Recession Hits The Service Industry: Restaurant Chains Close as Diners Reduce Spending

News Type: Event — Seeded on Wed Jul 30, 2008 8:39 AM EDT

Article Source: The New York Times

us-news, economy, recession, real-estate, market, spending, consumer-confidence, diners, resturant, bennigans, resturant-chains

Seeded by Killfile

Several national restaurant chains were shuttered on Tuesday, possibly offering an early taste of what's in store this year for businesses that depend on free-spending consumers whose budgets are now being squeezed.

The parent company of Bennigan's, an Irish-themed bar and grill with about 200 sites across the country, filed for bankruptcy, a move that will put hundreds of employees out of work and leave many landlords with empty retail space during a painful time in the real estate market.

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4.3

1.0

{"commentId":2318832,"authorDomain":"killfile"}

Killfile

No one wants to use the "R" word but if this isn't a recession it sure feels like one.

{"commentId":2318832,"threadId":"322452","contentId":"1706294","authorDomain":"killfile"}

3 votes

#1 - Wed Jul 30, 2008 8:52 AM EDT

{"commentId":2319167,"authorDomain":"webquack"}

WebQuack Studios.

Closer to a "D" me thinks.....

{"commentId":2319167,"threadId":"322452","contentId":"1706294","authorDomain":"webquack"}

2 votes

#2 - Wed Jul 30, 2008 9:35 AM EDT

{"commentId":2319617,"authorDomain":"lunartick"}

LunarTick

Yeah, it's all those damn Democrats' fault! What? Oh, that's not the D and R that you guys are talking about?

{"commentId":2319617,"threadId":"322452","contentId":"1706294","authorDomain":"lunartick"}

#2.1 - Wed Jul 30, 2008 10:26 AM EDT

{"commentId":2319280,"authorDomain":"RETLAW"}

RETLAW

I'm not sure that one restaurant company going to Chapter 7 defines either 'R' or 'D'. Does anyone know how well Bennigans (Stake & Ale) was managed (good or poorly)?? Perhaps the banks being taken over by the Feds is a more accurate indication of the US sliding into 'R' !!!

{"commentId":2319280,"threadId":"322452","contentId":"1706294","authorDomain":"RETLAW"}

2 votes

#3 - Wed Jul 30, 2008 9:50 AM EDT

{"commentId":2319588,"authorDomain":"killfile"}

Killfile

It's not just them. It's ColdStone (massive closings), Starbucks... hard times are here.

{"commentId":2319588,"threadId":"322452","contentId":"1706294","authorDomain":"killfile"}

1 vote

#3.1 - Wed Jul 30, 2008 10:23 AM EDT

{"commentId":2319686,"authorDomain":"lunartick"}

LunarTick

Well, I'm certainly not gonna miss Starbucks at all. But I will miss Coldstone, for those days where I could manage to get myself to pay 6 bucks for a little cup of ice cream (but at least it was damn good ice cream!).

{"commentId":2319686,"threadId":"322452","contentId":"1706294","authorDomain":"lunartick"}

#3.2 - Wed Jul 30, 2008 10:33 AM EDT

{"commentId":2319815,"authorDomain":"electricpresident"}

electricpresident

Starbucks is closing locations due to a stupid business plan that involved some hilarious retail space locations. They bought into their own hype and floated on their cloud before the reality of the business world hit them.

All aboard the recession boat, though.

{"commentId":2319815,"threadId":"322452","contentId":"1706294","authorDomain":"electricpresident"}

1 vote

#4 - Wed Jul 30, 2008 10:46 AM EDT

{"commentId":2320068,"authorDomain":"whyren"}

Whyren

It gets a little complicated when franchises are thrown into the mix. For instance, there are several Bennigan's restaurants in Iowa, but none are closing (at least yet) because they are all franchise owned.

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#5 - Wed Jul 30, 2008 11:12 AM EDT

{"commentId":2320481,"authorDomain":"macancon"}

The Original Mac

Actually it wasn't to long ago that IHOP bought out APPLE BEES. Also there are lots of chains that may not be down sizing but have scrapped any ideas of near future expansion.
With this said we need to remember the domino effect this is having and is going to have on the economy as a whole. For instance, If I were planning to open a mall... The first people I would get in on the deal would be two "corner stone" retail stores along with a widely recognized, mid level full service family restaurant. (With a liquor licence) If I can't get the latter then the first two are going to back out.
At the moment, this is a very bad scenario for our economy because this is the way it is currently designed to "grow". What we had better do now is see the writing on the wall and figure out new ways to motivate local economics growth other then through large retail outlets and and national brand name eaterys.

{"commentId":2320481,"threadId":"322452","contentId":"1706294","authorDomain":"macancon"}

#6 - Wed Jul 30, 2008 11:48 AM EDT

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KILLFILE

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Recession Hits The Service Industry: Restaurant Chains Close as Diners Reduce Spending

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