Pretty amazing but I agree with it. Clearly, the rent and service fee's plus cash flow is not enough to justify owning them. The next move should be to cut the corporate staff dedicated to those stores but we don't hear about any of that. Are they raising the rents and requiring reinvestments by these buyers. I have heard that they are now beginning to look harder at "joint venture" here in the USA. The company can't understand how operator cash flow can be so much higher than a company store. The SOI (Store Operating Income) of a company store can be good but it has to then support the regional office. Many regional offices are so bloated with unnessary people, programs, high office rent, cars, travel, meetings and regional managers won't cut them until forced to. Some regional offices are more like a palace than a business office. lots more room for Easterbrooks meat axe.
Post a Comment