Post #512794 by Tom Slick on Tue, Feb 23, 2010 11:33 AM

As to not derail the already ongoing thread HERE, This thread is to focus on some of the off topic statements made in the other thread. I created this thread to debate whether or not Trader Vic's Bar & Grill could be either: [list=A] [] Positive and helpful to Trader Vic's Restaurants iconic/flagship locations [] Detrimental to Trader Vic's iconic Restaurants [*] A Double edged sword for the original Trader Vic's restaurant locations

[list]

I'm interested in peoples thoughts, because I've seen more than a few people chime in THIS THREAD , stating that TVBG can be advantageous for the original chain of Trader Vic's Restaurants, but I personally, just do not see it.
My explanation is below;

Why do most people think that this new chain could potentially save the original locations? Locations are responsible for their own sales. No TVB&G(aka McVic's) profits will bail out an original establishment if the original styled restaurant is "failing". Which would not necessarily only be proved on paper, but also could be based on a comparable Competency sales audit by way of a Corporate-Wide standard profit.(aka, weakest link/weakest profit margin compared against each individual TV restaurant)

If anything, and already knowing the way that TV corporate is slithery in making business decisions, the McVic's(TVB&G) may actually be detrimental to the original locations, provided the McVic's become more widely popular and successful, revenue-wise. The McVic's are probably alot cheaper to run as well, seeing they can move into any existing building on a mall or plaza property, with seemless effort. I'm sorry, but I personally cannot agree with the said assesments about McVic's saving TV restaurant locations. In business, you simply do not take your world famous "niche" in the market and start turning out "Express" versions, in this case McVic(TVB&G). On top of that, you cannot come to think that TV corporate will use profits from the "McVic" versions to help keep the Flagship locations open. Trader Vic's doesn't practice robbing Peter, to pay off Paul.

I'm pretty sure most, if not all restaurants are franchises, and seeing the things TVCorp does as a whole company, I wouldn't be the least bit surprised if they released contracts and closed the Trader Vic's flagship restauarants to make room for the revenue enhancing McVic's chain(Should the McVic's prove to be more profitable pound for pound). They've closed down profitable locations before, so it wouldn't be a first...

Remember what happened to the Kahiki? All we have as a reminder are the frozen appetizers that can be found in most frozen food departments of your local major grocery chain. That company found a way to survive by cutting the overhead...Which just happened to be the famed restaurant itself.
http://www.kahiki.com/about-us/supper-club.aspx

What are your opinions, rebutals, and or agreeances?

[ Edited by: Tom Slick 2010-02-23 11:37 ]