rmtraut wrote:I think the idea is that it's a model that can be replicated in another location (while maintaining the current one). The operative word is "and" (open a restaurant downtown or in another city).
Oh...... details.
I have indescribable respect for the entire team at The Bad Apple. What they've built -- and the amount of talent and hard work that went into it -- is truly amazing. However, I'm not sure I understand the potential value of anything beyond the physical business as it exists in its current state, in its current location. Do the name or the brand have significant recognition outside the neighborhood, across Chicago, beyond Chicago?
At the end of the day, you've got a place with excellent burgers and expertly-curated taps. These are not exactly proprietary assets. They can be approximated, reproduced or duplicated by anyone (or group) with enough capital to open a place. Where I see the value -- and it seems tremendous from the outside looking in -- is in this location, this lease, this liquor license, this cash flow and this loyal customer base.
None of those things would likely carry over to any additional location. So, beyond them, what is the value of the brand? Because other than these items, that's really the only other thing a buyer would be acquiring in a purchase.
As I posted upthread, presuming the business is profitable (enough to justify a purchase), it seems like the best move would be for a buyer to keep things going as they are right now and make as few changes as possible. Any notion of stamping out additional locations seems a missed bet. Yes, it's already a crowded field but the brand here appears to be of dubious value. So, even if someone wanted go down the 'Great Burger/Excellent Beer' road, the purchase of the business would be a barrier to entry with which they probably need not contend. So many others, though.
=R=
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