Empty Tables Threaten Some Restaurant Chains

As a direct result of the struggling economy, people are cutting back on their expenditures including going out to eat. Restaurants all over the United States are struggling, even the well-known family restaurants including Applebee’s, Red Lobster, and Outback Steakhouse. One of the main contributors to these companies’ struggles include basically the building of too many restaurants. Since 1990, the number of restaurants and bars in the United States has increased 49%, from 361,000 to 537,000. The United States’ population has grown just 23% during that same period of time.
After 16 consecutive years of economic growth, companies now have to face the consequences of their decisions to quickly expand and acquire more assets. Larger chain restaurants including Outback Steakhouse have been forced to make numerous menu changes including offering an increased amount of entrees at new low rates to lure customers and increase sales in order to decrease their more then 300 million dollars worth of debt. However, not all restaurants are struggling as a result of the economy. Fast food chains including McDonalds and Taco Bell have been thriving as a result of their dollar menu items and by offering combo meals at less then five dollars. There is not a doubt that the effect the economy is having is causing a ripple effect felt throughout the United States.

http://www.nytimes.com/2009/04/04/business/04restaurant.html?_r=1&ref=business