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Follow Following. Curmudgeon's Weblog. Neither Bennigan's nor the Metromedia Restaurant Group returned calls for comment. A lawyer listed in the filing, J. The filing lists 38 separate entities that it classified as "debtors" but does not include a list of locations that are shutting down. All restaurants have been struggling as consumers cut back on discretionary spending to better deal with high gas prices, the weak housing market and inflation.
The hardest hit have been casual dining chains and bar and grill restaurants, which charge higher prices than fast food and other quick-service chains. Bar and grill restaurants have also suffered from intense competition. Morningstar analyst John Owens said several chains expanded quickly, making it more difficult for customers to differentiate between them and forcing many companies to cut prices to lure diners.
Meanwhile, commodity costs have soared, forcing chains to either raise menu prices or see profits plunge. Credit has also been tight, making it difficult for companies to restructure their debt. This week, the parent company of the year-old faux Irish bar and grill filed for Chapter 7 bankruptcy protection. While the firm's franchisee-owned outlets will remain open, of the company-owned eateries will close.
Bennigan's is a casualty of the weak economy and, like many of its patrons, had trouble dealing with higher fuel, food and labor costs. But operating costs were not the only issues. Industry experts also blame an outdated menu, poor food quality, slow service, poor site selection and facilities in need of upgrades.
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