'Shark Tank's' Kevin O'Leary Explains Why Restaurants Are Closing in America, Warns It's Only the Beginning
Despite the end of the COVID-19 pandemic two years ago and the Biden administration’s baseless brags regarding the economy, restaurants have been shutting down in staggering numbers.
Fast-casual restaurants in particular have borne the brunt of this sagging market.
Red Lobster recently declared bankruptcy, Cracker Barrel saw its market shares tank, and many other restaurants have been closing locations by the score.
Though many factors could be blamed for this — the increase in working from home depriving lunch spots of customers, or the takeout boom from the pandemic encouraging more customers to stay home — Kevin O’Leary shared his perspective Tuesday in an Op-Ed for the U.K.’s Daily Mail.
According to the “Shark Tank” star, while the aforementioned pandemic-related changes played a significant role, the most significant factor in fast-casual restaurants’ struggles has been rampant inflation.
While businesses can offset the loss of revenue by restructuring, laying off employees or moving to cheaper areas, none of those tactics will help if the potential customers are not spending.
And with the runaway inflation created by the Biden administration’s massive expenditures, middle-class Americans not only have been deprived of much of their disposable income but have been forced to allocate most of their income to bills, transportation costs and increasingly expensive groceries rather than eating out, the man known as “Mr. Wonderful” said.
Likewise, O’Leary explained, inflation has increased the prices of ingredients and materials for restaurants, forcing them to increase menu prices — meaning fewer people can afford to eat out.
“Unfortunately, there’s no telling when — if ever — these prices will come back down to Earth,” he wrote.
The restaurant business has suffered the most in California, thanks to the exorbitant cost of living there along with the recently instituted $20 minimum wage for fast food workers signed into law by Democratic Gov. Gavin Newsom.
“Newsom’s far-left government is completely disconnected from the reality of inflation — and the Governor has the blood of these failed businesses on his hands,” O’Leary wrote.
As both he and the Los Angeles Times pointed out, the mom-and-pop businesses have been the ones suffering the most from inflation.
Overall, the National Restaurant Association reported that more than 88 percent of restaurateurs said their operating costs were higher than in 2019, and more than 90 percent are still reporting supply chain issues.
Clearly, President Joe Biden’s economy has been such a disaster, and it has forced iconic restaurants to shut down, in part or even completely.
“As much as President Biden is desperate to convince the American people that ‘Bidenomics is working,'” O’Leary wrote. “It’s not.
“Perched on his wobbling podium, Biden expounds that he is rebuilding the economy from the bottom up.
“This evidence suggests otherwise.”
This is caused by Bidenomics. Absolutely NOTHING is better
— Ninasdolcevida (@ninasdolcevida) June 11, 2024
Inflation has decimated ordinary people’s incomes and nearly every facet of business in the United States.
What the nation needs is not four more years of a geriatric spendthrift at the helm, but someone who has a track record of keeping inflation in check and improving life for all Americans.
Hopefully, the pain of inflation will be the motivation many people need to cast their ballots for former President Donald Trump in November.
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