October 17, 2016
The U.S. restaurant industry is battling an oversupply of eateries and different options for diners. As a result, many companies have been heading to the courts for relief.
In one recent week. Cosi Inc.: Rita Restaurant Corp. (owner of the Don Pablo chain) and Garden Fresh Corp. (which operates Sweet Tomatoes and Southplantation) filed chapter 11. Additionally, at least five other restaurant operators filed for bankruptcy, with restructuring plans calling for shuttered retail operations.
One reason for the issue is that, while restaurant supply has grown, foot traffic has not. Another factor is that young people are saving money by shopping at the grocery store, and cooking at home.
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