There has been a recent slow down in people going to restaurants to eat. When people are feeling good about themselves and there whole situation they often take to restaurants to eat more often. Having a slow done in people doing this can be cause for alarm. The cause for something like this could be from prices rising or even from a slow down in job growth. Whatever the reason for it restaurants could be in trouble when it comes to there own income.

Key Takeaways:

• Americans eat out when they’re feeling good about things. That’s why a recent slowdown in restaurant sales is alarming some.
• No matter the catalyst, the deceleration is pronounced enough for Stifel Nicolaus to warn of a looming “restaurant recession” that may represent a “harbinger” to a widespread U.S. recession in 2017.
• McDonald’s executives believe at least some Americans are choosing to stay at home because grocery store prices haven’t risen as fast as restaurant menu prices.

“The precise cause of the shift is not clear, with some blaming rising prices and slowing job growth, and others suggesting security fears or even the 2016 election are playing a role.”

http://money.cnn.com/2016/07/28/investing/restaurant-recession/