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June 28, 1999

First Runner-Up

Christopher Liss
CPL on the Fool Boards

For all this talk of saving the Planet, I think people are missing an essential issue: Planet Hollywood is a bad product, and will necessarily be so, regardless of the suggested improvements.

Why? Because such a product is representative of every kind of scam from full-service brokers (who sell you the image of the Wise competently managing your assets) to get rich quick infomercials that sell you the promise of quitting your job, retiring early, etc. These products play on people's associations and then deliver something they would never otherwise pay for. Sure, Mercedes-Benz advertises and plays with images, but at least it's still a hell of a car to drive. Planet Hollywood sets up in high-rent areas, charges high prices, and serves bad food, (and I don't mean bad compared to upscale restaurants but bad on its own terms). Like a full-service broker who delivers returns that the market consistently beats, and expects you to stay with him because you'll feel as if you're being taken care of, Planet Hollywood offers a bad product and expects you to pay for it because you feel as if you're among your screen heroes. Ask yourself this: if you just got paid $20 million for a movie, would you eat at Planet Hollywood or Matsuhisa?

The Fool shouldn't even be trying to save such a company, but rather congratulating the celebrity-obsessed American public for drawing the line here and realizing the shameless way in which Hollywood is trying to milk even more money out of them.

I think Planet Hollywood should pay its creditors in the order determined by the bankruptcy court, and its investors should invest in a company that doesn't insult the intelligence of its customers.

Next -- Second Runner-Up