The second site that made the first one worse

When a business opens location two, the surprise is rarely that the new site struggles. It is that the original one starts to slip as well.

By Steve 5 min read
Abstract bridge artwork for The second site that made the first one worse

A single site has been profitable for years. The owner opens a second. Twelve months later, group profit is lower than the first site made on its own, and, more puzzlingly, the first site’s own numbers have deteriorated. Nothing changed there. Same location, same staff, same customers, same menu or service list. Yet margin has thinned and something in the operation feels looser than it did. This pattern is common enough that it deserves a proper explanation, because the obvious one (that the new site is a drag and needs…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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