Why are so many restaurants closing in America?

U.S. restaurant sales have seen little growth this year as many consumers pushed back against rising menu prices. Wendy's same-store sales – or sales at locations open at least a year – were up less than 1% in the U.S. in the first half of this year. Earlier in October, Denny's announced it will close 150 locations by the end of 2025. And Red Lobster filed for bankruptcy protection in May after closing dozens of stores.

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Photo From Denny's Website

In October, Denny’s announced it will close 150 locations by the end of 2025. And Red Lobster filed for bankruptcy protection in May after closing dozens of stores

It is a trend in America…….

AI: Economic Challenges: Inflation, rising food costs, and higher wages are squeezing profit margins. The pandemic also exacerbated any financial troubles restaurants were already experiencing. Many chains have struggled to balance these increasing expenses with maintaining affordable prices for customers.

According to a 2024 Popmenu study, families spend 10% less of their food budget on restaurants than they did in 2022. A year before the Popmenu study, a National Frozen & Refrigerated Foods Association survey found that four out of five people eat at home for more than half their meals.

CBS: Wendy’s plans to close 140 U.S. restaurants before the end of this year on top of the 100 it said it would close in May. But in a conference call with investors Thursday, the company said those closures will be offset by new restaurant openings. Wendy’s said it plans to open between 250 and 300 restaurants this year. Wendy’s President and CEO Kirk Tanner said the restaurants that are closing are underperforming compared to others. More Here

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