It’s been a brutal year for restaurants. Red Lobster and Rubio’s Coastal Grill are just two of the chains that have filed for bankruptcy in 2024. High labor costs, cash-strapped customers, and the lingering COVID hangover seem to be to blame, as is a likely economic slowdown. In fact, this year we’re on track to see the most Chapter 11 filings for restaurants in decades, except for 2020 when COVID hit.
Investors are trying to salvage these chains by cutting costs and locations. That might be for the better because many of these places are likely oversized, built for a time when America was more flush.
This isn’t just about restaurants. It’s about evolving customer behavior. As one industry insider put it, "It’s going to be a lot of pain for a while."
All this doesn’t count the carnage among private, regional, and local chains that have closed their doors, not to mention the mom-and-pop shops I see closed all over my part of the world.
One thing is clear: the suburban casual dining chain might be a dying breed. Let’s face it, why pay a premium for mediocre reheated food when you can get better at home? It’s tough to drop $40, $50, or $60 on a meal that doesn’t impress, even when the cheap margaritas do.
So, what do you think? What’s the future of dining? Will we see a resurgence of innovative, affordable eateries? Or will casual sit-down chains continue to struggle or even wither away? Is dining out still worth it for you and your family?
My guess is it’s a little bit of all of the above. Let me know in the comments and support my work at jamesbrowntv.substack.com.
On that note, I’m James Brown, and as always, be well.
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