The corner restaurant near this office has been through five tenants in recent years. Each spends money on a new name and new fitout, but these don’t stop the venture from failing.
We’ve had a Mexican, Turkish, contemporary, Asian, and one I can’t remember.
In each of the formats, there’s been nothing wrong with the food or service. But the floor size of the premises is enormous and would need a lot of diners in order to be profitable. Many of the tables are empty during the week. The two-highway exposure must also push up the rent.
And this is on a high street that’s already overserviced with casual restaurants.
What startles me is the faith that each new operator has in a fresh concept, as if this will be the one to break through into profitability. A revamp is seen as the answer.
You can dress up these premises any way you like and the business fundamentals aren’t going to change much. A dog remains a dog, regardless of the color of its coat.
I looked at a couple of movies recently about the mid-20th-century entrepreneur Howard Hughes. These were The Aviator, starring Leonardo DiCaprio, and The Amazing Howard Hughes, with Tommy Lee Jones.
Both movies told interesting stories, the first focusing on Hughes’s early years, the later protraying his decline into eccentric old age.
What startled me was the similarity between him and our current rich visionary, Elon Musk.
Hughes made his pile selling drill parts during the Texas oil boom, then parlayed the cash into blockbuster movies, operating an airline (TWA) and making extravagant forays into aircraft design.
His six-engined Spruce Goose was at the time the largest aircraft ever built. It barely got off the ground and has been hangared ever since as an awkward reminder of Hughes’s overreach.
In a similar vein, Elon Musk got rich from the internet revolution, bought into the car company Tesla and has ambitions to be a space transport pioneer.
Both men had or are having trouble reining in their cashed-up dreams to keep pace with the reality of what they’re trying to achieve.
The Musk story is still unfolding, but how fascinating to see if the second half of the man’s life will mirror the fated trajectory of his forerunner.