Bidenomics: Red Lobsters suddenly close everywhere

Its never their fault for the things that are happening under their command....

 

I am moving to California.

 

Hey, Red Lobster: Please don’t cut bait on your surprisingly good Times Square location

https://nypost.com/2024/05/15/lifestyle/red-lobster-times-square-should-stay-open/

 

This Sbarro on 7th Avenue has since closed since this glowing review by paper mogul Michael Scott.

 

Starbucks is taking a beating from latte sipping libs not drinking as much.

Sign of the Times?

 

Place is better than Burger King and McDonalds, but that isn't saying much.

 

As long as Sizzler doesn't go out of business, everything will be okay.

 

FTFY.

 

tilman faints.

 

this old house was built on dreams, but a businessman don't know what that means.

Spoiler

 

**** private equity

 

This is all true - but the reality is that the restaurant was in bad shape for then, and they did this to raise money to put into the chain because they failed to have sufficient assets in reality to run the chain. The same thing has happened to a lot of businesses. I want to say Sbarro Pizza is one example.

The problem is that it increases operating cost long term after getting the initial increase in capital.

This is fairly common in failing businesses.

Red Lobsters problem can be tracked back a long time ago - they failed to make changes with the times over the last 40 years - they severely cut back on advertising for decades as well, and they were essentially used as an asset to help other assets in the same portfolio. Short of having a really saavy entrepreneur take over years ago - it was going to fail.

There is a market for Red Lobster in second class cities that fail to attract or keep high profit point restaurants - but when Red Lobster had to pay rent, it means raising prices beyond the points that a second-class city would pay (too expensive) or cutting costs, and Red Lobster couldn't cut enough to make up for the increased expense costs.

Sears went through something similar - once you start selling off the land, or highly valued assets (Craftsmen) you almost always enter a death spiral.