We like to refer to it as 'trickle up' economics. For illustrative purposes, let's say Kurt's wife has always bragged on his grilled cheeses at home, so much so, that Kurt decides that what will truly make him happy is to provide his grilled cheeses to the rest of world through a small restaurant or diner that we'll call 'Kurt's House of Grilled Cheeze,' again for illustrative purposes.
So Kurt goes looking for the perfect location - one that will be convenient and close enough to a busy road that someone will see his small 'Kurt's House of Grilled Cheese' sign since recent sign ordinances won't allow big ones. Kurt finds the perfect spot, a small building for lease owned by say Riverotter, again for illustrative purposes. Riverotter believes in Kurt, has tried his grilled cheeses and thinks they'll sell and provide him with a secure and steady rental income for a very, very long time. Since Riverotter paid close to two million for a 35 foot wide commercial lot and small metal building, he has to charge Kurt ten thousand dollars a month in order to cover the cost of his mortgage payment. Kurt, borrows money to buy cheese, bread, butter, a frying pan, stove and napkins. Now Kurt figures up that in order to make any profit on his grilled cheeses, he will have to charge customers $20.00 per sandwich. People complain and business slacks off. To make $20.00 seem reasonable, he figures he'll thrown in some blue cheese crumbles and roasted tomato pesto and a bag of Zapps potato chips and call them 'gourmet' grilled cheese sandwiches and give it a cutsier name like ?Kurt?s Grilled Cheese By The Seas? and hang Gaffrey Art behind the cash register. This is why that even though South Walton is more family oriented than a Chucky Cheeses, you?re going to pay $50.00 per child if you want to eat at one. Here, if you have to ask how much the grilled cheese cost, you probably can't afford it. Criollas started out as a hotdog stand.
So Kurt goes looking for the perfect location - one that will be convenient and close enough to a busy road that someone will see his small 'Kurt's House of Grilled Cheese' sign since recent sign ordinances won't allow big ones. Kurt finds the perfect spot, a small building for lease owned by say Riverotter, again for illustrative purposes. Riverotter believes in Kurt, has tried his grilled cheeses and thinks they'll sell and provide him with a secure and steady rental income for a very, very long time. Since Riverotter paid close to two million for a 35 foot wide commercial lot and small metal building, he has to charge Kurt ten thousand dollars a month in order to cover the cost of his mortgage payment. Kurt, borrows money to buy cheese, bread, butter, a frying pan, stove and napkins. Now Kurt figures up that in order to make any profit on his grilled cheeses, he will have to charge customers $20.00 per sandwich. People complain and business slacks off. To make $20.00 seem reasonable, he figures he'll thrown in some blue cheese crumbles and roasted tomato pesto and a bag of Zapps potato chips and call them 'gourmet' grilled cheese sandwiches and give it a cutsier name like ?Kurt?s Grilled Cheese By The Seas? and hang Gaffrey Art behind the cash register. This is why that even though South Walton is more family oriented than a Chucky Cheeses, you?re going to pay $50.00 per child if you want to eat at one. Here, if you have to ask how much the grilled cheese cost, you probably can't afford it. Criollas started out as a hotdog stand.
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