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Bailed out of their store on the west side of 83 across from the Oak Brook mall. But I'm biased- I got screwed by their landlord in re-engineering the site as he left the state when they bailed.
Book sellers like B&N and Borders make me a bit nervous in that music has sustained them for awhile but with technology (downloads etc.)- scary to me. Better then being a restaurant I guess.
It all depends on what's done with it. Some restaurants are actually flourishing, believe it or not.
With the market going the way it is....and my own personal aversion to risk....I would say something that's become a necessity and is still relatively disposable (read: constant need for upgrade or replacement)....or something that has somewhat of a corner on its product.... like P&G. Or another firm with a steady history and unique, innovative products.
Should I give up, or should I just keep chasing pavements....even if it leads nowhere - Adele
CMBS, if you can find them and understand how to do the proper due diligence on the underlying assets of the bonds. Investment Grade total returns since 1997 = 106.7%. Triple AAA = 115.5%, then things begin to slide down the hill on the long term returns, with AA = 15.6%. However, the further down the stack you go, the more initial yield you get, as associated with the volatility of the holding times of the bonds. A bit more "hot potato" activity. Evidenced by the fact that average spreads for newly issued AA piece of a CMBS offering is Swaps + 2,962 basis points...aka...29.62%! AAA = Swaps + 487 basis points...aka...4.87%
Unsecured bond offerings coming out of the REIT sector is a little unsettling to me at the moment, but apparently not to the general investment community. Evidenced by the HUGE reaction of certain REIT unsecured bond offerings, with margin coupons at best, being oversubscribed in the 10x's+ window. To me, the word "unsecured" just spooks me in general, when it comes to bonds (debt) and real estate.
I read today huge transfer of $ from stocks and stock funds to bonds with a substantial amount probably staying as cash. I know almost nothing about bonds and it's probably time to learn. Will need to study up an CMBS- thanks for the prod.
A few years ago I got into BDC's like Ares as DRIP's and it literally saved my *** through the recession though a lot of hang wringing as I held on through the worst.
The only restaurant I ever made money on was Panera bread (formerly St. Louis Bread Co.). One of the first is still located in Danada.
I then lost money on Bucca Di Peppo- place is packed, great concept, but they are seldom profitable. I just find it too hard to evaluate the restaurant business- it's usually low margin and a lot of their profitability can be based on how savvy they are in securing contracts for food commodities which is hard to determine.
But if you can get in on the beginning of a successful franchise...zoom
Originally posted by Biostitute: I then lost money on Bucca Di Peppo- place is packed, great concept, but they are seldom profitable. I just find it too hard to evaluate the restaurant business- it's usually low margin and a lot of their profitability can be based on how savvy they are in securing contracts for food commodities which is hard to determine.
I called Buca's lack of profitability before I even knew anything about business. It lacks the common sense to be profitable. Maybe when the recession has passed they'll make the necessary changes.
In the restaurant business, it's all about the people in charge. More often than not there are people in charge who shouldn't be, hence the downfall of many of them. You have to have people with a good business sense, plenty of common sense, and a customer orientation....a rare combination these days. Not to mention the quality of food (and the love of food) that's necessary. It is definitely one of the trickiest markets to peg, especially during a recession, but if you can seperate potential success from future failures....there's a HUGE bank to be made.
Really? Citadel now, too? Didn't Clear Channel file not too long ago as well?
Should I give up, or should I just keep chasing pavements....even if it leads nowhere - Adele
