With 2019 coming to a close, we look back at some of the developments that will lay the ground for 2020.
New Developments in the Restaurant Industry From 2019
Source: Restaurant Business
Well the restaurant industry took some hits this year, traffic was down, sales were a little slow, and labor costs soared. But with all that there are some developments that deserve to be highlighted as we head into 2020 that made a difference in the industry.
Jack in the Box Loses Money With Hundreds of Locations
Source: Restaurant Business
You might think whoever becomes the CEO of a large fast-food chain would've hit the jackpot, well not for Jack in the Box. 300 out of 2,200 locations have reported revenues of $1 million or less, putting them in danger of shutting the doors. And while most of the stores are in California, 50% of Texas locations are operating with revenues generating less than $1 million. The next CEO will have to overcome low-operating stores and getting operators to open new locations. We'll see what is in store for this 68 year legacy.
Minimum Wage Increases in 21 States and Planned for 2020
Source: CNBC
21 states have already taken on the minimum wage increases, heading towards $15 hourly and more are planned to increase their minimum wage in 2020. Although this wage increase is great for workers, these hikes can hurt small businesses and cause job losses since employers won't be able to afford the labor. Starting January 1, 2020, nearly 7 million workers will be getting a pay raise. Restaurants have adjusted to the changes by raising menu prices and cutting staff hours. Low-performing restaurants or low-margin restaurants might be pushed out by the higher wage costs but new restaurants will be able to move in and replace them.
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