Restaurant biz takes a dive; Bloomberg News Service blames taxes

[marmar]

(Bloomberg) Restaurants are reeling from their worst three months since 2010, as American diners spooked by higher payroll taxes cut back on eating out.

Sales at casual-dining establishments fell 5.4 percent last month, after declining 0.6 percent in January and 1.6 percent in December, according to the Knapp-Track Index of monthly restaurant sales. This was the first three months of consecutive declines in almost three years, with consumers caught in a “very emotional moment,” said Malcolm Knapp, a New York-based consultant who created the index and has monitored the industry since 1970.

“February was pretty ugly” for many chains -- and probably will be the worst month of the year -- after January delivered an “initial blow” while Americans grappled with increased payroll taxes and health-care premiums, rising gasoline prices and budget debates in Washington, Knapp said. “It’s important to keep in mind that companies also are facing unusually tough comparable sales because of favorable weather in 2012,” so the result is an industry that’s been “a lot softer so far this year.”

Even as consumers open their wallets for bigger-ticket purchases including cars and furniture, weakness has surfaced at full-service companies such as Brinker International Inc. (EAT) and Darden Restaurants Inc. (DRI), as well as limited-service chains including McDonald’s Corp. (MCD) and Yum! Brands Inc. (YUM) ....................(more)

The complete piece is at: http://www.bloomberg.com/news/2013-03-20/americans-cut-restaurant-spending-as-taxes-bite-ecopulse.html

[Cobalt Violet]

1. Yet these very stupid fuck are against even a stingy minimum wage increase.

[blm]

2. Lower wages for middle and working class families is the ONLY REASON.

Expensive restaurants are doing well - family restaurants that need a healthy working class are suffering because working class families are suffering. Rich owners of these restaurants are STUPID for supporting Republican efforts to keep workers' wages low and their benefits reduced.

[kelliekat44]

3. Yes, taxes are to blame for everything...especially the taxes not paid by the oligarchs and those

sliding through the corporate loopholes.