Opportunity Knocks?

GetQuik engages with hundreds of small to mid-size businesses (restaurants & caterers) through our network. By hooking in these businesses, we have a ground-level view of the impact that the recession is having on these folks. For one, we are seeing an accelerated pace of restaurants changing hands. Many restaurants are having trouble dealing with scaled back consumer spending. The operators weathering the storm best are the ones who are disciplined about controling operational costs.


Some of the better managed and positioned franchisees owners are taking over stores from owners in the same franchise system. They are getting a great discount to assume control of these stores. As well, they are already familiar with dealing with the franchisor and the keys to success in the system.


We are also seeing some regional players, taking advantage of distressed retail locations to grow an already tried and true model. As an example, Pizza My Heart this month opened their 17th Bay Area location - San Jose - Evergreen. Further north, High Tech Burrito this month opened their 14th Bay Area location in Windsor.


Here are traits common to the winners:

• a proven model,


• focus on controling operational cost, and


• the ability to scale.

Economies of scale and marketing know-how are also valuable. However, as marketing powerhouse retailers such as Circuit City and Sharper Image have demostrated, excellence in branding and marketing are not enough. Without the ability to control operations costs, a sudden downturn in top line revenues will expose weak balance sheets.

Credit is frozen. Consumer and business spending is down. Yet, there are still business leaders who are not only surviving, but looking for business opportunities created by the current economic conditions.