Principal Financial-Remote work

[exCyDing]

There was a restaurant in the small town I live in. It was a staple of the town. However, they up and bailed under cover of night so they could open a spot in Ankeny.

A few months later, they did a series of FB posts about how they were on the brink of failure. They were pleading with anyone and everyone to come eat at their new location just so they could keep the doors open. They didn't necessarily blame anyone, but they did not look inward, either. I told my wife "they're going to fail." Begging people on FB to come buy your food is not a long-term business strategy; it's a band-aid. Make a product people are willing to pay for if you want to survive. The google reviews of their Ankeny location were repeatedly "this is very expensive for the quality and quantity you get." They made it about another week after their desperation post before they closed for good.

The restaurant business is weird and insanely fickle. It's a weird alchemy of product, location and time to be successful. Hitting 2 of those 3 factors might allow it to hang on a while, but it's dicey.

I worked for a place right after high school and when I was back home on breaks in college. Their first location was downtown and was going gangbusters. They opened a second location - same concept, menu, everything - on the other side of town out in the suburbs. After a few months of initial success, the second location became such an albatross that it almost took the whole thing down. The owners closed the second location and managed to salvage the first, but it was dicey for awhile.

 

[Clonehomer]

I'm not sure how downtown Des Moines is but at least in Rochester pre-COVID you used to be able to get lunch with a drink for $10.

Now? $15 at minimum. The cost is up 50% and the food quantity is down 20%. The places where you can still get lunch for $10-$12 are still doing just fine. The places who thought they could raise prices indiscriminately got a reality check from the market.

With this, when did this trend of expensive burger places start? Who’s pays $20+ for a burger and fries?

The restaurants around here are just pricing themselves out of business. If the input costs are really that high to need to charge that much, then we’re going to end up with a society without lunch spots. And I’m not sure that’s a bad thing considering health issues in this country.

 

[throwittoblythe]

The restaurant business is weird and insanely fickle. It's a weird alchemy of product, location and time to be successful. Hitting 2 of those 3 factors might allow it to hang on a while, but it's dicey.

I worked for a place right after high school and when I was back home on breaks in college. Their first location was downtown and was going gangbusters. They opened a second location - same concept, menu, everything - on the other side of town out in the suburbs. After a few months of initial success, the second location became such an albatross that it almost took the whole thing down. The owners closed the second location and managed to salvage the first, but it was dicey for awhile.

Definitely. I don't want my earlier post to make it seem easy. My point was more that you have to offer a product that people want. Begging your friends and family to come buy your food so you can stay open is not a long-term business strategy. In the case I described, just keeping the doors open doesn't change anything long-term.

I have family that run a restaurant and its been interesting to hear about. They are a breakfast+lunch place in a decent sized city in Iowa. Days they think they're going to be slammed, they'll be dead. Then the opposite happens. But their whole philosophy is "offer good food, good service, at a reasonable price and the people will come." It's working well for them so far.

 

[IcSyU]

With this, when did this trend of expensive burger places start? Who’s pays $20+ for a burger and fries?

The restaurants around here are just pricing themselves out of business. If the input costs are really that high to need to charge that much, then we’re going to end up with a society without lunch spots. And I’m not sure that’s a bad thing considering health issues in this country.

...but it's a hand formed patty!

At least most of the hospitality owners I've dealt with look at the books and say we need X more dollars. They then take X and divide it by the quantity they currently sell. They fail to realize there's a high likelihood you will lose customers at the increased price.

You CAN charge a premium for a burger...but you better have a premium experience. Have 75 beers on tap? That's potentially a premium experience. Parmesan truffle fries with the burger? Premium. Fresh ingredients? Premium. Great service? Premium.

Patty from Sysco, regular bun, crappy garnishes? Good luck at a premium price.

 

[throwittoblythe]

...but it's a hand formed patty!

At least most of the hospitality owners I've dealt with look at the books and say we need X more dollars. They then take X and divide it by the quantity they currently sell. They fail to realize there's a high likelihood you will lose customers at the increased price.

You CAN charge a premium for a burger...but you better have a premium experience. Have 75 beers on tap? That's potentially a premium experience. Parmesan truffle fries with the burger? Premium. Fresh ingredients? Premium. Great service? Premium.

Patty from Sysco, regular bun, crappy garnishes? Good luck at a premium price.

We're pretty far afield from "Principal Financial-Remote Work" but this topic is interesting to me, so what the hell...

How does Five Guys stay in business? I get they are offering the premium product at the premium price, as in your example. But holy hell. The last time we went, it was $70 for our family of four (which includes two kids). For burgers, hot dogs, and fries. Yes, it's good. Yes, I'd much rather go there than a McD's. But that premium seems awfully high for this product category.

Obviously I'm missing something because they seem to be doing just fine. But we haven't gone back because of the shock of the price from last time.

 

[madguy30]

Is it the businesses that need to adapt or is it the people that need to adapt and accept Covid is in the rear view mirror so a post-covid world may mean going back to the pre-covid work expectations? Food for thought that many don't want to consider.

That said, I've worked from home since 1998 suckas

If we discovered that some things work just fine or better as a response/result why go back to something that wasn't that good or needed?

Why can't pointlessly renting huge buildings out be in the rear view mirror?

 

[cycloneG]

We're pretty far afield from "Principal Financial-Remote Work" but this topic is interesting to me, so what the hell...

How does Five Guys stay in business? I get they are offering the premium product at the premium price, as in your example. But holy hell. The last time we went, it was $70 for our family of four (which includes two kids). For burgers, hot dogs, and fries. Yes, it's good. Yes, I'd much rather go there than a McD's. But that premium seems awfully high for this product category.

Obviously I'm missing something because they seem to be doing just fine. But we haven't gone back because of the shock of the price from last time.

This is a good read

We Finally Know Why Five Guys Is So Expensive - Mashed

There is no question that compared to other fast food burger chains, Five Guys is pricey, and the reasons that is the case will most definitely surprise you.

www.mashed.com

 

[Cyched]

We're pretty far afield from "Principal Financial-Remote Work" but this topic is interesting to me, so what the hell...

How does Five Guys stay in business? I get they are offering the premium product at the premium price, as in your example. But holy hell. The last time we went, it was $70 for our family of four (which includes two kids). For burgers, hot dogs, and fries. Yes, it's good. Yes, I'd much rather go there than a McD's. But that premium seems awfully high for this product category.

Obviously I'm missing something because they seem to be doing just fine. But we haven't gone back because of the shock of the price from last time.

Do you know how much it costs to have 5 guys make 1 burger?

 

[throwittoblythe]

This is a good read

We Finally Know Why Five Guys Is So Expensive - Mashed

There is no question that compared to other fast food burger chains, Five Guys is pricey, and the reasons that is the case will most definitely surprise you.

www.mashed.com

That was really interesting. Thanks for sharing. It explains why they are so expensive. What it doesn't explain is how this is working from a strategy standpoint. The intro paragraph mentions losing millennials but doesn't state how that's affecting the business as a whole.

I'm all for a good burger, but there is a point of diminishing returns on quality in this space, to me. Kind of like how most people can't taste the difference between cheap wine and expensive wine, but there is a major difference in price.

When I eat at 5 Guys, I think "This is a good burger. Is it twice as good as anywhere else? Because the cost reflects that."

 

[Cyhig]

This is a good read

We Finally Know Why Five Guys Is So Expensive - Mashed

There is no question that compared to other fast food burger chains, Five Guys is pricey, and the reasons that is the case will most definitely surprise you.

www.mashed.com

I usually split a burger and fries with my wife at Five Guys. Portions are bigger than normal and one can get plenty to eat with half the portion size. The price isn't too bad when you split

 

[KnappShack]

Right. But getting them into the office would be a part of the PIP. I'm also convinced that a legit threat of going into the office 5 days per week would scare some (not all) non-performers into doing better work.

It could also be seen as punitive. If the company wants people in the office but only marginal performers are called in....

The Brave New World. Going to the office is punishment

 

[06_CY]

We're pretty far afield from "Principal Financial-Remote Work" but this topic is interesting to me, so what the hell...

How does Five Guys stay in business? I get they are offering the premium product at the premium price, as in your example. But holy hell. The last time we went, it was $70 for our family of four (which includes two kids). For burgers, hot dogs, and fries. Yes, it's good. Yes, I'd much rather go there than a McD's. But that premium seems awfully high for this product category.

Obviously I'm missing something because they seem to be doing just fine. But we haven't gone back because of the shock of the price from last time.

I went to Five Guys im WDM once near when it first opened. Terrible service, people not getting their food, including us. I haven't been back since.

 

[Gunnerclone]

We're pretty far afield from "Principal Financial-Remote Work" but this topic is interesting to me, so what the hell...

How does Five Guys stay in business? I get they are offering the premium product at the premium price, as in your example. But holy hell. The last time we went, it was $70 for our family of four (which includes two kids). For burgers, hot dogs, and fries. Yes, it's good. Yes, I'd much rather go there than a McD's. But that premium seems awfully high for this product category.

Obviously I'm missing something because they seem to be doing just fine. But we haven't gone back because of the shock of the price from last time.

It’s tastes really good and the burgers and fries are huge. It really boils down to how delicious it is. I’m a Shake Shack #1 guy, but 5 Guys is about to take over the top spot.

 

[Clonehomer]

It could also be seen as punitive. If the company wants people in the office but only marginal performers are called in....

The Brave New World. Going to the office is punishment

It is a punishment if you’ve gotten used to having two full time jobs while working from home.

 

[cycloneG]

It’s tastes really good and the burgers and fries are huge. It really boils down to how delicious it is. I’m a Shake Shack #1 guy, but 5 Guys is about to take over the top spot.

Preach, brother!

 

[FallOf81]

We're pretty far afield from "Principal Financial-Remote Work" but this topic is interesting to me, so what the hell...

How does Five Guys stay in business? I get they are offering the premium product at the premium price, as in your example. But holy hell. The last time we went, it was $70 for our family of four (which includes two kids). For burgers, hot dogs, and fries. Yes, it's good. Yes, I'd much rather go there than a McD's. But that premium seems awfully high for this product category.

Obviously I'm missing something because they seem to be doing just fine. But we haven't gone back because of the shock of the price from last time.

 

[Cyhig]

I went to Five Guys im WDM once near when it first opened. Terrible service, people not getting their food, including us. I haven't been back since.

That's why I always avoid going to a new restaurant when it first opens. Large crowds + staff still learning = disaster.
Give it a month or two and the experience will be very different

 

[qwerty]

Since we are hashing restaurant news.

Red Lobster files for bankruptcy but its locations will stay open

The world's largest seafood restaurant chain plans to hand control over to its lenders

qz.com

 

[qwerty]

And back to remote workers . . . . .

Dell is giving out red flags to hybrid employees who don't work in the office enough

Dell told employees it will start tracking their badge swipes

qz.com

 

[bos]

Since we are hashing restaurant news.

Red Lobster files for bankruptcy but its locations will stay open

The world's largest seafood restaurant chain plans to hand control over to its lenders

qz.com

Saw that. When I was a kid I used to love RL. As an adult, less so....minus those damn biscuits. I dont want to see our location go under though, seems to do pretty well.