The casual dining recession appears to be real.
The Michigan-based chain Bagger Dave's Burger Tavern abruptly closed three of its restaurants in Southeast Michigan -- Ann Arbor, Brighton and Woodhaven -- in the the past couple weeks, citing a casual dining recession.
Now, comes this: Joe's Crab Shack abruptly shut all three of its outlets in Michigan this week, according to a report by JC Reindl of the Detroit Free Press. The restaurants were in Ann Arbor, Auburn Hills and Sterling Heights.
Reindl reports:
The closures, which happened Monday, follow the Aug. 6 announcement for a tentative sale of Joe's Crab Shack and a sister brand, Brick House Tavern + Tap, to a San Diego-based private equity firm called Kelly Companies. The brands are currently owned by Ignite Restaurant Group.
Ignite said in the announcement that it will file for Chapter 11 bankruptcy as part of the sale deal.
Media reports have addressed the issue of a casual dining recession, but have noted that people are still spending money for high-end dining and very casual places like Panera Bread.
