Based on the figures, an average of 240 to 360 restaurants will close is each state...Does this mean that only the best tasting food will survive? Or the cheapest?
"Over the past 10 years, the total number of restaurants in the U.S. -- which is currently 570,000, according to an estimate from Technomic -- grew by 1% to 2% annually. This year, 12,000 to 18,000 restaurants are expected to close, sending the net total down by 2% to 3%, says Mr. Pawlak. The National Restaurant Association reported its lowest numbers on record for its Restaurant Performance Index, a complex formula that incorporates restaurateurs' reports of their traffic, sales, labor and investment expenditures as well as their expectations for coming months. A record 47% of all restaurateurs say the economy is their current top worry, the trade groups says."
What's Not Cooking
by Katy McLaughlin
http://online.wsj.com/article/SB123266832459008071.html?mod=todays_us_weekend_journal
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A take away from the article would be that cheaper restaurants will likely survive. I do not think that the high-end restaurants will be forced to close down – they will find a way to survive this tough time by lowering their prices, modifying their opening hours, etc., because there is always a demand for fine dining. Perhaps, the current phenomenon in the food industry is a good thing – only the best in each category (from the cheaper end to the lavish one) will survive.
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