Can restaurants actually fall victim to a form of restaurant recession? It would seem so. With many people opting for food delivery, or even preferring trendy local spots for their meals, it would seem that some of the more popular dining establishments are feeling the pinch. Many are actually considering the possibility of shutting their doors.
Sonic—showing a dip in sales by 8.9%, America’s favorite drive-in appears to be hanging on, although barely. Their Signature Slinger burgers via food trucks in NYC, their addition of an app for ordering ahead of time, and their half-price drinks are aiding to their hanging in there.
Subway—after closing 909 restaurants in 2017, Subway is trying to make up for the loss of 25% of their traffic over the last five years. Although PR has been a major problem, the introduction of newer, healthier sandwiches still is not helping the company to rebound as fast as they would wish.
Noodles & Company—with a recent data breach, Noodles & Company is struggling just to pay the $11 million that the breach cost them. Add to that the fact that they shuttered 10% of their locations in 2017, and you can see that this restaurant is truly barely holding on. Even with the recent addition of new menu items such as Buffalo Mac & Cheese as well as customizable vegan options, there may be no way for them to bounce back at this point.
Qdoba—with an increase in cost to the tune of 50% of avocados, Qdoba added just one more problem to the pile of problems they were already juggling. At the end of 2017, wage increases were causing problems, and then came the avocado hike. Of course, the Chipotle outbreak of a food-borne illness a few years back did little to instill trust in customers in the Mexican food cuisine.
Hometown Buffets—many buffet branded restaurants are also feeling the pinch. It would appear, by the slump in customers, that the concept of all you can eat may very well have run its course. One of the problems is that the food has to be on the buffet, whether the customer are there or not. With all the waste that is going on, the buffet-based restaurants won’t be able to sustain the loses for very much longer.
Like with every business, when the losses out way the profits, you can be sure that unless something changes, the business will have to shut down. It really doesn’t have a choice in the matter.