More Evidence That Rising Minimum Wages Are Going To Crush The Restaurant Industry

Casual dining investors, despite the retail route, have become increasingly optimistic over the past month and a half with several of the largest names in the industry rallying 15-20% into the holiday season.

As TDn2K points out, part of the optimism is attributable to a recent "acceleration" in average check size across the restaurant space with comps up 2.4% in November and 2.5% in October. Despite many brands focusing on price promotions to drive sales and traffic amid a decline in mall/retail foot traffic, both figures are higher than the 2.0% check growth experienced the first nine months of the year.

On the other hand, strong pricing has been completely offset by abysmal traffic comps resulting in overall flat sales comps. As TDn2Knotes, rolling 3-month traffic comps declined 2.5% in November across the United States, with the Midwest market fairing the worst at -4.1%.

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from Salisbury News http://ift.tt/2z10PBe