What should restaurants do to stay afloat?

[Woodznutz]

Yea but that McD franchise makes you a lot of money. It's not like buying a Subway. If you want a cheap franchise where you will make $30K profit per location, buy 3 Subway locations.

Sorry, the original investment in a McD's franchise can run to over $2Million, not the franchise fee.

McDonald's Franchise | Cost, Fees & Earning Stats (2025)

Interested in the numbers behind owning a McDonald's fast food franchise? Learn important figures such as investment costs, fees and earnings.

wolfoffranchises.com

I can think of better ways to make $150K/year. That said I could easily solve the biggest problem those franchisees have, worker turnover. I would just pay them more.

Here's some info on Subway.

Subway Franchise Profit Margin & Owner Salary 2024

Find out what is Subway Franchise Profitability. This article will give you the inside scoop on subway profit margin, subway franchise owner salary.

drfranchises.com

 

[JohnDB]

And when you buy a franchise the fees never stop and the groceries keep getting more expensive with zero alternatives to purchase.
You must buy THEIR products, napkins, cups, paper and etc. You can't sell Pepsi in McDonald's...it must be coke made with a McDonald's cup, straw, and ice made in a McDonald's ice maker. NO SUBSTITUTIONS ALLOWED.

Independent restaurants are less expensive with zero fees on gross sales.

However, the ROI is less than 10%.
If a small establishment costs $500k you will do good to pull $40k in profits....

Better returns can be had by purchasing an index fund of the S&P500 or DJI50.

Independent restaurants are a service to the community more than anything else.

 

[Foxfyre]

As to the question...i don't go to a business to support them. I've never considered doing such a thing.

If you go to a business and buy what they're selling you're supporting them whether or not you intentionally or consciously even thought about that. The only way an honest business can stay in business is if people buy what they have to sell, i.e. support them.

That aspect of free trade keeps products and services attractive so people will want them and prices reasonable so people can afford them. Most especially when there is healthy competition.

So the question was, what makes you want to patronize a particular restaurant. What could that restaurant do within reason to get you to spend your money there more?

 

[BlackSand]

.

Sell the brick and mortar ... Buy a quality food truck ... Take it to the people where they are.

It doesn't matter what you cook either ... I have seen a very nice food truck grilling steaks ...
And with an ala carte selection of side dishes ... Even had two waiters dressed nicely.
They brought their own tables and chairs as well.

Reducing the overhead in staff, stock and utilities.
.​

 

[Foxfyre]

Sorry, the original investment in a McD's franchise can run to over $2Million, not the franchise fee.

McDonald's Franchise | Cost, Fees & Earning Stats (2025)

Interested in the numbers behind owning a McDonald's fast food franchise? Learn important figures such as investment costs, fees and earnings.

wolfoffranchises.com

I can think of better ways to make $150K/year. That said I could easily solve the biggest problem those franchisees have, worker turnover. I would just pay them more.

Here's some info on Subway.

Subway Franchise Profit Margin & Owner Salary 2024

Find out what is Subway Franchise Profitability. This article will give you the inside scoop on subway profit margin, subway franchise owner salary.

drfranchises.com

Really interesting, comprehension, thorough information on a Subway franchise. If you can't afford to invest in a whole string of Subways, it appears you won't make much money though.

The Subway nearest to us--about two blocks--was foundering. We know the owner and he was about to throw in the towel. But then some innovative customer service training teaching his people some important people skills resulted in a lot of repeat customers and his revenues improved considerably.

When you go in there, you get the feeling the people behind the counter really appreciate you and make you feel wanted and special. And they are funny and helpful in helping you put a sandwich together. It made all the difference.

Having a pleasant experience in the restaurant we go to is important to us. Indifferent, incompetent, uncaring staff will have us avoiding a place for a very long time.

 

[initforme]

If you go to a business and buy what they're selling you're supporting them whether or not you intentionally or consciously even thought about that. The only way an honest business can stay in business is if people buy what they have to sell, i.e. support them.

That aspect of free trade keeps products and services attractive so people will want them and prices reasonable so people can afford them. Most especially when there is healthy competition.

So the question was, what makes you want to patronize a particular restaurant. What could that restaurant do within reason to get you to spend your money there more?

Really interesting, comprehension, thorough information on a Subway franchise. If you can't afford to invest in a whole string of Subways, it appears you won't make much money though.

The Subway nearest to us--about two blocks--was foundering. We know the owner and he was about to throw in the towel. But then some innovative customer service training teaching his people some important people skills resulted in a lot of repeat customers and his revenues improved considerably.

When you go in there, you get the feeling the people behind the counter really appreciate you and make you feel wanted and special. And they are funny and helpful in helping you put a sandwich together. It made all the difference.

Having a pleasant experience in the restaurant we go to is important to us. Indifferent, incompetent, uncaring staff will have us avoiding a place for a very long

We could afford to eat out many a meal. We do not so as NOT to support a local business.

 

[Foxfyre]

We could afford to eat out many a meal. We do not so as NOT to support a local business.

Well each to his/her own. I rather enjoy supporting local businesses that contribute to a higher quality of life for us and everybody else.

 

[Unkotare]

Reduce menu options

Eliminate tipping and pay staff a decent wage

Offer good quality food for a fair price

Location, location, location

 

[Freedomisneverfree]

Play it like McDonald's. They refuse to surcharge or increase egg prices.

 

[Freedomisneverfree]

 

[Foxfyre]

.

Sell the brick and mortar ... Buy a quality food truck ... Take it to the people where they are.

It doesn't matter what you cook either ... I have seen a very nice food truck grilling steaks ...
And with an ala carte selection of side dishes ... Even had two waiters dressed nicely.
They brought their own tables and chairs as well.

Reducing the overhead in staff, stock and utilities.
.​

The only problem with that is those times you want a quiet quality restaurant with good food, ambiance, and good service to enjoy dinner with a date or loved one or friends or colleagues or business associates or whatever.

 

[Foxfyre]

Reduce menu options

Eliminate tipping and pay staff a decent wage

Offer good quality food for a fair price

Location, location, location

Eliminate tipping and I think restaurants would have a lot tougher time hiring competent staff. In America, a top notch server in a good restaurant can rake in impressive bucks.

Reducing menu options is fine so long as you don't eliminate local favorites or make the options so few you don't have appealing options for many/most of your customers. Price is important unless you cater to the very rich.

Location is critical unless you are so well known and popular the people will not mind going out of the way to get to you. We've known a number of restaurants like that over the years.

 

[BlackSand]

The only problem with that is those times you want a quiet quality restaurant with good food, ambiance, and good service to enjoy dinner with a date or loved one or friends or colleagues or business associates or whatever.

.

That's true ... But then you are talking about the customers and their desires ...
And I was talking about saving a restaurant business.

What I was talking about was not a growth opportunity ... But a chance to stay in business ...
When the owner can manage lower costs in overhead ...
And accommodate with not having to catch as many customers.

Otherwise ... The owner is just taking their business to the customers ...
Instead of the customers trying to find their business.

Like I will go to a bodega with friends and eat street tacos that are excellent ...
More often than I go to a regular restaurant and eat there.
The prices are about the same per meal ... The bodega is usually packed ...
And the restaurant usually isn't.

People's habits change over time ... The restaurant is competing with more mobile food ...
Whether easier to find ... Or delivered by Uber or Door Dash.

With a mobile base of operations the owner gets versatility as well ... Including options like onsite catering ...
and slots in Fairs, Festivals and other Events.

I was not talking about trying to chase the same customers the owner wasn't able to keep in their business ...
Or doing the same thing ... But how to capture enough customers, maintain lower costs, reduce stock needs ...
And have more time to enjoy the money they have saved in overhead.

I get it though ... A lot of people want to keep doing what they have been doing ... Even when it is failing.
The lack of customers won't be why they fail though ... Failing to adapt to the changing conditions ...
Will be what sinks their boat.

.​

 

[Woodznutz]

The lack of customers won't be why they fail though ... Failing to adapt to the changing conditions ...
Will be what sinks their boat.

.​

We stopped going to our favorite Friday fish fry because the owner remodeled the place, and we didn't like it.

 

[Foxfyre]

.

That's true ... But then you are talking about the customers and their desires ...
And I was talking about saving a restaurant business.

What I was talking about was not a growth opportunity ... But a chance to stay in business ...
When the owner can manage lower costs in overhead ...
And accommodate with not having to catch as many customers.

Otherwise ... The owner is just taking their business to the customers ...
Instead of the customers trying to find their business.

Like I will go to a bodega with friends and eat street tacos that are excellent ...
More often than I go to a regular restaurant and eat there.
The prices are about the same per meal ... The bodega is usually packed ...
And the restaurant usually isn't.

People's habits change over time ... The restaurant is competing with more mobile food ...
Whether easier to find ... Or delivered by Uber or Door Dash.

With a mobile base of operations the owner gets versatility as well ... Including options like onsite catering ...
and slots in Fairs, Festivals and other Events.

I was not talking about trying to chase the same customers the owner wasn't able to keep in their business ...
Or doing the same thing ... But how to capture enough customers, maintain lower costs, reduce stock needs ...
And have more time to enjoy the money they have saved in overhead.

I get it though ... A lot of people want to keep doing what they have been doing ... Even when it is failing.
The lack of customers won't be why they fail though ... Failing to adapt to the changing conditions ...
Will be what sinks their boat.

.​

All a good analysis. Yet restaurants here who offer an attractive menu at a good price plus provide good service and a pleasant atmosphere are always packed. But admittedly they are rare.

Door Dash and such was great during COVID, but since then delivers food cold and often unappetizing. Not sure why that is unless they're trying to get more bang for the buck and deliver to too many customers at once. Probably the higher cost of fuel contributes to that. Anyhow, we no longer use them.

I'm sure the younger crowd enjoys a different culture than us old folks. And there's a lot more of them. But us old folks are also a powerful market and shouldn't be ignored. We prefer quiet, comfort, good food and good service. Provide that and we will spend a ton of money.

 

[BlackSand]

We stopped going to our favorite Friday fish fry because the owner remodeled the place, and we didn't like it.

.

I stopped going to my favorite fish fry place ... When I bought a fish frier ...
And started frying my own fish.

The fish fry place ...
Better find some way to adapt to the conditions in the market ... Or die.

.​

 

[hondo 50]

sell good food

 

[westwall]

Stuart Varney was discussing this with an owner of numerous restaurant on Fox Business News this morning. (The linked article was a separate news story from this morning's program.)

Expect more restaurant bankruptcies in 2025, expert says

A growing number of restaurant chains have fallen on hard times. A bankruptcy attorney expects this trend to continue, saying companies are saddled with debt.

www.foxbusiness.com

A increasing number of bankruptcies and shuttered restaurants occurred all during the Biden administration and will like continue for some time.

The primary causes:
--Debt accumulated because of COVID and inability to produce sufficient profits to pay down that debt. Thank an administration and state governors who forced restaurants to stay closed or to severely curtail operations for far long than reasonable or that constitued common sense.

--Inflation that severely cuts into profits of restaurants and has affected quality and quantity of the menus they serve just to make ends meet. Price their menus too high and people wont buy it. This is a double edge sword as the declining quality disappoints customers and customers have only so much they can afford.

--Inability to hire sufficient competent staff. Again COVID restrictions changed the culture and habits for far too many employees who were allowed to stay home and receive unemployment far longer than was advisable and they don't want to work anymore. Their work ethic was seriously compromised.

--Many people are on various diets--Keto, Weight Watchers, Jenny Craig, Atkins etc.--and they come in for maybe an appetizer but not a meal.

--Many restaurants have not kept up with the changing preferences of their customers.

I would add to that restaurant designs with open ceilings and no noise abatements that make it so noisy it is impossible to have a conversation with others. Especially miserable for those with hearing aids.

QUESTION: What would persuade you to start eating out more and save these failing restaurant? Is having the option to go out to eat important to you?

Strippers. I vote strippers!

 

[sealybobo]

Exactly!

Chicken prices are going to remain outrageous for over a year, maybe two due to Bird flu and an overly zealous FDA and CDC.

They are coming for beef soon too.
Expect the processing plants to be overwhelmed and prices falling before they rise sky high and not come back down due to new regulations and infections.

No excuses please. No one cared what the reasons were for high prices when Biden was president so I don't care now.

Trump is doing many, many things to cause prices to go up. And I'm starting to get the feeling that all his money saving moves is only going to benefit the rich.

It dawned on me last night. As I was cheering all the federal government employees being fired. Those are middle class Americans. So the middle class is being hurt.

Middle class tax payers think they're being served but they'll find out the savings won't be passed on to them. Elon and Space X will gobble up all the savings

Chickens grow up very fast. Quit jacking up the price of chickens. Just make more

 

[sealybobo]

Sorry, the original investment in a McD's franchise can run to over $2Million, not the franchise fee.

McDonald's Franchise | Cost, Fees & Earning Stats (2025)

Interested in the numbers behind owning a McDonald's fast food franchise? Learn important figures such as investment costs, fees and earnings.

wolfoffranchises.com

I can think of better ways to make $150K/year. That said I could easily solve the biggest problem those franchisees have, worker turnover. I would just pay them more.

Here's some info on Subway.

Subway Franchise Profit Margin & Owner Salary 2024

Find out what is Subway Franchise Profitability. This article will give you the inside scoop on subway profit margin, subway franchise owner salary.

drfranchises.com

If I owned a business I would pay $1 hr more than everyone else. But only after you have proved yourself. If you don't smile, show up late, and call in sick a lot, you don't get the raise.

That's $40 a week. That'll fill up their gas tank.