Bagger Dave's Abruptly Closes 3 Restaurants Amid 'Casual Dining Recession'
August 10th, 2017, 3:46 PM
Question: Who knew we're in the midst of a "casual dinning recession?'
Answer: The Michigan-based Bagger Dave's Burger Tavern chain.
The chain abruptly closed three of its restaurants in Southeast Michigan -- Ann Arbor, Brighton and Woodhaven -- in the the past couple weeks, reports Jessica Haynes of MLive.
"It has been well-documented that the casual dining category is experiencing a recession, we are focusing on strengthening our brand further with optimizing existing locations and operational efficiency," Michelle Fiebing, director of marketing at Bagger Dave's, said in an email to MLive.
There are 12 other restaurants in Michigan. An outlet in downtown Detroit closed in 2015 after being open for about two years.
According to a report last November in MarketWatch:
Restaurant companies should brace for a challenging period as consumers grapple with the rising costs of rent, prescriptions and car loans and take advantage of cheaper groceries to eat at home more.
That’s the verdict of Moody’s Investors Service, which on Tuesday slashed its operating-profit growth forecast for the restaurant sector and revised its outlook to stable from positive. The ratings agency is now expecting operating profit to grow 2% to 4% in the next 12 to 18 months, down from a previous forecast of growth of 5% to 6%.
Some reports say that people with money are still paying for higher-end dining.