If nobody shops, nobody eats

Reductions in retail foot traffic may signal continued tough times ahead for restaurant chains, which are mainly dependent upon shopping mall exposure for gaining customer volume. Many large restaurant chains, including Cheesecake Factory, Red Robin, and Ruby Tuesday, have significant presence in retail shopping malls. These dining establishments are certain to experience continued weak sales figures as consumers restrain their discretionary spending.

According to a report in The Wall Street Journal, ShopperTrak RCT Corp. indicates that sales figures for restaurants declined over 12% for the month of October, in comparison to last year.

Although restaurant sales projections appear fairly grim, the food service sector is not nearly ready to give up the fight.