Local Bloggers Break Stories First, Sometimes Best (Bonanza Closings)

(FranchisePick.Com)  In our last post (Bonanza Franchisee Folds in Less Than 1 Year, Abandons 4 Locations) about the abrupt failure of 4 MD and DE restaurants, a Bonanza spokesperson was quoted as saying:  “We’re not sure why they’re closed…. The corporation is trying to get to the bottom of this.”

FranchisePick.Com has found “the bottom”:  Local blogs.

Whether you’re looking for the real scoop on a franchise, local news before it breaks, or just unsubstantiated rumor, gossip and the occasional racist remark, look to the local bloggers.  After all, if they’re not customers or employees, they’re probably married to or parenting one or the other.  And since bloggers make little or no money from their blogs, leaking otherwise unreported information and espousing their opinions are among their few rewards.

[photo credit:  Delmar Dustpan]

Who broke the story of the sudden and inexplicable closing of four Bonanza franchise restaurants in MD and DE?  The company President?  CNN?  20/20?  The New York Times?  Deep Throat?  The Baltimore Sun?

It was bloggers Delmar Dustpan and That’s Elbert With an “E”.  And unlike prima donnas Woodward & Bernstein, who needed the Washington Post to break their stories, Delmar & Elbert get the same results using free Blogger and Wordpress blog software.

Delmar broke the story Wednesday, October 17, 2007, days before parent company MRG was aware of the problems:

Bonanza Family Restaurant

I understand the Milford Bonanza family restaurant has closed so I guess it is not a rumor any longer of financial problems the group of four Bonanzas in the area are having. I understand the employees in Delmar have been told Sunday is their last day. I guess we will know Monday if the owners were able to pull a rabbit out of their hat and the Delmar Bonanza will remain open. After over ten years of ownership by the Wink family it was sold a little under a year ago to a group of Koreans. I guess this shows what a rough business the restaurant business is to anyone who has not run one before. I have not heard if the Pocomoke and Millsboro Bonanza has closed.

That’s Elbert With an “E” was close behind, reporting on October 18:

I’ve got a friend that works at the Bonanza Restaurant in Delmar, DE. She was notified that the restaurant will be closing after Sunday. I don’t know how many employees that effects, but a number of people will be going to the unemployment office in Georgetown soon. Hopefully they will all find jobs quickly.

I understand that the Milford Bonanza has already closed. When I called them this evening, no one answered. I called the Millsboro Bonanza and inquired about their hours of business. The young lady that answered gave me the hours without any indication that they would be closing. I didn’t inquire further. I got the same response when I called the Pocomoke City, Maryland location. In addition, when I called the Delmar location, they gave me the hours of operation without indicating they would close. So they are not telling their customers yet.

I hope you all will offer prayers for those that have become unemployed. If you know someone effected, do more than just pray. Offer to help them.

Several days later, the local media began reporting (Nearly 200 People Laid Off After Local Bonanzas Close).

The often-anonymous comments left on local blogs provide some insights not only of the situation, but also of the local attitudes that cold have contributed to the situation in the first place.  Note any common themes throughout these comments left on the Delmar Dustpan and That’s Elbert With An “E” blog posts and newszap forum?

Shoreman said…

The Delmar Bonanza should close this Sunday. That is what I heard. I liked our restaurant, but the new owners let it go down the tubes. But hey…. isn’t it the way foreigners usually work our system? I was told that all of them came from running a car wash? Wow!!! became restaurantuers LOL I hope that they all give up their fancy BMW and Mercedes.
I know the Winks, they drove around in pick-ups.

Anonymous said…

…It is possible that these restaurants will re-emerge as something different; Oh, say a “Korean Buffet” type establishment.

Chuck said…

We have been eating at the Bonanza in Millsboro for years. We love everything about the food there and were overjoyed when they started serving a breakfast buffet on weekends! Maybe the Wink family can jump back in and save it all.  ps: The management by the Koreans was horrible with unpaid accounts to SYSCO and other suppliers.

Rhonda said…

…The Winks family ran them at a profit for over 21 years before selling to the Korean investors. The Koreans would not listen to Bob who tried repeatedly to help them keep it going. This is everyones HUGE loss. << Very Sad>>

Donny said:

They were sold to a group of Koreans. The name is Young Chan Lee (YCL).  ps: I will miss this place….

Pokemokems said:

Okay i worked at the Bonanza in Pocomoke and it is rediculous what the owners did. They made back what they spent plus some and bailed. leaving myself and 199 other people out of jobs with one days notice. My manager told me saturday morning that we would be closing sunday night.

David said:

Young C. Lee of Hockesin, DE (YCL) is only one of the owners. The other is Kun S. Lee of Hockensin, DE (KSL- which is the LLC that the Pocomoke store operated under). Regardless of their nationality they were simply poor businessmen. They wanted the money to roll into the stores hand over fist, and even if it wasn’t that’s how it was coming out and going into their pocket….All four stores were financially stable last fall when the business changed hands…

Bud of KTC said:

Mr. Bob Wink was the one who got the Bonanza franchise for our area.  For over 20 years, he owned the four on Delmarva that have closed in the last 2 weeks.  I  believe that had he not sold them last year they would still be open.  It seems the new owners had a problem with too much spend spend spend on things that were tax deductible, but not necessary to the business.  WBOC reported last night that the owners cited “financial difficulties”.  Bob Wink never made such a claim.  It only took the new owners a few months to sink what Bob had kept floating for 20 years.  It should be a crime.
Bottom line:  When a business is operated by somebody who knows what they are doing, it can prosper.  When greed takes over, it fails.

Swampcritter2 said:

Now where do I go when i want to get a bad meal on Delmarva?

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