These American Restaurants Are Failing to Attract Customers

Is a restaurant recession in the near future? With declining sales and customers opting for delivery, it’s no wonder we see many time-honored restaurants hitting the panic button. When customers do sit down to a meal, many prefer trendy, local spots.

Some franchises, such as Red Lobster, are winning the battle, while others are on the brink of collapse. Read on for all the restaurants that may not be around for long. One restaurant 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: 8.9% sales loss in 2017

“America’s favorite drive-in” isn’t safe from a hurting restaurant industry. Quarterly reports broadcasted shrinking sales by 8.9% due to a massive decline in customers. The CEO blamed bad weather and sluggish spending for its flat net income of $11 million but hopes new products for “price-sensitive” customers can revive the franchise.

So far, Sonic’s appeal to younger diners involves offering their new Signature Slinger burgers via food trucks in NYC, creating an order-ahead app for smartphones, and offering half-price drinks and shakes during certain times of day.

Next: “Eat fresh” no more?

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