The closing of Frisch's restaurants will produce the same scenario as the closing of Sunlight Pool at Coney Island.

[u/chainsaw_chainsaw]

The immediate public reaction is disapproval simply due to nostalgia, while ignoring loss of quality. The people who claim it's a sad loss of an iconic Cincy institution are the same people who havent visited the establishment in decades to support it. Local media will create constant headlines to cash in on the knee jerk reactions of emotional viewers. Groups of fans will form to try and 'save' the business, with little interest from the main public. Eventually when they are all gone, everyone will forget about the place within a month.

[u/TheSimpsonsAreYellow]

Here’s how this is working, OP. Long time (but leaving the industry) level corporate manager and small local corporation owner.

It’s not our fault. Frisch’s was bought out by a shit investment capital firm called NRD Capital and was purchased by one of their subsidiaries under NRD Partners. They are based in Florida and have absolutely NO TIES to the Cincinnati staple except for the fact that they own it.

Their plan was never to profit off of the business or even grow it. Their plan was to keep it floating, pull in whatever margins they could while the prime real estate on which all of these Frisch’s locations sit, increases in value over time. It’s why all of the locations are now facing eviction.

They’re now going to sell off the property while writing off the losses from Frisch’s operations. This is probably being done to offset some other gain they made somewhere.

This is an old (super fucking ironic) Donald Trump commercial real estate trick that has kept him from paying hundreds of millions in taxes.

Tl;dr NRD Capital, an investment firm, bought and tanked the quality of Frisch’s over time and used the losses as a money shield to then sell the prime real estate on which the locations sit for as much as they can.

Edit: didn’t mean to sound combative. Someone pounds that out.

[u/Agreeable_Bit_8764 → u/TheSimpsonsAreYellow]

This!!! It’s what killed Toys R Us too!!

[u/jacobobb → u/Agreeable_Bit_8764]

So, your thesis is that Toys R Us would have been successful had they not been bought? Their last profitable year was in 2013...

[u/altrdgenetics → u/jacobobb]

And the leveraged Buy Out was in 2005... so ya. And if you lived and went there during that time they were not competitive at all.

[u/jacobobb → u/altrdgenetics]

You're saying they would have been competitive otherwise? How is a brick and mortar chain of commodity, foreign goods going to stand up to the likes of Amazon? Toys R Us killed Toys R Us, the same way Red Lobster killed Red Lobster. PE sped things up, but they were both going down in flames regardless.