These days, no one is immune to the effects of the economy. There has been an increase in the number of municipalities seeking Chapter 9 bankruptcy protection as well as businesses large and small. Local chain restaurants are now just another business added to the list. However, facing increasing debt burdens and the threat of Chapter 11 bankruptcy is pushing many popular restaurant chains to rethink their business strategies.
Sbarro and Smashburger have recently sought bankruptcy protection and are working to develop their debt reorganization plans. However, with a niche in a high demand market these restaurant corporations know a little effort will go a long way in saving their businesses.
Bringing Their Best
Whether it’s the warm donuts of Krispy Kreme, or the savory Mexican food of Taco Cabana; both of these restaurants have plans in the works to revamp their image and reclaim their stake in the food industry.
These two popular restaurants have been able to dodge many economic bullets, but are still planning to make changes to maintain profitability in the coming years. Taco Cabana is giving their marketing campaign a new look, along with making over the store’s interiors. Krispy Kreme has plans to provide flat screen TVs for dine-in customers; while adding healthier items, such as fruit, to the menu.
Other restaurants have yet to see any threat to their profitability. Dickey’s Barbeque Pit and Cracker Barrel have plans for new stores to open, suggesting that consumers haven’t tightened up their purse strings enough to threaten the fate of their companies.