Restaurants have spent the past decade growing at a steady rate, adding new service styles and menu types, and finding new technologies to get food directly to the consumer faster and just as delicious.

But the word on the street is that the industry is at the peak, according to Restaurant Businesses, Bottom Line Newsletter, and its sister company Technomic.

The truth is menu prices increase just like all consumer products and services every year. And let’s keep it real consumers are only going to eat out so much.

With all that in mind, it hasn’t affected the fact that there are more restaurants than ever.

The economy is doing great as we have been told, and if you try to go out to eat on a Friday or Saturday night at most high-end chains, you can expect to wait 40 minutes to 60 minutes, even longer. I was told with my party of 4 at LongHorn we may have to wait 70 minutes last weekend!

Consumers have money to spend on restaurants, and they’re willing to pay higher prices for what they’re getting. So why is there this doom of the industry peaking and could be in for unsuccessful times, THE RESTAURANT INDUSTRY GETS NO RESPECT BUT DON’T LOSE HOPE

Research & Analysis

There are significant problems for chains, from Village Inn, Krystal Burgers to Bar Louie. McDonald’s reported remarkably strong sales but weak traffic. And Starbucks’ strong earnings came along with a notification that it had closed half of its restaurants in China over the coronavirus outbreak.

These situations happen every year, and it’s dangerous to judge the restaurant industry by a couple of chain bankruptcies. There are tens of thousands of restaurant companies out there and hundreds upon hundreds of chains. Some of them struggle and file for bankruptcy every year.

What’s more, each filing has its reasons! Krystal, Bar Louie, and Village Inn are different chains that focus on different meals of the day and target customer bases.

Krystal faced intense competition in a burger space loaded with companies, from rival White Castle (who is back on the move) to fast-growing Shake Shack, in addition to big guys such as McDonald’s and Burger King.

Village Inn, to compete with the growing number of breakfast-and-lunch places and the strength of larger chains such as Denny’s and IHOP. I’ve watched a Village Inn near me struggle for years, changing its décor, menu, and pie selection. The chains have been in decline and struggled to compete in that environment for some time now.

Bar Louie grew too fast, struggled to fund its growth. It also cited a challenging environment for casual-dining chains, the bar, and grill segment, which has faced harsh challenges in recent years. I was living in Manhattan in the eighties when a bar called Bar Louie opened. It was the most relaxed bar and grill to come to the city ever, and I often wonder if that is where the franchise was first developed.


One chain exception was Chili’s Grill & Bar, whose sales sped up in January. One reason for this is their commercials with music! They are reaching their base by attracting peoples using two of our five senses visual and hearing. Music sets the mood and memories hearing and visual works in conjunction to tantalize our taste buds!


Not every restaurant chain or independent can afford such advertising, but if you can do it on some level, it can’t hurt!

What it all comes down to is what do you offer that the competition doesn’t or what you do better than your competition?

I don’t want to make it seem it’s that easy because it’s not!

It takes research and working with people who have become successful in the restaurant industry, even to have a chance of becoming a successful restaurant owner.

The startup phase is the most important; it’s the birth of your dream come true! Not doing essential steps from the beginning can jeopardize any chance for long term success.

You Are One Decision Away From Learning How to Start a Restaurant!

Don’t Lose Hope I Can Show You How To Get Respect In The Restaurant Business!