I worked many service positions at TGIF in the mid 70s. There were only a handful of individual owners who told all of the employees that they would never go public or corporate. At that time there were maybe 10 or so national stores. It wasn't a real restaurant (the kind it changed to be)....it was a meat market. Alcohol sales dwarfed the food sales.
The big change at TGIF came when they decided to change their image from a meat market 25 cent Tequila shots for the next 10 minutes at midnight on Thursdays to a sit down and eat with the family and friends restaurant with Pinot Noir. They knew that the devil make care live for today crowd would eventually settle into the mainstream tradition. They were correct and had a pretty good run for a long time. Bartending was a blast.
If that was the case, pe's would go under or not be the profitable powerhouse they are today.
If you look into what pe's are actually doing, they gut and chop failing businesses while cutting costs and suck money from the business until it ultimately implodes and by then all the assets are in the pe's name or some other underhanded tactic.
The businesses are already failing in a lot of cases.
Yes, but instead of the private equity companies actually WANTING to save it, they strip it for parts before it crumbles. There's a MORAL aspect about it that is completely void now and it's not necessarily businesses that can't be saved. Red Lobster is a perfect example.
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u/mannthunder 9h ago
Private equity, gutting the future for temporary portfolio growth