Surely you jest.
Posted on 03/15/2014 3:53:14 AM PDT by SoFloFreeper
Restaurant chains are dropping like flies this week.
On Monday pizza franchise Sbarro dipped into Chapter 11 bankruptcy. Following in its footsteps on Friday, sub shop Quiznos announced that it too would sink into bankruptcy as part of a “pre-packaged” deal to cut its debt by more than $400 million, or two-thirds.
(Excerpt) Read more at forbes.com ...
“Malls are failing.”
And that is part of the problem. Question: WHY are malls failing?
It is all part of the same lethargy and malaise that has befallen America since the country was “rescued’ with the TARP bailout. “Too big to fail” turned out to be a recipe for “all the smaller ones have to fail”.
Obamacare just put the coup de grâce on enterprises that had found themselves on the wrong end of the cruelly tightened credit and faked “bailout” of the very largest financial institutions, at the expense of the middle level of lending institutions and the general employment picture.
I didn’t know what those things were even after watching the commercial. Hard to believe a company would pay to have that commercial made and then pay to run in. What were they thinking.
Let us not forget price elasticity of demand.
When malls were thriving Sbarro thought it their duty to overcharge for a simple slice of pizza - reheated of course. Anything fancy (read: a topping or two) had the price going north quickly. Lord knows how many stuffed, deluxe pies, etc. sat all day and went in the dumpster because of the price point. It’s anecdotal but I can’t tell you how many times people avoided Sbarro because of the real or perceived expense.
Sbarro’s woes may be tied to the retail malaise in general but they certainly made a rod for their own back along the way.
Yup...People have much better options to spend their discretionary money: Five Guys, Moes, Chipote and several others...
Uniformity of offerings i.e. cheap Chinese tat as well.
The ‘branding’ people have attempted to convince their employers/clients as well as the public that the sign on the door is more important than the product inside. Stack em high and sell em cheap. But what about us anachronists who want a shirt or pair of trousers to last more than one season as they typically did in previous decades?
The quality of even so-called luxury brands has fallen off a cliff and for some reason the OEMs are pretending the public don’t notice despite the grim sales numbers they must be seeing at corporate.
WHY are malls failing?
Location,location,location...and changing demographics in malls neighborhoods.
Too many malls in this nation have become daycare centers for inner city ‘people of color’. They do not spend and bring their violent ways with them...
So many things are going up in price that there is little disposable income left.
Hit the mall or pay for medical insurance?
Wasn't long ago that most people could afford to do both.
Malls are failing in part because I can sit on my ass in front of my computer and pretty much order anything I need and have it delivered to my door...
In many cases even with the shipping costs, it will only be a bit more than going out and shopping for it...
I don't have to visit different stores to find the best price, availability, etc,
The other piece of the puzzle is Wal-Mart Super Centers where you have one stop shopping...
Quiznos had a bad business model for its franchises. Had to buy from the corporate office, far above market prices. Also had high franchise fees, etc. The corporation was trying to milk the franchises to support the corporation, pushed the franchises into bankruptcy. Now pushing the corporation into bankruptcy.
Yup...many, many moons ago I ran a Pizza Hut Restaurant..
We had to buy from the supplier approved by the corp office, (only one) and we paid out the yazoo for items I could have bought for 20% to 40% less anywhere else...
Where I live, the local mall lost its McDonald's. It seemed to be doing a brisk business, but the mall owners raised the rent and McDonald's decided to pull out. In another mall, the Chick Fil A moved out and into a standalone building across the parking lot from a smaller nearby shopping center. I'm sure the rent in the shopping center was a lot less costly.
Every time a nationally recognized restaurant chain goes out of business, $1.74 is added to the economy.
I used to walk by a Quiznos every day for break. I think I only ate there once.
For the first 25 years of my career I had never been laid off. In the last 5 years, I've been laid off twice.
For the last five years, eating out for us is McDonald's, Subway, or a pizza.
What happened five years ago? Hmmmm...
They had the most disgusting mascot and terrible ads when I used to watch hours of TV a week. I’m not sure that Obama is solely to blame for this ‘fail’.
I bet you're a guy, because you sound like me. The few brick and mortar stores I visit are Lowes and Staples.
But guys don't keep malls in business. My wife and girls LOVE going shopping, even if it's just TJMaxx.
I know. It is hard to imagine...
People line up practically out the door at Chipotle and Five Guys where I live, in the same economy where Sbarros and Quiznos are failing. I'm hardly an Obamaphile (to say the least) but it isn't his fault that people refuse to eat bad food.
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