Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management, Part 6 Managing Financial Resources.

Description:  You see them all across the country, in shopping malls and street corners, suburban towns and city centers: zombie restaurants. Many of the undead are part of familiar chains that filed for Chapter 11 bankruptcy protection this year: Friendly’s, Chevys, Sbarro, Perkins. The zombie restaurants, barely bringing in enough cash to cover basic expenses, always seem to be one sizzling fajita or glazed chicken skewer away from a merciful end, but somehow keep hanging on — leaving too many restaurants chasing after scarce dining dollars.

Source:  NYTimes.com

Date: 12/27/2011

Link:  http://www.nytimes.com/2011/12/28/business/bankrupt-restaurants-are-still-holding-on.html?_r=1&scp=2&sq=William%20Neuman&st=cse

Questions for discussion:

  • How does the industry adjust to the supply and demand for service?
  • Do you think any of the chains can be revived?

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