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I see a lot of comments about "Just raise prices". And it's true, that's what restaurants have to do to survive on an individual level. The problem is aggrega
by Mikeb85 5y ago
I see a lot of comments about "Just raise prices". And it's true, that's what restaurants have to do to survive on an individual level.
The problem is aggregate demand across the entire economy. Consumers are getting squeezed by inflation for, well, everything. Quicker than wages are going up in the economy. So overall demand isn't rising as quickly as restaurants need to raise prices.
Consumers are still eating out and paying those higher prices, they're just doing it less often or, even worse, ordering less per visit.
This isn't necessarily the death knell for restaurants with a specific competitive advantage but it does mean lots of restaurants won't make it.