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Lifestyle Uganda > Blog > Food & Restaurant > 9 Chain Restaurants Permanently Close 600 Locations
Food & RestaurantNews

9 Chain Restaurants Permanently Close 600 Locations

Fame Africa
Last updated: 2020/06/04 at 10:15 AM
Fame Africa
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Chain restaurants permanently close
Nine major restaurant chains now plan to close 600 locations. PHOTO/SHUTTERSTOCK
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Here is a list of 9 major chain restaurants that decided to permanently close around 600 locations.

Chain restaurants permanently close
Nine major restaurant chains now plan to close 600 locations. PHOTO/SHUTTERSTOCK

Chain restaurants permanently close: Since the onset of the COVID-19 epidemic, it has become clear that the restaurant industry will be one of the most affected sectors. 

Even now, in some areas, eating options are allowed, and most restaurants are forced to comply with 50% capacity restrictions, making profit more difficult, if not achievable. Ongoing lockdowns and remaining restrictions now force large chains to permanently close some areas.

Only nine major restaurant chains now plan to close 600 locations. Independent and mid-sized restaurants are no better. These massive closures will lead to equally massive unemployment.

In early April, UBS financial analyst Dennis Geiger predicted that one in five restaurants would be permanently closed due to the epidemic. Now even the big chains are showing signs of cracking, leading to a major contraction in the industry.

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Chain Restaurants closures

Here is a list of 9 major chain restaurants that decided to permanently close locations:

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  1. DGI Friday: 20% of 386 locations or 77 restaurants closing. The company is also experimenting with outdoor tent seating following social distance regulations.
  2. Sweet Tomatoes/Souplantation: Closing all 97 places. This buffet-style restaurant was particularly hard hit by the nature of its service style. Under normal circumstances, buffets are less than healthy, and they are leaning toward something dangerous amid an epidemic.
  3. Denny’s: Closing 16 restaurants, 15 of which are owned by one owner, Fired American Diners.
  4. IHOP: Closing at least 49 locations across Virginia, North Carolina, South Carolina and Tennessee.
  5. Ruby Tuesday: Since January 23, 147 locations have closed. This is an example of a company that has already struggled before the epidemic. The locks were large enough to push most places permanently closed.
  6. Speciality’s Bakery and Cafe: All 33 locations are closed. The company’s report blamed the entire pandemic for the closing infection and shelter orders.
  7. Brio Italian Mediterranean and Bravo Italian Cucina: Closing 71 of 92 locations. This comes after months of protests, including 10 closures in January.
  8. Steak N Shake: closing 51 places. The company has been unable to stay relevant for some time. It was only the catalyst for the closure of the epidemic.
  9. Le Pain Quotidien: 63 of its 98 locations will be closed. LPD had already filed for bankruptcy, meaning it closed 98 of its stores. However, it was able to negotiate a deal with Arifi Brands to reopen at least 35 stores.
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Why these businesses?

You may notice that all these restaurants are fast-casual or casual dining establishments. There are two reasons why this type of business has a particularly difficult time.

First, many of these locations are owned by independent owners, meaning that individual locations cannot access the funds of the company they represent. While franchisees use parent company terms and brands, most franchise restaurants run like a small, local business.

Unfortunately, most consumers do not think of national brands like social businesses. 

As the restaurant industry began to rely solely on delivery and take-out orders, many consumers chose to order from their favourite neighbourhoods to support its local businesses and get quality food. 

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A chain like Denny’s, although run independently, is unlikely to offer multiple take-out orders, given the consumer’s low quality of food, and the financial sustainability of the small concern.

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Source: Lifestyleug.com

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TAGGED: 9 chain restaurants close, 9 restaurants permanently close, chain restaurants close locations, Chain Restaurants closures, chain restaurants permanently close, Denny’s Closing 16 restaurants, IHOP Closing 49 locations, Speciality’s Bakery and Cafe closed, Sweet Tomatoes/Souplantation Closing

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Fame Africa 4th June 2020
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Fame AFRICA is a guest writer for https://lifestyleuganda.com/ specializing in celebrities, business, entertainment, and happenings around Africa 24/7
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