“Destroyed by Big Pharma” - Kevin O’Leary on Why Restaurants Are Shutting Down Across the Country

According to O'Leary, the restaurant business has been hit hard by a combination of factors, including rising food prices, declining foot traffic, and lingering supply chain issues from the pandemic.
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Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller “Your Next Five Moves” (Simon & Schuster) and a father of 2 boys and 2 girls. He currently resides in Ft. Lauderdale, Florida.

[andrewehrmantraut]

I've been a chef for 20 yrs. Covid was absolutely a huge shock to the industry, but we are 3-4 years POST restaurants that are thriving made a pivot and kept on rolling, those that didn't are using it as an excuse.

There's a lot of reasons why restaurants close, but these big mega chains like Chili's, Applebee's, On the Border, Red Lobster, tgi fridays, olive garden, etc have been on a steady decline for A LONG time.
All of these big chains suffer from the EXACT same problem. They have a bean counter making decisions at the corporate level that's too far removed from operations, quality and service are never factored into decisions, just profits. You can only cut costs so far before your food and service goes to shit. The food and service just isn't good at ANY of these places.
They are microwaving entrees, prepackaging entrees, making their sauces in a factory. Did you know you can wipe the grill marks OFF of a chilis chicken breast (it's not cooked on a grill, they're fake grill marks painted on the chicken).

Restaurants that have been focusing on food quality and service have been thriving in the same economy these mega chains are failing, with the same food cost inflation, wage hikes etc.

As for Uber eats/door dash etc, they've been stealing business from the local pizza joint and fast food. Before the 3rd party apps, the only choice for delivery was pizza or Chinese. It's been a huge boost for mom and pop places (though not without some headaches).

[ahmadoudiop]

Lobbying should be banned . This is just a legalized way to corrupt politicians and administration officials.

[masterspin]

Tipping has become a big-time turn off nobody wants to be told how much of a tip to leave...

[christinalady]

I'm visiting Southern California right now, and I'm angry. A very popular restaurant chain here, which every location was always for years packed and worth the wait, now looks like ghost locations. They are open, just empty. California's policies have done this destruction.

[marilyncole]

People aren't eating out because it cost so much plain and simple

[themightysquid]

I can only speak for myself but I refuse to pay for a burger lunch and salad lunch for my wife and myself for $60 when it used to cost me $25 just a few years ago. Now we cook for ourselves for a fraction of that price and cook our way. It’s about value as much as not accepting the gouging that’s going on.

[NatePrawdzik]

The lockdowns helped me realize I don't mind eating at home to be healthier and save money.

[NYsthwonder]

Magically, private equity buying up restaurants and turning them over to make short term profits, and forcing them bankruptcy, does not get mentioned. I wonder why…🤔

[saffaboet]

C0v¡d was a pysop that a lot of people fell for....😢😢😢

[stephenthomas]

i stopped doing uber eats when a $11 burrito started costing $40 to get to my door.
-Delivery fee
-Admin fee
-Operating fee
-Taxes
-Tip

The peak of uber eats was during covid.

[fredfloyd]

First remove all medical commercials on tv.Then arrest the ceo behind the pharma cartel.

[bridgettesullivan]

You’re not addressing the effect that social media has played in the destruction of restaurants.
People don’t go out and socialize with friends anymore

[angelofamillionyears]

pat - you missed the BIGGEST factors- Rent Prices doubles, car insurance doubles, new car price increases, Property taxes and the increase in single households.70% are now single in the range of 18 to 45 !! Not sharing rent will ruin your budget !!! No money for take ouT, beer or booze !! RESEARCH !!

[usxzzff]

I quit when I realized all most chain restaurants do is order from Sysco or performance food. You can make the same quality food at your house

[TheBEARofHIGHWAY]

Tipping Culture is a reason my wife and I do not go to restaurants anymore. The expectation of a massive 15-25% tip on a burger combo at a steak house is more then enough to keep us away. Tipping has got out of hand especially since food prices have gone way up.

[SammyM]

I can't believe that people are still willing to pay double for not fresh food. Laziness

[Imperialprince]

Keep it real a lot of these food places is trash! The food isn’t good anymore and a lot of these servers and waiters aren’t good but want good tips let’s be real

[TRONABORON]

Im sad to see my local hardware store closing down! Family owned, great service...😢

[defcon]

Everyone fails to mention executive pay that is beyond sky high, it has left earth’s orbit.

[gailvolm]

Not COVID, local and state government lock down's did that!