60% of Restaurant Closures Permanent, More will Close

Discussion in 'Latest US & World News' started by Horhey, Jul 28, 2020.

  1. MJ Davies

    MJ Davies Well-Known Member

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    I would say it's been back farther than that. It used to be that our parents and grandparents could be at the same company for their whole adult lives. I read a study (ages ago) saying the average Gen X and Gen Y'ers would have at least SEVEN jobs in their lifetimes. Have no idea what it would be for these last few generations.

    Beyond that, I don't understand why people are so irresponsible with money. I worked in a Finance department of a company and couldn't believe the number of professionals (doctors, lawyers, police officers, etc.) that simply couldn't manage to not overspend. It's not just that. In college, I worked at a convenience store and we had a customer that came in EVERY day to beg the manager to let her have two large pepperoni pizzas because her teenage son wouldn't eat anything else. She would promise to pay when she got her social security and she did. She had to pay off 2 pizzas/day x 30 days every time she got her check. She could have bought supplies to make pizzas for less than she was paying off each time. The kicker is the "kid" was old enough to get a part-time job but he preferred throwing tantrums until his mother caved.

    A realtor tried to coerce me to buy a bigger home than I wanted simply because I was approved for the credit line. Same with car dealerships. No thanks. I don't need somebody else telling me how much stuff I can afford. And, I NEVER use credit for anything that I can't pay off before interest hits. I know MANY people that use credit as extra money they have to spend on frivolities. It's crazy. I would have been wiped out after 9/11 when the airline business was turned on its head had I not followed my own rules and instincts about spending. Credit score has always been in the 800s. I have no interests in the latest gadgets and gizmos or interests in keeping up with the Joneses.
     
    Last edited: Jul 29, 2020
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  2. Spim

    Spim Well-Known Member Past Donor

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    Do you think people will ever learn that lesson?

    I have literally been living below my means since day one, and my income has always been modest. I did run about 1500 a month in the negative for a couple years after the 08 crash, but I was prepared for it, but it set my plans back for sure.

    Even with this covid thing, i havent lost a penny, I've actually profited, but I still trimmed back a bit in preparation for what's coming. If it (recession) doesnt come I'll just be that much better off.

    Maybe a small percentage of people get their act together and stop living on credit, but we need a massive shift in priorities as consumers.
     
    Last edited: Jul 29, 2020
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  3. FreshAir

    FreshAir Well-Known Member Past Donor

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    yes, but were talking about Trump and Trump's national guidelines to the States

    I agree, the Governors should not of listened to Trump... that is also true, and that is on them

    early on Trump could of contained it, but he was too busy playing it down, by the time we shutdown it was too late in some areas and too early in others
     
    Last edited: Jul 29, 2020
  4. jay runner

    jay runner Banned

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    For people who have chef and restaurant management skills plus cash or land this is a great opportunity once the riot-loot-bustup-n'burn stops and it looks solid.

    Restaurant equipment used in good condition will be a nickel on the dollar and if you have rural land (which has risen greatly in value the last eight weeks) you can sell it and really get yourself set up in business.
     
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  5. Spim

    Spim Well-Known Member Past Donor

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    Interesting thought, I missed out on the recovery bump 10 yrs ago, I was focused on digging myself out of a hole at the time.

    I'll have to put some brain cells to work.
     
  6. dadoalex

    dadoalex Well-Known Member Past Donor

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    In any given year around 50% of all non-chain restaurants close their doors.

    This could bring that number to 70% or so for 2020.

    We need to get these people an income.

    Personally, I say...
    Hand them a broom if they're able
    Hand them a tablet and make the contact tracers if they're able
    given them a paint brush and point to graffiti

    They may not be able to work where they want but work is good for the body and mind. Pay them a living wage and keep them busy.
     
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  7. Giftedone

    Giftedone Well-Known Member Past Donor

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    Yeah - you have somewhat of a point. I just don't think Trump played that big of a Role.
     
  8. Spim

    Spim Well-Known Member Past Donor

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    Those numbers seem awfully high. Granted my evidence is annecdotal but the majority of non chains around me have done pretty dam well, but I live in a growing stable area....yet still dependent on seasonal tourism.

    Got a source for that data?
     
  9. Junkieturtle

    Junkieturtle Well-Known Member Donor

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    Those concerned about lockdowns ought to be doing everything in their power to encourage folks to take the steps that reduce infection rates so that lockdowns don't become necessary.

    Here in PA we have a lot of folks in this state who don't take this seriously and then get mad at our governor when he imposes restrictions due to rising infection rates that too many people don't care to try and mitigate.
     
  10. Antiduopolist

    Antiduopolist Well-Known Member

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    Not the topic.

    Not every thread is designed to spread lunatic COVID propaganda.
     
  11. dadoalex

    dadoalex Well-Known Member Past Donor

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    https://www.cnbc.com/2016/01/20/heres-the-real-reason-why-most-restaurants-fail.html

    "Around 60 percent of new restaurants fail within the first year. And nearly 80 percent shutter before their fifth anniversary."
     
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  12. crank

    crank Well-Known Member

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    The key .. the ABSOLUTE KEY, is movement restriction.

    Looks what's happened to Australia. The current problems outside the state which is crashing (now sealed off from the rest of the country) are ALL associated with movement. Either people deliberately breaking border restrictions, or who crossed borders JUST before they closed. Internally, that state is having massive problems because they haven't shut down anywhere near hard enough. Masks are mandatory there, but cases keep going up because people keep moving around.
     
  13. crank

    crank Well-Known Member

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  14. Creasy Tvedt

    Creasy Tvedt Well-Known Member

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  15. Creasy Tvedt

    Creasy Tvedt Well-Known Member

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    How many riot mobs showing up at politicians homes and terrorizing them into submission is it going to take you reckon?
     
  16. jay runner

    jay runner Banned

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    "We need to grow herd immunity."


    "Over half the people living in the slums of Mumbai have had the coronavirus, according to a city-commissioned study released Tuesday that raises fresh doubts about India's official case numbers.

    India is already the third worst-hit country after the US and Brazil, with nearly 1.5 million cases though experts have previously said the lack of testing could mean the true tally is much higher.

    Blood tests on 6,936 randomly selected people conducted by Mumbai's city authorities found that 57 percent of slum-dwellers and 16 percent of non-slum residents had virus antibodies.

    Mumbai, where about 40 percent of the population lives in slums, has reported just over 110,000 infections and more than 6,000 deaths so far. The western city of 20 million people is home to India's largest slum Dharavi, where an estimated one million people live.

    But deaths in the sprawling slum have not exploded, with local officials saying their aggressive efforts to stem the spread of the virus has been effective.

    The survey results suggested asymptomatic infections were "likely to be a high proportion of all infections" and also indicated the virus death rate was likely to be "very low", the study said.

    The Mumbai survey came a week after an antibody study commissioned by the government suggested that almost a quarter of people in the capital New Delhi, home to 20 million people, have had the virus."

    https://www.wionews.com/india-news/...idents-have-had-coronavirus-says-study-316613


    The lowliest people down in the dirt, and the mud, and the blood are doing far better than the well off.

    Of course when was the last time you saw a grossly overweight Indian slum dweller with diabetes?

    It takes tough people to sleep directly on hot cobblestone sidewalks -- they encounter all the germs.
     
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  17. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    I predicted years ago that people would stop commonly going to restaurants as the economy changed. Of course I didn't predict a shutdown and pandemic would cause it. That could very well be the event that pushes things along, if the economy is not resilient enough to support the reopening of all these restaurants.
    It is a real possibility the country could be left with many fewer restaurants for many years to come.

    Also, commercial retail property owners have not been as flexible with the small businesses establishments who rent from them, as many had hoped.
    When a company has to go on paying the rent as part of the lease contract, but they are forced to shutdown, that company can go out of business. Many businesses do not have the cash reserves to keep on paying the rent.

    And even when the lease has already expired, many commercial retail property owners will force the business to move out if they do not sign another lease, at the normal prices. Many people do not realize how expensive and difficult it is for many small businesses to move. Being forced to move could be the thing that forces those establishments out of business.

    Ultimately this is not good for the property owner, but they do not realize it yet. They won't until they go several months with a high percentage of vacancies, with empty space not filled.

    By that time, however, it will be too late for many small businesses. (They will probably have just thrown out all their things because renting storage space is too expensive)

    I think this will also accelerate a trend that has been seen in the past decade, in many city areas, of commercial property disappearing and being turned into high density housing. More people, but fewer businesses. (This can happen with people earning less money, and a bigger percentage of household income going to paying high costs of housing rather than going to other businesses)
     
    Last edited: Jul 29, 2020
  18. gamewell45

    gamewell45 Well-Known Member Past Donor

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    We have a few eatery's where I live; all of them are still in business and managing to survive by doing the curbside delivery.
     
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  19. Giftedone

    Giftedone Well-Known Member Past Donor

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    Yes - When we are in full lockdown mode - If those inside the lockdown zone can not travel outside the zone - the virus originating from that source is contained.

    Full lockdown can work very rapidly - rapidly flatten the curve - so when you do it - it needs to be serious to work
    Then however - when the curve is flattened you must open up quickly - knowing that if there is a spike - you can lockdown again - Many times in areas where the curve is flat - the spikes are from an old folks home or a hospital and easily contained to a local area - anyone that was working or had contact with the facility immediately gets tested --- boom

    We need to be somewhat tactical about this - the broad blanket approach and half measures are far to slow - as we are seeing in the other nations that did flatten the curve - sure they have opened up somewhat - but not really - no conventions - no concerts - no tourism -

    The economic time bomb still ticks where they HAVE - flattened the curve - and this is scary.

    Get ready for some more major stimulus packages - All the Kings Horses and all the Kings Women - are going to be pulling out all the stops to try get us through this crisis - and put Humpty back together again - but will we ever see "Normal" again - and if so - will we get to that point before the economic destruction is killing more folks than Covid did.

    This is a real life game of chicken of sorts or what do you call that thing Malthusian Trap ? - where there are no good options.
     
  20. crank

    crank Well-Known Member

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    Only as long as people have an income they can afford to risk on convenience meals. That's not going to last.
     
  21. crank

    crank Well-Known Member

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    Of course. Lockdowns only work if you actually lock down. As in ZERO movement. No travel by any means but on foot or bicycle (and even the bicycle must a very local limit - say three kilometres). Only emergency and freight vehicles on roads, and zero public transit.
     
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  22. cirdellin

    cirdellin Banned

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    People keep saying that we can always have a good economy but saving lives through lockdowns was more important.

    Ok you reap what you sow.

    Congrats.
     
  23. Spim

    Spim Well-Known Member Past Donor

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    Ok, that's about "new" restaurants.

    You originally said

    Huge difference, which is why I my observations were different. I'd say about 75%-80%+ of my local eateries have been around for many years. But the new ones come and go quickly until one finally finally settles in.
     
    Last edited: Jul 30, 2020
  24. Junkieturtle

    Junkieturtle Well-Known Member Donor

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    The topic is about restaurant closures becoming permanent due to COVID-19, so how you can say my recommendation that folks follow the guidelines to prevent the lockdowns causing the permanent closures is not the topic makes me wonder if you even know the two are related?
     
  25. Antiduopolist

    Antiduopolist Well-Known Member

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    As noted:

    Not the topic.

    Not every thread is designed to spread lunatic COVID propaganda.
     
    Last edited: Jul 30, 2020

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