The latest victim of the economic slowdown in the US seems to be the casual dining sector as restaurant chains shut down due to continued fall in customer base. Bar and grill-style eateries like Bennigan’s and Steak & Ale are being forced to close down many of its outlets across the country after its parent company filed for bankruptcy.

Soaring gasoline prices and higher living expenses in the US have led to significant changes in the spending habits of the average consumer. People are more reluctant to eat out or engage in casual spending at the mall. This has hurt not only mid-level restaurant chains but also retail outlets at large departmental stores. While retail chains like Mervyn’s file for bankruptcy, others like Linen ‘n’ Things, Sharper Image and Ann Taylor’s face the bleak prospect of closing many of its stores to minimize losses.

Another reason for the decline in the mid-tier restaurant business is the surfeit of outlets based on similar themes. Most of the bar and grill joints resemble each other in appeal, menu selection and even the décor. Bennigan’s and Steak & Ale are divisions of the Metromedia Restaurant Group which is owned by billionaire John Kluge.

-Kalyani Mookherji