Why not wait until they go under and make a deal with the owner of the property?
- Thread starter windeguy
- Start date
Jolly Roger only $399K in Sosua
No. Punta Cana killed north coast tourism, I saw that very clearly as it happened, but in this thread we are supposed to talk about what a good deal the JR is.
Hey it was my OP, but I get it, threads wander. It doesn't matter how clean things are at many levels from hookers to trash to the beach, with no reasonable flights to Puerto Plata the JR/Plan B/Matteos are not going to fill their seats with clients. And those flights are not likely to be back.
This business is affected by many influences that you and I do not know. We are all quick to judge, but who are we? For some reason, the current owners felt that the time was right. I applaud them for hanging in there all these years and regularly doing fundraisers to support people working with the poor (even though I never benefited).
Many newby tourists to Sosua love their destination. We live in Jamao, but often my husband, on his way back from golf, will stop there for a BLT.
Is this who we, dr1 members, are? People who try to damage the good faith of people in Sosua who have been in business for years in good times and bad, who suffered a fire and then COVID, came back and still found a way to survive, are we the people who will bad talk all their decisions over the years and damage their ability to sell when, for some reason they feel it is time?
Let's all get information first, before we throw the first criticism. Sorry to put a wet towel on this conversation. But let's have a heart.
Many newby tourists to Sosua love their destination. We live in Jamao, but often my husband, on his way back from golf, will stop there for a BLT.
Is this who we, dr1 members, are? People who try to damage the good faith of people in Sosua who have been in business for years in good times and bad, who suffered a fire and then COVID, came back and still found a way to survive, are we the people who will bad talk all their decisions over the years and damage their ability to sell when, for some reason they feel it is time?
Let's all get information first, before we throw the first criticism. Sorry to put a wet towel on this conversation. But let's have a heart.
Perhaps if you had the right connections to turn Jolly R. into a laundry (the kind that washes Benjamins) then it might be worth it.
I have a couple neighbors doing this quite successfully and building like mad.
Compare Jolly @ $400K to Plan B @ $95K, neither of which owns the property.
Is it 4 times more profitable? Perhaps.
Trivia and Karoke aren't reeling in the crowds like 4 years ago, but one never knows when a comeback could happen?
When you see any more hotels or casinos getting boarded up then that's the bigger canary in the coal mine.
Speaking of good business ideas - there is a 'Hotel' that allows out of town working women only, not their Johns (is that legal discrimination) - two doors uphill from Spankys. It is not the YMCA.
2000 pesos a night - full almost every night.
Taxis and SUVs pulling up to escort the escorts to their rendevous.
35 rooms x 2000 pesos. 70,000 pesos ($1300 Dollars) - say 50% profit? That is around $20K per month. I think I'd rather own that business than the super hard work of running a bar/restaurant.
I have a couple neighbors doing this quite successfully and building like mad.
Compare Jolly @ $400K to Plan B @ $95K, neither of which owns the property.
Is it 4 times more profitable? Perhaps.
Trivia and Karoke aren't reeling in the crowds like 4 years ago, but one never knows when a comeback could happen?
When you see any more hotels or casinos getting boarded up then that's the bigger canary in the coal mine.
Speaking of good business ideas - there is a 'Hotel' that allows out of town working women only, not their Johns (is that legal discrimination) - two doors uphill from Spankys. It is not the YMCA.
2000 pesos a night - full almost every night.
Taxis and SUVs pulling up to escort the escorts to their rendevous.
35 rooms x 2000 pesos. 70,000 pesos ($1300 Dollars) - say 50% profit? That is around $20K per month. I think I'd rather own that business than the super hard work of running a bar/restaurant.
Somebody over at JR must be on the concentrated gummies. What do they have except a lease and equipment. The RNC should never be transferred. 400k Canadian?? He can't possibly accounting goodwill, customer base, recipes etc. They need to be forthcoming about how they arrived at that number. Clearly a potential buyer would do that in person. For simple businesses sometimes they sell, after physical asset cost, a multiple of annual revenue - sometimes 1x or 2x depending on the fame and reach of the business. However in a restaurant case, I would never buy based on revenue or customer lists. One never knows, but they have this dedicated following, that, when the place is sold, may never return. Buyer beware as Cristo Rey says
Lindsey you hit on something - Covid may have just have been the knife in the back many business have not recovered from and could be the dominoes are falling just now.
It sure killed office rental property and mall space in the US.
I wonder if the effect was the same in Santo Domingo?
And it's a cash business. Pay each night or don't get access. Perfect plan.
No kidding. 399k for goodwill is ridiculous. I have been there and it's a nice place but it's not worth anywhere near 399k. Even with the building that's too much.
There is as much chance of anyone paying $400 K for this place as there is of the Cabarate Bypass being built anytime this Century................
plus they had a fire that caused the business to be closed for a year. Although I do not frequent this restaurant, I know Canadians love it. I applaud their willingness to bounce back after two bad hits with a fire and COVID. Maybe they want to go back to Canada to be with their grandkids. Maybe one of them has an illness. They both were always there, to my knowledge. They promoted specials and had afternoon events each week, including bingo and trivia with proceeds going to Sosua non-profits. I only know this from social media. But I applaud all their hard work and hanging in there when others down the street failed, and failed again.
For some reason, personal, political, or economical they decided to call it quits. Let's give them a break.
I enjoyed the fish and chips, onion rings and bacon cheeseburger on a few occasions. Decent bar food good prices.
Which might scare potential buyers away?
Maybe they have good books which justify the price?
I used to build and sell houses that I built on land I bought. Spec homes.
I priced them where I was confortable with a good profit (around 38% usually) and sold everyone of them before I finished.
Realtors would come to me and say I can get you more - yeah but after their commission and parading dozens of lookey-loos through a new home I might wind up with what I was asking which brought serious people to seek me out. .
Then if a house sat on the market too long it would be tainted - so leaving room for negotiations is OK - but don't leave an auditorium.
Speaking of traffic. It used to be there was parking only on one side of PC in front of Jolly Roger. Now is both sides and never an open spot even if the restaurants are empty. Maybe they are all parking and walking to Kings.
Now it's both sides of the street, and often plugged up by delivery trucks. I quit driving by there to keep from getting two blocked for 20 minutes.
Of course, but pretending they actually think the business is worth that makes for an interesting thread and good content
Bravo, no need to apologize.
IMO, Kelly and Patti in the last 15yrs are really the only expat owners in Sosua/Cabarete that have created a total social atmosphere for expats, while providing food and drink. The only question I would ask someone who is interested in buying J.R. can you continue the same at 10-12 hr shifts/ 6 days a week? If the answer is yes, then the hardest part after the simple cost of the inventory / fixtures would be calculating what you would pay for the goodwill?
There's no goodwill. It's a bar. They're not selling a name or a brand. They day they turn it over it is possible none of the existing customer base will return. Perhaps a few. The best you can do is equipment, inventory and perhaps demonstrate historical revenue that would be worth the risk for some folks that don't understand the business. Your personal relationship with the owners doesn't justify the inflated valuation.
Of course it would be almost impossible to go into debt for 400k and make a profit, especially in Sosua, I agree 100%, but that was not my point. All the years I live here, I saw a lot of bars/restaurants fail and most of them didn't had to invest that much. But indeed, especially in Sosua I wouldn't start a new business.
Let's just look at the math. You can buy a 24-pack case of Presidente pequeña today at RD$ 1950 at the moment, including ITBIS. So that's a true cost of RD$ 1,652 or RD$ 69 per bottle. If you are selling at 200, then firstly you have to take the propina legal and the ITBIS out, so you have RD$ 156. Take off your RD$ 69 per bottle and you have a margin of RD$ 87. You need US$ 1,400 to pay the rent, which is RD$ 77,000. So just to pay the rent, you need to sell 885 beers. And of course you then need to keep the beer cold, and you'll need AC, so your electricity bill will probably clock in at about RD$ 50,000 per month which is another 574 beers you need to sell. And we haven't talked about paying staff, but you'll need at least two and a cleaner, so let's say RD$ 50,000 for them, which is another 574 beers. So far we're up to 2,033 pequeñas a month. If you say the average punter will drink two of those (probably fair in Sosua as people go from bar to bar) then you need at least 1,000 punters a month, just to cover some basic costs and before you pay yourself anything.