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August 24, 2003

Arnold's Bad Business

Arnold's Bad Business
Is his campaign the new Planet Hollywood?

By Daniel Gross

The most celebrated business venture of Arnold Schwarzenegger's career was his involvement in Planet Hollywood. Planet Hollywood, you may have forgotten, was the gaudiest avatar of the '90s idiotic theme-restaurant trend, which also spawned the Rainforest Café, the Official All-Star Café, and, most absurdly, the Fashion Café. ("What's on the menu," David Letterman asked. "A stick of gum?") Founded in 1991 by producer Keith Barish (The Fugitive, Sophie's Choice, The Running Man) and restaurant impresario Robert Earl (Hard Rock Café), the profitable Planet Hollywood chain had 34 units when it went splashily public in 1996.

It turns out there's a lot of similarity between the business plan of Planet Hollywood and the business plan of Arnold's gubernatorial campaign.

...

Republicans must hope Schwarzenegger's campaign is more durable than Planet Hollywood. The company raised $196 million in its IPO and plowed the proceeds into expansion. But its celebrity cachet dissipated once outlets opened in London's Gatwick Airport and Edmonton, Alberta. In October 1999 the chain, which peaked at 95 restaurants, filed for Chapter 11. Schwarzenegger severed his ties with the company in 2000. Planet Hollywood exited bankruptcy in 2000 but then earned membership in the Chapter 22 club by going bust again.

So far, the recall campaign has been very much like a meal at Planet Hollywood. There's plenty of ruckus and shouting and fake smiles. A lot of celebrities are hanging around—for no apparent reason. The fare is insipid. And when the experience is over and the bill comes, nausea may follow.

Read It Rating: 9
Left/Right Rating: 0
Freedom Rating: 0
Learning Percentage: 65%

Posted by Lance Brown at August 24, 2003 12:54 AM | TrackBack
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