CITY INCUBATOR KILLS CHICKEN RESTAURANT?

The Rio Rio "Brazilian Steak House" at 2675 East Colorado Boulevard (corner of Colorado and San Gabriel Boulevard) is closed.  Which makes us wonder whether the city subsidized restaurant incubator a few doors away killed it?  What a great idea - subsidize competition so that existing restaurants go out of business. 

 

Comments

[Eric]

Just like every other business, restaurants die because of lack of customers. While price can be one competitive advantage, in our analysis we find this is less so in the restaurant business (otherwise, everyone would be eating at McDonalds). The market is agnostic - existing restaurants don't have (and shouldn't have) preferential treatment over new ones, nor vice-versa. The real question is whether the the city subsidies are a good investment. Put simply, does the investment pay back greater yields in increased city revenue from business income tax, payroll tax, and personal taxes (employee wages) as well as that money being spent in the community at local stores, etc.

[PasstheDonuts]

I was going to try the Rio Rio until I saw their prices. Goodbye.

[Kellie Kerri]

I would highly doubt that city incubator or even a chicken incubator has done the damage to the rio. In the end it was their own fault for going out of business.