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Chain restaurants in trouble

U.S. chain restaurants are four times more likely to fail in 2009 than they were a year ago, and up to 40 percent of chains could face cash flow problems within the next year, according to a study released Tuesday by business consultant AlixPartners.

That’s the opening paragraph of a Nation’s Restaurant News story headlined “Study: Chain cash flow problems, failures more likely”.

The study focused on 110 restaurant chains nationwide in several categories, from casual to fine dining.

Some national restaurant chains have taken hits in recent months in their Dayton-area operations, as a Ruby Tuesday closed in Huber Heights and two Fuddrucker’s locations, Miami Twp. behind the Dayton Mall and Beavercreek near the Mall at Fairfield Commons, also closed.

Permalink | Comments (18) | Post your comment | Categories: Restaurant industry news

Comments

By Dobie

May 6, 2009 8:41 PM | Link to this

I might add, the waitresses and waiters make about 2 bucks and hour. We “pay” their wages with tips. So she might wait 5 tables an hour, with an average tab of $40 per table. $200 bucks to the house minus 2 bucks for her services, minus 20 for the food wholesale price and preparation, minus 5 cents for the cost of the syrup in your $2.50 pop and the house makes $177.95. She might luck into some “taxable” tips though, I am sure she will claim it all. If she averages 10% (she won’t) she will earn $22 per hour! That barely pays for her cigs she smokes, (that is were she is when you want something else to drink, out back smoking. So, I guess she indirectly pays taxes, $40 for a carton of $5 worth of cigs, with some odd $30 worth of “sin” tax built in.

By Dobie

May 6, 2009 8:31 PM | Link to this

Yes, all that money from the Golden Coral stays local…Me thinks a goodly portion gets sent back to the motherland, that way, you know, southward, across the river, not Kentucky either, further south. Actually much further “southwest”…

By non smoker

May 6, 2009 4:13 PM | Link to this

Mikey must be another one of those smokers trying to blame the smoking ban for the economy. Get over it! Smoker yourself to death if you wish, but keep it away from the rest of us!

By MJ

May 6, 2009 3:17 PM | Link to this

Seems to be getting off topic here, but there are studies that show locally owned establishments have a greater economic impact locally than typical chain establishments. Money is more likely to be recirculated within the local community instead of sending profits and franchise fees off to some distant HQ. bigboxtoolkit.com/index.php/Economic-Impact-of-Local-Businesses-vs.-Chains.html

By Lat

May 6, 2009 2:11 PM | Link to this

I work in the restaurant business… most full serves run at about 25% of the sales in labor costs (local people getting the $) with 25-40% more going to food, and operational cost. after you pay management, the “big company” only gets about the same as the local employees.

By Buford Pusser

May 6, 2009 1:37 PM | Link to this

I have NO idea why anyone even considers wanting to care about LIVING in the rust bucket anymore. Much less caring whether a restaraunt stays open.

By POV

May 6, 2009 1:22 PM | Link to this

Brandon, unless you have seen the accounting records of ALL local restaurants, I don’t really know how you can say that is true. As a teen, I worked at the Old Hickory and Grub Steak and I can assure you the owners of both places took millions out of those establishments, bought homes, cars, jewelery, and all their consumer goods locally. How can that not be better than the money totally leaving our area???

By Brandon

May 6, 2009 1:06 PM | Link to this

Does anyone really believe a local restaurant brings in “big money” to Dayton? To earn big money a restaurant must be bigger than just Dayton. Of course if they are bigger then you people hate them for being a big chain restaurant. Local restaurants add character to an area but to compare local vs. chain restaurants on economic impact is just ignorant.

By theshawn

May 6, 2009 12:43 PM | Link to this

If they operate illegally or unethically that’s one thing. But to wish people out of a job in order to punish some phantom “national” chain is small minded

By zaxl

May 6, 2009 12:34 PM | Link to this

good riddance. while it is true that chains do employ local workers, the real money- the store’s profit- leaves our local economy.

By mikey

May 6, 2009 12:20 PM | Link to this

smoke em if ya got em

By mtgolflady

May 6, 2009 12:03 PM | Link to this

We go to restaurants that serve great food at reasonable prices - local, franchises, regional chains, national chains.

By Eater

May 6, 2009 11:52 AM | Link to this

Support a local resteraunt! The national chains serve crappy food at inflated prices to keep Wall Street and the CEO pockets lined with cash.

By bob

May 6, 2009 11:48 AM | Link to this

I’m confused about jjkay’s comments on trying to support the locals. Are all the staff members flown in from other locales? Is the person that buys into a franchise some relocated outsider, or is he/she simply an entrepreneur with a thought that this concept of restaurant might do well in this area? I know of many local franchisees who are from this area who have invested in a national chain. It doesn’t make them less worty of your business

By TJE

May 6, 2009 11:36 AM | Link to this

Fuddruckers is a national chain. I saw one down in San Antonio.

By POV

May 6, 2009 11:30 AM | Link to this

Yes those national chains do employ a lot of people, however the BIG money they take in doesn’t stay here. Fuddrucker’s was a local chain I believe. Also, Cadillac Jacks, Frickers,

By Support local workers

May 6, 2009 11:21 AM | Link to this

This type of thinking makes me cringe. All of these restaurants employ LOCAL workers, when a chain rest. goes under 10’s of LOCAL workers lose the their jobs!!

By jjkay

May 6, 2009 11:18 AM | Link to this

We’re trying to support the locals here.

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