This sounds super wrong to me. Based on the numbers turning up from a cursory google search it seems like even the top quintile restaraunt lease with even 8 full time employees all making federal minimum wage the wages paid not including employer paid taxes would be about the same as the lease. It's been a while, but may recollection is that red lobster's have more than 8 employees working at any given time and are open for approximately 1.5 shifts per day and i can virtually gaurantee that at least some of those employees are not being paid minimum wage.
Another google search leads to this article which claims overhead is typically about 30% of expenses which rent is probably a decent portion of, but definitely not all.
https://www.forbes.com/sites/priceonomics/2017/04/07/how-much-do-the-ingredients-cost-in-your-favorite-foods/?sh=84eb06d11eda
These numbers are all averages and a bit fuzzy so it's certainly possible i'm way off, but i would definitely want to know where your knowledge on this comes from before taking your word.
Commercial rent is the single biggest expense for a restaurant, so yeah it was a pretty dumb fucking move. They also probably paid an outrageous sum to a fucking consultancy firm to tell them to do it.
Boomers: "Come on lad, why don't you buy a home to fund the boomers' retirement and take a loan with interest rates payments that are higher than what you would pay in rent? Sounds like a win for everybody"
The fact that our generation has to go out on the risk curve so that we can afford the same thing as boomers back then just tells you the financial system is broken.
The new owner decided the red lobster sold the land to them. Then, they leased it back to red lobster with higher rent price. Not too high to be obvious.
The shrimp as well. The supplier is a red lobster owner that sets the price to be more expensive. Thai Union.
Wtf is this corruption shit?
Private equity is doing the same thing to hospitals. They buy the hospital, sell the real estate for huge gain, then force the hospital to pay rent, which it can’t afford. The hospital goes out of business but meanwhile the PE makes off with big management fees and the real estate income.