Fixed cost of production in a fast food restaurant include cost of furniture, rent, insurance charges, interest on the loan taken etc. variable cost of production include cost of the raw material purchased to manufacture food, wages to the staff, cleaning and maintenance charges etc.

If the economy goes into recession, then the demand of food might fall and also the price of the food will fall.The restaurant might be earning losses. In such a situation, the firm should reduce its variable cost of production by laying off workers, producing less raw materials in order to maximize profits. If the price falls below the average variable cost of production then the firm should shut its operations.

So what will the end result be for the economy based on what you described?