Another Sign?

What are signs that the country is about to collapse economically? Sentient people who understand the scope of our nation’s debt already know the clock is ticking. So does the government (MRAPs, ammunition and the NDAA). But what about the masses? The majority of people who cover their eyes and ears or have sold their freedom for a government “entitlement”?

One of the major signs for me is the number of people who eat out. If the restaurants are full, people are ignoring reality and continuing down the train tracks. And the restaurants have been full. Until now.

David DeGerolamo

US Restaurant Spending “Pretty Ugly” In February

February marks the first three-months of consecutive declines in restaurant sales in almost three years as Bloomberg reports consumers caught in “an emotional moment” spooked by higher payroll taxes, surging healthcare premia, and spiking energy costs. “February was pretty ugly” for many chains after January delivered an initial blow.”

Malcolm Knapp notes that “it’s important to keep in mind that companies also are facing unusually tough comparable sales because of favorable weather in 2012,” so the result is an industry that’s been “a lot softer so far this year.”

It will hardly be a surprise to ZH readers but it appears that gas prices are key as Knapp notes, “that one-week spike was a killer; it destroyed sales in the first week of February,” and has overall put “meaningful pressure on the discretionary purchasing power,” of restaurants’ (like Darden) customers.

“People are acting fearfully, or you could almost say rationally in a way,” because it’s not surprising they change their dining habits when they feel less confident as once again it’s the middle class that appears under pressureCasual dining is “definitely being squeezed” because “it’s not food on-the-go and it’s not high-end food for people trying to treat themselves.”

More…

      
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