These American Restaurants Are Failing to Attract Customers

With declining sales and customers opting for delivery, it’s no wonder we see many restaurants hitting the panic button. When customers do sit down to a meal, many prefer local spots. Some franchises, such as Red Lobster, are winning the battle, while the following American restaurants are on the brink of collapse. And one franchise faces massive closures due to declining sales and fierce competition (page 9).

1. Sonic

Sonic drive in

This drive-in restaurant must appeal to a new generation. | Sonic Drive-In via Facebook

  • Sign of the end: 2.9% sales loss in 2017

“America’s favorite drive-in” isn’t safe. Quarterly reports shared that Sonic’s sales shrunk in 2018. CEO Cliff Hudson blamed “unfavorable weather” and “continued aggressive discounting by the competition.” However, the chain hopes new items for price-sensitive customers can revive the franchise.

Sonic is trying to appeal to younger diners with an order-ahead smartphone app and half-price drinks and shakes during certain times of the day. It also updated its marketing campaign by adding actresses Ellie Kemper and Jane Krakowski to their popular “Two Guys” commercials in an effort to appeal to more women.

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