…They got tired of breaking even. They were working real hard to break even.”…"They thought the restaurant business was going to be fun,"…
Palm Beach Post
May 12, 2009
Palm Beach County's last Fuddruckers closes doors
Susan Salisbury
WELLINGTON — Palm Beach County's only Fuddruckers restaurant, part of a chain that claims to serve "the world's greatest hamburgers," has closed and will not reopen, a spokeswoman for the Austin, Texas-based casual dining chain said Monday.
The Wellington eatery had been open for two years. Florida now has just four Fuddruckers left; in Hialeah, Miami, Pembroke Pines and Orlando.
"The franchisee decided to close it," said Fuddruckers spokeswoman Kelly Noriega. The company, which has 95 corporate locations and 153 franchised restaurants, declined further comment.
However, John Clark Bills, president of John C. Bills Properties Inc. in Palm Beach Gardens — and the agent handling the restaurant property's land lease — said, "They tried to cut expenses. They got tired of breaking even. They were working real hard to break even." Bills has the land lease listed for $1.8 million. That includes all the building and equipment.
Wellington Fuddrucker's owner is listed in state business records as GRM LLC, and Ross George as its president. George could not be reached for comment Monday.
Paul Emmett, president and owner of the 19-store, Palm Beach Gardens-based Duffy's Sports Grill chain, said the Fuddruckers concept suffered the same problems as other casual dining eateries such as R.J. Gator's.
"Generally speaking, these casual dining concepts that seemed cutting edge at one point either change owners or go public," he said. "The strategic vision gets watered down. Once that starts to happen, they fade away."
Even without those problems, the economy is felling restaurants right and left. "We anticipate in July and August there will be a huge shakeout," Emmett said. "It is great for the consumer. We have not raised prices in two years, and our competitors have not either."
But that environment would not have helped a new franchisee. "They thought the restaurant business was going to be fun," Bills said.
http://www.palmbeachpost.com/business/content/business/epaper/2009/05/11/a4b_fuddruckers_0512.html
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Risks: Stores shuttered, Success or failure is within the direct control of the individual franchisee, Why franchisors sublease to franchisees, United States, 20090512 Palm Beach
