Monday, March 23, 2015

At a loss for the definition of profit's explanation for a Pasadena, CA, restaurant closure strikes me odd: (Emphasis mine)
Colorado Boulevard has learned that the Fresh & Easy store on the corner of California Boulevard and Lake Avenue will be permanently closing its doors in the next few weeks. Some sources indicated the closure may take place in two weeks.

Yucaipa Companies, parent company of Fresh & Easy, plans to close fifty under-performing stores. Sources pointed out to [sic] the fact that the Pasadena store was making profit, but not enough to offset the cost of its high rent, which in turn deemed the store not profitable in the long run.
I'm wondering if the author just got a bit sloppy or if he, like many, doesn't understand that profit is what remains after all expenses have been paid. If the restaurant is not making enough to offset the cost of rent, it's not making a profit. If it is, indeed, making a profit, it has more than enough to pay the rent.

Maybe the restaurant isn't making enough profit, so that the owners feel their money is best invested elsewhere. Or maybe they foresee something cutting into that profit "in the long" run and they are getting out while they can. Hard to know what's going on from this description.

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