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I thought they said revenue in the story preview. Could be wrong though. Doesn't really matter either way you slice it as none of the money is going to charity like they claim.
Quote:
Originally Posted by NoOneSpecial
Such a simple concept. Revenue =/= Profits. G-man, rein it in a bit.
As a business student,. I know the difference between the two. Revenue is before expenses are incurred. Profit is after. If they owe millions to their investors and are in debt then they aren't making a profit to begin with. The fact is they have lied to their customers about charitable giving for three years now.
And they've still not made a profit. Therefore, they haven't given anything to charity, right? The "charity" they list on their website is run by the people who own liquid highway, and shows no contributions to anything. REAL giving doesn't work that way.
So my question is, how are they "saving lives, one cup at a time" if they aren't giving to charity? NONE of the money you spend on their coffee goes to charity. Don't you think the line plastered all over their stores and vehicles (Saving Lives One Cup at a Time) is a little misleading?
AND, their employees claim the company is a nonprofit, which is a lie. They are an LLC, a for profit company.
It was a marketing strategy all along, and a very misleading one at that.
So it was profit and not revenue. I apologize for that error.
Liquid Highway now only has three locations. They used to have sixteen of them. The company owes $4.7 million in all to investors from TD Bank to West End Coffee Company. The worst part is that the owner wants us to feel sorry for her for lying to the customers all of these years. I haven't been to Liquid Highway in at least a year and have no plans to start now.
I didn't see the story on the news, nor do I know much about Liquid Highway. I'm not even sure of the specifics of how their charitable donations were promised to be used. But even as a non-profit, they are not expected to give to charities before they pay their expenses (wages, utilities, equipment costs, etc.). Based on what I'm hearing, they are losing money such that they can't even pay their expenses. If that is true, then there is no way they can pay any money to charities.
I'm not defending Liquid Highway, because I don't know enough about their company, their promises, or the way they've run their business. I realize that everyone is free to Monday morning quarterback all they want, but I have a hard time calling them crooks (and some of the other things I've heard and read the last few days) if they simply made some bad decisions and have seen their expenses greatly exceed their revenues - thus leaving no excess to give to charity.
With all that said, if they've been purposely misleading investors and the public as to how the money will be spent, and they've spent that money irresponsibly or secretly kept it for themselves, then that's obviously not cool.
IT IS NOT A NON-PROFIT, NOT-FOR-PROFIT, NOR IS IT A CHARITY.
It's a failed for-profit business, with an extremely misleading tagline: "Saving Lives One Cup at a Time"
They are giving zero dollars to charity, and haven't done so for years. When you buy coffee there, you are doing nothing to help any charitable organization. You are just buying (average-tasting) coffee.
Why don't you help support the company by buying a cup of coffee and help them get back on their feet and pay their bills? I'm not sure why you are so interested in putting them out of business. Even if they owed you money, that's not the best solution. They have great products and service, so I'm going to continue to purchase coffee there, as long as they are around.
Why don't you help support the company by buying a cup of coffee and help them get back on their feet and pay their bills? I'm not sure why you are so interested in putting them out of business. Even if they owed you money, that's not the best solution. They have great products and service, so I'm going to continue to purchase coffee there, as long as they are around.
Well, I disagree about their products and services. Other places do it better. So there's that.
My biggest beef with them is their dishonesty. I know that their employees, as late as the end of 2010 (probably even more recently), continued to say that they were a non-profit and/or not-for-profit. That simply wasn't true. It was a lie. I believe the employees believed what they were saying was true, but it wasn't. The company was lying to it's customers, leading customers to believe that buying coffee there was doing some sort of "good deed."
Why would you want to support such a place? Why would you want such a place, owned by such dishonest people, to "get back on its feet?" That kind of boggles my mind...
Why don't you help support the company by buying a cup of coffee and help them get back on their feet and pay their bills? I'm not sure why you are so interested in putting them out of business. Even if they owed you money, that's not the best solution. They have great products and service, so I'm going to continue to purchase coffee there, as long as they are around.
How about they do us all a favor seeing how they lied to their customers and file for chapter 11 bankruptcy instead.
Well, I disagree about their products and services. Other places do it better. So there's that.
My biggest beef with them is their dishonesty. I know that their employees, as late as the end of 2010 (probably even more recently), continued to say that they were a non-profit and/or not-for-profit. That simply wasn't true. It was a lie. I believe the employees believed what they were saying was true, but it wasn't. The company was lying to it's customers, leading customers to believe that buying coffee there was doing some sort of "good deed."
Why would you want to support such a place? Why would you want such a place, owned by such dishonest people, to "get back on its feet?" That kind of boggles my mind...
Do you not feel misled?
I share your sentiment in this case. The owners may not have realized that rapid expansion and increased debt would ultimately be a terrible investment practice ("you have to spend more to make more"), but they continued to market their business as a charitable organization even after they had given up their ability to financially support any charitable cause. Imagine what Kevin O'Leary would say...
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Revenue is before expenses are incurred. Profit is after. If they owe millions to their investors and are in debt then they aren't making a profit to begin with. The fact is they have lied to their customers about charitable giving for three years now.
The worst part is that the owner wants us to feel sorry for her for lying to the customers all of these years. I haven't been to Liquid Highway in at least a year and have no plans to start now.
