08/18/2017 / By Thomas Dishaw
We’ve spent a lot of time this year discussing the complete collapse of mall-based retailers, a collapse which has resulted in more store closures in Q1 2017 than all of 2016 and will likely claim more victims by the end of this year than any year since the great recession nearly a decade ago. Here are a couple of recent examples:
But those mall-based apparel companies aren’t the only ones suffering the dire consequences of collapsing mall traffic. For years, the casual dining space has become more and more saturated with new concepts resulting in thinner and thinner margins for the restaurant industry. Now, with foot traffic in malls collapsing these same restaurants are about to experience the brutal realization that declining traffic, massive fixed costs, rising minimum wages and razor thin margins aren’t a great combo.
Thankfully, Barclays’ restaurant team, led by Jeffrey Bernstein, has identified which publicly-traded restaurants are about to get screwed the most. Here’s a summary:
Of the large publicly-traded casual dining chains, Cheesecake Factory ‘wins’ the ‘most screwed’ award with 93% of their locations heavily dependent on mall traffic.
Meanwhile, proving they went full mall-tard (something you should never do, btw), CAKE’s second largest casual dining concept, Grand Lux, is also over 90% dependent on mall traffic.
Tagged Under:
Cheesecake factory, Restaurants
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