumes liability for property damages and risks. Some of this can be passed on to the tenant, but...

The main issue is the old time value of money. Let's assume you and 4 colleagues have $500,000 to buy a parcel of land to build a store/restaurant. By investing in the business, you lose the opportunity of investing it elsewhere. If you have to borrow the money, that may cost as much over time as rent. And you have the risk/liability.... And only part of your cash outlay is deductible for taxes.... And you have to hire someone to manage the property...

Most of the chains and big box stores lease rather than buy. Why? For the reasons I outlined above plus leasing gives them the ability to walk away from a non-profitable location and they are in the retail/food service business, not the real estate business.

Personally, I would like to see TV offer some discounted rates at their properties on the squares. NOT because I think the developer OWES it to us (I DON'T), but because I think it is good business sense. Having so many stores vacant is an eyesore, it detracts buyers and some revenue is better than none.

k