I’m always hearing about restaurants losing so much money in the first few years. Why?
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I think some element of this is cyclical and bigger than just restraunts.
The economy right now is in a very dire situation. Affordability is very terrible. Wages have been losing to inflation for a long time. Land/rent prices are astronomical. Food prices are very high. Wage prices are very high. And the consumer has less extra money to spend than usual.
It’s not just restraunts that are struggling, everyone is now, there’s a reason major banks and tech companies are firing people left and right. Something has gone horribly wrong with the economy and financial markets, that’s why the yield curve is so inverted.
I think restraunts were just the canary in the coal mine. They got hit sooner and harder because they were more exposed to the deterioration. But that doesn’t mean the problems will be limited to restraunts and tech and banks, it will keep spreading.
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