Said It Here

How to get out of a restaurant lease when losing money

High minimum wages and strict franchise rules mean many restaurants pull in less revenue during slow hours than it costs to staff them. Because owners are bound by multi-year commercial leases and heavy personal guarantees, closing down triggers devastating financial ruin instead of relief.

Overview
People affected2 accounts across 1 forum
Workarounds found4 items attempted
Community agreement2 total upvotes

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

Found another way around this?

Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.

  1. 1
    Cutting back on staff and working all the shifts alone
    Did this help you?
  2. 2
    Running heavy discounts on third-party delivery apps
    Did this help you?
  3. 3
    Doing door-to-door marketing and local geo-location advertising
    Did this help you?
  4. 4
    Pursuing legal remedies against the franchisor for misleading sales figures
    Did this help you?
Tried another approach not listed above?+ Share your workaround ↑

In their words

Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.

r/restaurantowners2 people · September 2026

“In California labor costs are $20 an hour + payroll tax = almost $25 an hour. That means to put 2 employees on shift, it’s roughly $50 an hour. Some hours roughly 6/11 hours we are open, we don’t even hit $150 in sales.”source ↗

“It’s a franchise, we cannot change the menu. We also are limited to how we can advertise. Yes, other franchisees are struggling (mainly cause they sold franchises on inflated numbers). We cannot close as $700K invested.”source ↗

“Simply in California, there is too much competition, where most of us are stuck with 10 year leases, and cannot close and do not want to accept massive loses due to personal guarantees that will exceed the loss.”source ↗

CharleysGuy · r/restaurantowners · 18 upvotes

“As someone else who owns a franchise and also has these struggles I FEEL YOUR FRUSTRATION. It’s infuriating at times.”source ↗

JFB-23 · r/restaurantowners · 2 upvotes

Where this came up

People with this problem also raised