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Rocky's Aqua End of the Line
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sometimes -- Cut Bait is an option...
not a desirable one but expedient
deals go sideways at times through no fault of either party
and most deals have a clause for it
sad but real
not a desirable one but expedient
deals go sideways at times through no fault of either party
and most deals have a clause for it
sad but real
yet another off topic post deleted by the mod. will you ever learn?
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I did not want to type this before , as it would maybe appear argumentative ... but some have touched it now already anyway
Only a total FOOL would pay full price owed, once a business has been REPOSSESSED .. All the 2 parties can possibly be doing now is RE Negotiating their Deal ....
Paying the full balance would be like approaching a bank which just Foreclosed on a House and asking if the house is available for the Full Price the Previous Owner paid before they walked away from their House AND their deposit, leaving the balance owed....
Of course the bank is forced to sell at a lower price , they have no choice , people dont just walk away for no reason.
Unless someone grossly miscalculated, or the Market suddenly turns around and magically improves ... Pay the balance of $200K ( or whatever it was) owed ? I don't think so... not if he was just breaking even .
And now I see why some people ( like barowners in Sosua) SOLD when they saw changes coming, for a Price that seemed rather LOW... They got PAID in full, up front, thats why, and walked away not being owed a Dime.. Clean break.. The Lower price was totally worth it for them..
Bird in the Hand ,. as the saying goes
Only a total FOOL would pay full price owed, once a business has been REPOSSESSED .. All the 2 parties can possibly be doing now is RE Negotiating their Deal ....
Paying the full balance would be like approaching a bank which just Foreclosed on a House and asking if the house is available for the Full Price the Previous Owner paid before they walked away from their House AND their deposit, leaving the balance owed....
Of course the bank is forced to sell at a lower price , they have no choice , people dont just walk away for no reason.
Unless someone grossly miscalculated, or the Market suddenly turns around and magically improves ... Pay the balance of $200K ( or whatever it was) owed ? I don't think so... not if he was just breaking even .
And now I see why some people ( like barowners in Sosua) SOLD when they saw changes coming, for a Price that seemed rather LOW... They got PAID in full, up front, thats why, and walked away not being owed a Dime.. Clean break.. The Lower price was totally worth it for them..
Bird in the Hand ,. as the saying goes
Ya not sure... the question for Rocky might be, do I pay off the $200k plus court costs to get a property back that is worth $700 k? Or whatever the price Rocky would think he could sell it at. It may make sense for him to pay to get back his investment. On the other hand, things have gone this far that if the courts give the property in more or less a final judgement back to Frank, Frank can re-sell or rent the renovated property. There are always people with a dream to open a restaurant/bar on the beach that is in good condition. Assuming the facts above are correct... LOL
Now this is business, and it is encouraging to see that some understand the concept.
Someone with the so-called dream of opening a bar on the beach in the Caribbean is unlikely to be a great businessman that performs do diligence to find out if a property has been repossessed so they attempt to make a deal based upon what the owner already received and make a better deal.
Why would the current owner take the money already paid before such a repossession into consideration unless they were just trying desperately to get out?
A perfect example of people without a clue where those that tried to have a Nikki Beach Club on Cabarete beach. One would have thought a company like that would have done a marketing analysis before that fiasco.
I do hope the next victim that succumbs to the potential nightmare of such ownership fairs better.
Why would the current owner take the money already paid before such a repossession into consideration unless they were just trying desperately to get out?
A perfect example of people without a clue where those that tried to have a Nikki Beach Club on Cabarete beach. One would have thought a company like that would have done a marketing analysis before that fiasco.
I do hope the next victim that succumbs to the potential nightmare of such ownership fairs better.
There are much more profitable global seaside destinations to be had for those with dollars, euros, and dreams. The north coast of RD is not one. A sustainable business? Possibly. A profitable business? Highly unlikely. The market is not there. The team is not there.
Seems the consensus is business on the North Coast is bleeding like Rocky's.
I think businesses can succeed but make a person wealthy - no.
If you are a North Coast bar/restaurant owner who nets $1,500/mo year round count yourself successful.
There are exceptions no doubt. .
Is it worth that hard work - most would say no.
I have a friend who owns and works at a bar/restaurant and we have discussed his business and he feels lucky to make enough to pay the Dominican employees without coming out of pocket during May through August. And they all don't work mid-week.
During high season the bar profits pretty good. The restaurant portion never really brings in much. It's just to keep bar patrons in their seats.
Maybe Rocky's was the same and couldn't carry through the slow off season lag. I went only twice because parking in Cabarete is too difficult to bother.
I think businesses can succeed but make a person wealthy - no.
If you are a North Coast bar/restaurant owner who nets $1,500/mo year round count yourself successful.
There are exceptions no doubt. .
Is it worth that hard work - most would say no.
I have a friend who owns and works at a bar/restaurant and we have discussed his business and he feels lucky to make enough to pay the Dominican employees without coming out of pocket during May through August. And they all don't work mid-week.
During high season the bar profits pretty good. The restaurant portion never really brings in much. It's just to keep bar patrons in their seats.
Maybe Rocky's was the same and couldn't carry through the slow off season lag. I went only twice because parking in Cabarete is too difficult to bother.
Parking is easier now just east of Scotia Bank in Cabarete where the small supermarket was demolished. $100 RD.
Most all the reasons for the north coast diminished tourism hits Cabarete as well. The world economy, ridiculous air fares with bad connections, few hotels, too many condos, Airbnb, and the rise of Punta Cana being new and convenient are all factors.
Your friend is lucky to get by during the low months and even luckier to do well during the main season. What did Rocky's try to do to draw in the few customers that do exist? From what I have heard they had food and drink that was more expensive than other bars on the beach. That is not going to work no matter where you are doing business. One can argue that they need to charge more because look what they have and where they are, but that is a recipe for failure when customers are drinking and dining next door. That is when the owner has to ask what are they doing that I am not, not proceed with excuses.
Most all the reasons for the north coast diminished tourism hits Cabarete as well. The world economy, ridiculous air fares with bad connections, few hotels, too many condos, Airbnb, and the rise of Punta Cana being new and convenient are all factors.
Your friend is lucky to get by during the low months and even luckier to do well during the main season. What did Rocky's try to do to draw in the few customers that do exist? From what I have heard they had food and drink that was more expensive than other bars on the beach. That is not going to work no matter where you are doing business. One can argue that they need to charge more because look what they have and where they are, but that is a recipe for failure when customers are drinking and dining next door. That is when the owner has to ask what are they doing that I am not, not proceed with excuses.
I felt Rocky's was inline price wise with all other places on the beach. The quality of the food and service was better than most. The arriba bar and others on the street were less but Frank12 covered that in earlier posts. Most restaurants try to break even on the food if you go over that great for you, the liquor is what drives profit margins. This past January & February I was shocked how Cabarete seemed slow tourist wise. Not that I personally want crowded beaches but for the businesses and their employees I do.
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Again, Dov1984 is right in his/her assessment. (You must be in the service industry)
Rocky's prices were in line with everyone else on the beach--give or take .50 pesos. The sandwiches were very good, and as far as i am aware, we were the only business on the beach--maybe the entire North Coast--that served imported Black Angus hamburgers from the USA. They come in boxes of 12 (each burger is individually sealed) and these are brought once a week from the distributor in Santo Domingo--where we got all our imported beef.
Both O'Shay's & Rocky's only served beef imported from the US. The chicken, of course, was local--as most of the fish. But some fish was also imported from the US for consistency & quality.
Neither O'Shay's nor Rocky's ever lost money, but again, no one was getting rich either. But more importantly, it was keeping 20+ employees employed and fed...and insured. (no one ever thinks about this).
To do some math, if you take 20-employees, and let's say...each of them were supporting 2-3 family members (some supported even more), you then have roughly 80 to 100 family members (mostly children) being supported by O'Shay's or Rocky's.
So, its much more then the question "Are you getting rich!!??" It's also about are you helping support a community?
As far as i know, there is no other restaurant on the north coast that had 20+ employees. To be specific, i'm not just talking about the waiters, waitresses, bartenders, and kitchen staff. I'm also talking about the night time security, secretary, accountant, beach cleaners, and a full-time maintenance man/electrician--because there is no way to be a restaurant in front of the ocean and not have a major daily battle/war with salt air.
To reiterate, every business wants to make as much money as possible...that's given. But, both Big Frank & Rocky had a real strong connection and relationship with all of the staff and employees. Both men treated 20+ employees like family. For them, it was more then just turning a profit. It was also about giving back and having a good time.
What other business can you think of on the North Coast that sunk $100,000 to $150,000 pesos into a Superbowl party? and then turned around and sunk the same amount of money a St. Patrick's Day party...knowing that they will be lucky to even to come close to breaking even?
Any sane person would not be sinking that kind of money into events--and of course, no one else did.
It was more than a little discerning to see people coming to our Superbowl parties & St. Patrick Day parties and bringing with them their own drinks--even being bold enough to brag online about going across the street to save--and i'm not making this up--.30 pesos on a beer. .30 pesos!
With everything in life, you have to take the good with the bad. And running a business on the north coast is no different.
Social Justice and Community do not make for a long-term business plan unless one is running a charity.
Profits do.
I suspect Rocky's overhead was substantially higher than Frank because he paid multiples (most likely) what Frank did, so his cost basis, out of the box, was much higher.
Profits do.
I suspect Rocky's overhead was substantially higher than Frank because he paid multiples (most likely) what Frank did, so his cost basis, out of the box, was much higher.
Businesses have no social conscience. They exist to make a profit or they don't exist. If profitable, a business owner may choose to offer some benefits and rewards to their employees over and above the legal requirements. In rare cases, companies with money leftover that the shareholders don't get to gobble up, may even dabble in being philanthropic or good stewards of the environment - but not usually, and not without ulterior motives usually publicity related or to offset the use of practices that can be viewed by some as exploitative such as child labor in Indonesia, or mandatory 80 hour work weeks in Chinese assembly facilities.
In this case. it's nice that the person not charged with keeping the business afloat extorts the virtuousness of supporting local families, but that really isn't something for him to champion nor was it the primary motivator of the business owners or even the reason for that business existing in the first place.
While we have to give credit where credit is due in that this business in Cabarete has allowed employees to earn money to spend as they see fit, it rings a little hollow at this point to mention more than once and only in passing that this seaside bar deserves the UN Humanitarian Business of the Year award because their employees haven't yet succumbed to starvation.
Market principles dictate that you cannot offer loss-leader products to entice customers unless your core revenue generating products are in sufficient demand to cover the cost of that product itself as well as the discounted products in their entirety with a reasonable margin of profit. If that slice of pickle is not accounted for in the ledger, eventually the business will suffer death by pickle.
In this case. it's nice that the person not charged with keeping the business afloat extorts the virtuousness of supporting local families, but that really isn't something for him to champion nor was it the primary motivator of the business owners or even the reason for that business existing in the first place.
While we have to give credit where credit is due in that this business in Cabarete has allowed employees to earn money to spend as they see fit, it rings a little hollow at this point to mention more than once and only in passing that this seaside bar deserves the UN Humanitarian Business of the Year award because their employees haven't yet succumbed to starvation.
Market principles dictate that you cannot offer loss-leader products to entice customers unless your core revenue generating products are in sufficient demand to cover the cost of that product itself as well as the discounted products in their entirety with a reasonable margin of profit. If that slice of pickle is not accounted for in the ledger, eventually the business will suffer death by pickle.
Even on the Plane , the Safety/ Emergency Drill instructions CLEARLY tell you " Put the oxygen mask over your OWN face, before assisting others , even your own Child"
In case anyone needs that spelled out. You can't help your child or any others , if you are passed out .
In case anyone needs that spelled out. You can't help your child or any others , if you are passed out .
One person thinking the pricing was good does not make a clientele. Many thought the prices were not good. They did not go there. Add that to the cost of re-building and it truly makes one wonder: Why?
Apparently this model leads to the end of the line. We will see, after the lawyers take even more.
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Again, neither Big Frank nor Rocky ever lost money as a day to day business. The business is now closed because of a court battle.
I think i was clear in stating that neither men operated as a Charity. They're a business first. But, like any business, there are employees and staff to look after. Both men excelled at that. Both men took care of the staff like family.
Look at the turnover at any other restaurant or bar on the north coast--most have high turn-over. Some have very high turnover. A few have extremely high turn-over. Many of our staff lasted for 16-years--Nelcida, Raffa, Miguelina, Maria, Cache, Naty, Christian, me, etc...all worked well over a decade--with 6 of them doing at least 15-years. Many raised families, raised grand children...a few went to college. More then a few built modest houses and fed their families, etc.
Not sure why anyone would take anything negative from that?
I think i was clear in stating that neither men operated as a Charity. They're a business first. But, like any business, there are employees and staff to look after. Both men excelled at that. Both men took care of the staff like family.
Look at the turnover at any other restaurant or bar on the north coast--most have high turn-over. Some have very high turnover. A few have extremely high turn-over. Many of our staff lasted for 16-years--Nelcida, Raffa, Miguelina, Maria, Cache, Naty, Christian, me, etc...all worked well over a decade--with 6 of them doing at least 15-years. Many raised families, raised grand children...a few went to college. More then a few built modest houses and fed their families, etc.
Not sure why anyone would take anything negative from that?
I would also throw into the mix - as a business owner - that this year is harder than any other as far as I know, and most people I talk to say they're having a rough time. Demand is low, and the clients who you get seem to be looking for bargain bucket everything. We all thought that after other islands took a caning with the hurricanes last year, DR would get more visitors than ever, and so far this hasn't happened. A lot of hotels and restaurants seem to be selling below cost price, and certainly a lot cheaper than last year.
I don't think anyone takes exception to idea of a business providing a living wage to their employees and treating them with fairness and respect - that's pretty much a given in the eyes of causal observers. However, that's not why a business exists and it's a bit of a diversion to exalt the virtues of being a decent employer as a potential means of directing attention from the fact that this business was not as profitable as it should have been to justify its existence in the first place.
It is a safe assumption that a business with a healthy revenue stream will not jeopardize that for the sake of withholding debt repayment unless that debt is crippling. If that is the case, then mistakes were made and the reality is that no matter how noble the intent, sooner or later the plug gets pulled - no captain goes down with the ship anymore.
It is a safe assumption that a business with a healthy revenue stream will not jeopardize that for the sake of withholding debt repayment unless that debt is crippling. If that is the case, then mistakes were made and the reality is that no matter how noble the intent, sooner or later the plug gets pulled - no captain goes down with the ship anymore.
well, i know this might be the epicenter of off season, but i was in Playa Dorada last week and did not see a single tourist anywhere in the mall area. my instincts tell me that those stores are not doing so well..
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