How come restaurants are closing left and right? (Jackson, Nice: lease, buy)

[citizensadvocate]

Its hard to believe even very popular restaurants where there was always a crowd at mealtime are closing down one by one. Therefore if you haven't at at a restaurant for a while, even a popular one chance are its likely it isn't there anymore the next time you decide to eat.

I once thought restaurants close down only after long periods of low customer traffic. As it was once the case, as I remember a restaurant that was almost empty at meal time for years before shutting down or more often regaining popularity. But these days even popular eateries shut down or are replaced in less than two years. I be curious what exactly is killing the restaurant business? Even though they say the economy is at its peak but it seems like this is worse than ever before.

[CaliRestoration]

Here, I can help.

[saibot]

We have lost a lot of restaurants in our town in the past few years. In fact, we joke that our deciding that a local joint is our "new favorite place" is the kiss of death for it. Three times, we've discovered that one of our well-loved eateries closed down unexpectedly, less than a week after our last visit.

Almost always, they close for the same reason: they lost their lease. Landlords are greedy.

[PNW-type-gal]

Restaurants have one of the highest failure rates in the business world. It is a tough business and a lot of restaurateurs are not particularly good business people. I don't buy the tax burden argument because that is true for ANY business, not just restaurants.

[citizensadvocate]

Wow South Dakota rank among the highest, on that map, interesting though they spearheaded the 1992 supreme court ruling regarding interstate commerce that prohibited or made unenforceable charging of use taxes by individual states on Internet interstate transactions. That move would eventually kill off most smaller internet businesses that are not as large as Amazon or other large web based stores with sophisticated calculation systems should an ever growing number of states decides to jump on board. California just before NJ at 49#. So thats why restaurants even the crowded "wait to be seated" or stand in line ones are closing these days?

Though interesting restaurants arn't closing down nearly as fast as recent as a decade ago.
Alas looking at the state map doesn't make anything safe these days given the current changing political climate particularly at the local level. As if one is doing business in Jackson, WY the town is becoming mini California with each passing day.

[Bill the Butcher]

Can't really say we are seeing that trend in my town. Maybe we are late to the party?

[payutenyodagimas]

traffic i guess. the restaurants i go to have always long lines even though the suggested minimum tip now is 18%

one resto i go to where there are always long line says in its website the average gross per branch is $5.9M

they dont spent on wares, dishwashers. they just put the fare in a plastic and you eat with your bare hands, no plates..

i guess they make a lot of money with that kind of gross

my neighbor who was classmate with a crew in that resto said that they make a lot on the tip

[Ruth4Truth]

Increasing overhead: rents going up and up (except in areas where there's commercial rent control--there you'll notice stability in shops and restaurants); the minimum wage going up. Maybe they're having trouble finding staff to hire, if people on the lower end of the earning scale are forced to move farther away? In some cases, restaurants move down the street to cheaper rent, or to another part of town. Those are the ones that had lines out the door all the time, in my experience. They don't give up completely; they just relocate.

[That_One_Girl]

I see this happening too. I rarely go out to eat, so I guess I'm not helping them.

[Hulsker 1856]

Originally Posted by CaliRestoration

Here, I can help.

No. You can't.

Fact:
The National Restaurant Association projects the restaurant industry in California to grow by 10.0% by the year 2028. That's higher than the #1 'business climate' state in your irrelevant graphic. And higher than the #2 state. And the #3 state. Get the idea?
https://restaurant.org/News-Research...ate-Statistics

Nice try, though. Better luck next time.