These American Restaurants Are Failing to Attract Customers

Is a restaurant recession in our near future? With declining sales and customers opting for takeout and delivery, it’s no wonder we see many time-honored restaurants hitting the panic button. When customers do sit down to a meal, they prefer trendy, local spots. Some franchises, such as Red Lobster, are winning the battle, while others are on the brink of collapse.

1. Sonic

Even 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.

2. Ovation Brands

The owner of Hometown Buffet, Old Country Buffet, and other all-you-can-eat restaurants has declared bankruptcy three times in the last nine years. It also had to pay a Nebraska man more than $11 million when he got salmonella poisoning at a buffet location.

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