[Muncle]

Originally Posted by katezbox

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

Darn you, Kate. Here you are bringing sense and economic reality into a discussion where emotion and financial ***** (pen*s) envy of the developer are primary motivators. Will you never learn?

Re your last point, I really like it. I believe that appearance of prosperity is critical to the success of such places as the squares. I wouldn't be a bit surprised if some of the smaller boutiques were already getting some break. Also, areas like Colony should be getting some rent/percentage breaks until construction across 466A picks up. May already be happening.

Seemingly, the major issue for TV businesses is in-season/off-season. Two apparent solutions seem to be different rents/percentages for different seasons or better business management so new owners don't confuse February profits with July projections.

But I could be wrong.



`

[JeanneBeannie]

OldGuy....I am sorry if I missed it in the earlier posts, but chili dogs are my absolute favorite in the world!!!! I will be there next month, what is the name of the place with these yummy chili dogs please?
Thank you!!

[oldguy]

You can get a good chili dog at Big City Grill at spanish springs is my favorite, all beef hot dog, chili, onions, and cheddar cheese..$2.40. ad fries and a coke for 2.25 more
fills me up, and taste "Yummy!!!!!" and a great deal too! Even my wife likes the place.

[marianne237]

Do hope big City Grill reopens on 466. You're right about the chili dogs!

[JeanneBeannie]

Originally Posted by oldguy

You can get a good chili dog at Big City Grill at spanish springs is my favorite, all beef hot dog, chili, onions, and cheddar cheese..$2.40. ad fries and a coke for 2.25 more
fills me up, and taste "Yummy!!!!!" and a great deal too! Even my wife likes the place.

Thank you OldGuy
Its going to be hard to wait a month for this chili dog, but sounds like it will be well worth the wait!
Hope to see you and your wife there too!

[katezbox]

Originally Posted by Muncle

Darn you, Kate. Here you are bringing sense and economic reality into a discussion where emotion and financial ***** (pen*s) envy of the developer are primary motivators. Will you never learn?

Re your last point, I really like it. I believe that appearance of prosperity is critical to the success of such places as the squares. I wouldn't be a bit surprised if some of the smaller boutiques were already getting some break. Also, areas like Colony should be getting some rent/percentage breaks until construction across 466A picks up. May already be happening.

Seemingly, the major issue for TV businesses is in-season/off-season. Two apparent solutions seem to be different rents/percentages for different seasons or better business management so new owners don't confuse February profits with July projections.

But I could be wrong.



`

Munc,

You make me blush.... but I agree - maybe the % of the take needs tio be only in certain months to help folks get past the summer days. Anthing to keep those shops/restaurants occupied.

PS - Red Sauce seems to have found success with karaoke....

[donsimson]

There are only three reasons a restaurant or any business will fail.
1-Poor Service 2-Poor product 3-Poor management. Just look at Margarita Republic and Toojays. They are thriving and the businees across the stree fail. It can't be Rent or %. They are paying the same thing as the failed ones. Go back to reasons 1,2, & 3.

[Living the Life]

Originally Posted by 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!

The rents are very fair and comparable to similar quality locations. Shame on businesses that don't have a business plan and understand their balance sheet. They know the rent going in to the deal.

As far as % of sales, this is a very common practice for commercial leased properties. It getting kind of old to hear over and over that businesses fail because of rent and the developer. Businesses fail because of poor service, poor management, poor product or a combination of the above.

[oldguy]

oh, boy, sabrmnlgs, $2.25 for a hot dog is steep to you. You say normally you dont put a restaurant down on one visit, but you had to make an exception, I dont believe it for a second. They take my credit cards, maybe yours is over limit. Me and my wife can eat there for less then $10. I know that is very steep for you, being over on your credit cards. I think you should just go to the Christian Food Pantry, they will help you out. I said in another post, you are part of the 15% of the villagers that made the village change for the worse. just my slant on it.

[sunday]

The rents in The Villages are consistant to the rents in similar domographics, that is a fact. However, the spending habits of the residents are not...nor are the % hurdles set forth by the landlords.
What this means for business owners is, that in order to succeed, you must be prepared to operate with extremely tight margins and win in volume... It's a massive amount of work for a little return.
The up side... The Villages is an excellent proving ground for restauranteurs, in that if you have the dexterity to survive in this market for 5 years with above a 1% net profit margin. You can take the "experience" gained, and operate very lucritively anywhere in the country.