IDAHO FALLS, Idaho (KIFI) — Several household name restaurant chains are permanently closing across the country. These chains include Red Lobster, Sonic, and Shari’s.
Red lobster declared bankruptcy in 2024. Shari’s has not declared bankruptcy, but has closed multiple locations in Oregon and Idaho, including Idaho Falls in 2024.
There are several reasons for restaurants closing locations.
“Obviously, things are all going against us in terms of labor costs, food costs, real estate costs, and the consumer is a little strapped with inflation,” says Stoner’s Pizza Joint CEO, John Stetson.
Stoner’s Pizza Joint is a business that’s seen rapid growth since the COVID-19 pandemic. Stetson says there are things he would suggest restaurant chains do to keep up with the times, besides closing restaurants.
For example, Stetson suggests focusing more on take-out to save on overhead costs.
“Love them or hate them, Uber Eats and DoorDash…are a major part of our business,” he said.
Stetson says some restaurants might be hesitant to offer delivery because some foods might not do well in certain kinds of packaging.
“But fine-tuning what travels well and what packaging to use and what menu items to offer through these platforms, I think is something they definitely need to to dial in on,” he said.
It might also be a good idea to reduce the amount of menu items. Stetson says while it can be fun to look through a menu with several pages, it can cause more problems for a restaurant.
“It’s not great on the business side because you’re carrying so much inventory. And if it’s not moving [and]…you have a bad week and you got to toss it out…That’s a sunk cost,” Stetson said.
If more and more restaurant chains close their doors for good, it can lead to more jobs being lost, prices needing to be raised, and fewer restaurant options for people.
