Sir Royalty Income Fund T.SRV.UN

RE:RE:Special Dividend Distribution from SIR

[logicandinertia]

I don’t think Cheescake will have any impact on Sir.  Why?   Cheesecake Factory have stopped growing in the U.S. and therefore have looked at international markets.  Recognize however, that these are very expensive stores to run, given the kitchen size and massive menu.   At Yorkdale, just the one store occupies almost 1,000 square meters and employs 300 staff.  Therefore, they need to be in very high traffic areas with well heeled customers.  So where have they chosen to open their first store in Canada?  The country’s busiest mall (on a sales per square foot basis), Toronto’s Yorkdale.  The rent will be very high, but they need that high-end traffic.  So a very different target market and strategy.  Since founding in 1978, Cheesecake Factory has only 212 stores.  Given that Canada is one tenth the size of the U.S., I would be shocked to see more than a handful in a decade’s time.  Other US restaurants have tried and failed in Canada, such as P.F. Changs.  We’ll see if Cheesecake is any different...