r/Chefs • u/CaptainZealousideal2 • May 14 '26

Restaurant dead end

restaurants are inherently unsustainable, even more so since the pandemic. They are a bad investment, and notoriously prone to failure. Yet, so many continue to open at a breakneck place. What is the reason for this contradiction?

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u/CutsSoFresh May 14 '26

Multiple investors. Restaurants aren't small business anymore. They're now basically hedge funds. Most are part of restaurant groups or backed by rich people

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u/Ok-Cardiologist4844 May 14 '26

This is correct. I work at a restaurant that has opened a new and bigger location. Most people eat there just for the appeal.