Quote:
Originally Posted by bigbucks24
There is definately money to be made, but I just don't think it is as much as some people think. A lot of people think that a QSR doing $1M a year should be throwing off tons of cash. When in reality, that is probably break even for an awful lot of restaurants. And losing money if you spent much on land. And when the economy tanks, it means big problems. There have been a whole lot of restaurants that have closed inthe last 2 years. When you are only making $.035 on each dollar, you dont have to lose much in sales before there is no profit left.
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A million dollar a year volume is really more towards the lower end as far as volume goes in a restaurant. Generally speaking, An owner would probably be doing okay at that level assuming an established business with no outstanding equipment notes. But the new guy is going to feel the pain. And, yeah, alot of restaurants, and, as far as that goes, alot of businesses in general have went out of business lately. Granted, some of them are probably due to mismanagement, but an awful lot of well-managed businesses have bit the dust due to the economy.