In less than a week, we found out that two of our favorite restaurants have closed. Both single site, mom and pop businesses. Yet if you drive by the Red Lobster and Olive Garden at the Mall of Georgia on a weekend night and there is a line waiting outside for the privilege to eat that crappy food (another example of how marketing works on the masses).
One of the restaurants that closed was our favorite pizza place. It is no wonder that it closed down because of the pizza wars. You can get 3 topping large pizza at Pizza Hut for $10.00 and 2 medium 2 topping pizzas for $5.99 each. The mom and pops cannot compete with this pricing.
This is a good example of how deflation and recessions can work hand in hand. As fewer people eat out, the restaurant chains lower prices to attract fewer customers. Smaller restaurants cannot compete as they cannot afford to pay overhead at these prices. A viscous cycle ensues and all we are left with is the damn chain restaurants. Reminds me of the 1993 movie Demolition Man. The movie takes place in the future and the only restaurants are Taco Bell. Who would have thought that Sylvester Stallone was a prophet? Yo Adrian!
