Not only is it expensive to open and run a business in normal times, but Covid-19 is making things even worse. One of the bigger, more popular businesses in a city near me – the IHOP – closed down! That place seemed invincible!
Anyone running a business like a restaurant, shop, etc. these days has to have a huge amount of money set aside to weather disease shutdowns. They need to have 2-3+ months of rent – which is often probably outrageous – saved up for if and when no revenue is coming in.
Some local businesses here are trying to go take-out to save themselves, but it’s not always working. This local IHOP tried to go that route, but obviously it failed.
The price to start a business like a restaurant nowadays is over-the-top ($100,000-1 million in capital), and even with that, they couldn’t weather a disease shutdown.
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I wouldn’t open a restaurant, gym, or anything you need people to go to now. Hell, it was risky before COVID. You’d think Sam Dawson alone would keep IHOP afloat. The smaller non-chain places are even more fucked. Porn is likely the safest business right now.
Some chain restaurants in my area made it thru, not sure about homegrown stuff.
I don’t know if it’s from getting enough take-out orders or not. I’d say it’s because they had enough backup money for emergency rent. However, it surprises me the IHOP went under.