91–100 of 272 posts
I'm still at awe of the Sushi Buffet thing that you can see all around in Helsinki, Finland. So far I have not seen anything like it, anywhere else in the world. Usually the price you pay is 10€ for an unrestricted and no time limit access to eating sushi. And the sushi is incredibly okay! It's nothing compared to stuff you find Tokyo ofcourse, but the price for quality is literally unbeatable. And all this is happen…
I stopped going to all-you-can-eat buffets years ago for the simple reason that you don't stop eating when you're full - you stop eating when you hate yourself. If the number of all-you-can-eat buffets drops, it's likely because society is starting to advocate healthier lifestyles in my opinion.
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It’s also important to look at capital expenditure intensity. Spending $100k to make .01% could make sense but spending $1B to make .01% is much tougher, from an NPV perspective.
Isn't ROIC the more important variable? Let's say I want $100k of profit per year. With 5% margins, I need to do $2M of business. But that doesn't mean I need to pay for all the inventory I'm going to transact up front. I don't have to have $2M capital invested in the business. I might even be post-paying for the inventory (net 30 terms, for example). I post-pay the labor as well. In this case, it's kind of meaningle…
The only thing I found more interesting than all-you-can-eat buffets actually turning a profit is that there are business people who are apparently content running a business with such slim margins. This article quotes a 5% margin. I know food industry margins are low in the first place, but as a business owner in a different field I'm left wondering why anyone would even bother. The same business prowess and attenti…
I think the average margin might be misleading. After all, most restaurants fail pretty quickly. That number could be skewed by the unsuccessful businesses. But I think it’s an interesting point. Why fight all day long for a 5% margin when you could put your money in index funds?
It doesn't really make sense to compare things this way, they're so different. Better to do an income flow analysis. For a given amount in invested capital, how much profit will a profitable restaurant generate in a year vs the stock market. The restaurant is gonna come in way ahead, though of course it's a very active investment (a full time job plus some) vs the passive index fund investment.
I sometimes drink a stupid amount of diet soda. I know drinks are usually high margin, but I wouldn't be surprised if some places lose money on me. I went to a Denny's recently and tried to count the number of refills I got, but I lost count. This is the same Denny's I went to in college, where the waitress knew me. She'd drop two pitchers of Diet Coke on the table before she took my order. The epitaph on my tomb sto…
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Sounds like an Argentinian version of a Brazilian rodizio.. https://en.wikipedia.org/wiki/Rod%C3%ADzio
There's one of those in another corner of the mall, I should try one day. But are rodizios usually all-you-can-eat too?
I stopped going to all-you-can-eat buffets years ago for the simple reason that you don't stop eating when you're full - you stop eating when you hate yourself. If the number of all-you-can-eat buffets drops, it's likely because society is starting to advocate healthier lifestyles in my opinion.
I'm thinking next time we go out we'll try and get the same thing and split a plate. .. and then tip as if we ordered 2 plates because I feel guilty to the server. Hah.
The simple trick is you need to price it such that any combination will always cover the costs of the most expensive meal. -Don't just downvote, explain why it won't work.
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https://www.investopedia.com/ask/answers/052515/what-average... This article claims that banks make 24%, and they are hardly a monopoly. It also claims the overall average is 8.5%.
I can't figure out where that article gets its numbers from or which banks it's referring to. The industry standard measure for bank profitability is something called ROA, return on assets, and it's an extensively studied academic topic, with the general consensus that an ROA greater than 1% is pretty good. https://greyhouse.weissratings.com/ROA-ROE-and-What-These-Ke... https://www.fdic.gov/regulations/resources/cbi/…