G2G
Something You Should Know About the Owner
With nearly 50 years of restaurant and entrepreneurial experience, G2G Management Group owner Vince Eupierre is one of the largest Denny's franchisees in America.
G2G Management Group owns and operates over 40 restaurant locations in California, Colorado, and Nevada.
But...before G2G concentrated on..
AND
...Vince Eupierre was affiliated with...
Some information about Denny's:
Denny’s franchised restaurants have an average of $1,424,000 in annual revenue.
Denny’s franchised restaurants have an average of $1,424,000 in annual revenue.
That inlcudes ALL LOCATIONS...not those in retirement communities.
Most Denny’s are open 24/7.
Most Denny’s are selected for prime locations.
Most Denny’s are known for their breakfast menus.
An aspect of the "deal" few concentrate on is another detail of the proposed"arrangement"...
Sun City Anthem would receive 4% of the gross restaurant revenue ABOVE $1,400,000...in other words, ZERO until they reach that total !
Just what would that mean in order to generate a mediocre $1,000 p/month rent payment?
Let me save you time...
...an additional $300,000 of annual revenue !
Let's face facts....
Vince Eupierre, owner of G2G, is no slouch. This
guy is a sharp and successful businessman. No one would take that away from him !
So, this leaves an interesting observation !.
Why
is this smart man willing to acquire and operate a restaurant
that is doomed for failure?
Even those who think with their tum-tums could figure this one out !
He is getting
almost everything free.
From
free rent, free equipment, free maintenance in getting his
linens cleaned by you the homeowner, he no longer has to break even to succeed.
The residents of SCA have
provided free money and services to guarantee that he makes a profit.
Mr.
Eupierre is much smarter than those three individuals who negotiated for Sun City Anthem.
Someone best described it as:
"Witnessing three goldfish in the same tank as a hungry shark"
- - - - - - - - - - - - - - - - - -
Do you see Sun City Anthem residents singing this song if we accept the G2G "deal?"
Sounds like a good choice but very bad negotiations in terms of the contract.
Why would we pay a businessman to do business in our facility?
Sounds like we are desperate for a vendor?
When are we going to get a board with knowledge and experience rather than amateurs throwing our money away?
Another give away by our board.
SCA must be out of their minds to except this NO FEE DEAL to a restaurant that will most likely not last too long.
If the average annual sales at a G2G Dennys is around $1.4 MILLION per year in hghi traffic locations open 24/7, anyone that tries to convince us that they could generate anywhere that volume in a location like the back of Anthem center is blowing smoke.
Sales less than that that provide us with "the center of a bagel" in rent, while we have to shell out who knows how much to them in whatever they can snooker our board out of.
The estimates of $250,000 were annum do not seem unrealistic providing no unexpected cost surfaces.
A processional property management firm would laugh them out of the building with such a proposal, but with our board and management team, who knows!
And yes, there are MANY other costs that we have not discussed; namely the $43,000+ ovens just purchased WITHOUT EVEN HAVING A RENTAL AGREEMENT, as well as, the well-hidden true costs of the repairs that will have to be made as a result of past poor maintenance.
It has been said to have restaurant, the costs of the repairs will be close to what was spent on the Anthem Center locker rooms (I believe between $400,000 and $500,000).
Without a restaurant, after speaking with a person who spent a career in the construction industry, all that would be needed in his words would be "to fill up the hole" at a cost only a fraction of the amount that a restaurant would bear.
Wait until tomorrow.
The information I've discovered will shed an entire new light on this restaurant situation...
...an even more convincing argument that this entire matter is completely LOSE-LOSE from everyone's standpoint.
Personally, I think leasing our space to any restaurant/coffee shop that requires no payment of rent and wants us to pay for expenses is NUTS!
Your sentiments are loudly being voiced amongst not only the Sun City Anthem community, but by every person I have spoken with that does not reside here.
Only only a complete fool would favor such a deal that would cause financial harm to a community...
...and we know that there are about 125 of them who attended a meeting whose only concern is THEMSELVES.
Those are the "takers" of society who believe everything is owed to them.
Dick, under NRS116, there is a part of Fiduciary Duty known as the Business Judgement Rule.
A guideline for the satisfaction of the business judgement rule is as follows:
1) Act in good faith
2) Act in the best interest of the corporation
3) Act on an informed basis
4) Not be wasteful
5) Not involve self interest (duty of loyalty concept)
Someone should be explaining to the community how the lease negotiated with G2G meets the smell test of this rule, especially 2 and 4.
Nowhere does this rule say we have to make it as easy as possible for a privately owned restaurant to succeed.
We are NOT HAPPY about the proposed restaurant.
If SCA wants to have a restaurant in that space we, THE HOMEOWNERS should not have to pay a penny for it!!
They don't have to pay rent?
Why didn't we have a chance to vote on it?????
Free rent?
Free equipment?
Free maintenance?
What???????
Who makes a deal like that???
That's absolutely outrageous and if our dues go up as a result, we will start thinking about moving to a place that is governed by people who have more than a 3rd grade education.