That is an interesting insight. I wonder how restaurateurs project customer default rates when analyzing new opportunities? They must teach this in hospitality

That is an interesting insight. I wonder how restaurateurs project customer default rates when analyzing new opportunities? They must teach this in hospitality management schools... Regarding the housing comparison, the nature of the credit, the goods exchanged and the fact that maturities are so much shorter in restaurants (1:8)[1], allows (requires) restaurants to engage in riskier business practices. Mortgage lending risks are obviously much more complicated, but you are correct to point out that risk is an inherent part of issuing credit. [1] Assumes 3 hours credit issued to the average customer, with average inventory borrowed for 30 days.