Typically success may cause its personal issues.
A neighborhood would possibly have the ability to assist one or two of a sure form of enterprise, however when one firm has success, it is pure for copycat manufacturers to enter the house. There’s solely a lot new demand that may be created, and in some unspecified time in the future, oversaturation may cause a number of companies to fail.
In some methods, that is what happening with Uber and Lyft. Though each corporations present a wanted service, their pricing is constrained not simply by the price of cabs and automobile companies, but in addition by one another’s existence.
If Uber prices greater than Lyft, a certain quantity of shoppers merely use the opposite model. It is a vicious cycle that usually ends in each corporations merging or going out of enterprise.
An excessive amount of competitors can drive eating places out of enterprise, and that is a part of what pushed Bennigan’s, a once-thriving chain, to the brink of extinction.
Bennigan’s had an excessive amount of competitors
Again within the early 2000s, Bennigan’s an American tackle an Irish pub was a fast-growing chain that reached over 300 eating places. The corporate collapsed, nevertheless, due to market circumstances considerably past its management.
“These restaurants share many subtle and complex challenges that extend beyond this difficult economic climate,” thenTechnomic President Ron Paul advised MarketWatch Cash Morning. “To some extent, they’ve become victims of their own success — a mature category with too many units and not enough differentiation, at least in the eyes of consumers.”
With so many comparable selections within the informal eating restaurant market, customers have little incentive to decide on Bennigan’s over comparable opponents comparable to TGI Fridays or Ruby Tuesday Inc., the web site shared.
“All these bar and grill concepts are very, very similar,” former Technomic Govt Vice President Bob Goldintold The New York Occasions, in accordance with Kiplinger. “They have the same kind of menu, décor, appeal,” making it harder to ascertain model loyalty amongst prospects.
Extra Eating places
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- McDonald’s is following Wendy’s by closing eating places
- Regional Mexican restaurant abruptly closes all areas
Bennigan’s was a fast success story, however its collapse and close to loss of life was sudden as nicely.
“Known for its happy hours more than its food, the chain’s sudden near-collapse in 2008 was epic: Its owner filed for Chapter 7 liquidation, shuttering the 150 corporate-owned restaurants overnight (more than 100 franchises survived), as well as all of the Steak and Ale restaurants. Two years earlier, it had closed all of its New York state and Connecticut locations,” the journal reported.
Bennigan’s survived a Chapter 7 chapter.
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A timeline of Bennigan’s downfall
- Bennigan’s was based in 1976 (first location in Atlanta, Georgia).
- At its peak, Bennigan’s “had over 300 restaurants.”
- In 2008, when its guardian firm filed for chapter (Chapter 7), Bennigan’s closed all 150 company‑owned areas nearly instantly.
Supply: Kiplinger - At the moment, there remained plenty of franchise‑owned Bennigan’s — however lots of these areas progressively shut down over subsequent years.
Supply: Mashed - By the early 2010s, because the chain tried a revival beneath new possession, Bennigan’s had already dropped to only some dozen areas.
Supply: Restaurant Information Useful resource - Over time, extra closures saved decreasing the variety of surviving eating places.
- In 2015, a brand new proprietor (via Legendary Restaurant Manufacturers, LLC) acquired Bennigan’s and its sister chain (Steak and Ale), aiming to resurrect the model.
- The revival included not solely making an attempt to re‑set up dine‑in eating places but in addition launching a “fast‑casual/limited‑menu” idea referred to as Bennigan’s On The Fly, a model designed for nontraditional venues (casinos, airports, ghost kitchens, meals halls, and so on.).
- Present counts embody 21 full “brick‑and‑mortar” Bennigan’s eating places, plus 21 Bennigan’s On The Fly items.
Supply: Bennigans.com
Bennigan’s tries for a comeback
Whereas greater than 275 traditional Bennigan’s areas have closed, Legendary Restaurant Manufacturers has plans for a comeback. That comeback, nevertheless, will not essentially be targeted on america.
“Bennigan’s, the iconic American brand known for its Legendary food, warm hospitality, and globally recognized franchise model, is preparing for a significant wave of expansion throughout the Gulf Cooperation Council (GCC). This strategic growth includes a major commitment to open multiple Bennigan’s and Bennigan’s On The Fly locations in Qatar over the next several years through its long-standing partnership with Almuftah Sterling Restaurant Group,” the corporate shared in a Nov. 20 press launch.
Style of Nation famous that Bennigan’s was poised for a comeback in an October article.
“New ownership is modernizing the menu, bringing back signature décor, and leaning into ‘experiential dining,’ creating casual, communal meals that feel familiar and fun. A handful of locations have already reopened in urban and suburban areas, and the laid-back vibe is just like fans remember,” the web site reported.
Legendary Eating places is actively on the lookout for new franchise operators.
“With a renewed focus on improving the business climate and easing regulations, these franchise formats — full-service, hybrid, and casual steakhouse — ensure adaptability,” mentioned CEO Paul Mangiamele in a press launch. “By providing confirmed enterprise fashions, we’re empowering franchisees to appreciate their private imaginative and prescient of the American Dream.”
Associated: In style burger chain abruptly shuts down areas nationwide
