Here come the fast-casual closures

The closures are likely a natural outgrowth of weak segment same-store sales and aggressive development, fueled by private-equity investment and pushes by many chains to be first in their respective markets. “There has been such an over-expansion in recent years.” “It might have been a little too aggressive. There might be weaker players falling off, especially in the fast-casual industry.” In the case of Burger Works and Shop House, the chains were experimental concepts started by larger companies that ran into problems and opted to shut down the brands.

Key Takeaways:

• Neal Sherman, president of RestaurantEquipment.Bid, which helps sell equipment from closed restaurants, said that he’s been selling more equipment from fast-casual concepts recently.
• He specifically mentioned closed better burger restaurants and shuttered fast-casual pizza units.
• To be sure, the closed locations are providing openings for other brands, as noted by news last week that Bibibop Asian Grill will move into the 15 closed ShopHouse Asian Kitchen locations — more than doubling the size of that chain virtually overnight.

“The closures are likely a natural outgrowth of weak segment same-store sales and aggressive development, fueled by private-equity investment and pushes by many chains to be first in their respective markets.”

http://www.nrn.com/fast-casual/here-come-fast-casual-closures