Coffee shop failure...an economic microcosm.

[CoffeeCat]

I was actually looking for a coffee table on Craig's List, and my searched pulled up a
post titled, "Coffee Shop Inventory."

Curious, I clicked on it.

Listed, were dozens of items from a defunct coffee shop that had been possessed by the bank.
The bank was selling the items as a group.

The list included: a Nuova Simonelli Espresso Machine, a MDX Grinder, a MCD Bulk Bean Grinder, a Bunn Coffee Brewer,
a Commercial Grade Scotsman Ice Machine, a counter refrigerator, a chest freezer, a leather loveseat, a 22 cubic foot
refrigerator, tables, chairs, etc.

They're selling everything for 5,000. I looked up the Nuova Simonelli Espresso Machine. Brand new it retails for $4,000.

I thought...wow, it might be smart to buy this stuff and sell it for a profit. Make a little money.

Then, I felt so guilty.

That was someone's coffee shop. Someone put their heart and soul into making it profitable--and not enough
customers purchased enough cups of coffee.

The previous owners must be devastated.

Then, I realized that we can't really part with the money. My husband just took a pay cut. My husband
also reminded me that it would be difficult to turn a profit--because most people are not starting restaurants
and coffee shops right now. It would be a big gamble to try and sell these items--in this economy.

All the way around---this closed coffee shop and the sale of these items--represents so many things happening
in our economy today--and none of them are positive.

I feel like we're all stuck in mud. Mud as thick as three-day old espresso.

[hlthe2b]

1. That's how I feel about foreclosed homes...

As tempting as it might be--to personally profit/benefit from someone else's tragedy seems so very wrong to me. Really bad karma. I know all RWers and many Dems may be more pragmatic than I--just business after all. :shrug:

[LSparkle]

14. Agreed ...

I'm just "new-agey" enough to think that there must be
some BAD energy/vibes/karma left behind in a house that's
just been foreclosed on ...

[Liberal_in_LA]

22. Then never buy a used car... it might have been repossessed by the bank.

Maybe the keys turned over because the previous owner couldn't pay. Sold because the previous owner was broke. You get my drift.

[sammythecat]

28. Big difference between the two

A hundred percent of foreclosed properties at auction have been repossessed. Most used car sales aren't the result of a repossession and, in most cases, the buyer likely wouldn't even know if it was.

[Grateful for Hope]

15. I so agree

I have had similar feelings about foreclosures. I can't imagine capitalizing on the misfortune of others.

[Liberal_in_LA]

21. Bought a foreclosure recently. Felt trepidation but talked to neighbor, found

out the foreclosee was doing fine. Also, that empty condo unit was'nt doing the community any good. Now that unit has a taxpaying, HOA paying owner again (Me!)

Buying a forclosure doesn't mean you are picking over someone's bones.

[tammywammy]

24. The house I bought was a foreclosure

It sat on the market for 6 months before I bought it. After I did (summer of 2007), when meeting the neighbors I found out that she had lost her job and couldn't afford the house anymore.

I feel bad for her, but it's not like I was the one that kicked her out of the house or took her job away from her.

[Liberal_in_LA]

26. No, you didn't kick her out. The house no longer belonged to her.

[aquart]

2. That thick brown muck ain't mud, dear.

[CoffeeCat]

5. You don't have to tell me...

I've got lots of it on my shoes.

Yer right. That ain't mud.

:(

[Liberal_in_LA]

23. DUers certainly have a way with words. lol n/t

[SoCalDem]

3. A $4K coffee machine, may have been a part of their demise

just sayin' :)

[CoffeeCat]

7. I'm assuming that if you have a busy coffee shop...

...you need to buy a restaurant-grade machine--and that can be expensive.

[SoCalDem]

13. From their inventory list, it seemed like a very small coffee shop

unless part has already been sold.. a 22cu.ft fridge & a small countertop refrigerator makes it sound quite small..

Many small places open up, underfunded, and after a few months, that good idea proves to be not so good.

Someone we know, decided to open a coffee shop in a busy area, but due to rent payments and the costs of actually running a business, she only lasted 18 months.

The long-standing coffeeshops are often the Mom & Pop ones ...the ones who OWN their oroperty.. If you have to pay rent, and start from scratch, it's a lose-lose for a long time...

[anigbrowl]

29. True. Most restaurants, cafes, etc. don't make it past year 2.

This is true even in good times. The hospitality industry is one of the most challenging to succeed in (though if you do, it's nicely profitable).

[uppityperson]

4. k&r

[rug]

6. Don't tell Rabrrrrr.

[CoffeeCat]

8. Why?

Is he in the market for a $4,000 espresso machine and 45 chairs?

[Mike 03]

9. Poignant, important post. This is how I feel when I hear those local radio programs

teaching people how to buy foreclosed homes.

But I understasnd both sides. Every day I walk past homes that are up for sale that I think are beautiful homes that will someday be worth more than they are selling for. But I also know these were my neighbors. It's not a good feeling at all. So many people are suffering, and many of these smaller companies were family-run.

[greblc]

10. Business is ruthless.

I dream of the same type of ventures. My wife brings me back down and reminds me I'm not mean enough to evict a family or charge a profitable price for goods or service. Though I'm going check Craigslist.

[phantom power]

11. This is what they call Deflationary Economics.

downward spiral. It's also why Obama is right to be increasing spending. The govt is the spender of last resort in a deflationary situation.

[Oregone]

12. You will see more of this

Coffee shops are on every corner in some states (like Oregon, which is invested with Dutch Bros, Human Bean, smaller outfits, and lets not mention Starbucks). You cannot go a few blocks in any city in Oregon without finding a drive up coffee stand. What started out as sheds, turned into large franchise operations with massive overhead. As long as Californians who were willing to stimulate housing kept migrating, selling 4 dollar coffees and expanding uncontrollably was the perfect business plan. You will see numerous coffee shops going under in the next couple of years. And by numerous, I mean thousands.

[mitchum]

16. Some people may think that I am a cold bastard, but it just breaks my heart...

to see someone's small business go under.
The public death of a private dream.

[moondust]

20. Mine too.

This is the good capitalism. Be your own boss, create your own dream, make friends, live free...

[tammywammy]

25. But starting your own business is a risk

Going in the owner has to know that it could possibly fail. I'd bet that he ends up starting something else eventually.

[dembotoz]

17. i used to sell advertsing

would call on small businesses all day mon-fri
some made it
many did not.

shed more than a couple of tears
watching their dreams die.

[CrispyQ]

18. I know how you feel.

Our local Ace hardware is going out of business, thanks to the super Walmart down the street. :grr: Even though I supported Ace over the years, I've felt like a scavenger the past few visits since everything's on sale 40% off.

What's sad is how many fucking Starbuck's were opened, put local shops out of business & now the Starbuck's are closing. :banghead:

[grasswire]

19. your OP gives me the shivers

How many times have you heard "experts" advise people to give up their daily cup of coffee in order to save money? It's the first thing they mention!

And yet behind that coffee machine is a small business owner just trying to feed his/her family, just like every other citizen.

A family member owns a coffee house/cafe. He's there at 4 a.m. every morning baking scones and cookies, prepping the sandwich stuff. He's there in the middle of the day, ordering supplies, cleaning. He's there at night, doing the books, repairing the restroom, mopping the floor.

How does he survive if the experts keep trying to drive his business away? Why not pick on beer, or donuts, or someone other than the independent coffee seller?

For now, business is okay. For now.

[1]

27. so no one should buy this equipment and put it back into service?

i get that it is sad that a business failed, but that business has already failed. nothing we can do about that now.

perfectly fine (i assume) coffee making equipment available at pennies on the dollar? if i could, i would buy it and make it productive somewhere else.

you would prefer, what? no one buys it and it winds up in a landfill somewhere?

i don't get this non-recycling concept... you dislike craigslist too?