retail news in context, analysis with attitude

The Boston Globe has a piece about why the Friendly’s is in financial trouble and facing a possible bankruptcy filing.

According to the story, “A series of owners and a heavy accumulation of debt have kept the budget restaurant chain in a bind for years. Sales have been on a slow but steady descent for more than half a decade.

“But a bad economy and other complications have helped turn up the heat on Friendly’s finances. The company is getting squeezed by a continued decline in restaurant revenues and higher food commodity prices, making it even harder for the company to make ends meet.”

But the bigger problem, the story suggests, is that its “time may have simply come and gone ... Even among its direct competitors, Friendly’s ranked 10th among 12 chains across the country in a consumer-preference survey published last month by Nation’s Restaurant News. Friendly’s scored poorly on questions on value, food quality, and reputation. Only one chain among the dozen ranked lower when consumers were asked if they were likely to return.”
KC's View:
I said the same thing on Friday ... though I was a little less kind in my assessment...

Lousy food, not good for you, but plenty of it.