One last way to illustrate the drag on the GCFB engine.
In the most recent quarter they had over $600,000 of interest expense. That number is growing quite quickly (up 65% from the year before).
So you see the debt creates quite a significant drag. And it is not just a financial drag. There is a psychological drag that comes with it. And it doesnt just affect potential investors. It affects landlords, potential key employee recruits, lenders, etc.
I know GCFB has no choice at this time, they are doing a tremendous job with the limited resources they have. But I still believe they have quite a bit more resistance to overcome than KONA.
And I have not even begun to touch on another concern I have with GCFB which is price point and competition. At a $13 average check they are nearly 20% higher than BJRI. It will be very interesting to see them compete head to head. My guess is that BJRI will win the most coveted sites from landlords for reasons stated above, and so will enter the competition with two strong advantages (price and location).