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February 13, 2008 9:24 AM quote 
Steve A is offline Steve A
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Join Date: Feb 2005
Location: In, but not from, Northeastern NC
Posts: 4970
 Ryans/Old Country Buffet File Bankruptcy
Buffet Holdings Inc, parent company for Ryans and Old Country Buffet, file bankruptcy. It's odd in our area for a chain, much less a "trough" to close down. Bulk-for-buck tends to be what stays alive.

You want to open a mostly successful restaurant in the south? You need to fill three requirements:
  • Be a chain,
  • Sell fried food,
  • Have all you can eat.

How Buffet Holdings Inc didn't get that memo is beyond me.

Ciao,

Give 'em what they want. Just make it better than they expected. 

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February 22, 2008 8:29 AM quote 
DHS is offline DHS
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Join Date: Feb 2008
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 How fallen are the mighty.
While the "too much debt, tight credit market, lack of cash flow" explanation is pretty much on target, I think OCB started getting off the track years ago.

In the early 90's, this was a company that made much out of the quality of their individual store and multi-unit superviision. District Managers had 5 to 10 stores. General Managers were very well paid by industry standards, and had 2 or 3 subordinate managers in each stores.

Various changes among the "corporate suits" resulted in a, "we don't really need expensive managers" philosophy.

"Anyone can run an OCB," they decided. "We have recipies." "We have procedures, and policy manuals."

If you can read, and give up your family several weeks a year to come back to our corporate palace for ongoing indoctrination - er, training, then you to can be an OCB General Manager.

They found ways to signifigantly reduce manager wages and staffing, and embarked on a program that eventually left District Managers with 15 to 20 stores to supervise.

All the while taking on lots of debt to buy out or merge with competitors whose different company cultures and concepts were more expensive and difficult to accomodate than they anticipated.
February 22, 2008 5:50 PM quote 
The Cat Man is offline The Cat Man
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Join Date: Jan 2007
Location: Tampa
Posts: 304
 
Good post DHS....
I think you're right on track.

There are several other chains that are going or have gone down the same path.

That is exactly what happened with Steak n Ale, Bennigans, Houstons, HOPS and Lonestar to name a few.

It's a classic mistake that repeats itself all too frequently.

Of course, this also happens all too often with independents, but we rarely hear about that.
The Cat Man
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February 23, 2008 10:41 AM quote 
DOUGWELK@YAHOO.COM is offline DOUGWELK@YAHOO.COM
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Join Date: Feb 2008
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Posts: 47
 
the problem with buffets houses is volume factored against margins. if a company needs each unit to do 70 or 80k a week to make money, from what point does break even end and profit begin? if a unit drops to 50k a week is it loosing money?
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