As consumers cut back on spending, two exchange traded funds (ETFs) caught in the crossfire could be ones focused in leisure and entertainment, and food and beverage.
Bennigan’s filed for bankruptcy this week, putting hundreds out of work while leaving yet more empty real estate in a time when we can ill afford it, reports Michael Grynbaum for the New York Times. The company’s sister brand, Steak & Ale, will also be closing.
The fact that many share similar concepts appears to be biting the chain restaurants where it hurts, too: T.G.I. Friday’s, Ruby Tuesday, Bennigan’s and others at times appear to be indistinguishable in both menu options and decor. That makes it difficult to establish brand loyalty.
The casual dining sector has taken a hit overall as budgets tighten and there’s less cash available for entertainment spending. They’re considered a notch above fast food, which is one area that has done okay in the downturn. Many fast food restaurants have offered deals, such as expanded dollar menus or offerings such as $5 sandwiches at Subway and Quizno’s.