Coffee and common sense

There are times emotion and dreams take over from common sense. 

Let’s say you hope for a pot of gold at the end of a double rainbow by opening a nice-cream store, offer some great desserts, a selection of magazines and newspapers, and a place to eat the food and sample the news.   Everything’s coasting along magnificently.  So great, in fact, if 1 store can do this well, what can we do with 2, or 3, or 4, or 5, or 6, or 7, or 8?

You see successful restaurants in neighboring towns, and move in to compete – but you don't!

And, as you expand, you get away from the core business.  No longer is the draw the desserts, ice cream, and newspapers.  Now the appeal is a cup of coffee and a menu of foodstuffs.

About this same time, some guy from Seattle starts expanding his brand of coffee stores.  Beverages and some limited food.

So, you expand the menu – full course meals in addition to the coffee, scones, and desserts.  And so do the prices.

Meanwhile, that Seattle guy opens another store just down the street.  Fast service.  Good coffee.  Nice environment.   

Did you get that…fast friendly service.  Apparently not!

Then, you decide no longer will you offer newspapers and magazines.  But, you continue to build a restaurant and charge more than the market will stand.

Oops!

Bankruptcy, Chapter 11.  

A lot of debt could be erased, employees will lose their jobs, and small businesses will suffer from unpaid bills.

And, the blame goes to a “bad business environment and a poor economy.”

Do ya think?