Devoured by Bad Government

 Restaurants have faced significant challenges recently due to a combination of government policies, rising costs, crime, and economic pressures stemming from the COVID-19 pandemic. A speech by former President Trump to McDonald's franchise owners highlighted many of these issues, showing how they reflect broader economic concerns.

1. Impact of the COVID-19 Pandemic:

• The restaurant industry suffered greatly during the pandemic, with many establishments closing permanently and job losses soaring. By 2022, about 70,000–110,000 restaurants had not reopened.

2. Rising Costs:

• Many restaurants are dealing with soaring food and labor costs. From 2020 to mid-2025, costs increased by about 35%, forcing many establishments to raise menu prices by nearly a third.

3. Minimum Wage Increases:

• Significant increases in minimum wage, especially in states governed by Democrats, have greatly affected profitability. For example, California's minimum wage rose from $9 in 2014 to $16, with plans for it to reach $20.

4. Regulatory Burdens:

• New federal regulations, such as the 80–20 rule for tipped workers and energy mandates, have increased operational costs and presented new challenges for restaurant owners.

5. Crime and Safety Issues:

• Rising crime, especially in urban areas, has deterred customers from eating out. Restaurants have faced increased theft, vandalism, and violence, negatively impacting business operations.

6. Energy Costs:

• Restaurants are heavily reliant on energy, and costs have escalated sharply, with average monthly bills rising significantly. Many places reported energy bills doubling due to various state policies.

7. Geographic Disparities:

• The challenges faced by restaurants are unevenly distributed across the country, with those in high-cost states struggling more than those in areas with lower operational costs.

8. Government Policy and Business Viability:

• There is concern that the current political stance and policies may not be conducive to the survival of many restaurants, especially small businesses that define the industry.

The restaurant industry has been battered by multiple factors, including regulatory challenges, rising costs, crime, and the lingering effects of the pandemic. As Trump discussed, the industry's ability to thrive hinges on favorable government policies that allow these small businesses to succeed, indicating a critical juncture for the sector. The ongoing struggles highlight the importance of balanced policies in ensuring the viability of restaurants across America. 

https://www.city-journal.org/article/restaurants-trump-affordability-crisis-regulation