# Restaurant closings



## bethzaring (Jul 31, 2008)

Did anyone read the article yesterday in the Wall Street Journal about Metromedia Restaurant Group filing for bankruptcy and immediately, overnight, closing around 200 restaurants, laying off about 9,200 people?  The restaurants were Bennigan's and Steak and Ales. More closings are expected.

And Geebs talking about an $800 fuel oil bill.

It seems to me we are in uncharted territory with rising costs and an uncertain job market.

I understand 200 restaurants is a small number.  Am I crazy for thinking this is unsettleing?


----------



## Adillo303 (Jul 31, 2008)

I find a lot of the news unsettling that I see lately. Read the one below. This should never happen.

More Women Donating Eggs - Las Vegas News Story - KVVU Las Vegas

I have read about poeple cancelling doctor appointments, because, they can't buy gas to get there.

It is all very unsettleing.

AC


----------



## suziquzie (Jul 31, 2008)

I have to believe all the closings are a correction of bad decisions when the economy was good...
Such as Starbucks. Sometime stores across the street from one another? I mean come on, really, did they think that was going to last forever?
I think people got punch drunk spending beyond thier means with credit cards (like the retard that I am) and home equity, and companies feed on it......
Then oil and corn came in to play and didn't really help much.....
Aside from oil and food I believe its a correction. 
There are other factors with the oil and food that are just a little too political for me to get into my views.


----------



## GB (Jul 31, 2008)

Yeah I heard about the Bennigan's closings. That is really scary.


----------



## jabbur (Jul 31, 2008)

It was big news here where I live.  We had 3 restaurants in our immediate area.  It was reported that the managers got phone calls early in the morning telling them not to open.  Some employees didn't get the news until they showed up for work to find everthing locked up.  Yes things are unsettling right now but we are still way better off than a lot of places.  Think Sudan, Iraq, Ethiopia, Haiti for example.  I just read in the paper today that in Zimbabwe, they just issued a 100 billion dollar bill which will not even buy a loaf of bread.  We may be in for some changes but I think we can handle them.


----------



## ChefJune (Jul 31, 2008)

GB said:


> Yeah I heard about the Bennigan's closings. That is really scary.


 
... and probably just the beginning.  not good times, folks...


----------



## Bigjim68 (Jul 31, 2008)

I think that we had better get used to this trend and adjust accordingly.  The first things to go in a weak economy are recreational and travel related.  Restarants and hotels have the same problem as you and I, increasing costs and a stable or declining renenue stream.  Many of the costs of a restaurant are fixed, rent, utilities, etc.  Another thread asks how to save money in the kitchen  I am using mine more and Flemings and Ruth's Cris's less.


----------



## suziquzie (Jul 31, 2008)

The part that does scare me is that there are som people (myself included) that have already cut out everything.... I mean everything. Not even pay-per-view.....  no dinners out, no movies, no even extra driving to the lake.... I'm afriad of what will go next. 
Yes internet and sattellite could go.... probably cell phones but I dont like driving around with kids without one..... 
I will have to pick up more work and that will help quite a bit, so I really am not whining, just hoping I can get some ... but what about people who cant get more work for whatever reason...


----------



## bethzaring (Jul 31, 2008)

I think we have to do more thinking outside the box. Our lives are changing and we will have to operate differently. I feel we live close to the ground, but we can still do more. We still have three vehicles for two people.  

Today I am messing with canning onion relish.  Huh?  I never heard of onion relish. But I have a bumper crop of onions and want to preserve some.  I will be doing more canning this year.  We may not be buying a 1/2 hog this year, mostly because our supplier is not raising any this year, but we can eat more vegetables this year and less meat. I know we are going to be butchering more goats this fall than we ever have before.  Changes are a coming, and we each will figure out for ouselves how we cope.


----------



## Bigjim68 (Jul 31, 2008)

I don't have an answer either, especially in the short term.  As we speak, we are using 3 million barrels of oil per day more than are available.  Any solutions other than not eating are long term.  I am a RE appraiser, and so my job is faily secure.  I get you when you buy, when you refinance, and when you get foreclosed.  However, I get less per appraisal now than in 1990.


----------



## Jeekinz (Jul 31, 2008)

bethzaring said:


> Did anyone read the article yesterday in the Wall Street Journal about Metromedia Restaurant Group filing for bankruptcy and immediately, overnight, closing around 200 restaurants, laying off about 9,200 people? The restaurants were Bennigan's and Steak and Ales. More closings are expected.
> 
> And Geebs talking about an $800 fuel oil bill.
> 
> ...


 
We used to frequent a Steak and Ale in an adjoining town.  They really went downhill in the past 4-5 years.  They revamped the menu a couple years ao, but it still wasn't anything to write home about.  About the only thing good there was the salad bar and sweet bread.  We think they married a Stoli bottle with some other off the wall vodka at one point, too.


----------



## Bigjim68 (Jul 31, 2008)

I think that may be the good result of this, if there is a good result.  In the end, the better and more worthwhile entertainments, be it restaurants, travel, motels, or other, will survive, and the mediocre and worse will die.  That is the market system, and it always works if it is left alone.


----------



## elaine l (Jul 31, 2008)

We have cut back on many things.  Dining out is seldom, heat managed, didn't turn on the sprinklers this year (didn't need to as it turns out), making more price friendly meals.  Between the cost of oil, food, my health insurance our income just can't keep up and live like we were.  Add to that the cost of college and a wedding in Oct.  I even gave up pedicures!!  And that's a joke so please don't jump all over me! 

I did read that restaurants that service the middle class are having trouble but alas there is much more to come.


----------



## kitchenelf (Jul 31, 2008)

Bennigan's and Steak and Ale's closed around here years ago - I seriously didn't even know there were anymore Steak and Ale's open.  

I agree Beth - uncharted territory.  We have been used to "having" for a very long time and everyone is now going to have to live a different way.  That's not necessarily a bad thing either - - - just new to us.


----------



## Uncle Bob (Jul 31, 2008)

Don't worry about it....Enjoy your day, your week-end, and next week too! These are the good ole days!!! We must enjoy them while we may!!

Have Fun & Enjoy!


----------



## VeraBlue (Jul 31, 2008)

It's gone way past 'unsettling'.  It's disturbing to the point of fear for one's future.
I said several months ago that the high end restaurants could last a bit longer than the types of restaurants that cater to the middle class.  High end can survive because the upper class hasn't really been effected by the recession overmuch.  
It's only a matter of time before the street vendors are gone, too...


----------



## VeraBlue (Jul 31, 2008)

jabbur said:


> things are unsettling right now but we are still way better off than a lot of places. Think Sudan, Iraq, Ethiopia, Haiti for example. I just read in the paper today that in Zimbabwe, . We may be in for some changes but I think we can handle them.


 
Comparing the United States of America to Ethiopia or Haiti with regards to finance is like comparing a Great White to a guppy.  America has been a land of opportunity and endless supply since birth.  Suggesting we find solace in not having blight and famine  and disease when we are accustomed to the cup overfloweth will bring little peace.  We have been 'the world power'.... With all due respect, the countries you mentioned have never been stable places, financially.

Some people are handling the changes by stealing manhole covers from city streets to sell as scrap metal.  A 1 ton bronze statue of a horse was stolen from a local racetrack, cut down and sold for scrap metal.  That's how some people are 'handling' it.  Depression is being documented in record numbers.  Spousal abuse has shown a slight increase.  Health maintenance appointments are cancelled because the co-pay is unaffordable.  

Yes, America is resillient and will recover, but handling it isn't the issue.  Policies have to be implemented.


----------



## suziquzie (Jul 31, 2008)

hmmmm... manhole covers......
How many pounds of steak you think I can get for one of those?? 
And I thought I was getting desperate by selling my baby stuff rather than donating it this time....


----------



## jennyema (Jul 31, 2008)

Supposedly Bennigans and Staek and Ale closed because of the parent company's exceptionally poor management.  So I think suzie raises a good point.


----------



## Bigjim68 (Jul 31, 2008)

Most businesses fail because of bad management or bad ideas.  We haven't had a Bennigans or Steak and Ale around here that I know of in a while.  I think that mediocre anything gets a closer look when the economy tightens up.  There are others that are going to have problems.  IMO, Starbucks, is one, maybe Ruths Cris.  Admittedly biased since I don't like either one.  Circuit City is near gone.  This one is most decidedly because of management and ideas.


----------



## homecook (Jul 31, 2008)

We have a Bennigan's just up the street, it closed. It's right next to a Chi-Chi's that closed about 5 years ago and still vacant. There is a Red Lobster, Bravo, Smokey Bones, Chiipotles, McDonald's, Bob Evans, and Cleats. The Burger King that was somewhere there is now a Sheetz gas station. The Cleats used to be a Hooter's. Every time you drive down the street something is closing and "sometimes" something takes its place. I don't know how any of them stay in business, although on weekends you can't get in to any of them. 

Barb


----------



## bethzaring (Jul 31, 2008)

VeraBlue said:


> Yes, America is resillient and will recover, but handling it isn't the issue. Policies have to be implemented.


 
What type of policies are you thinking about?


----------



## bethzaring (Jul 31, 2008)

jennyema said:


> Supposedly Bennigans and Staek and Ale closed because of the parent company's exceptionally poor management. So I think suzie raises a good point.


 
I agree, suzie did make a good point.

One of the things that struck me was how this was handled.  The employees had no idea this was coming.  That has to be poor management too.


----------



## GB (Jul 31, 2008)

Bigjim68 said:


> I think that may be the good result of this, if there is a good result.  In the end, the better and more worthwhile entertainments, be it restaurants, travel, motels, or other, will survive, and the mediocre and worse will die.  That is the market system, and it always works if it is left alone.


That is probably true in the short term, but it will not be long before new mediocre businesses take their place.


----------



## PanchoHambre (Jul 31, 2008)

Its scary. I was laid off and am looking for work so I am being very cheap. goodby PETCO and your fancy pet food and products... I am not ordering take out or going out to dinner  I am shopping on sale and trying not to drive much. I can see why restaurants are having a hard time as they are a luxury expense. Frankly I saw the lay off coming and had allready cut spending but a bit too late. The credit cards are retired and I wont be taking my shirts to the laundry anymore time to hone up on the ironing skills.

This cant be good for the economy. I know I am hardly alone on this. While I have not been a big consumer of luxury items I did spend freely in bars, coffee shops and restaurants as well as on high end food and on home improvement items. That is all cut. 

I am not yet too worried about finding a job, my qualifications are pretty good,  but even when I do start working again my spending is going to stay very conservative.

In the end I hope that we learn a lesson on the spend now pay later culture that has been growing.


----------



## babetoo (Jul 31, 2008)

since i am on a fixed budget, the "recession" is really hitting me hard.

my grocery bill is up 50 dollars, even with much pruning.

don't go anywhere, cept family. 

i am very attached to internet and will not give it up at this point. my son pays my rent, tv , heating etc. i pay my own phone and internet, newspaper and some months i still can't make it. 

no new clothes for over a year.

had made a few cosmetic changes in the house last couple years. an outlet i think since i don't go to movies or plays or anything.

my friend's daughter sells books on e-bay and i get a pick before she posts
them. 

i did not buy any plants for the yard at all this spring. have always done so in the past. 

current sewing project is valance for new paint and floor in bathroom. making it from a table cover i made three years ago. 

my handyman does not charge much for helping with paint, etc. reusing same color paint in more than one room. 

food is also a creative outlet for me. doing less baking, supples  are getting to expensive for more that the basics. 

fruit is out out of sight in price, here in southern calif. go figure also a big part of my diet. had to cut down. 

i am sure there are more way to cut expenses but haven't figured out. 

babe


----------



## ironchef (Jul 31, 2008)

babetoo said:


> since i am on a fixed budget, the "recession" is really hitting me hard.



Recession shouldn't even be in quotation marks anymore. We are in a recession. Sucks, but that's life.


----------



## Saphellae (Jul 31, 2008)

Yep, it's life.. the recession will end and the market will go back up, just as it always has.

The US economy has alot to do with Fannie Mae and Freddie Mac. (yep, I am learning alot working for an investment company lol). They dished out so many mortgages to people who couldn't afford them to help the failing housing market. Now, because they have such a massive effect on the market, the government has stepped in to help the company. 

Alas, I'm not sure if that falls within the borders of political discussion, so I should stop while I'm ahead.. lol  

I consider myself lucky to have found a job during this difficult time for many. 

Ya know, ever since the tropical storm/hurricane that killed a bunch of oil rigs in the gulf of mexico, gas prices have never been the same. It seems that was a big trigger. (The same one that did in New Orleans I believe)


----------



## quicksilver (Jul 31, 2008)

Katrina.​


----------



## Maverick2272 (Jul 31, 2008)

There is nothing uncharted about what is going on right now at all. What goes up must come down, it is all part of the cycle. I grew up in the 80's, nothing new going on now I didn't see going on then.. like 3 out of every 4 farms going under. Used to drive thru my county and for every farm house occupied there were three abandoned, the fields bought out by the one still surviving.
And anyone hear of the Great Depression? If they can make it out of that and come back... who are we to fold and give up? The pendulum will swing back, policies that were repealed by Bush and Reagan to pave the way for this will be re-implemented and up it will all go... until the next time it swings back down again....
Hope that wasn't too political either, LOL.
As for Bennigan's, they fell victim to poor management and did exactly what happens to poorly managed business' in a capitalist market. I never liked them anyway....


----------



## attie (Jul 31, 2008)

We are hurting to but not as bad it seems, Starbucks are closing 61 outlets here but the others are hanging in. People now have no disposable income left over for the luxuries they normally enjoy so the belts have tightened and the restaurants and take outs are the first to feel this effect.
For us it is going to get worse before things get better, our mortgage rates are now almost 10%, The weak US dollar has contributed to the fuel hikes which the oil companies love [BP is reporting a $9.8 billion profit for the last quarter] and I guess Texaco is doing better than that.
Our past alliance with China and now India has saved us with their insatiable demand for iron ore, coal and gas. We bring in thousands of skilled workers now to try and keep up and this reverberates all the way down to people like Mc'D's and KFC who now recruit workers from the Philippines.
I read this morning that your GDP growth has slowed to 1.9%, that's not good when you consider China is predicting theirs to slow to 10.8% this year.
You could always jump ship and come join us ----- [Conditions apply]


----------



## Maverick2272 (Aug 1, 2008)

I'll be right there! Oh wait, ya'll got that nasty snake down there don't ya??? Anywhere down there free of snakes and I would be happy to go down under!


----------



## attie (Aug 1, 2008)

Maverick2272 said:


> I'll be right there! Oh wait, ya'll got that nasty snake down there don't ya??? Anywhere down there free of snakes and I would be happy to go down under!


Lots of snakes Mav------ but mostly in the bush. There's a simple rule with them, if they climb trees they're not poisonous, if they don't ---- run.


----------



## Maverick2272 (Aug 1, 2008)

I have a simple rule, if I am armed they should run. If I am not armed, I'm runnin! LOL I have a serious aversion to them!


----------



## bethzaring (Aug 1, 2008)

one thing I see as being different this time, is the federal budget deficit.  I rarely see this mentioned in the press. We have never operated under such a hugh budget deficit.  Any one know how this effects the current economic conditions?


----------



## bethzaring (Aug 1, 2008)

another few thoughts before I head out to pick beans to can today.....I am after a discussion of your strageties of dealing with the unfolding economic conditions.  I do feel we have an elephant in the room with this out of control budget deficit.  I also have had recent experience with Medicare.  I have been shocked at the things Medicare has paid for relating to my mother.  I have been paying my mom's bills since Oct 07 and Medicare and her insurance have paid close to $25,000, just since Oct.  I would not be surprised if they have paid close to a half million in her lifetime.

We have no debt.  That used to be wise.  Is it still wise?  We have been planning to retire dh real soon.  Now, not so sure.  Just looking for ideas of how to proceed for the next 10 to 20 years....


----------



## GB (Aug 1, 2008)

We have strayed far from the original topic of these restaurants closing and have started to get political. We need to get back to the topic at hand and not let this go into territory it should not go. I know that is difficult because this is a political situation to a degree, but I know we can do it.


----------



## simplicity (Aug 1, 2008)

Back on subject - the closing of Bennigan's and Steak and Ale. IMHO they faced competition they were ill-prepared for.


----------



## GB (Aug 1, 2008)

I actually have not seen a Bennigan's in many years. I had forgotten they even existed until this week. We never had Steak and Ale around here as far as I know. I have never seen one.


----------



## Jeekinz (Aug 1, 2008)

There's some Bennigans in Jersey.


----------



## Maverick2272 (Aug 1, 2008)

I have never seen a Steak and Ale either. Steak and Shake we have! LOL. Bennigans is one of a handful of restaurants with that same feel and look about them, and I think they were just the worst of the bunch. Them changing up the menu and trying new looks and new things in the last days to me would have been an indicator of problems.


----------



## bethzaring (Aug 1, 2008)

LOL geebs, and I was thinking I was apolitical..maybe I should reevaluate that self perception

I am unfamiliar with Bennigans and Steak and Ale.  The article implied they were better, or a step up, than something like Applebee's.

The article also said a growing number of companies are chosing to liquidate rather than restructure in bankruptcy.


----------



## PanchoHambre (Aug 1, 2008)

Maverick2272 said:


> . Steak and Shake we have! LOL.



mmm lucky! I wish we had those around

and yep Bennigans was pretty dreadful.... Here we seem to be innudated with Applebees which are my least favorite of the type


----------



## suziquzie (Aug 1, 2008)

We had a Bennigans for about 2 years near our old house. 
They built FAST on a strip with every other cookie cutter supposedly not fast food restaurant.... Applebee's, Chili's, Friday's, Outback (I do like that one), Olive Garden... a few others. 
It closed up before even all the economic issues. I figure they drowned in the sea of mediocrity....


----------

