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Rumors of closings
Yesterday's Naples Daily News featured an interesting story about swirling rumors that several popular casual-dining spots were about to close. Readers wrote to the paper wanting to know if the rumors were true, and that the economy was to blame. The Cheesecake Factory was among several chains named in the story:
Tim Aten, who wrote the piece, called other eateries and received similar answers from managers. He didn't say where the rumors came from.
Coincidentally, Tom Mullaney, a workout specialist based in Sacramento, called me yesterday. He said his phone has been ringing off the hook. Restaurant executives and investors are seeking his help to determine not whether to shutter unprofitable units but how many. He named a few popular chains, though asked me not to mention them. (I can say The Cheesecake Factory was not among them.)
Mullaney, a former commercial banker who has been specializing in distressed restaurants for years, said the increase in closures will be startling, to say nothing of the shrinking number of new builds. He added he was puzzled by "commentators" who talk about a robust stock market and how things are getting better. He hasn't come across such evidence "on the street."
"The credit crunch and retraction of liquidity are forcing restaurant companies to face up to underperformers -- and they are taking action," he declared.
Rumors of closings
May 7, 2008
Yesterday's Naples Daily News featured an interesting story about swirling rumors that several popular casual-dining spots were about to close. Readers wrote to the paper wanting to know if the rumors were true, and that the economy was to blame. The Cheesecake Factory was among several chains named in the story:|
Vito Manarin, one of the managers of the Cheesecake Factory, 2090 U.S. 41 N., said other area restaurants have called looking to hire his staff because they have heard the restaurant is closing. “No, we’re not closing, no,” Manarin said. “We get about 20 calls each shift about that. I’ve even got people walking in the door just to ask that question.” |
Coincidentally, Tom Mullaney, a workout specialist based in Sacramento, called me yesterday. He said his phone has been ringing off the hook. Restaurant executives and investors are seeking his help to determine not whether to shutter unprofitable units but how many. He named a few popular chains, though asked me not to mention them. (I can say The Cheesecake Factory was not among them.)
Mullaney, a former commercial banker who has been specializing in distressed restaurants for years, said the increase in closures will be startling, to say nothing of the shrinking number of new builds. He added he was puzzled by "commentators" who talk about a robust stock market and how things are getting better. He hasn't come across such evidence "on the street."
"The credit crunch and retraction of liquidity are forcing restaurant companies to face up to underperformers -- and they are taking action," he declared.
Posted by David Farkas on May 7, 2008 | Comments (0)
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