Friday, January 6, 2017

A depressing forecast for independent restaurateurs

Why America's Restaurant Industry Is in a Bubble About to Burst - Thrillist:


The American restaurant business is a bubble, and that bubble is bursting. I've arrived at this conclusion after spending a year traveling around the country and talking to chefs, restaurant owners, and other industry folk for this series. In part one, I talked about how the Good Food Revival Movement™ created colonies of similar, hip restaurants in cities all over the country. In the series' second story, I discussed how a shortage of cooks -- driven by a combination of the restaurant bubble, shifts in immigration, and a surge of millennials -- is permanently altering the way a restaurant's back of the house has to operate in order to survive.
This, the final story, is simple: I want you to understand why America's Golden Age of Restaurants is coming to an end.
Across the nation, restaurants like AQ -- chef-driven, ambitious, fine-casual dining spaces that straddle the gap between neighborhood fixtures and destinations -- are the ones closing their doors most quickly, mainly for a reason above: labor costs. And it's happening everywhere -- research firm NPD Group reported that in 2016 the number of independent restaurants in the US dropped 3%, while chains increased, and said the majority of those independent restaurants closing were sit-down. The reasons the costs are going up are complicated, involving a mix of laws and taxes and other inherently unsexy things.


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