Picnic’s Post

Restaurant Recession: 16 Chains File for Bankruptcy in 2024 Following up on my comments yesterday about our firm's current experience in 2024 with restaurant franchise brands, it’s not just a trend, it’s a troubling reality. This year alone, at least 16 restaurant chains have sought bankruptcy protection. These filings highlight the ongoing challenges the industry faces post-pandemic. Here are a few notable names: 1. Red Lobster: Struggled with a decade-old sale-leaseback deal and poor strategic decisions. 2. Buca di Beppo: Another victim of the pandemic, filing for the second time. 3. Rubio’s: Known for fish tacos, they filed after closing 48 locations, particularly hit hard in California. 4. Tijuana Flats: Once a fast-growing chain, it closed 40 locations due to a confluence of adverse events. 5. World of Beer: Hit by inflation, weak traffic, and franchisee litigation. Others on the list include: EYM Pizza, River Subs, Tender Greens and Tocaya, Miracle Restaurant Group, Chicago WhirlyBall, Melt Bar & Grilled, Kuma’s Corner, Boxer Ramen and SuperDeluxe, Sticky’s Finger Joint, Oberweis Dairy, and Etta Collective. The financial strain from the pandemic, coupled with inflation and changing consumer habits, has created a perfect storm for these businesses. While not as severe as the wave of general bankruptcies during the pandemic, 2024’s numbers are still alarming. Understanding these trends is crucial for the industry’s recovery. If you’re in the restaurant business, what challenges are you facing right now? #restaurants #franchise #franchising

How can brands protect struggling franchisees from bankruptcy? In this "Ask an expert" article for Restaurant Dive, Christopher Desiderio discusses the issues driving restaurant bankruptcies and provides best practices for franchisees and franchisors. https://lnkd.in/gpheMQvB

Growing quickly

Winning at the franchising game. How do restaurants succeed at the franchising game? A panel at the Restaurant Franchising and Innovation Summit shared some key strategies. http://ow.ly/1znu105u1oT

Winning at the franchising game. How do restaurants succeed at the franchising game? A panel at the Restaurant Franchising and Innovation Summit shared some key strategies. http://ow.ly/wGWZ105u1ow

Increased real estate costs remain a large focus for business development in 2024. Despite challenges that the industry might be facing, Little Caesars Pizza has found success utilizing our proven business model built for scalability, making the franchise a steady and high return investment. It has been great to see so many successful grand openings already this year, including non-traditional locations that face these modern day challenges by decreasing costs and the amount of space needed. If you are interested in learning more about Little Caesars real estate and development efforts, visit our brands franchising page below. https://lnkd.in/eN2hVb66 #LittleCaesars #RealEstate #FranchiseOpportunities

How can you develop training that restaurant managers are eager to embrace? Jim Bitticks, CFE at Dave's Hot Chicken, discusses how their cutting-edge training videos have transformed staff education, making it both engaging and effective throughout their franchise. Listen here -> https://lnkd.in/g6-tVjN6 #LearningAndDevelopment #OrganizationalCulture #AIInnovation #DisruptiveInnovation #DigitalTransformation

Meet John Hamburger, the man behind the Franchise Times Corp. — a media company that nationally published business trade journals in food, franchising, and finance, including Franchise Times Magazine, Restaurant Finance Monitor, Food On Demand, and Foodservice News | Charlie Awards. You may have also attended one of Franchise Times' industry conferences, like the Restaurant Finance & Development Conference, Franchise Times Prime Time, or the Food On Demand Conference. Learn more about John from this brand new Sherm’s Take 5 interview! #ShermsTake5 #franchiserestaurant #franchisetimes #franchiseowner #restaurantowner #foodondemand #foodservice #foodservicenews #restaurantfinance Neal Sherman

Real conversation that franchise owners attending the National Restaurant Association show SHOULD be having 🤣 Troy Hooper, Mark J. Bailey, and the Asia leadership team will be there meeting with vendors and potential franchisees. But if you'd like to meet and talk franchising, comment below or DM me. We'll try and make it work!

Many think McDonald's a fast-food restaurant chain, it's more accurate to see it as a real estate business. They own a staggering $42B in land which their franchisees operate on, an empire that generates $8.4B in annual rents from franchisees, constituting 36% of their 2021 revenues. McDonald's strategic approach involves owning the land their franchises operate on, ensuring control and stability. In cases where direct ownership isn't permitted (airports, theme parks, China, etc.), they employ exclusive partnerships or Master Leases, maintaining authority over their locations. While McDonald's franchising success is often credited to Ray Kroc, it was Harry Sonneborn who created the lucrative real estate model for the fast food chain. For an insightful look into this business strategy, I recommend watching the movie "The Founder". #RealEstate #FastFoodRestaurant #BusinessModel