I found this post at The Week by Joel Mathis interesting. It’s about the woes of the casual dining chains:
In much of America, a night out with the family has often meant a meal at TGI Fridays or Red Lobster. But those once-popular restaurant chains — and a few others — now find themselves struggling.
Big chains this year will “declare the most bankruptcies in decades,” said The Wall Street Journal. Among the list of battered restaurants: Red Lobster, Buca di Beppo, Hawkers Asian Street Food, Tijuana Flats and Roti. (TGI Fridays is also reportedly approaching bankruptcy, while Denny’s is planning to close 150 restaurants.) Same-store restaurant sales are down by 3.3% from last year. There isn’t any single reason. “You have the Covid hangover, labor costs,” said one executive. Some families have “pulled back on dining out,” said the Journal. But business decisions have also played a role. “High interest rates have hurt companies that gave priority to growth over profit.”
He mentions some of the factors including inflation, labor costs, and bad management but I think he’s missing some.
For example, meal kit companies are growing by leaps and bounds but experiencing many of the same things. And I’m not expert on either chain casual dining or meal kits but I suspect that they’re competing for the same customers. My cooking is better than any meal kit (not to mention Denny’s) and I know how to shop. I tend to avoid ordering from any restaurant where the food isn’t better than my cooking which is really narrowing the field. That pretty much limits me to pizza and ethnic cuisine.
To my untutored eye it looks like we’re enormously overbuilt on fast food and casual dining restaurants. I think that the fast food business model is fatally flawed for reasons I’ve explained before and I’ve never understood chain casual dining. I would rather support a mom and pop shop than a store operated by some mega-business.