Restaurants operate on razor-thin margins, so small changes in their operating environments can leave them vulnerable to dipping from profit to loss.
In the current economic climate, a number of things that put restaurant chains at risk have gone wrong.
First, supply-chain issues have driven prices higher and made some products hard to obtain. On a broad level this played out at McDonald’s, a company built around its supply chain. MCD had to limit sales of french fries in certain markets.
In other cases, chains took to selling chicken thighs and charging less for boneless wings because the price for chicken wings had gotten so high.