David Chang: Restaurant industry facing an apocalypse?

[Robin Garr]

Momofuku's David Chang sees dark times ahead in the restaurant economy. Is there any way out?

http://www.businessinsider.com/david-ch ... pse-2016-3

Am I reading it right, that he's saying high end restaurants don't make a profit? Why would anyone open a high end restaurant if they always go in the red? Just for prestige at the expense of profits? He must mean something else by that comment.

A lot of high end restaurants see less than 10% profit. Why would someone open one? I have no idea other than maybe prestige and they have deep pockets to begin with so maybe it would just be fun. You, me and the average Joe aren't going to be the ones opening a high end restaurant. It's kind of like McDonalds, if you have enough money to open one, why in the world would you bother?

You would open a high end restaurant because you love what you do and you want to do it on the highest level. Not everything is about money and accolades for some people.

Somebody should invite David to come to Louisville for about 4 days to check out a restaurant scene "on the other side of the railroad tracks!" This guy is speaking from a culinary ivory tower operating in the most expensive cities in their respective countries--Toronto, Sydney, NY and DC. Let's consider some of the following:

Can't park a car within easy walking distance of the restaurant without using valet parking. And if so, it still cost you $15 (and often much more) to park in a lot or a garage. A taxi? Even more. (and let's face it, people eating in those places aren't taking mass transit)

Cost of square footage for any business in the central locations makes it difficult to survive without charging inflated prices that just don't seem worth it, i.e. momofuku ramen for $28.

Hôtels are too expensive and thus limit the typical visitor's budget.

People get off work and have to commute far off to the suburbs where they can afford to live. They won't be back downtown to eat dinner.

The cost of housing sucks much of the disposable income from people's pockets. especially from younger ones making good money but paying too much for rent and student loans.

I'm not insinuating that his concerns aren't an industry-wide issue, but rather pointing out a bigger picture that many larger cities are facing. The privileged locals and tourists/travelers with expense accounts have access to many great things. But for the vast majority, their typical days are gruesome and not very glamorous. Spending a couple hundred bucks for a dinner is out of the question.