Retail Watchers

Between COVID closures, the labor shortages, the price increases on raw materials, a lot of these franchise businesses are in a world of hurt. Small chains like this cannot really negotiate food cost down very well and they can't subsidize franchisees running into difficulties. Many of these franchise businesses received PPP Funds and also in some cases employee retention credit funds but at this point that money has long been spent and I think the harsh reality is a lot of these franchise businesses just are up against a wall with ever increasing expenses and challenges getting customer counts back.

There was a big restaurant buildout boom in the 2010s, resulting in a glut. This was larger driven by the decline in retail, as landlords sought to fill vacant spaces. Even before COVID, there were many predictions that there would be mass restaurant closures the first part of this decade. Ironically, COIVD gave funding + rent relief that may have saved more restaurants than it destroyed.

I think we're in a transitional era. The chain restaurants that rose to prominence in the 70s/80s/90s, killing off traditional family diners & encouraging people to go out more often, are being squeezed out by next generation concepts. Much of this is geographical -- in SoCal, for example, fast casual reigns among Millennials and younger. Quite frankly, I can get a better meal served much faster and for less money at Farmer Boys, Habit Burger, Corner Bakery, California Fish Grill, etc. than Cocos, Marie Callender's, Reb Lobster. etc.

Bagels wrote: ↑February 13th, 2023, 12:28 pm Quite frankly, I can get a better meal served much faster and for less money at Farmer Boys, Habit Burger, Corner Bakery, California Fish Grill, etc. than Cocos, Marie Callender's, Reb Lobster. etc.

Yep, definitely have to watch out for those Reb(ellious) Lobsters

The pismo beach location is the next fatality, they will be closing on 2/15.

The Pismo Beach location is a franchise not company owned. Maybe there are telling the franchise locations to close.

the property owner may have another restaurant lined up to take over that location. black bear diner could be a real possibility.

Now it looks like Sunland closed so now it looks like they have (fourteen) 14 locations left and still one (1) Carrows left.
And Flagstaff is still open.

It came to my attention that riverside is closed(a franchised location) so now we are down to just 13 locations left and still one Carrows getting smaller.

The last carrows closed on the 28th of this month according to websites no more carrows.