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Sbarro Falls…

10 Mar

Sbarro files for bankruptcy. I suppose 3D printing technology made it too easy to reproduce pizzas of similar quality in your own home.

The New York-based company, which is set to close 155 of its 400 locations nationwide, says “an unprecedented decline” in traffic at America’s malls is hurting its business. Emptying malls have also put the squeeze on Hot Dog on a Stick, which filed for bankruptcy just last month, and retailers like Abercrombie & Fitch, Wet Seal, and RadioShack.

According to real estate analytics firm Green Street Advisors, about 15 percent of U.S. malls will fail or be converted into non-retail space within the next 10 years. But for some, these companies are something other than victims of circumstance.

“Sbarro has been stuck with an outdated business model,” said Michael Whiteman, a restaurant consultant and president of Baum & Whiteman LLC in Brooklyn, New York. “Its biggest shortcoming is that it sells food that has been sitting out for a while.”

Wait? Hot Dog on a Stick is gone? And why is there such a thing as a Hot Dog on a Stick? Are we really that busy?

 
1 Comment

Posted by on March 10, 2014 in Social Commentary

 

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One response to “Sbarro Falls…

  1. observeratlarge

    March 10, 2014 at 10:36 pm

    In the New York area, it’s traditional to have pies prepared in advance, baked for a bit less than the idea time, and for customers to come in and purchase a “slice” that’s then popped into the pizza oven and heated piping hot and delicious — delicious being an “operative” term. So S’barro did fine here, because that’s how people are accustomed to eating pizza. And it’s actually pretty good, provided you like the overwhelming New York favorite — plain cheese pizza (Bleech! Don’t like it, never have liked it, never will. If you can’t at least spare some thinly sliced Italian sausage or some pepperoni, from my point of view it’s not worth wasting crust on!)
    IF shopping malls, chain stores and sub-standard restaurants are emptying out in decline, I’ve seen no signs of it here in the Northeast. But we can all hope. What a colossal waste of real estate.
    I personally think the reason S’barro and Hot Dog on a Stick are less popular is because there are better restaurants in shopping malls these days.

     

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