All interesting points, good discussion. .
If 50% of the restaurants went out of business here, the going out would be reservation only for dinners, or the line would extend around the block.
If the landlord thinks that getting another restaurant in place with the same available market, the same competitive prices, the same employees from the area, the same food costs into the area, and the same food choices, does the landlord think that there are always some other set of people and suppliers who can change the profitability?
When worker wages increase due to changes in minimum wages or requirements to hire to staff due to competition or increases in cost of sales which not all can be passed along to the consumer all at once, there are either lower profits or lower management pay to maintain the same level of profitability. The lower pay for management shows up in either lower rent or lower on site management pay.
How many people like pay reductions? so the restaurant profitability is the struggle between rent and on site management pay. At some point one or the other either relents or goes under.
This is the constant economic struggle to maintain a profitable business in this industry. So patronize them or don't complain when there aren't enough to serve your when you decide to eat out. .
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