Subject category:
Strategy and General Management
Published by:
Ivey Publishing
Version: 2010-01-11
Length: 8 pages
Data source: Field research
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Abstract
The owner of a successful restaurant was approached by his landlord to re-open a restaurant he used to have, the Paragon, under extremely attractive lease terms. He had been considering suggestions from his head waiter that the two of them open a restaurant together, but had not heard of any appealing options until this recent offer. While he knew this was a good offer, he wanted to lay out a precise business plan and thoroughly assess the potential costs of reopening and running the Paragon before making any commitments. Moreover, he strongly questioned whether the income from a second restaurant would be enough to outweigh the stress and risk related to getting involved with an inexperienced partner.
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Abstract
The owner of a successful restaurant was approached by his landlord to re-open a restaurant he used to have, the Paragon, under extremely attractive lease terms. He had been considering suggestions from his head waiter that the two of them open a restaurant together, but had not heard of any appealing options until this recent offer. While he knew this was a good offer, he wanted to lay out a precise business plan and thoroughly assess the potential costs of reopening and running the Paragon before making any commitments. Moreover, he strongly questioned whether the income from a second restaurant would be enough to outweigh the stress and risk related to getting involved with an inexperienced partner.