Sunday, August 22, 2010

Rubio's Restaurant Review

When you want to introduce someone to fish tacos, Rubio's used to be a good place to do so. The focus on ownership has had a negative impact on the restaurants. Obsessed with expansion during the 2000 era, like many restaurant companies they wanted to go public. That was the way to succeed and get everyone rich. Be careful what you wish for. Public owned companies enter a realm of administrative bullshit that is antithetical to developing a business. If you have a good thing going and aren't ready to cash in, sellout and walk away, don't go public. Ownership learned that lesson, like all of those before them.

Then, after more than a year of effort, Rubio struck a deal with Mill Road Capital of Connecticut. Now they are again private. This is a new level of hell for a restaurant chain as the pressure to perform
Actually ratchets up. Investment bankers are more avaricious than Wall Street Analysts. Bit at least a privately held company spent have the government as a full partner!

Well, we have seen the result of all this turmoil at the counter and in the dining room. Out last Rubio's experience was just after going public, when management was the founding team and all was right in their world. It has declined quite a bit since then. On all levels- decor, service and quality we see erosion. It is now a poor tortilla around a poor piece of fish stick with little and less tasty sauce and plenty of (cheap) cabbage.

No longer appealing, write off Rubio's.

- Paul/ BlogPress/ iPhone

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