Why Sit-down Chain Restaurants Are Struggling

Red Lobster filed for bankruptcy in May. TGI Fridays closed nearly 50 locations abruptly in October, then filed for bankruptcy in early November. Hooters shut down dozens of stores in June, while Buca di Beppo declared bankruptcy in August. Even budget standby Denny’s said in October that it would close about 150 stores in the next two years, citing “choppy economic conditions” and the fast pace of inflation for food away from home. [time-brightcove not-tgx=”true”] Sit-down chain restaurants may be the quintessential American business, beginning with the expansion of Howard Johnson’s after World War II as families got in the car and started to travel.