MARKETPLACE
•
NEWSLETTER
PAGE 6, MARCH 30, 1973
Who Built Up
..
The Locations?
Not due to anything this operator did except hold on like a bulldog to certain of
his locations over the past 30 and 40 years resulted in the value and/or selling
price per location zoom as much as 1,00CJ% and more. For example, a small quick snack
lunch counter spot where all he had located was a cigaret machine, a counter model
juke box and a pin game over 30 years ago, is today a bustling busy big cafeteria
open 24 hours a day. He now has 4 cigaret machines and, sometime ago at his own
expense, built a small games room off to one side featuring 12 different games plus a
juke box. He has been offered $25,000 for this location less cost of equipment.Popu-
lation growth plus capable and venturesome business management actually built up this
location.
"I've been friends with the original location owner and now his two sons, who took
over when he passed away and built up this place, for over 30 years," this operator
advised. "In fact", he added, "because I was so close to their daddy and helped him
financially with loans, I'm called in along with their attorney, accountant and banker
everytime they contemplate a change."
He explained, "Not so long ago the boys were offered a very
at what might be considered an extremely reasonable price. Tho
at this conference believed this was a good buy, I opposed it.
restaurant. I proved by m,y receipts that this place was losing
Furthermore, the big business in this restaurant was nighttime
happy they listened to me. The place has since closed down."
well known restaurant
all the others present
I'd operated in this
not gaining patrons.
dinners. The boys are
Thie operator reminisced, "I suppose I could tell many a story along this line just
as any other operator could. There were locations that demanded big loans I gave up.
Some of these went ahead but the majority are out of business. Who", he asked, "can
better judge than a well experienced operator? After all", he explained, "we've oper-
ated in everything from beauty parlors to factories. We've seen locations come and go."
He agreed, in the great majority of instances, it wasn't the operator who built
the location. "There ' s no doubt", he stated, "operators have helped. Not so much
because of loans but, instead, because of business stimulating equipment they feat-
ured which, many times, helped bring in customers and, most important, keprcustomers
in the place, sometimes for hours instead of minutes.
"I think", he added, "most old time operators will admit they were lucky from the
standpoint of growing population and the fact they held on with bulldog tenacity to
progressive locations which have since zoomed the value of their routes. How do you
know which location is going to develop into a really great location? Well", he
answered, "any honest operator will tell you it's the location's management • . Actu-
ally, tho, due to long experience", he concluded,"you just sense 'this is going to
be a great spot some day'."