{"id":3842,"date":"2017-07-06T06:27:39","date_gmt":"2017-07-06T10:27:39","guid":{"rendered":"https:\/\/tylercowensethnicdiningguide.com\/?p=3842"},"modified":"2017-08-07T20:34:29","modified_gmt":"2017-08-08T00:34:29","slug":"is-there-a-restaurant-bubble","status":"publish","type":"post","link":"https:\/\/tylercowensethnicdiningguide.com\/index.php\/is-there-a-restaurant-bubble\/","title":{"rendered":"Is there a restaurant bubble?"},"content":{"rendered":"

Mostly not, here is a good article by Maura Judkis<\/a>. Here is part of the chat with me:<\/p>\n

What\u2019s happening is something that some restaurateurs may not want to hear: Competition in an already-tough business is getting even tougher. Cowen has an analogy: \u201cSay you went to Hollywood and you asked, \u2018Is there an actors-and-actresses bubble?\u2019\u201d he said. True, there is an overabundance of aspiring stars who move to Los Angeles with dreams of making it big. They spend money, time and effort investing in their future. But for most of them, it will never pay off. Drama-school graduates know the risks, and still, they keep heading west, because they believe that they are different. With some hard work, they\u2019ll be the ones to make it big. The overabundance of young ingenues will continue in perpetuity.<\/p>\n

“You have too many people trying, but that\u2019s going to persist more or less forever precisely because the reward is high,” said Cowen. “The world of fancier restaurants” \u2014 and casual restaurants, too \u2014 “has become more of a winner-take-all world.”<\/p><\/blockquote>\n

And how is this for a blas\u00e9 response?:<\/p>\n

There may be plenty of openings, but “the lower echelons of the business, they\u2019re tapped out. You can\u2019t find people [staff],” said Paul Guzzardo, a restaurant consultant and partner in several restaurants, including Leopold\u2019s Kafe . He thinks that indicates a bubble, but Cowen disagrees.<\/p>\n

“It has not been a speculative fervor,” Cowen said. “The laws changed, prices went up, some places had to adjust.”<\/p><\/blockquote>\n

The article is substantive throughout.<\/p>\n

Originally posted on Marginal Revolution<\/em> – click to see comments and suggestions.<\/a><\/p>\n

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