I’m not familiar with the biz.
But demand will return, so if the laws allow, a restaiuranteur will be able to basically come right back after bankruptcy.
After all, they did it before so they’re a good risk to be successful again.
Machado is a legend in the local restaurant biz here in Portland.
Go bankrupt and be successful. Strange times.
Maybe he could call Dr. Faucci, and he could make him a partner on the vaccine.
Not necessarily. Even if his restaurants were allowed to reopen for inside service tomorrow, he'd get 50% of his previous business back at best. That's because, to save the morons using anti-social distancing, only about half his tables will be available.
And I'm sure that his profit model is built on having X number of tables filled, not X/2 tables.
He could be successful again in a place like Texas or Fl. but if I were home I would get the hell off the West Coast!! Let all of these states rot in the hell they have voted for!! I live in CA. and if it wasn’t bad enough before it will be a waste land now!!!
“a restaiuranteur will be able to basically come right back after bankruptcy.”
Nope. Losses already exceed future profits. Dead business.
Yes, in some form. But in the transition how can a business stay opened, fully staffed and provisioned,waiting for that return?
In my town,restaurants are open but finding customers afraid to come out from the “incarceration”.
We will never be the same again as a country. Many people are forecasting a third or more of small businesses closing for good. They can't make it without cash flow - it's the way it works.
Millions of people are not paying their rent/mortgage which means banks will eventually go under without a bailout from the federal government. Entire malls are on the brink of closing for good. We are in a depression or near depression and it will become more obvious as time goes on. Even the White House believes unemployment is 20% and will go higher. Most believe 25 to 30%. One out of four are out of work. Something to think about. A commercial real estate collapse is a very real possibility with businesses closing. I know someone who works for a commercial real estate firm and they are going bankrupt. No store is paying their lease payments and they can't pay the bank.
Trump knows all this, of course, which is why he has been urging everyone to open up asap and he can't say anything bad that is going on since he doesn't to deflate consumer confidence but many people get what is going on and it isn't good.
Macy's has reopened 190 stores nationwide out of 551. They don't have many shoppers because many are scared. They will be closing for good about 20% of their stores or about 100+. There is an economic calamity going on and your thought is that demand will return. I wish it was that simple.
I'm amazed at the number of people in general and posters in particular who make foolish statements about business. Especially small business.
Small business finances are a mix of business and personal. Banks will not lend and vendors will not extend without personal guarantees. So in the case of a business BK, any creditor has recourse against the owner's personal assets. The owner will be broke personally as well.
So when you say "come right back," with what? Small businesses start primarily on owner's credit. No sane businessperson would advance credit to a person in that situation.
These people won't be starting new businesses anytime soon.