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There are too many restaurants and too many retailers. 50% of all small businesses don't last 5 years. When the economy is good, many people open a business and have no clue what they are doing.
True. Go watch Restaurant Impossible or Bar Rescue.
Are basic retailers and restaurants hurting because most Americans simply do not have disposable income?
Are you unaware of the internet? All of these stores now have competition not just in their neighborhoods, not just nationally, but globally. Yes, the chains can have an internet site, as well, but tastes change. If you don't keep up, it doesn't matter how long you've been in business, you're going to lose.
Brick and mortar stores have been dying for some time now, long before Trump was in the picture. The economy is great. People just aren't buying their crap from brick and mortar stores as much as they are on the internet where they can get it cheaper, and usually can get something extra that they will not get from these chains. Plus, with the way people drive these days, and how rude so many people are anymore, can anyone blame people for not wanting to go to a brick and mortar store?
Restaurants, as has been pointed out to you, usually take years with someone who knows what they are doing before they start getting into the black. Opening a business cannot be done by just anyone with a pie in the sky dream. You need to have some type of experience or education in business, AND, always a good idea to hire help/consultation/marketing/lawyer/etc when opening said business, before you actually open said business. There's a LOT to consider before you ever start shopping for a building or the first piece of concrete is to be poured on the land you purchased. A lot of people don't know what they need to know, and they hire people who tell them bs instead of reality because they don't even know the right people to hire.
Going shopping or out to eat is not like it was when some of these stores got their start. People used to dress up and made it a day to go out to shop and dine out. Now? You see people walking around in their pajamas, crazy people, people being shot, fights, etc at malls and stores.
There's also the gluttony of it all. We've been 'given' so much to consume - when you have so much, not everyone is going to make it no matter what the economy is like.
Because people actually prefer good food now. Anyone who still eats at Ruby Tuesday, TGI Friday need to have their tongue examined.
Ruby Tuesdays and TGI fridays are not that bad. They are better than Applebees. But even Applebees is doable. If you are driving cross country, and feel hungry, but dont have time to explore, you just jumb into an Applebees, its ok.
Quote:
Originally Posted by shadowne
The bottom link regarding restaurants seems to be stories from 2016 to 2017. Many are just closing under performing locations.
As far as retail locations, that is just a sign of the times. People are switching to online shopping. Many of us avoid malls like the plague, although, driving to While Foods took forever last night due to mall traffic.
There are a lot of these franchisees out in the flyover states ( as some call it)/rural areas. Despite the growing economy, those areas are losing population, getting older. Their children are coming to the metros.
2019...guess what ? There are still too many restaurants
And the more franchises get sold, the more perceived value, the more the franchisor can charge, and the more franchisee loses.
Quote:
Originally Posted by itshim
Restaurants have notoriously razor thin profit margins.
In NYC, the vast majority of businesses are restaurants and most last less than 3 years. Much of it is due to the skyrocketing cost of the lease to operate which ultimately absorbs the cost of doing business.
Case in point, try running a small restaurant in Manhattan when the rents 20k a month. Good luck with that.
The people who can purchase rights to the franchises have lots and lots of money. When they buy into the franchise they end up giving much of it to the franchisor. Then they do the Sale Lease Back hoping to recoup. Then when things dont go they way they want, they declare bankruptcy, leaving the new LL hanging.
Far too many chain restaurants and other businesses everywhere. Some are only a block away from each other. I have to question how they think they will survive saturating the market that way. Where do they think they are going to get all the employees to staff them especially since many only pay minimum wage? One of the reasons I guess that we have so many illegal aliens here today and then we get to substitute their wages with our tax dollars. We need more regulation on businesses, IMO. I'm all for capitalism but it's getting out of hand now.
The restaurants are failing due to the higher minimum wage laws, and because Chick-Fil-A's taken all their business.
The retailers are failing because of the higher minimum wages, and the Internet...mostly Amazon.
These great wisdoms I share with you Grasshopper...free of charge!
Where I'm from the minimum wage is $7.25, but that didn't keep Long John Silvers/AW and Zaxby's from closing. Chick-Fil-A can't take business away from anybody on Sundays when it's closed. Maybe Raising Cain had that in mind when it located across the street from Chick-Fil-A. A bunch of retailers have failed here as well. Amazon doesn't need higher minimum wage for help in killing off businesses.
The US has always been over-retailed, since at least the 60s/70s. There are WAY too many shopping centers in the smaller city of 55,000 I live in currently.
What gives you that idea? Do the strip malls all have vacancies?
The towns in my area are all upper middle class and we've got empty strip malls. They've been empty for years. Every time I hear we are in such a great economy I think of those empty malls.
After a down period, the strip malls in my town are back to looking about as good as they did when Obama was president during his final years. The largest strip mall is full. At another strip mall people are hoping that the vacant JCPenney store will bring in Harbor Freight Tools or some other desired store.
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