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Infopractical ago

A note on restaurants:

Restaurants have enormous failure rates as businesses. I've heard the number 90%, and given that chains constitute a large proportion of successful restaurants, the failure rate of individual restaurants may be higher.

Usually, the evolution of business goes like this: the first business of a type is a new technology and makes a lot of money, the next layer of tech adopters make some money, but after that the money to be made quickly approaches something in line with ordinary returns on risk (interest rates, essentially). In other words, common businesses should tend toward low rates of return, but this is far from implying a "90% blow up rate". What is the difference?

I've always posited that the primary difference is that restaurants are a great way to launder money, acting as fronts from other criminal enterprise. So, it should not be shocking, and perhaps even fully expected, that restaurants are used as fronts for child sex operations (which can generate revenue to keep the front operating).

What would be interesting would be to investigate the finances and transaction histories of such businesses to find out if they really operate for profit or to see if there is anything going on like fake orders added to the business that would allow for the washing of cash into the company coffers.