Rising costs, shrinking consumer spending and changing customer habits push more restaurants into bankruptcy

 Rising costs, shrinking consumer spending and changing customer habits push more restaurants into bankruptcy.

At least 10 major restaurant chains have filed for Chapter 11 bankruptcy this year due to rising costs, shrinking consumer spending and the disappearance of pandemic-era financial support.

In June, Rubio's, a fast-casual chain known for its fish tacos, filed for bankruptcy protection, citing the burdens of higher labor costs and dwindling lunchtime crowds due to the popularity of hybrid and remote work patterns cutting into sales.

Sticky's Finger Joint, a chicken-tender chain, also declared bankruptcy that same month due to rising costs, lingering effects from the pandemic and legal issues from a trademark dispute with rival Sticky Fingers.

In February, Boxer Ramen, a Portland-based ramen chain, filed for bankruptcy and closed all four of its location by late April after more than a decade in business.

According to Jonathan Carson, co-CEO of bankruptcy services and technology firm Stretto, major restaurant companies have been filing for Chapter 11 bankruptcy due to rising labor costs, inflation and shifting consumer behavior.

"In this situation, a challenging economic environment, post-pandemic recovery issues, rising labor costs, changing consumer habits and inflation have caused more restaurants to struggle in 2024," Carson said in an interview with Fox Business, noting those issues have also impacted other sectors of the economy.

https://www.naturalnews.com/2024-10-25-rising-costs-push-more-restaurants-into-bankruptcy.html