Why it's so hard to kill a restaurant chainWhy it's so hard to kill a restaurant chain

Jonathan Maze

This post is part of the On the Margin blog.

It’s really hard to kill a restaurant chain, which is why chains have continued to proliferate even amid growing concerns about industry oversupply.

This became obvious with this week’s news that the owner of Fox & Hound and Champps narrowly avoided being shut down.

First, a caveat: Shutting down restaurants should not be taken lightly. Each restaurant employs numerous workers, and an entire chain can provide for the livelihoods of hundreds or thousands of people. These concepts also have customers who, at least for a time, enjoyed their meals there.

But as consumers are clearly dining out less often, this is a good time to explain why chains can survive multiple bankruptcies and nea...