Just means the restaurant wasn't very good to begin with. Chipotle, McD's, etc. have all raised prices nationally, and they operate in what has to be the most price sensitive market possible. I know the good restaurants in my area have doubled prices and people keep coming because they're the best.
Rising prices differentiate the good businesses from the bad.
You are talking about a fundamentally different situation than the article, and than a lot of areas face. “The good restaurants in my area.” That implies a much larger selection than the typical small town, where there’s likely a McD’s but not a chipotle.
And as was already stated, the buying power in these towns tends to also be lower, maybe fluctuating due to tourists but nowhere near a city’s average. Your “people keep coming” and “doubled prices”comment suggests a much higher level of disposable income.
And throwing out corporate chains as part of this? The franchises are just tiny pieces of the whole. There’s a whole massive machine watching each limb, supplying it, and sometimes amputating it. Which, yet again, compare that to a mom and pop, it is nowhere near the same.
If you haven’t been to a small town, you should visit a few. Your disposable income would be welcome in a lot of great restaurants that are still struggling. A lot of not so great ones as well.
It sounds like the restaurant was a side project that was barely solvent to begin with. They could try raising prices, but if the customers leave then people simply aren't willing to pay what it costs to keep that place open and the demand to support that restaurant in that place just isn't there.
> It sounds like the restaurant was a side project that was barely solvent to begin with
This is an incredibly bad take.
Restaurants are a grueling business and many have low margins — 80% fail within 5 years. Since the beginning of the pandemic many incredible and beloved restaurants in my city have been forced to close due to lock downs, landlords raising rents, rising costs, etc.
> They could try raising prices, but if the customers leave then people simply aren't willing to pay what it costs to keep that place open and the demand to support that restaurant in that place just isn't there.
If customers are sensitive to higher prices, it's probably because of record inflation and economic downturn limiting their disposable income.
Nowadays the only establishments with stability are chains: McDonalds, Starbucks, Burger King... places that for the most part only care about profit and neither pay or treat their employees well, or have good quality food. A city without diverse locally-owned restaurants is a bleak prospect.
> Throughout most of R-BBQ’s existence, Rodriguez has worked other jobs as well, first at the health clinic in town, then at the school district. His heart was in the restaurant, but he was cognizant of his father’s railroad pension and the stability it provided.
It says right in TFA article that the owner works other jobs to support himself. No doubt restaurants are a tough business. Lots of businesses fail. Should we subsidize every business in existence that can't make the economics work on its own merits?
I'm sorry people will lose the restaurant they love so much, but apparently not enough to pay the higher prices it would take to keep it open. Times change, economic conditions change, businesses come and go. That's a natural part of the economy and life. Things don't last forever, especially if you're unwilling to face reality and do the things that are necessary to make them last.
> Since the beginning of the pandemic many incredible and beloved restaurants in my city have been forced to close due to lock downs, landlords raising rents, rising costs, etc.
Yes, I've heard of many of these. It's always a person who went to the place once 2 years ago and is sad now that it's closing. Guess what you can do to keep local restaurants open? Go to them and buy food!
> It says right in TFA article that the owner works other jobs to support himself.
Both bee_rider and InefficientRed's comments were clearly about the general effect and not the specific restaurant mentioned in the article.
Regardless, the fact that Rodriguez has to work another job to support himself doesn't make it a 'side project'.
> Yes, I've heard of many of these. It's always a person who went to the place once 2 years ago and is sad now that it's closing. Guess what you can do to keep local restaurants open? Go to them and buy food
Are you really disregarding the content of my post because of a made up scenario that you're attributing to me?
In 2020 a beloved Syrian cheese and dessert shop, owned by a refugee, was forcibly evicted because their land lord tripled their rent. The lot remains vacant to this day. Was this personally my fault for not buying enough cheese?
> In 2020 a beloved Syrian cheese and dessert shop, owned by a refugee, was forcibly evicted because their land lord tripled their rent. The lot remains vacant to this day. Was this personally my fault for not buying enough cheese?
Obviously every single instance of a restaurant closing is not going to be the same. Maybe the landlord hates Syrians. Maybe they're negotiating a deal where Starbucks will pay triple the rent for a 10 year NNN lease that will make more money even with the vacancy, maybe it's a money laundering front for the Russian mob, who knows?
I'm sorry your favorite cheese shop closed and it was probably not personally your fault for not buying enough cheese. Maybe you just live in a town that does not have enough cheese loving people to support a cheese shop, or there are uniquely evil landlords who have a vendetta against immigrant hard-luck stories. Sometimes businesses we like close. It happens.
Anyway, my point is that only focusing on the 'logic' and numbers misses the point. The myopic focus on short-term profits hurts the average person and their communities.
You asked in an earlier comment if we should "subsidize every business in existence that can't make the economics work on its own merits?" I am not necessarily saying that we should, but we ought to acknowledge that the economy is not a system based on merit. In addition to blatantly profiteering, many large companies have taken trillions from programs like PPP loans that were meant to protect jobs, and proceeded with layoffs or stock buybacks instead. That money not only comes from you and I, but it also affects our communities — people lose their jobs, and the record profit are shuffled away into tax havens.
Does the world _need_ a specialty cheese shop? No. But the larger collapse of small, locally owned businesses since 2020 is a worrying trend.
I mean I don't know if you'be been out eating any time in the previous 6 months, but fast food is no discount. Most mom-pop places comparable or cheaper than fast food.
I completely agree: in my neck of the woods, a breakfast combo at McDonalds now costs more than the incredible mom & pop places nearby. The problem is convenience and access.
Fast food chains are ubiquitous and designed to be a quick and predictable choice for people. Mom & pop places don't tend to have large parking lots, or drive-thrus that people can line up around the block for. They also can't afford the margins that UberEats or Doordash take — and food delivery has exploded in the past few years.
Lastly, many people are creatures of habit and few are probably looking to shake things up right now. The unfortunate truth is that the best value or quality seldom wins these days.
mcdonalds in particular seems to have deliberate price discrimination. if you go in and buy one of the prominently featured combos, you could end up spending over $10. on the other hand, ordering from the dollar menu and using discounts through the app, you can get a lot of food for not much money. today I got two mcdoubles, large fries, and a soda for $3.50. I dunno where you would find a cheaper ~1200 calorie hot meal.
There are no capitalists in foxholes. Stop voting for neoliberal vampires (i.e., Democrats) and small business tyrants (i.e., Republicans). If people want price controls, vote for social democrats and communists. If none are running where they live, run for office on monopoly busting and price controls.
>It sounds like the restaurant was a side project that was barely solvent to begin with.
It's actually hilarious how downvoted this comment is, considering how close it is to another sentiment that's actually popular (ie. make the same point, but make it about labor costs rather than evil corporations raising prices. Both are based on the claim that if a business isn't profitable enough, it shouldn't exist in the first place.
> Both are based on the claim that if a business isn't profitable enough, it shouldn't exist in the first place.
I think a little bit of empathy goes a long way. The past few years have wreaked havoc; many people and businesses are struggling to stay afloat. Coldly repeating the mantra that small businesses failing (many for reasons outside their control) is just 'the economy' is rubbing salt in the wound.
Even in the best of times, many great businesses weren't profitable for several years.
Rising prices differentiate the good businesses from the bad.