Analysts who warned this summer of a restaurant recession are looking smart now

Analysts who warned this summer of a restaurant recession are looking smart now

As reported during the summer, restaurant sales have been in a slump. On the second of November, ratings agency Moody’s Investors Service slashed its operating-profit growth forecast for the restaurant sector. They now expect restaurant growth to be between 2% and 4% in the next 12 to 18 months. This was reduced from their original forecast of 5% to 6%. Analysts at Moody’s are pointing to higher non-discretionary spending needs of consumers for¬†things like medicine, loan payments, and increased rents which have resulted in people cutting down on their trips to restaurants around the country. This is certainly alarming news as our nation attempts to bring itself out of this current economic stagnation.

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