Posted on 05/03/2024 5:56:13 AM PDT by Red Badger
(Epic Economist)—Over the past four years, many of us have had the unpleasant surprise of learning that our go-to restaurant, coffee shop, or fast food joint was closing doors for good. Thousands of well-established companies have gone out of business since the pandemic accelerated the descent of the U.S. economy, and conditions have been particularly tough in the restaurant industry. Even during the best of times, managing a restaurant comes with plenty of uncertainty. Though a brand can be incredibly popular amongst consumers, there’s a variety of factors that can result in mass closings, and in some cases, bankruptcy.
We tend to think that the biggest restaurant chains in America are better prepared to handle these challenges, but the truth is that many of them are, in fact, more exposed to financial problems due to their enormous expenses and extensive brick-and-mortar footprint.
Both inflation and deflation can cause drastic changes in consumer behavior, leading to lost sales and rendering some locations regrettably unprofitable. On top of that, something most people do not know is that, despite being backed by huge corporate entities, lots of restaurants have been struggling to stay afloat for quite a long time, and recent developments have just been the last straw for them.
That’s why a considerable number of chains is closing multiple locations right now. While for some this is goodbye forever, for others, the closings are necessary to restore the health of their business. Executives are citing issues like underperformance and slowing foot traffic, as well as broader concerns about the strength of the American buying power over the long run, as some of the reasons behind the latest closures. Meanwhile, other companies are simply shuttering locations suddenly and without warning, leaving customers and even employees wondering what went wrong.
Here’s the list:
* Cracker Barrel
* Applebee’s
* TGI Friday’s
* Denny’s
* Boston Market
* MOD Pizza
* Hooters
* Carrabba’s Italian Grill
* Hardee’s
* Tijuana Flats
* Noodles & Company
* Krystal
* White Castle
* Bagger Dave’s
* Chili’s
A local restaurant that’s on the list, had a policy of giving a discount for cash.
A ‘new owner’ just took over a month or so ago and that discount went away.
They also had a military and veterans discount that went away as well................
“DEI.”
I sat in my local McDonalds and watched the entirely black staff at work. The women manning the counter interacted with white customers with body language that would have been hilarious in an eighty’s sitcom. Hands on hips, pouty lips, body language saying, “I don’t care. Kiss my A$$” while their voice said something different as they’d obviously been coached in how to handle complaints, of which there were a few while I was there. The food was bad enough I haven’t been back. (Oh, they got my order wrong. I ordered a hamburger and fries, and I got a chicken sandwich and fries. I just ate it and left.)
Agree ... Pres Trump had brought it back, along with so many other sectors, only for Brandon to blow it all.
Tells us who they’re “catering” to. :-(
Story may be a bit old. Most of the Boston Markets and a bunch Krystals have already closed; Krystal has gone through bankruptcy a couple of times and was taken over by SPB about a year ago. Boston Market is on its third bankruptcy filing. BM has gone from almost 350 locations to less than 30; hard to see how they can close many locations.
As far as Hardee’s, I ate in one last fall and the was disappointed - not what I remembered. And their only location in this are is a Carls Jr. located in a truck stop. So if the one I ate in is an example, I can diagnose their issue pretty easily.
“insolent servers.”
This is a huge one right here. I am sick of these young authoritarian woke micromanaging tyrants. Businesses gave them a little bit of power and authority over their customers during covid and they took and inch and turned it into a mile. Now it is a real problem, they have some idea you are lucky they are even serving you, as if you work for them rather than them working for you as the customer. In their mind they rule over you. To the point of not even caring if they run off business, all they care about is that you obey them and do what they tell you.
Example: I went in the parts store the other day. When I walked in there was no one in the line, I was next up to the counter. I waited my turn and walked up to tell her what I needed. She looked over at the line that had now formed behind me and told me I had top go get in line and wait my turn.
“No one was in that line when I came in”.
She continued to refuse to serve me until I went and waited my turn from the back of the line. It was no longer about whether I was right or not, it was all about me obeying her commands period even if she was wrong. I told her she was wrong and I do not have to accept this kind of disrespect and will go to another store then.
With the manager now standing behind her she said “So what... Next” and the manager did nothing. This kind of attitude and lack of respect for customers is killing businesses. At some point you would think they would wise up and figure it out. The Covid authority over customers is OVER.
“Waiter, I can’t eat this food. It tastes like crap.”
“Is there anything else wrong, Sir?”
“Yeah. The portions are too small.”
We used to eat at cracker barrel at least once a month, but they’ve made a lot of negative changes -— the menu has shrunk, prices have increased, portions have shrunk, and they started serving beer and wine. It’s almost as if some millennials have taken it over...
True statements. I’m hoping this will be a lesson for the restaurants that do survive. If we’re spending 50 dollars for a meal for two, we want 50 bucks worth of food.
Everyone raised prices and yet some folks say inflation isn’t 40% since Biden stole office. McDonald’s has noted that the income has decreased, people quit coming. Their take is that their food is a “treat or pleasure” and people cut those things. You used to get a premium sandwich, fries and drink for 7-8 bucks, and now that’s doubled. In the case of fast food the economic reality is that prices have more than doubled.
I heard that in Portland, ME you can choose between the Shooting Denny’s and the Stabbing Denny’s.
Fastest recovery I have seen in my lifetime... Including Reagan... Reagan was fast, but nothing like this...
That was bad enough, but they weren't paying their suppliers either. US Foods dinged them for almost $12 million. And I wonder if they were paying their lawyers - looks like that was a default judgment https://www.nrn.com/fast-casual/boston-market-ordered-pay-119-million-us-foods-default-judgment-decision for bad faith and failing to meet their obligations to the court.
They do it to themselves.
TGI Fridays was awesome in the 1970’s and early 80’s. They had HUGE portions and a menu that was a book. The offered dozens, if not over 100, of entrees. The staff was fun. The drink specials were epic.
As happens with all success, the original people sell and the bean counters take over. The menu shrank. The portions shrank. It became just another restaurant.
It happens over and over again in the restaurant industry. Excellence is traded for short term financial gain.
And with menu prices shooting up in California in the wake of the minimum wage increase to $20 per hour, they need to impose price controls--and they probably will.
Was out to lunch with retired friends yesterday - we like Lazy Dog which has lunch specials until 4:00, have been going for years.
Usually it’s very crowded at the time we go, around 1:00 - but yesterday the restaurant area and bar were near-empty.
One look at the “new” menu prices told the story - the lunch specials, which used to be $7.95, are now $14.95 and every other menu choice is around $19.00 - that is close to $100 for a family of four when you add in the drinks.
How many people can afford that on a regular basis? Or at all?
Everyone I know talks about how little they go out any longer, rarely, if ever, and I know this is the case for my own family.
When some of the Denny’s close, where will the after-the-bar-closes folks go? Nothing better than a big breakfast after a night of libations.
“True statements. I’m hoping this will be a lesson for the restaurants that do survive. If we’re spending 50 dollars for a meal for two, we want 50 bucks worth of food.”
Because they are greedy opportunists who are taking advantage of the situation to price gouge. They have plausible deniability and can take advantage while blaming it all on Biden. Two wrongs do not make a right.
But to the “all is fair in business” cult around here this greedy opportunism is absolutely just fine and acceptable. Now they are destroying themselves with their own greed and deserve every bit of it for being dishonest about pricing and product dissatisfaction.
It is not ALL Biden...
Also we will eventually own nothing. No place for resturaunts, (or any business), in that scenario. Not to mention the current economy is lousy by design.
Keep voting Democrat.
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