Published October 3, 2016
When it comes to restaurant, there is a wide and vast array of people that love and enjoy taking part in the aspect of going and eating at a restaurant. However recently there has been a major increase in the number of restaurants that have filed for bankruptcy. This article offers you the insight into why so many restaurants are filing for bankruptcy.
Key Takeaways:
- The chain has lost money for years. And lots of chains are taking the debt-protection route these days.
- To be sure, restaurants file for credit protection every year. They are capital-intensive businesses operating in a saturated industry that caters to a fickle consumer.
- Many of the others have been perpetually struggling. That was true with Logan’s, which has been trying to work out a deal with its lenders for some time.
“They are capital-intensive businesses operating in a saturated industry that caters to a fickle consumer. They frequently borrow money to expand. And they lease spaces for their restaurants. Thus, when sales fall, bankruptcies can often follow.”
http://nrn.com/blog/why-so-many-restaurants-are-filing-bankruptcy
Why so many restaurants are filing for bankruptcy
When it comes to restaurant, there is a wide and vast array of people that love and enjoy taking part in the aspect of going and eating at a restaurant. However recently there has been a major increase in the number of restaurants that have filed for bankruptcy. This article offers you the insight into why so many restaurants are filing for bankruptcy.
Key Takeaways:
“They are capital-intensive businesses operating in a saturated industry that caters to a fickle consumer. They frequently borrow money to expand. And they lease spaces for their restaurants. Thus, when sales fall, bankruptcies can often follow.”
http://nrn.com/blog/why-so-many-restaurants-are-filing-bankruptcy
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