General Discussion
In reply to the discussion: The Decline of Red Lobster Is the Decline of the Middle Class [View all]DAMANgoldberg
(1,278 posts)What the new CEO is trying to do is to recreate a vision of being an special event restaurant. "At the end of the day, people are not going to go to a Chipotle for their anniversary or their birthday," This may be true but is condescending to say the least, and a few visits a year will not sustain the $2.5M revenue a restaurant of that size is going to need to survive (approx, $50K/week @ ACV = $15). The numbers don't add up in most cases, that's why they need to find a way to operate on a model that only requires about $1.3M to make money, and that would require getting their restaurants down to about the size of a Chipole, Smashburger, or similar concept (about 3-4K SqFt). They would come out better trying to upscale Captain D's or Long John Silvers to "Fast Casual" from "Quick Service".