They must not have had enough flair

A couple of chain restaurants biting the dust.  First Starbucks and then Bennigan’s.  How much is it going to take for these giant companies to realize that they are digging their own grave?  You over build and expand too quickly and then they wonder why there are no customers.  A bigger question is how these giant parent companies think that the average Joe like me is going to be able to pay for there frappachino-bbq-mocha-french fries.  I have made the exact same salary for two years in a row.  In the meantime, gas prices have tripled, my rent has gone up 5%, and groceries cost more.  I feel like I am squeezing a stone for water here.

WTF??

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NEW YORK – Restaurant chains Bennigan’s and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors: about 150 company-owned Bennigan’s restaurants.

All restaurants have been struggling as consumers cut back on discretionary spending to better deal with high gas prices, the weak housing market and inflation. The hardest hit have been casual dining chains and bar and grill restaurants, which charge higher prices than fast food and other quick-service chains.

Bar and grill restaurants have also suffered from intense competition. Morningstar analyst John Owens said several chains expanded quickly, making it more difficult for customers to differentiate between them and forcing many companies to cut prices to lure diners.

~ by scifibutterfly on July 29, 2008.