Restaurant Recession Could Signal Tough Times for U.S. Economy

The success of American restuarants is usually a steady indicator of what Americans are doing with their money. Basically, when times are tough financially eating out is one of the first things to go. So, when economists and financial analysts see that sales have fallen in three of the last six months, they begin to become pessimistic about the near future of the economy. The last time there were restaurant earnings reports similar to these were in the years that preceded multiple economic downturns in the 2000’s. Experts are pointing to changing regulations to U.S. overtime pay, minimum wage increases and an overall decrease in consumption that could significantly effect the bottom line of an industry that operates with very thin margins.

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