Competition among Restaurant Chains Tightens, Sales Continue to Fall Down

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The competition among restaurant chains in the US even tightens as people holdback from spending too much on anything outside the comfort of their own homes.

Sales continue to fall down as restaurants lowered their menu pricing in a bid to attract people back to their doorstep.

Restaurant chains in the United States are now struggling to gain consumer loyalty as market competition heightens due to a widespread markdown in prices of its food.

After several years of sales increase, US restaurant chains are now having difficulty of maintaining revenue growth due to major slash down in the menu pricing. But the cutoffs in prices were not enough to entice consumers to go back to their eateries.

Instead of having more people going into their diners, owners are suffering the anguish of pocketing small checks as people choose to stay at home where they can save more rather than going outside to eat.For example, Chili’s and Applebee’s are now offering huge discounts on its prices like the $20 for two value meal. However, discounts like this only added to the burden of low sales and profits. While other experts in the food business expressed fear that the cut down in prices of the restaurant chains may impose a “culture of diners” that looks only for cheap meal.

Morningstar restaurant analyst R.J. Hottovy said that these restaurants will do anything they can, as much as they want, just to get people back to their doorsteps.Experts attributed the fall of the market to the prevalent credit crunch in the US, prompting people to spend less on anything that they can they can make do at the comfort of their homes.

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Competition among Restaurant Chains Tightens, Sales Continue to Fall Down

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