Restaurant casualties of COVID-19

[tomh009]

Rents go down? Wholesale prices go down? Wages go down? Yes, all of these would help the economics. But the prices are the only thing that the restaurants are in control of. And even in the best of times most restaurants are low-margin businesses.

But I don't even know if that would help, it would only matter if they are limited by space, most of the restaurants I see are not limited by space...if they are limited by customers, raising prices will drive away some of those customers.

Costs have to come down...or rather, economics must change, increasing inequality means there just isn't as much money in the hands of people who will spend it anymore.

Many restaurants claim that they are now limited by space, because they can no longer seat enough people. On the other hand, fewer people may be wanting to eat out: whether this is because of COVID risks or income loss is arguable (I personally think it's more of the former).

But how to reduce rent costs? Rent control really doesn't work. And why should restaurants (and bars?) pay less rent than other businesses? And a government rent subsidy doesn't make sense.

If it's OK to charge $2000+/month for an apartment, or $400K+ for a condo, then commercial rents will follow. Nice places in nice locations will be expensive, and I don't see why that shouldn't be reflected in the prices.