Tuesday, September 15, 2009

Timmy's Theorem of Strip Mall Restaurant Success....

This Theorem is another simple one and states:
A Strip Mall Restaurant that adds a Soda refill price to the Soda fountain will inevitably go out of business.
Lets explore this a little, shall we? We live in a country where inexpensive fast food with large portions rule. Chains like McDonald's, Carl's, Burger King.... meet that criteria. Guess what.... how much do they charge for refills? Exactly. A strip mall restaurant is challenged to compete with these chains and stay profitable. So, they attempt to recover some costs by doing this refill thing. But, here is the problem which seems to doom these strip mall eateries:
Restaurant owner: "Wow, we are losing money.... We need to charge for refills"
Time Passes...
Restaurant owner: "Wow, the refill charging is not working. We need to raise the prices"
Time Passes....
Restaurant owner: "Wow, the price raising is still not working AND less people are coming in. We need to decrease the portions"
Time Passes.....
Credit Corporation: "You have 30 days to leave the premises"
Quantity people... Not Quality.

1 comment:

erikv said...

Fast food dinner: $7.00.
Unlimited Beverage Refills: Free.
Stomach Cancer: Priceless.