Nearly half of the nation's restaurants said their business dropped in July as consumers cut back spending in the still-rough economy.
The latest survey from the National Restaurant Assn. rated the outlook for eateries in the coming months to be "uncertain." It was the fourth straight month of decline in the financial performance of restaurants, according to the organization, which polls its membership monthly to determine their sales, plans and outlook.
Because restaurant traffic is so closely linked to the amount of extra money that people have to spend, the poor economy has exacted a particularly heavy toll in the industry, causing shutdowns and layoffs as sales continued to languish over the late spring and early summer, said Hudson Riehle, head of research for the restaurant organization.
As a result, he said, many restaurant owners are pessimistic about when their fortunes will turn around.
To read the rest of the story, please go to: Los Angeles Times.