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
Wanna know how good or bad your local restaurant actually is? Back when I lived in Turkey, everyone got to see the kitchen and food preparation (there was no refrigeration in rural areas where I was): too many flies, too many cockroaches, too many mice/rat droppings etc - move on to the next restaurant and repeat.
Do this before you take a seat if possible but definitely before you order. If they won’t let you see the kitchen - go elsewhere
Chili’s used to be perfect in execution, but last time I went they screwed up my order and gave me cold fries. Good riddance.
Quiznos really went under fast. I worked with a guy who had a side hustle of 5 franchise stores, and he took it in the shorts hard dealing with Quiznos corporate as they went under. It ruined him.
On another note, Cali seems to be able to support a million taco shops and can export them. I was in all over the Grand Canyon and Sedona areas a few weeks ago and it was littered with Filiberto’s taco shops.
Holy crap!
What happened to them?! I loved their meatloaf.
I can’t believe I’m saying I loved meatloaf! Lol.
“Kid.. you’re a flying waitress, not Special Forces operator..”
And that is true too. This new generation work force has some idea that employment has to flex and accommodate their lifestyles as a priority instead of them changing their lifestyles to fit around their employment a priority.
And these stupid companies are actually doing it instead of saying “No... You are just a waitress”...
Nowadays if a new type of restaurant succeeds then a dozen more are started just like it and spread across the country with debt financing.
It becomes a game of chicken to see which will last. There was the roasted chicken craze, then the luxury burger craze, then the sub craze, then the spicy chicken craze, now the chicken nugget craze.
In the long run only the lawyers and accountants end up in the black.
“Kid.. you’re a flying waitess, not Special Forces operator..”
Great comment!
I won’t miss Denny’s. The last time we ate there the urge to use the bathroom hit as soon as we got into our car. Once we got out of the parking lot I never thought I could hold it in. I drove as fast as I could to a nearby truck stop with the ham strings as tight as possible. Luckily, there was one bathroom stall open and I quickly occupied it.
My stomach was upset the rest of the day.
Why pay $16 for two burgers, small fries, and a soda at a drive thru when for the same price you can get a amazing hot turkey sandwich with table service at a local restaurant?
Many of those were deliberate targets of the lockdowns. Why? ‘Cause small businesses are mostly run by conservatives, those that realistically (not idealistically) approach risk.
Can’t have such remain in US society. Might support non commie trash policies.
“Cracker Barrel has gone down the tubes in the last few years. Much smaller portions and not as tasty.”
Boy-oh-boy is that ever the truth! For years when visiting the boys in college, CB was our Sunday morning ritual before heading back home. Hadn’t been in about three years until last month. Terribly disappointing, so much so that I cannot see us going back.
Yep. Unfortunately, this is greed. They have nobody to blame but themselves.
sure, has nothing to do with inflation or ridiculous government regulations
Those line-cooks with 6-year bachelor’s degrees in wymyns studies need to earn a living wage.
Now, pay off their student-loans as a benefit of employment.
It is not ALL Biden...
*****************************************
Energy prices started going up the day after Biden was elected. He promised to destroy the energy industry and he’s doing it.
Energy drives Everything.
Biden’s Fault.
If the price of PVC pipe as a case in isolation is any indication I suggest price gouging. Feed stock, natural gas went up significantly but only briefly, PVC went up and stayed up in spite of natural gas prices now being less than 1/4 of what they zoomed up to for that one short time. And yet, with these persistent and much higher prices the stuff is still flying off the shelves.
The other factor, much more persistent and wide spread, is the burgeoning cost of gooberment. A cost that produces absolutely nothing and just takes and takes and takes. The sheeple don't understand and only understand they have less than they need or want and think gooberment is the answer to give it to them.
Some crazy woman wrote an editorial in the paper today complaining about Oklahoma ranking low or last in so many things except poverty where it ranks right up near the top. Her solution? Raise taxes because Oklahoma also has one of the lowest tax rates. Fact is, per capita, Oklahoma has the same range of revenue base as most states but it also has a lot of empty land with roads to nowhere to maintain. Fact is, Oklahoma has a balanced budget amendment so the state can't go into debt to finance the largess like so many others do. Fact is, Oklahoma is horribly mismanaged start with looking at the number of small mismanaged and top heavy independent school districts that should be consolidated. Fact is, you can't even take all the money from the "rich" and make ends meet when you spend too much. Fact is, America no longer produces stuff that the masses can make, there are too few meaningful jobs in America and that is a loss of prosperity. Either too few jobs or too many unskilled and unemployed / underemployed sheeple.
A nation cannot tax itself into prosperity.
That is like grabbing ahold of your shoes and trying to pick yourself up off the floor...................
“sure, has nothing to do with inflation or ridiculous government regulations.”
Of course this is a main influence factor. Biden is the biggest problem. But he is only 75% of the total situation. The other 25% is the bandwagon of pure greed and opportunism.
I get a kick out those “innocent” in the cult of the almighty dollar who find that immoral fraud, misrepresentation, price fixing and price gouging are completely acceptable practices and you can never speak blasphemy against the God almighty dollar.
What you are implying is that it is perfectly moral to kick a man while he is down because it was someone else who pushed him down.
This is exactly what is happening right now and the opportunism is morally inexcusable. Two wrongs do not make a right. The greedy are not pure and innocent just because they have a scape goat to blame it on.
Here in California, the constant minimum wage increases (now at $20 per hour) have accelerated the store closings. Democrats don’t care if their policies put people out of work.
Nothing more exciting than Waffle House at 3:00am...
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