How often do restaurants fail in their first year? Which c-store is creating entertainment venues? Which is the best U.S. Foodie city? These stories and more This Week in Foodservice.

So just how often do restaurants fail in their first year of operation?

According to Datassential, just 0.9% of restaurants failed during their first year. That’s the lowest rate since 2018, per the Chicago-based market research firm.

Fine dining restaurants have the highest failure rate of any segment this year at 4.9%. In contrast, quick-service and casual dining restaurants both have a failure rate of slightly more than 1%, Datassential reports. Midscale and fast-casual restaurants have the lowest first-year failure rates at 0.6% and 0.5%, respectively.

Foodservice News

• Some Subway franchisees are pushing back on the chain’s remodeling requirements. The North American Association of Subway Franchisees says the chain has not done enough to justify the financial investment, per a Restaurant Business report.
• Big changes are brewing at Starbucks. The Seattle-based coffee giant plans to close approximately 1% of its locations, per multiple published reports, including this one from CNN. In explaining the closures, CEO Brian Niccol said, “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.” In addition, Starbucks plans to lay off 900 corporate employees. Starbucks also plans to remodel roughly 1,000 locations to meet its vision for the coffee house of the future.
• Rutter’s is turning some of its c-stores into entertainment venues. Specifically, the chain opened 1747 Bar & Gaming Lounges in Johnstown and Milton, Pa., per a C-Store Dive story. These locations feature Rutter’s well-known food offerings, as well as sizable beer caves and a large selection of adult beverages. The 14,000-square-foot stores include a bar area with several TVs, live sports tickers, and video game terminals.
• Chick-fil-A is the latest company looking to drink up the benefits of the beverage business. The chain plans to launch a beverage-focused concept called Daybright, per multiple published reports, including this one from QSR Magazine. The first location will open later this fall in a remodeled Chick-fil-A location in Atlanta. Chick-fil-A subsidiary Red Wagon Ventures is leading this initiative. Red Wagon Ventures also operates Chick-fil-A’s Little Blue Menu, a single-unit concept in Maryland.
• TGI Fridays is testing new formats as part of its international growth strategy. In Japan, for example, the chain is trying smaller format units designed for high-density urban centers, restaurant development + design magazine reports.
• Japanese-inspired chain Yoshinoya opened a location with a double-drive thru in Compton, Calif. The fact that a 125-year-old brand opened its first-ever double-drive-thru unit is a nod to the importance of speed and throughput to today’s restaurant chains. The 2,193-square-foot unit features a mural made by local artist Mel Depaz that highlights this Southern California community.
• Pennsylvania-based Iron Hill Brewery abruptly closed all of its locations, per multiple published reports, including this one from Yahoo! News. The chain, which had 16 locations and, according to a Breweries in PA report, was closing due to ongoing financial challenges that led to the decision to file for bankruptcy.
• Miami, Fla., is the best foodie city in the U.S., per a study by WalletHub. What makes for a good foodie city? The report says, “tones of unique culinary experiences to try, from food trucks to specialty-food stores to, in some cities, Michelin-starred restaurants.” Rounding out the top five best foodie cities are Portland, Ore., San Francisco, Seattle and Orlando.

Economic News

• Personal consumption expenditures increased 2.7% in August compared to the same period in 2024, per data from the U.S. Bureau of Economic Analysis. Excluding food and energy, the PCE price index increased 2.9% from one year ago. Disposable personal income increased 0.4%. These growth levels were in line with economist projections, per multiple published reports including this one from CNBC.
• New orders for durable manufactured goods increased 2.9% in August compared to the previous month, per data from the U.S. Census Bureau. Sales of transportation equipment led the increase, growing by 7.9%. Orders for defense aircraft and parts skyrocketed by 50.1% in August after rising by 0.6% in July, per RTT News.
• Sales of single-family homes soared in August. Per data from the U.S. Census Bureau and the Department of Housing and Urban Development, monthly sales were 20.5% greater than July and 15.4% higher than August of 2024. It’s important to note these sales occurred before the U.S. Federal Reserve cut interest rates in September.
• Pending home increased by 4.0% in August compared to the prior month, per data from the National Association of Realtors. August’s results represented a 3.8% year-over-year increase. The NAR attributes the growth to lower mortgage rates.