by Wolf Richter
Wolf Street
Consumers at the “low end” are tapped out.
Restaurants are considered a leading indicator of the economy into a downturn. The theory is that restaurant revenues are slowing when consumers, whose spending accounts for about 70% of GDP, start having trouble with their wallets.
Some call the current situation a “restaurant recession.” Wendy’s, in its earnings call today, calls it a “recent slowdown.”
Others don’t see it that way quite yet. If you’re trying to walk into one of the amazing restaurants in San Francisco on a Saturday night, you might be disappointed when you find out that the “restaurant recession” has failed to reserve a table for you.