Staff Reports
Several chain restaurants are struggling to stay afloat in the Biden-era economy. TGI Friday’s recently closed one restaurant in New Jersey and plans to close another in Buffalo, New York. This brings the total number of closed TGI Friday’s restaurants to 40 this year, including eight in New Jersey and six in New York. The company’s U.S. president, Ray Risley, said they are working to optimize and streamline operations to meet their brand promise and close underperforming restaurants.
Applebee’s also announced plans to close up to 35 locations in 2024 after shuttering 46 in 2023. The chain’s president, Tony Moralejo, called it an incredibly difficult decision and a last resort. However, the chain still has over 1,500 locations.
Bidenomics: Restaurant Bloodbath Continues as TGI Friday's Joins Applebee's and Red Lobster with Closures via @WestJournalism https://t.co/N6CXuVC4cF
— Lmsjrpol (@lmsjrpol) May 22, 2024
Red Lobster has filed for Chapter 11 bankruptcy in Florida, citing the need to drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of its assets. The company reported that restaurant traffic had only marginally improved since pandemic-era restrictions began being lifted and lost $76 million in fiscal year 2023.
One of the contributing factors to Red Lobster’s financial troubles was a promotion for a $20 all-you-can-eat shrimp buffet. Despite expectations to boost traffic, the promotion resulted in significant losses for the company. The executive decision to extend the deal for six months despite losses proved to be unwise.
The struggles of these restaurant chains are a reflection of the current economic challenges in the United States. Rising inflation, labor costs, and the aftermath of pandemic restrictions have impacted the ability of businesses to thrive. As the country continues to grapple with these issues, the need for economic policies that support growth and prosperity becomes increasingly important.
In the face of these economic challenges, the need for strong leadership and effective policies is paramount. The upcoming 2024 election will be crucial in shaping the country’s economic future. It is essential for the American people to carefully consider the impact of government policies on businesses and the economy and make informed decisions at the ballot box.
