Thompson Coburn partner Mark Indelicato recently shared insights with Law360 regarding Hooters’ Chapter 11 filing in late March and the impact of inflation on the restaurant industry.
The biggest threat to Hooters might be a weak economy, inflation and a decline in consumer confidence. Mark noted that the restaurant industry is affected by inflation in similar ways to the retail industry.
“Firstly, it raises the cost, and secondly, it reduces the confidence of the consumer, really eviscerating the margins,” Mark said of inflation. “That is only going to get worse in the next 12 months — those establishments might begin to have significant pressure because of the extent of the tariffs.”
Click here to read the full article.
