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Is the restaurant industry in trouble?

According to recent research by the Bureau of Labor statistics, the number of casual-dining restaurants in America are increasing at “twice the rate of the population.” This oversaturation of fast food, chain, and franchise restaurants, however, means that small businesses and popular “fast casual” chains are floundering, weighted down by the burdens of too many…

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According to recent research by the Bureau of Labor statistics, the number of casual-dining restaurants in America are increasing at “twice the rate of the population.”

This oversaturation of fast food, chain, and franchise restaurants, however, means that small businesses and popular “fast casual” chains are floundering, weighted down by the burdens of too many choices. And while Americans are increasing the amount of money they spend on dining out, profits margins are stretched thin, causing minimal sales increases, and often, closed doors.

Publications like the Atlantic, however, note that while growth in sales in the restaurant industry are declining, growth in restaurant labor are blossoming. It’s predicted that by 2020, there will be more cooks and servers than factory workers.

Which presents a problem for businesses failing to convert sales.

According to a report by TDn2K, things may be on an upswing after this last quarter. “Economic indicators such as improved GDP growth and strong consumer confidence point to a favorable macro environment,” said Victor Fernandez, executive director of insights and knowledge for TDn2K. “Overall, we’re encouraged by depth and breadth of recent trends and are cautiously optimistic they will extend through the fourth quarter.”

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