average American feels at least 10 years older than they actually are and all blame the same day today annoyance we'll talk about that Kevin o explains why restaurants are shuttering Across America and why more will follow more retirees consider returning to work as high inflation squeezes people are delaying buying new cars creating a deflationary spiral that's bad news for the Auto industry Now Kevin olivy explains why restaurants are shuttering Across America and why more will follow he highlights the US restaurant industry dire situation noting the US restaurant industry finds itself on a menu with frequent headlines about bankruptcies layoffs and closures impacting beloved Brands like Red Lobster Applebees due to inflation and declining for traffic post pandemic he adds seemingly every day there's a headline announcing a bankruptcy layoff or store closure impacting one of the country's most beloved Brands oir explains that Rising food prices and the shift to remote work has significantly hurt restaurants especially in urban areas where expensive locations are no longer seen enough for traffic he notes eateries and urban locations have been hit especially hard as they're expensive locations are no longer receiving the foot fall they need to meet rent it's almost like the days where you used to go to a dealership to buy a car and nowadays you don't necessarily need to go to a dealership because you do what you can order a car and it'll come to you I think Uber Eats has probably played a big role in hurting these guys as well Tom but what are your thoughts about the story here the restaurant industry is suffering and he's right I'll paint the picture a little bit more broad he's talking about like the Applebee's location downtown Dallas and you don't have as many people in the highrises it doesn't take much if your e is like 15% let's say you make 15% profit and you suffer like a 20% drop in people come to the restaurant you're probably pinched on on the edge of that not being a profitable location in trouble so yes you know remote work and the urban areas are causing some of it but now put yourself in this position how many problems can you manage at once and stay in business one sir some of our key locations in downtown areas they're pinch cuz the foot traffic is down so we're really in trouble with those we may have to think about closing some of them cuz now they're consuming cash not generating it oh no but sir in general our overall profitability is down because food prices and by the way TransUnion says that the food price inflation over the last four years actually is 30% so that's trunion one of the big Credit Agencies doing deep research it's 30% okay okay food priz are up and Sir by the way in four states we're going to have to pay $20 minimum wage oh crap how many problems can a restaurant manage at the same time is having locations that are not profitable because of foot traffic getting pinched by $20 minimum wage and then the food price so Kevin Larry is right and he's only hitting on one of the two things and it's really unfortunate because a lot of people have favorite restaurants and things that they still patronize but they're just they're not survivable but I'm going to tell you something that was a very good breakdown here's the look at so Uber Eats revenue and usage statistics this is from 2 months ago check this out that's revenues from Uber reads from 2018 to now look at q1 2020 when did Co happen second week of March they felt it but Co launched Uber eat's business to the stratosphere look at the increase from 2018 to 2019 not a big increase 20% but look at the increase from 2019 to 2020 nearly 3x then 2021 they double again then 2022 coming a couple the restrictions are gone 10. 9 12. 1 but that business of going from 1.
9 if you look at it 1. 9 to 12. 1 billion that's all money taken away from somebody that's what Uber Eats made Revenue to them this is the actual bookings look at that 3.
1 billion to 7. 9 billion to 14. 5 billion to 30.
2 billion to 51. 6 55. 7 67.
8 billion that's money going away from somebody So Co did this it took money from restaurants 200 ,000 restaurants shut down and that money lost from restaurants directly and indirectly 50 million jobs were affected that's not the right number it was a number in the billions but just visualize this this is the business of restaurants this is how much money restaurants had what covid shutdown did is it took this money from here gave it to Uber Eats drivers bringing food to them and that money from here gave it to fizer Johnson and Johnson madna okay meaning this revenue of a 100 billion or whatever the number is is came at the cost of destroying the restaurant business National Restaurant Association said restaurant and food service sales were $240 billion below wow 2020 pre-pandemic forecast more than 110,000 eating and drinking establishment closed last year how much money did Big Pharma make during covid their big Pharma raked in $90 billion in profits Vinnie that's it just the covid-19 vaccines that $90 billion of profits is like a 401k rollover it rolled over from restaurants into PHA so you know what it makes me think about here's what it makes me think about every industry has lobbyists this just tells you the lobbyist of big farmer are more powerful than the lobbyist of restaurant business why didn't the restaurant business Lobby harder to protect them what kind of access to resources do they have what is the biggest restaurant chain that can go out there and be vocal about it why were they so quiet about it they got destroyed and if you think about restaurants fast food chains would be considered lowincome middle income right if you go to McDonald's Burger King places like that who is the biggest restaurant chain that's not fast food what Applebee's does in Revenue $570 million today that's their market cap they only spend $200 million less than what their revenue is just in lobbying you're not going to beat them so guess what folks here's what we learned big farmers lobbyists are more powerful than the restaurant industry's lobbyists and that's how they got destroyed the greatest 401K rollover money rolled from 200,000 rest restaurant owners shutting down into the hands of big Pharma there you go that's one way of looking I'm not telling I'm just purely doing the math and I'm looking at how this thing took place but uh Uber Eats capitalized Uber took a big share from a lot of these restaurants on the backs of a lot of bad policies I have some commentary here but more from a macro perspective not necessarily just the food industry because I like how you kind of broke it down whether it's Uber whether it's these restaurants whatever it is but from a macro perspective and then to kind of filter it down to a personal perspective this is just Darwinism this is just survival the fittest can you adapt what do Ian mean you know what percentage of the companies that were in the Fortune 500 in 1950 or even in 1990 are still in the Fortune 500 we hear the stories that it's like the attrition rate is insane 50% of the companies go out at Fortune 500 I think 10% of the companies that were the biggest companies in the world in 1980 are still in the Fortune 500 how many companies have gone out of business whether it's WAMU you tell that story whether it's Layman Brothers whether it's Bear Sterns you tell the story about Kmart JC Penney Bed Bath and Beyond radio shck Blockbuster these were the biggest compes in the world we work you know two years ago what was it um Silicon Valley Bank and Signature Bank if you can't adapt and change with the times and you make poor decisions and you go on offense and you don't play defense I. E paying for lobbying you could potentially go out of business and I'll bring it to what pbd always says out work out improve out strategize and then what's the last thing pbd Outlast Outlast if you don't do all those four things you're not going to outlast the market very good point I don't disagree with your concept but I think in this case it wasn't survival of the fet there is a meteor that hit Earth and killed all the dinosaurs depending on which scientists you want to believe a meteor hit the industry and killed these restaurants and is what happened Co happened they were forced to close and all of a sudden they're only making food delivered by Uber Eats and they don't get beverag they don't get bartab they don't get all those other things and all those other people that worked at the restaurant that were delivering the food the only people that were working was the Three Chefs in the back making stuff that people were picking up with Uber eat so this was a meteor called covid that hit the restaurant industry but Wards talk numers and Pat we just broke down all the numbers of where all the numbers flowed after the meteor hit by the way here's what I'll wrap up with this I hope the folks in the restaurant business pay very close attention when I was first coming up and I'm like you know I don't want to worry about politics because politics is a dirty business that line right politics is a dirty business and guess what folks if you pay taxes taxes is a form of politics so you must pay attention to politics and here's the other thing I learned as well those who don't study politics will be governed by fools who do wow to those of you in the restaurant business watch the way you vote one political party locked your ass down and you went out of business just remember that you can sit there and tell me I'm a jnf Kennedy liberal whatever you want to say this is a very different climate today with shutting things down where other states left it open Bob Iger was helping out Nome in California with Disney Nome said no we going to shut it down Bob Ager got off the board and said I'm not helping you out he had two parks One Park was where California shut down lost a bunch of jobs the other place was Florida ran by a guy named the santis that they got ended up getting to the biggest fight and Disney actually played games with the santz calling at the Gable and all these weird things that you guys started doing guess what Florida proved policies were better for restaurant fast food parks in California absolutely wasn't next story more retirees considering to work as high inflation squeezes a mly full survey shows 44% of retired Americans are considering returning to work due to Chronic inflation and inadequate Social Security benefits which despite a 3.
