Posted on 01/28/2010 10:14:06 PM PST by tlb
Eleven months after it went "anti-profit", Muddy Waters coffeeshop on SE Belmont says it will have to close its doors unless it can raise $10,000 by the end of the week.
Four co-owners/baristas took over the shop last February (more on that here), aiming to turn the sofa-laden cafe into a community center run on an "anti-profit" model that would pour any income other than their own four salaries back into good causes. In the last year, the cafe's calendar has been packed with open mic nights, movie nights and open jam sessions.
But things haven't gone according to the financial plan. Co-owner Sarah Dread says the cafe owners have been working for free since opening last February, supporting themselves with second jobs. "For the last few months, we've gotten to the point where we're losing money every day we're open. Business has been slowly declining," says Dread. The cafe has failed to claim 501(c)3 non-profit status as it originally planned.
Though Dread says Muddy Waters' landlords have been very accommodating, the building owners as well as the cafe co-owners have reached a breaking point. "It's been a long time coming. We're almost always out of at least some things because we can't afford to buy it," says Dread. The cafe is hosting fundraiser events daily through Sunday at the shop (2908 SE Belmont), including a pancake brunch this Saturday at 11 am.
Update 1/7: Muddy Waters says it will now be open 24/7 until Sunday and, as of Wednesday night, they've raised $1,800.
Funny how that works. It’s really much less painful to learn these lessons in economics and finance classes.
Isn’t that the lesson ole George McGovern, sainted grandpappy of the left, learned when he actually tried to run a business after retiring from politics?
For some people, learning those lessons in class just doesn't work. They think it's possible to run the world a different way--until reality rears its ugly head.
Capitalism works.
In capitalism every transaction is a win win transaction. The anti-profit bar is only conduction win-lose transactions. They mistakenly assume that for profit shops care out win-lose transaction benefiting the shop. This process just leads to misery.
Like every other “anti profit” business, they just need a government subside. :D
Hey!?! It's their theme.
What does the real Muddy Water’s family have to say about this whole deal?
“...the VERY people who voted for the NEW taxes on the “rich” in Meas 66 & 67 on Tuesday...”
You beat me to it. Exactly what I thought reading healine ...
As they say: what goes around...
“Portland is just filled with numbskulls like this.”
Yep. No doubt they had the place feng-shue’d, de-ghostified, adorned with just the right crystals, and aura-normed before committing to the business model.
Their failure is, no doubt, righteously blamed on Bush, Halliburton, and big corporations.
Lived there. You right. Not just the big cities, neither...
LOL! If they had bought a better crystal ball, maybe they could have seen this coming.
The article doesn’t really say anything about how they ran the business.
Telling people you are going to run any business as a “not for profit” has always seemed disingenuous to me unless it is staffed by volunteers.
As long as people are being paid, and their “salaries” along with other costs soak up all revenues, any business becomes “not for profit”.
Sounds like the same business model I had with my allowence when I was 10.
There are plenty of Not for Profit Businesses, AAA Travel Service and most hospitals just to name a few. I have never hear of an “anti-profit” model. It must mean You sell all your goods at cost. How stupid is that?
Well put.
If they'd spend less time on their own ideas of where other people's money should go, and more time actually trying to fulfill their needs, they'd have a viable shop. Then they could donate the evil profits to all their causes.
Serving others has never been the strong suit of leftists, though. It seems avoiding the ugly stigma of capitalism among their friends is more important than funding their nobles causes.
Free Clue: Your liberal teachers who taught you that capitalism is evil? They were wrong.
Have a nice day, and get a job where customers pay for stuff.
What the heck? Is recess over?
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