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By Robert Stern
Can You Fix Stupid? I am Going To Try!
It is no secret that I have opposed the restaurant purely on financial grounds and our leaders with decision making authority want you to believe that they have thought this out and everything is under control.
Early in my career I was a financial controller for Hamburger Hamlets out of Beverly Hills, so I have an understanding of the financial workings of a very successful restaurant operation. I didn’t sell pots and pans to restaurants as one board member apparently did. And I have lots of other financial credentials, but some want to portray me as a lunatic or a disgruntled homeowner. One of the reasons I have believed the restaurant will fail financially and be a burden is that I didn’t and don’t trust our leaders. They are more about political spin than solid business good decisions. So, let me make some business points and you decide for yourself who is stupid, and can it be fixed?
1 The contract they signed has three elements before the opening start date is triggered. The third element which is pending is an approved WGH business plan. In my financial world you have a business plan in place before you invest $500,000 and are on the hook for more. That would have been the SCA business plan. But there is also pending a WGH/SCA business plan that requires approval. If it isn’t approved, then the premature $500,000 expenditure was spent for what purpose? To me that is pure stupidity and that cannot be fixed but is indicative of poor planning and use of funds. This board has a reputation of wasting funds however those are sunk costs and gone. But are there decisions pending that should become part of the WGH/SCA business plan? Yes
2. If the board really believes in Yorktown and its success and commits to five years, then why wouldn’t they have installed separate utilities meters? Too much money? Pennywise and pound foolish? They already spent $500,000. And the contract calls for an accounting of costs. So, without meters, measurements become guess work for accountants and if the restaurant becomes profitable as many of you hope then there are profit splits with WGH. The meters can be a write off against WGH if you include that in the approved business plan. And what after the 5 years unless it fails sooner another restaurant wants in? Wouldn’t it be smart to have the meters for restaurant? Yes. So, it appears that the board has chosen the short run or not? This is crazy making. This is stupid? Can it be fixed? Yes, if they act and include this in the pending business plan.
And one nuance. The 2023 budget already has a budgeted $300.000 loss built in except the restaurant isn’t opening until when, May? Well, then 4/12ths of the $300.000 is not being spent. Will that ($100,000) cover the cost of the meters?
3. In reading the current agreement it appears that there is a lack of consistency in objectives as to the surrounding communities and nonresidents. On the one hand they say they want folks from Anthem Highlands, Inspirada, Country Club, Solera and more to patronize the restaurant but if business people that are not residents want to hold a meeting and space is available then somehow, they don’t want that business?
Is that because there is a conflict with Buckman’s? Is there a conflict of interest? That is Stupid. Can it be fixed? I think so and any good businessperson would think so too. Step up board. Step up folks and raise your voices.
4 Another point that is just insane is that this entire transaction can go forward without a developed marketing, advertising, public relations and promotional plan that makes sense in place and approved. The contract says it can go forward. Is the board that stupid? I think so. Dumb and Dumber! A Catering Manager isn’t even being hired to start nor is there a planned date. Why is that if catering is an important part of the articulated plan? Crazy making for any businessperson with business sense.
Many of you want the restaurant to succeed and not be a huge financial burden. Well step up now and argue with the board to fix stupid. For those that want the amenity please make an informed decision. And when it comes time for new directors don’t vote for any that may be running for re-election because to do so would be stupid on your part. These folks don’t know what they are doing and maybe you don’t either. But the financial consequences for more and more financial irresponsibility will bite you and all your neighbors. Argue that the 3 above points be implemented before the WGH/SCA business plan is approved. And maybe if done you will save the restaurant.
From a 20+ year resident: OMG, of course a restaurant there could never be profitable! Go count the number of struggling hash houses on Eastern from here to the freeway. I think we do have a shot at ‘changing stupid’ by taking away the board’s sugar ‘tit. There’s simply too much $ floating around that’s burning a hole in their pockets. We must get better control over who and how SCA association’s fees are raised.
Can You Fix Stupid…Those that have tried to make a difference…this could happen to you.
My encounter for the brief time I was board member, after filing my application for BOD, I received a certified letter from Adam Clarkson (SCA attorney) there were allegations I had physically and sexually harassed an ex-female employee, that quit, sued, and was paid off. Much to my surprise of false charges and unaware of any allegations, I called Clarkson for details. He refused to provide any details stating confidential, and I must disclose on my application for BOD. When I confronted him, those charges were a felony, he denied stating a civil matter. After I advised him, I was ex-law enforcement familiar with the laws, his attitude changed, he backed off and did not want me to disclose allegations of physical and sexual harassment knowing very well they were false and opened himself and SCA to a civil suit. He then notified I was fully vetted and could run for the board. Once on the board, Sandy Seddon (COO) called me into her office stating she and I had a problem that I had said terrible things about her, and I must change my attitude. Hearing that and finding out three current board members were in a meeting allowing Clarkson to drum up the false charges… I resigned, knowing I would be put in the closet, unable to do good for SCA, and I was a threat to management.
Hi. Its funny you should mention meters for the restaurant. I think that idea was brought years ago after the initial del Webb restaurant closed and someone else was coming in. The idea was poopood. The idea being we really don’t want to know the real expenses. Since we bought 19 years ago this must be about the 8th operator of that space. Why are we paying for any improvements?
“then why wouldn’t they have installed separate utilities meters? Too much money? Pennywise and pound foolish? They already spent $500,000. And the contract calls for an accounting of costs. So, without meters, measurements become guess work for accountants and if the restaurant becomes profitable as many of you hope then there are profit splits with WGH. The meters can be a write off against WGH if you include that in the approved business plan. And what after the 5 years unless it fails sooner another restaurant wants in? Wouldn’t it be smart to have the meters for restaurant? Yes.” Thanks Robert for being so succinct.
But wait…! Wasn’t this supposed to have been done on, well, the third restaurant go around (?), but NO….as these board members know that the community at large is so stupid, ignorant, and lazy they really don’t give a damn…No, I don’t believe that, but the “wool has been pulled over our eyes” it has made us tired of incompetent board member finally finding some power in their miserable lives that they need to exercise it before they lose it and never get it back. WHERE ARE THE DAMN METERS? HOW DO YOU RUN AN ENTITY HONESTLY? IS THIS RESTAURANT BOARD GOING TO PULL POWER, WATER, AND OTHER UTILITIES FROM THE REC CENTER TO MAKE THE RESTAURANT MORE PROFITABLE? WELL IT DANG’ SURE SEEMS THAT WAY. Obviously it seems the board wants everyone to think they are so “streetsmart” but in fact aren’t or ever have been. Again, with over 45 restaurants in our Anthem area from fast food to fine dining York Town doesn’t stand a snowball’s chance.
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