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
The democrats dream of “fundamentally changing” (ie destroying) the nation is being accomplished.
the local Applebee’s just closed. Not that it effects me any. even during lunch it was practically empty.
There’s a BM in Ocala.
I thought BM closed all their stores in Florida when they got sued.............
I thought BM closed all their stores in Florida when they got sued.............
I can’t speak to the causes; but one thing that may nudge troubled chains over the cliff might be mandated wage increases.
I can, however, speak to an amazing predictor of these chains in demise: gift cards.
My Chase personal (”Freedom”) and business (”Ink”) cards offer rewards for using them. If I choose the “gift-card” option to receive my rewards, there are always 10 or more restaurant chain cards offered at 10% or more discounts.
Sam’s Club also offers certain restaurant cards at a discount, though not usually as much as Chase.
Most of the restaurant chains mentioned in this article offer gift cards at those discounted prices (whether in points or $$).
Looked again. Yep, it’s closed. Eh, I never went there anyway, just drove by and waved!
Did get Burger King coupons yesterday...I see the whopper/fries/drink (for 2) that was 7 or 8.99 pre-covid, is now... $13.99.
The biggest mistake they make is “one size fits all” decisions from corporate about portion control, pricing, and policy across the board.
If the market demographics in Ca is double what it is in other states they do not take that “localization” into consideration. Instead they set pricing and portion control across the nation based on what is required for Ca.
Other folks in other states are just not going to pay those exuberant prices for less product. This is where the one size fits all corporate decisions just do not work everywhere. And instead of being accountable their own mistakes they are always arrogant and blame the situation on other factors.
Even after they lose their own jobs corporate is NEVER wrong...
Cracker Barrel also went woke. That hastened its demise.
I figured they were struggling when they started offering alcoholic beverages - never seemed consistent with their image up until then...
Imagine what it is without a coupon!....................
Most of those have been bleeding locations since before the pandemic. I’m actually kind of surprised there are still Boston Markets left to close. Same with TGI Friday.
Cracker Barrel has gone down the tubes in the last few years. Much smaller portions and not as tasty.
I love Cracker Barrel and keep giving them chances. They've only recently expanded into SoCal and haven't seemed to figure it out here. But I was in Nashville last month and had very poor food and service there, too. Perhaps their problem is nation-wide.
I am waiting for the fast food workers “mirowave technicians local 302” to merge with the stewardess union...
Their self aggrandizing power trip attitudes seem to really overlap at this point.
Kid.. you’re a flying waitess, not Special Forces operator..
Probably the last one I visited was White Castle, and out of five burgers, I ate only part of one. They were so rancid I threw them out. Yeah, I know, White Castle isn't the cream of the crop in terms of quality, especially these days, but in the old days White Castle was the place where my father would gather with his co-workers before heading off to the steel mills of East Chicago, IN. Good memories.
It’s unfortunate if you’re a happy customer of one of these type places and it closes. That’s happened to me many times, and it’s an inevitable cycle. Consumer tastes change. Other chains come along offering something different, something better, and customers go elsewhere. Once upon a time there were thousands of Howard Johnsons around. In California, I think about chains of the past that had many locations but have dwindled to just a few (if any): Bob’s Big Boy, Sambo’s, Carrow’s, Straw Hat Pizza. Quizno’s Subs, etc. It’s a tough world out there, and if you’re not getting it done for consumers in terms of providing a quality product at the right price, they’ll go elsewhere. I’ve got to give credit to companies like McDonald’s and In-N-Out Burger that seem to consistently get things done over decades. And there’s not necessarily a one-size-fits-all approach to surviving. McDonald’s, for instance, seems to constantly tinker with its menu, while In-N-Out never expands the menu nor really ever changes anything other than maybe swapping out a soft-drink that’s not selling well.
Kid...you’re a flying waitress, not a Special Forces operator.
You owe me a new monitor and cup of coffee. :0)
That perfectly covers the attitude of many of today's flight attendants.
* Hooters
Oh no! I’m gonna miss Starletta...the best waitress in town. Of course, I think she used to be a man.
Find your niche, exploit it, own it.................
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