More bad news on the restaurant front.
(As if the loss of 18 Burger Kings wasn’t already bad enough.)
This time it’s Subway – a franchisee based in California named CGA Corporation filed for bankruptcy earlier this Summer.
Subway closed hundreds of locations last year as the chain struggles with all the same problems that every restaurant is dealing with: Inflation and higher food costs, supply chain uncertainty due to the trade war, and labor shortages.
All of those could be handled – with difficulty – except for the fact that consumers are so concerned about the economy that they’ve begun curtailing their spending.
So costs are increasing, and you can’t pass them on to consumers – a recipe for disaster. And CGA Corporation’s bankruptcy is a testament to how difficult these struggles are.
What do you see as the major difficulties facing restaurants? Share a comment and let us know!
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