Restaurant Sector: Survival and Potential Conflicts, Part 1

Restaurant Sector: Survival Imperatives and Potential for Conflict

In our first article installment, we gave a high level overview of the restaurant sector, which is truly big business that touches on virtually aspect of society and law. This article will focus on the business and economic basis of the sector, along with traditional conflicts that make for ongoing legal conflicts.

Industry Imperatives for Survival

This industry struggles to survive and grow every day. Here’s some of the reasons why, and its motivations:

  • Competition is everywhere—on every corner, the grocery store, the gas station, online, everywhere– for “share of stomach”—what you spend and consume on food. Because of relatively low barriers to entry, the business start-up (and failure) rates are both high.
  • Companies try to standout by developing an internal “hospitality and service culture” to feature to the consumer, that will fire up the employees to standout in the consumers mind. These internal cultures are generally promote from within orientated, and employees focus on getting promoted, or reaping bonuses and stock options, if executives.


About John Gordon

John A. Gordon is a restaurant sector expert, who focuses on restaurant management, operations, and related earnings and economics matters. He consults with attorneys and other professionals who need to know about restaurants, via expert research, expert consultant and expert witness roles. Working for both plaintiffs and defendants, he has experience with both state and federal actions. He is an expert on chain restaurant business conditions and publicly traded companies. Gordon has extensive, career-long executive restaurant operations, corporate staff, financial management and management consulting experience, and is familiar with virtually all management issues and business disciplines. He has completed PSLRA securities, financial projections, due diligence reviews, earnings and damages, franchisee/franchisor matters, wage and hour and menu analysis expert work. Expert witness and article contributor for

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