CHARLOTTE, N.C. — It's been a bad year for restaurant chains nationwide with several forced to close their doors for goods.
Experts say the trend could change the way chain restaurants operate forever.
According to a new report by the Wall Street Journal, restaurant chains are on track to declare the most bankruptcies ever outside of 2020, signaling a big shift in how consumers spend their money.
Like most economic problems in 2024, this one has been years in the making, birthed during the pandemic. And the high inflation of the last few years has made it difficult for restaurants to return.
While big-name bankruptcies like Red Lobster are the closures you see in the headlines, experts say it's midsize chains that are struggling the most. An analysis of bankruptcy shows chains with just a few dozen locations are having trouble meeting customer demand. At least 10 restaurant chains have filed for Chapter 11 bankruptcy protection this year, CNBC reported.
Now, bigger chains and investors are buying smaller ones out of bankruptcy. The running belief is by cutting costs and locations, while boosting efficiency, these investors can make struggling chains profitable again.
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