I think you have hit on the key that probably extends to many other stores and chains encompassing more than just restaurants (strip malls, office buildings, shops, etc.). I'm thinking this is why we are seeing the commercial real estate market collapse just like the housing market. Overextended and overbuilt. IMO many came through the booming late 80's and 90's thinking that the economy can grow and expand infinitely. I think many are having to learn a hard lesson to the contrary.
“...I’m thinking this is why we are seeing the commercial real estate market collapse just like the housing market. Overextended and overbuilt...”
In my community we have three shopping malls: small, medium (both outdoor malls), and a large indoor mall.
The large indoor mall is right next to Interstate 5 in southwest Washington, has a Macy’s, JCPenny’s, Sears, Target, ChuckECheese, Izzy’s and Red Lobster restaurants. The restaurants are doing well, the larger stores are barely surviving, and all the other small stores, including Borders Express bookstore, are losing business. The food court is just about shutdown completely.
The small and medium sized malls are still doing well with almost all available space leased.
If the pulp and paper mills shutdown, the grain elevators stop shipping out grain, and the timber industry no longer is allowed to cut trees, then my community will die.
For right now, things are still slowly ambling along.