Sit-down, so-called “casual dining” chain restaurants are having a rough patch as consumers contend with the cumulative effect of years of elevated inflation. According to Technomic`s Top 500 Chain Restaurant Report, overall sales by dollar volume increased 4.7% year over year in 2023 among the 16,880 locations of top 500 chain brands in the United States, mostly due to higher menu prices as customer traffic fell by 1.6%.According to the WSJ and BankruptcyData.com, “restaurant chains and operators this year are on track to declare the most bankruptcies in decades outside of 2020.” The recent wave of casual dining restaurant chain closures has sparked widespread conversation about the role of casual dining restaurants in American budgets and dining preferences, as well as its implications for the retail commercial real estate properties these tenants inhabit...
RSK: If you are a landlord you better take heed into what you are charging the restaurants and what they are grossing...otherwise they will shut down a non performing location and you will be left with a rather expensive redo on your property. Things are not easy for fast casual these days for many reasons including too high rent ratio to gross and employment.
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- - Volume: 24 - WEEK: 49 Date: 12/3/2024 9:22:39 PM -