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Is Los Angeles, CA a good place to look for a business right now?

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Answers (7)
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Try a deli and/or diner. It's hard work, but good rewards and fun. Plus in the right area it is an excellent investment that will grow. And you can do this anywhere there are people. We doesn't like to eat great food? Also, have 2 possible locations in Florida under a different name that may be available together or separate.

Nov 8, 2009
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The BAF Group LLC
MD

David, can you call me? (410-715-0700) I would ask a couple of pertinent questions, but telling me what you have would alarm me, from the start.

Oct 27, 2009
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Don, thanks for your help. I'm looking at a chain of fast food restaurants in Los Angeles. The sales have gone down each year since 2007. Do you think this would be a bad investment just from looking at the sales numbers?

Oct 27, 2009
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The BAF Group LLC
MD

Again, it depends. I deal with a lady that owns two Burger Kings, and they are struggling with a lostt of some of their market, for the first time since they owned the franchises. The problem is that places like Appleby's, Denny's and similar restaurants are offering $5.99 specials and other radical discounts, because those restaurants are struggling and trying to bring in anything that will help them stay alfoat. But in doing that, they have cut right into the heart of the fast food operations like Burger King. So, for the same money you can get a Whopper meal, you can now go to a place like Appleby's. There are two reasons you normally go for a meal at a Burger King: Low price and fast food. With the discount deals coming from more traditional restaurants, you radically reduce the incentive of people that have gone to Burger King just for price. Sure, you tip at Appleby's. So, the total cost is still an issue. But the person I spoke to had lost 20% of her business, and those restaurant discounting schemes seems to be the sole reason. A fast food place does not really have the margin to allow them to discount radically, to recapture the market share they have lost.

This is where looking at purchasing a mature business can be more beneficial than a startup. With a current business, you will see what trends the current economy has already caused. With a startup, it is almost pure guesswork.

Oct 27, 2009
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Thanks for the responses. How about an exisiting fast food franchise in Los Angeles? Do you think it would do well in this economy?

Oct 27, 2009
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The BAF Group LLC
MD

David, while I tend to agree with Kelly, based on conversations we have had with a number of our Clients doing business in CA, I would not be quite as black-and-white. Even in a catastrophic environment, there are always niches. Or, better stated, where there is a problem, there is an opportunity. The challenge is finding the correct opportunity!

Oct 27, 2009
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Simply, NO. I am from PA. The state of CA is a mess financially, and even the rich people are tight right now because they are so upside down in their real estate right now. I love living in CA, but wait it out if you can. What type of business do you want? I am looking for a partner in something???

Oct 26, 2009

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