Westra also said an economic recession in the U.S. in 2017 could be the “worst ever” for restaurants, because the likelihood of minimum-wage increases would take away the industry’s usual post-recession labor-cost decline. Nearly half of US restaurants have become less profitable with many suffering from rising overhead costs, in a further sign of an impending recession for the industry, Philip van Doorn writes in MarketWatch. The restaurant industry is facing its worst downturn since the Great Recession and has been hit particularly hard by higher labor costs as well as increased competition from fast food chains.
Nearly half of US restaurants have become less profitable with many suffering from rising overhead costs, in a further sign of an impending recession for the industry, Philip van Doorn writes in MarketWatch. The restaurant industry is facing its worst downturn since the Great Recession and has been hit particularly hard by higher labor costs as well as increased competition from fast food chains.