Does anyone have any idea @ what numbers they start to consider closing stores Particularly PH?
I have a small DI/DEL/CO 48 seats beer and wine. One of my employee’s is friends with the mgr and reported back to me some rediculously low weekly sales for their store and was wondering if it were possible to know at what point they would pull out out of a market.
I’m guessing that Franchises operate kind of like indies in respect to profit and loss. Too much debt, too much loss = closure.
***** I’ve heard (from several sources) that the big 3 are beginning a plan of folding in successful franchises (turning them into corp stores) *************
From what I understand is they replace managers if that doesn’t work the franchise takes over.
I ran a PH that was closed six months after I left. I took over with the store losing ten grand a month. When I left it was losing 1000 a month. I was so close to break even, but a better (or so I thought at the time) offer came along and I took it. I had found out after I took the store over that the top guys in the franchise wanted to close it a month after I took over. My DM convinced them to give me a chance, so they did. My replacement failed to keep up the momentum, so they closed the store. It has to do with profit/loss. So long as a s tore is turning a decent profit, I doubt they will close it.
I certainly hope not. At least in this area PH runs their corp stores like crap. The franchise stores in this area are way better.