Consumer Obsession

Yahoo! Finance recently did an article on the major restaurant and food chains they see that are in danger of failing.  It’s an interesting little piece that includes a couple of chains I’m not familiar with. 

Just a few notes on some of the choices:

• Perkins Restaurant and Bakery – For some reason, Perkins doesn’t seem to get the traffic that a Denny’s or IHOP does.  That probably has more to do with image than food quality.  As mentioned in a past Consumer Obsession piece, Perkins pancakes are actually very good.  I prefer them over IHOP or Denny’s.  Unfortunately, Perkins doesn’t seem very “young,” which gives them the rap of being place for the “retiree” set to eat.  While they don’t seem overly busy, I haven’t noticed any Perkins closings in the W. PA area.
• Krispy Kreme – Everyone knows Krispy Kreme screwed up.  They expanded way too fast and put way too many franchises out there.  That being said, I can’t see this chain going down the tubes.  There’s still a lot of tradition there, as well as people who still like partaking in a hot glazed.  The shrinkage is taking place.  Stores are closing, but that needs to happen for Krispy Kreme to regain its health.
• Sbarro – Now this one is interesting.  A mall Sbarro near my home just recently shuttered its doors.  As you know, the current retail market is lousy, and many retail center, including malls, are hurting right now.  Sbarro could very well be vulnerable in the current conditions.  According to the Yahoo! article, Sbarro lost $5.7 million during the first quarter this year.

Click here to read the Yahoo! article.