05/30/2012
We have what could be good, or bad news about Mugsy's, depending upon your perspective.
Over the last 2 weeks our sales averages have been up to the point where we are covering all of our expenses. This is great news. The problem is it's taken us over 4 months to get here. It has caused our financial position to be slightly precarious. With all the hurdles we have overcome, location, prior owners reputation, etc., we have still proven that our product is good, and that we can sell good food, at a reasonable price, and build repeat business.
Our newest hurdle is again concerning our location. As many of you know, we have an AC, and cooling problem here in the restaurant. We have an AC put in for a Jewelery store. We lease this building, and our landlord announced this weekend he is no longer going to maintain the property. We have had past problems with him, and found out a couple of months ago that he has planned all along to let us build up the business, and then try and force us out so that he could just slide in, take over, and run the place for himself. He has even made the comment that he was going to use the Mugsy's name, logo, and branding, although he plans on doing everything on the cheap. Pop from the dollar store, ingredients from Wal-Mart, and Food Fair, etc.
We are not going to allow this to happen. We have worked too hard, and invested too much money to allow the Mugsy's brand to be destroyed. So we have decided to try and move. We are looking at several properties right now, but the most promising seems to be The Kyova Mall. I am meeting with the owner tomorrow. It may not be the perfect solution, but I am hearing good things about what's going on out there. As soon as I know something solid, I'll pass on the news.
To accomplish this, though we are looking to take on some investors. We are going to need capital infusion to make the move, and advertise the fact that we are in a new location.
I have mixed feelings about relocating, but I know a higher traffic area will help, and the bottom line is we can no longer remain where we are. I'll close permanently before I let the landlord sell one item under the Mugsy's name.
The investment opportunity is strong. We have plans to open multiple locations in the next few years, and are hoping to explore the possibility of franchising the name after that. I believe our product is strong enough to support these plans.
Wish us luck. Thanks for all your support in the past. Hopefully we'll be able to keep providing the best Pizza, Sandwiches, and Wings in the Tri-State!!