I doubt 1000’s of bars/restaurants will go out of business due to secondary shutdowns like you try to claim.
The government just announced more help for them so all these businesses affected are entitled to it to stay afloat unless they were already poorly run to begin with.
But those are a lot less than you claim.
While the mega corps which are real estate companies wil not, the owners and francise owners will.
Mcdonalds does not care if sells a single burger if they could convince people there brand and stores would make a francise money without sales. The sales are sales for the suckers who get the franchise. McDonaldsmakes money on the land, and the contract. As the movie points out the corp is real estate company not a food company.,
If you to biz school this industry is considered the worst. It still in near perfect competition - you have to eat but you do not have to eat at any particular place. Ignoring the master ownder (the brand) the owner does not car the TIm Hortons around the street is doing well -they want there Tim Hortons to do well.
Back in the day eating hours had an incredible fail rate - as a customer you proably rarely notice since a new management buys the place, and begins the cycle all over again thinking they can do a better job.
Margins are thin, labour costs are high. Rent is high. If not near full capacity they do not make money. Its generally a horrible biz in the best of times. In a pandemic . . .
The truth, unfortunately, is that a restaurant is universally regarded as one of the worst businesses you can start. That is according to many reputed sources such as Forbes, American Express, Business Collective etc. In fact, in the United States, restaurant is the industry most likely to make their investors lose their
entire investment. There’s not much reasons to assume it is very different in other regions of the world.
So naturally comes the question – why is a restaurant such a bad idea?
Because everyone has to eat everyone things that such a biz is a great idea. But that is akin to everyone has to breath or drink so water sales and air sales are also amazing ideas. The water industry not too bad - as would the air industry - the product is free so the profits are near a 100% but you have to convince the public to buy bottled water and air. As a note, most bottled water is more polluted than Toronto tap water. About 1/2 of bottled water comes from the tap to begin with, but not the Toronto tap. Toronto has among the cleanest tap water there is.
Yet people buy tap water in a bottle (inferior tap) rather than free water. Its in industry like tuplips or diamonds -ready to collapse at a moments notice
Drinking tap water should be safe, affordable, and taste good. Follow our guide to check your tap water quality and find the best filtration system for you.
www.foodandwaterwatch.org
It is no secret that owning a restaurant seems like the hottest entrepreneurial idea lately. A decade back, by restaurants we meant Tehari Ghor, Xindian, Malancha and the likes.
www.linkedin.com
With all the ups and downs of the burger business there's one thing McDonald's can count on: rent.
qz.com