May 5 (Bloomberg) -- U.S. restaurants are four times more likely to fail than they were a year ago and as many as 40 percent may face a “severe” cash shortage within the next 12 months, restructuring firm AlixPartners LLP said.
The increased risk may spur liquidations, restructuring, bankruptcies and buyouts, according to a survey of 110 restaurant chains. Debt-to-equity ratios have more than doubled in the past two years, hurt by falling asset and share values.
Casual and fine dining restaurants, which have seen fewer visits from consumers who are trimming spending amid the financial crisis, are more vulnerable than fast-food chains, said Andy Eversbusch, managing director and chief of the restaurant practice at Southfield, Michigan-based AlixPartners.
“Consumers are resetting their habits and reducing their casual dining outings overall,” Eversbusch said in a May 1 interview.
Among the 1,000 consumers surveyed, 48 percent plan to eat out less often this year, and 51 percent expect to spend an average of $10 or less when they do. Eversbusch declined to name specific companies that are among the most vulnerable.
Fast-food chains and eateries that bridge the gap between counter-service fast food and sit-down service are more likely to survive the decline, as eaters seek cheaper foods on par with casual dining locations, he said.
Tighter lending restrictions have made it harder for restaurant owners to refinance debt.
Link
Support This Blog-Visit the Advertisers above!
Restaurants appear to be frequented by those with discretionary spending budgets. Few folks have the surplus cash to spend eating out at cafes and restaurants presently.
ReplyDeleteIn fact, I would watch other frivolous niche markets for collapse. Example, candle stores, candy shops, teddy bear shops, novelty stores, junk jewelry kiosks, all virtually non-essential commodities.
Why spend your scarce currency on non-essential merchandise when you or your family may need items to sustain your household or family members in the hard times ahead.
Some may continue to spend haphazardly, but such foolishness will probably cost them the necessary comforts they now enjoy.
There are some wonderful restaurants out there that I'd hate to see fail. They're mom and pop places that don't have the luxury to offer discounts like chains do. It'll be very sad to see many of them go. I try to do my part in frequenting them but with the economy the way it is - too scary to be spending money unnecessarially.
ReplyDeleteSwimming: the Sport to Gain some Height
ReplyDeleteSwimming is one of the healthiest sports that are available today. It helps in a lot when it comes to the cardiovascular system and the pulmonary system. With swimming, the heart is strengthened, making it more capable of pumping blood into the rest of the body. If you have a good heart, you are less likely to have high-blood pressure and cardiac arrest. With swimming, your lungs are also improved, which is important since a body needs to maintain clean fresh oxygen to work properly.
Truly, swimming has a lot of advantages. But did you know that swimming can also help increase the possibility of a person way beyond his puberty age to grow taller? Yes, it can! One of the basics of swimming is the stretching of the legs and arms during the swim. The freestyle, the butterfly and the breast stroke all involve the complete stretching of arms and legs, especially breast stroke. For more information, visit here http://www.growth-flex.com/ .
Not only has that, swimming helped you to improve posture. We know that many short people are guilty of not maintaining the right posture. If you stand properly – straight and proud – you will notice that you will actually gain some height. Many people realized that once they have improved their posture, they grow at least an inch taller.
Furthermore, will floating in the water, the body experiences less gravity, being buoyed up by water itself. This relaxes the bones in your body, especially the spine.
Aside from utilizing this sport, it is also necessary to have a balanced diet, have enough sleep and have a daily dose of growth enhancers such as Growth Flex V Pro System. Go to http://www.growth-flex.com/
--------------------------------
flintoff