I was reading an article about Chipotle this morning...how business is great and they keep opening more and more, but the worry is they won't be able to keep expanding.
My question is...if business is great, why do they NEED to keep expanding? Is it just plain greed?
I mean...if you have 1500 locations and business is booming, isn't that enough?
In the small town I used to live in, there were THREE Subway restaurants within less than five minutes of each other, all owned by the same guy. In my mind that's two too many. None of them were ever that busy, because they were all basically competing with each other. In the meantime, the owner has three times the overhead.
That's why I guess I just don't get over-expansion. If you're profitable, be content with what you've got.
My question is...if business is great, why do they NEED to keep expanding? Is it just plain greed?
I mean...if you have 1500 locations and business is booming, isn't that enough?
In the small town I used to live in, there were THREE Subway restaurants within less than five minutes of each other, all owned by the same guy. In my mind that's two too many. None of them were ever that busy, because they were all basically competing with each other. In the meantime, the owner has three times the overhead.
That's why I guess I just don't get over-expansion. If you're profitable, be content with what you've got.
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