July 28, 2016

Restaurant Recession Could Signal Tough Times for U.S.

"Restaurants operate on thin margins with low profits per employee and little room to absorb added costs," the National Restaurant Association said
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7 comments:

Anonymous said...

“We still need to simplify the operation but there are too many people at corporate coming up with endless ideas to make life harder for our store managers.

Anonymous said...

It sounds like menu simplification is going away as they are proposing many new items in its place. Rents are too high, and the region is descending on the stores as if we were McOpCo, and they were supervisors. We used to get Owner/Operator reviews every 18 months, then every 12 months, now they are going to every six months. They continue to prod Owner/Operators to have more ‘Value,’ and keep their prices lower, to ‘Be disruptive’ in the local marketplace and push for more new equipment and technology.

Anonymous said...

Oak Brook is chasing numbers for a check mark on a list that they have, only to make them feel good. We are making changes just for the sake of change. Most of the changes accomplish nothing.

Anonymous said...

In case you missed it, menu simplification is a myth. In the last year the company has shoved all day breakfast and all of those products into the kitchen, with more to come. And now the minions of opnad are going to come and push value. And just wait, fresh beef is coming too! Modern, progressive and over complicated!

Anonymous said...

McDonald's simplification equation: 5-2=7.

Anonymous said...

Regions continue to push cheap discounts to bolster their scorecards. They do this knowing perfectly well it has hurt our brand perception but still remain convinced that selling cheap products is a requirement for the industry. The ‘let’s make a deal’ relations with franchisees also continues. We are constantly pressured to vote certain ways in order to obtain favorable discussions for items such as rebuilds and store acquisitions. Their corporate culture is completely unchanged.

Anonymous said...

We are still attempting to drive sales with a new building. It is nice to do but does not generate enough sales to satisfy returns for the franchisor nor franchisee. Cost still too steep.