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Posted on 2/13/13 at 11:18 am to sharpSee
Couple of things.
No.1, Stagger Inn got caught drinking after hours. This is a stupid rule and it was employees but none the less, after closing time, if you have alcohol out, they'll get you!
2nd. The State Theater location will be very tough to make it work. First the lack of parking, you have space for 800 and parking for 40. Also, over the years, as every new "owner" has leased the space they have renovated and added to the note. In other words, the lease is now too high to actually cash flow. Starkville bars have been in a pricing war for 20 years now. Its very difficult to get more than $3 for well drinks and $2 for a beer. With that being said, from what I understand, the lease payment would be well over $10,000 a month. That means you would have to gross $30,000 per month in sales just to pay the lease. Thats no electricity, staff, bands, security, advertising, licenses, etc... Folks, those kind of sales figures aren't gonna happen in Starkville at $3 a pop. Maybe a few months of the year when we have multiple home football games, but not 12 months a year. So the only way to make it cash flow is if somnebody can afford to pay cash for the space with no debt. Then they would have a fighters chance to at least break even over the first 8-10 years. Understanding that, how many people are willing to risk 1.5 million cash just to break even after 8 years? I'm sure many others will try and lease it over the next several years but in reality they won't make it either.
No.1, Stagger Inn got caught drinking after hours. This is a stupid rule and it was employees but none the less, after closing time, if you have alcohol out, they'll get you!
2nd. The State Theater location will be very tough to make it work. First the lack of parking, you have space for 800 and parking for 40. Also, over the years, as every new "owner" has leased the space they have renovated and added to the note. In other words, the lease is now too high to actually cash flow. Starkville bars have been in a pricing war for 20 years now. Its very difficult to get more than $3 for well drinks and $2 for a beer. With that being said, from what I understand, the lease payment would be well over $10,000 a month. That means you would have to gross $30,000 per month in sales just to pay the lease. Thats no electricity, staff, bands, security, advertising, licenses, etc... Folks, those kind of sales figures aren't gonna happen in Starkville at $3 a pop. Maybe a few months of the year when we have multiple home football games, but not 12 months a year. So the only way to make it cash flow is if somnebody can afford to pay cash for the space with no debt. Then they would have a fighters chance to at least break even over the first 8-10 years. Understanding that, how many people are willing to risk 1.5 million cash just to break even after 8 years? I'm sure many others will try and lease it over the next several years but in reality they won't make it either.
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