Former Fast-Food CEO Warns of Widespread Restaurant Closures Due to Inflation

Andy Puzder highlights the challenges of rising menu prices and labor costs, predicting a tough future for mid-tier eateries.

Inflation and rising employment costs are expected to lead to more restaurant closures, according to former CKE Restaurants CEO Andy Puzder.
Red Lobster's recent bankruptcy filing underscores the financial strain on the industry, with over $1 billion in debt and limited cash reserves.
Fast-food chains like Pizza Hut and McDonald's are introducing limited-time deals to attract price-sensitive customers.
California's minimum wage increases are putting additional pressure on restaurant profitability, with some chains considering outsourcing order-taking to reduce costs.
Fast-food prices have surged faster than the average hourly earnings of employees, complicating the industry's economic landscape.