Kona Grill is losing big bucks, reporting a 2nd-quarter loss of $535,000 this year.
They are blaming "higher labor costs" which is total b.s. because that would be the first I've heard of increased labor costs. If anything, labor costs DROP in a down economy as more people are willing to take less-desirable jobs.
The truth of the matter is that, if you've been to Kona Grill, you know it's full of the absolute worst of the worst of Scottsdale, even lower than the garbage that frequents Barcelona. It's nothing but dirtbag, broke, 20- and 30-somethings who still think they're 19 and living in the frat house, mixed in with a few desperate, sleazy old men in Tommy Bahama shirts who buy drinks for the strippers who hang out there and never get anything for it.
Even at the height of the housing bubble, there was no money in this joint. It was only a matter of time before we saw it go bust.
Major shithole
Posted by: raven | July 30, 2008 at 05:12 PM
I like it. Hated the crowd, but they had great happy hour food/prices.
Posted by: Neuro | July 30, 2008 at 08:48 PM
This is a place in Scottsdale I would miss. The reason: Nobody I've seen has a better happy hour menu than Kona. Don't even try to tell me otherwise.
I couldn't agree more about the crowd though. It's fun to watch those "strippers" walk up on a Wednesday night looking for a "rich" man to scam and all they find are losers with frosty tipped hair and big watches that they spent an entire commission check on during the housing boom. Tommy bahama guy is especially prevalent during spring training. If not for the food, the whole thing would be a waste.
Posted by: More like Photo GAYdar | July 30, 2008 at 10:12 PM
Suprise, suprise - check out this link:
http://www.hotelchatter.com/story/2008/2/15/14556/3826/hotels/W_Scottsdale_Gets_Delayed_Until_Summer
And what's even funnier is that the opening was pushed back even further to August 1st which is...tomorrow!! Someone want to bet they don't make that deadline?
What suprises me even more is that Starwood would agree to build this hotel in a market that is already glutted with overpriced, "resort" hotels - half of which really aren't resorts, just resort priced.
According to the article, room prices will range from $659 to $759 a night....ARE YOU KIDDING ME?!?!? With the valley's economy on life support, do they really think anyone has that kind of money (especially in Scottsdale) to spend on a hotel room?
Betcha Starwood wishes they could have a do-over on this one...
Posted by: Manny | July 31, 2008 at 10:56 AM
I always thought the food sucked.....good riddance.
Posted by: Bill | July 31, 2008 at 11:09 AM
WTF ... those room rates are higher than W or Westin hotels in top-end markets like NYC, LA, SF, etc., apparently someone at Starwood is smoking crack.
The *only* time they'll be able to fetch those room rates in Scottsdale are during Barrett-Jackson and spring training ... and *maybe* the FBR Open.
Then again, those are known as "rack rates" in the hotel industry ... the real prices are usually less than half. More like a third.
Posted by: Frank Rumbauskas | July 31, 2008 at 11:37 AM
HAHAHAHAHA. This is laughable. You are full of assumptions and they are ridiculous assumptions at that. I doubt this comment is allowed due to it being full of facts that refute your baseless accusations but here I go.
You calim, "They are blaming "higher labor costs" which is total b.s. because that would be the first I've heard of increased labor costs." Really? So, something cannot be true because you have not heard of it? That is a ridiculous rebuttle in itself.
Then you claim the following: "The truth of the matter is that, if you've been to Kona Grill, you know it's full of the absolute worst of the worst of Scottsdale, even lower than the garbage that frequents Barcelona. It's nothing but dirtbag, broke, 20- and 30-somethings who still think they're 19 and living in the frat house, mixed in with a few desperate, sleazy old men in Tommy Bahama shirts who buy drinks for the strippers who hang out there and never get anything for it."
Hmmmmm. Kona Grill has 19 locations across the country spanning over 12 states. Are you telling me that the full deficit is due to the Scottsdale location?
Please post something intelligent for once with facts to back it up.
Posted by: Parker | July 31, 2008 at 01:18 PM
Starwood has been deteriorating as a hospitality enterprise the past 4 years or so. Many of its unique "Luxury" properties have signed up with other competitors and its now basically a Realty Trust driven entity.
Sheratons range from seedy to acceptable,the entire Westin and W collection is overrated, the new ALoft concept is adrift,while the St. Regis group is holding its own.
Stayed at the Monarch Bay at Dana Point for a couple of weekends when first opened,was great with potential to rival the Ritz Carlton nearby, but for revenue generation a business decision was made to go mass market and bulk sales.
Regrettably, was there recently, and felt I was at some Scottsdale hotel meeting/convention for wireless kiosk sales types.Bunch of Scottsdale type losers walking around with name tags, ridiculous "resort wear", cell in one hand, making "big deals" and a beer in the other.
Checked out the following day and got a 50% refund.
Posted by: raven | July 31, 2008 at 01:48 PM
Raven -
The last time I stayed at a Westin was the last, ever. The idiot at the front desk couldn't figure out how to enter my Starwood Gold card and so I never got the room upgrade. The bed was horrible and hard as a rock, definitely not the fabled Westin Heavenly bed. And the a/c didn't work for sh*t and I had to find a nearby Target to buy a fan just so I could sleep at night. Overall a bad experience. I won't be back.
About the only positive is that the in-room minibar was broken so we drank a lot and never got charged... lol
Parker -
The dirtbag Scottsdale market is exactly what Kona Grill markets to. I've been to Kona Grills in other cities and they have exactly the same type of people at all of them. I guess you can take Kona Grill out of Scottsdale, but you can't take the Scottsdale out of Kona Grill.
(Scottsdale is the original one and is where Kona Grill is based, in case you missed that.)
Posted by: Frank Rumbauskas | July 31, 2008 at 01:54 PM