USA Today: Hard times are on the menu at restaurants

[marmar]

Hard times are on the menu at restaurants
By Bruce Horovitz, USA TODAY



The restaurant industry has fallen, and it can't get up. To add insult: The worst may be yet to come.

Same-store sales are sliding. Commodity prices are climbing. Units are closing. Customers are dwindling. Some of the top names in all ends of dining are in pain, from Starbucks (SBUX) to Applebee's to The Cheesecake Factory (CAKE).

"Whether or not the rest of the economy is in a recession, the restaurant industry certainly is," says Ron Paul, president of restaurant researcher Technomic.

The financial squeeze is hitting hardest at dinner. Dinner traffic fell 2% last year, says research giant NPD Group. Lunch is slowing, too, says Dave Jenkins, president of NPD's U.S. foodservice business.

More serious troubles may be ahead for the $558 billion industry. Except at McDonald's (MCD)— which posted a mostly terrific 2007 — same-store sales at the nation's largest restaurant chains grew a paltry 0.3% last year, Technomics says. Same-store sales are those at stores open at least a year.

Worse, 49% of restaurants surveyed by the National Restaurant Association reported same-store sales fell in January, and 54% said customer traffic fell in January, the fifth month in a row.

"In the lifespan of casual dining, we haven't seen economic times like this," says Marc Buehler, CEO of Lone Star Steakhouse, which just closed 27 of 179 stores.

Evidence of tough times:

•Restaurants are closing. After the Lone Star closings, 1,500 employees lost their jobs. "We're gonna get through this," says Buehler. "But it won't be easy."

Starbucks plans to close 100 low-performing units and will unveil a strategy of key changes at its annual meeting on March 19. Pick Up Stix, a fast-casual Chinese chain, closed 26 of its nearly 100 locations in January ......(more)

The complete piece is at: http://www.usatoday.com/money/industries/food/2008-03-02-restaurants-economy_N.htm

[stop the bleeding]

1. At least Ron Paul got to be president

"Whether or not the rest of the economy is in a recession, the restaurant industry certainly is," says Ron Paul, president of restaurant researcher Technomic.

[goforit]

35. If only Ron Paul would be heard.

[DS1]

2. One place in my little town probably isn't going to survive the winter

as we're a tourist town. The one next door, which has been packed at this hour 4-5 months ago closes early and is lucky to have 5 tables of service a night.

[alarimer]

3. Well wages are down, gas and food prices are up.

People are looking to save where ever they can.

[LibDemAlways]

4. And yet an uber expensive steakhouse like the

Ruths Chris near me is always packed. The well-to-do apparently aren't feeling the crunch.

[kestrel91316]

6. Hell, the rich are positively awash in ill-gotten gains these days.

THose Halliburton profits buy a lot of dinners at the VERY TONEY Ruth's Chris Steak House.

[SpiralHawk]

14. Republicon oil & munitions profiteers are eating high off the hog

As is their cabal of high-paid corporate media propagandists...

[Ilsa]

16. I wish I could hear their coronary arteries complaining. nt

[El Pinko]

22. Tony? Don't confuse expensive with classy...

Ruth's Chris serves routinely huge hunks of meat and advertises on Rush Limbutt's show.

That's enough for me. It's a trough for obese repukes with clogged-up colons who have never eaten a vegetable to shove their faces into. wouldn't be caught dead there.

[kestrel91316]

28. I got a free dinner there once, compliments of one of the

pharmaceuticals companies. They had a lecture/presentation and dinner for a bunch of us locals (for a product that I was already using and happy with, lol).

I got the salmon (which was fabulous, BTW). And nice veggie sides. But their prices are obscene. No normal person can justify the cost of eating there except for VERY special occasions.

[SoCalDem]

46. you want obscene??

My husband's boss took a bunch of them (and wives) for a weekend trade show in Vegas.. Put us up at the Paris, and the Sat night dinner was order from the menu..the cheapest steak was $47.00l.;..this was at the swanky restaurant there..decor was ok, but the place felt crowded and was quite noisy.. There were 16 of us..I shudder to think of what that cost the boss.. (He's the best boss on earth..my husband adores him..so do I).. When a vice president quit, he gave the trip to Tahiti to US..10 days ..all expenses paid on Moorea..and since it was short notice he paid for our expedited passports, and gave my husband an envelope with $1000.00 in it..for expenses..

[LibDemAlways]

30. self-delete

[SoCalDem]

25. Ruths Chris is sooooo overrrated.. Our son gave us a gift certificate

for that place (to FORCE us to go somewhere else, he said)..

The closest one to us is in Palm Springs..so we had to drive out there... $3+ a gallon gas.. and the damned waiters there about drove us CRAZY.. I don;t like to be asked 50 times during my meal.."Is everything OK, can I get you something?"..
The steak was good, but not worth what it cost (my son).. I have had steaks just as good..from my own backyard grill..

[Aristus]

39. My wife and I ate at Ruth's Chris Steak House in Bellevue once.

The steak was unmemorable, and I had to arm-wrestle the waiter best two-out-of-three just to get a side of steamed broccoli. Never going there again.

[TahitiNut]

29. I think eating steak at a restaurant is dumb.

When I go to a restaurant, I'm interested in entrees that I can't or don't prepare at home ... either due to the time and effort required or because of the uncommon taste. I can buy steak and prepare it myself easily and just as well or better than any "steak house." Since I often go to restaurants with other people, and THEY choose a steak house, I tend to order prime rib. Even then, the experience is usuually somewhat less than satisfying. Any of the better "Steaks and Chops" restauarants I'd want to patronize would have side dishes and preparations that set them above the rest. That's sure not in the "casual dining" stratum, though.

[bumblebee1]

32. Are you my dad?

My father would say the same thing whenever we went out to eat. Order what you don't get at home. I take it one step further: I'd rather eat at a local restaurant when traveling than a fast foot joint. I've got two within walking distance from my house.

[TahitiNut]

36. I strongly prefer non-franchise owner-operated restaurants to corporate chains.

I want the OWNER there ... to compliment or complain. I like the diversity of tastes and preparation.


When I worked in Paris for nearlly four months, I had to eat out every night. Even in Paris, that can get old. I found that going to the "Chez Mom and Pop" restaurants made it most interesting and bearable. I allways asked for their recommendations ... favored their daily selection of a table wine ... chose ther terrine for an appetizer ... and most often chose their 'special' for the evening. I was rarely disappointed and often blown away at how good it was.

[El Pinko]

42. DEFINITELY. It is a HUNK OF MEAT. Big whoop.

Jeez, anyone who can't make a STEAK at home has got to be an utter incompetent in the kitchen.


BO-RING.

[kestrel91316]

5. Maybe they need to work on quality. I got a Subway turkey sub last week

and was hard pressed to identify any turkey in it, and they completely left out my cheese. They DID give me an extremely generous portion of iceberg lettuce, which was magnanimous of them. I'm sure I can do better with a sub brought from home.

[2Design]

7. I have had good luck with subway - their $3.99 lunch specials are great n/t

[TheCowsCameHome]

10. The last one I had was thin enough to read a newspaper through

I wrote an angry letter to HQ, and they replied "thanks for your praise" or something to that effect. I'm done with them. They suck.

[El Pinko]

23. I make my own subs every day with a baguette and chicken breast I bake myself

I do a big batch of breasts at the beginning of the week, slice them and put them in the fridge for sandwiches. It takes me 10 minutes to make one in the morning, and I get fresher, better meat without chemicals or salt, a lot more meat/protein, and it's just as good, for half the price...

[Wcross]

8. When you're tapped out Mac & cheese is a wise option.

Most people can't afford to eat out every night of the week. Maybe all these people who overpaid for a home with a great kitchen will actually use them now?

[stop the bleeding]

9. Doh!

I'm eating Annies Bunnie mac and cheese right now.

mmmmmm good!

[Mind_your_head]

13. Most people don't know how to really cook anymore

Many people think throwing 1 1/3 cups of water and a tablespoon of butter in with a package mix is "cooking".

[Art_from_Ark]

37. Sometimes, people are so tired after a day's work

that that's about the only thing they can do for a home meal.

[Manifestor_of_Light]

27. You can make mac and cheese better.

Add a drained can of tuna. Add two or three ounces more cheese and stir it in well.

Season with salt free Spike, garlic powder, parsley, minced onions.

Then it's got enough protein to be a meal.

[Wcross]

31. Back in the day I added large chunks of onions,

When I was poor I used to eat a LOT of Mac & cheese. My favorite was Mac & onions. I would cook the mac & add the onion chopped LARGE into the pot a minute before draining.

[Dorian Gray]

50. Wise as is cheap?

Cause it certainly ain't healthy. (But it's yum!) I eat Mac and Cheese twice a year now. It's one of my favorites, but there is little nutritional value to it.

[knitter4democracy]

52. Cooking in a crockpot is better.

Forget mac-and-cheese (unless homemade). Get a cheap cut of meat, put it in the crockpot with canned tomatoes and canned soup (cheap at Aldi or Save-a-Lot), and then boil up some egg noodles when you get home. Cheap dinner with good leftovers. Much cheaper in the long run than mac-and-cheese.

[lonestarnot]

11. Everyone is drinking dinner!

:toast: :beer:

[Mind_your_head]

12. I hate chain restaurants

When we do go out to dinner, it's ALWAYS at a locally owned place. I vote with my food dollars to keep the money 'in town'.

I don't give a care about the demise of chain restaurants. I hope that they all go the way of the dinosaur! It once seemed like a 'great idea'....that a hamburger (McDonalds) in New York would taste the same as a hamburger in Rome, Rio, Beijing, or Cozumel....but now that we are 'older, wiser, more experienced, and see the effects of this line of thought' we really have to say "No"....it's not 'good'.

Peace,
M_Y_H

[marmar]

17. I hate them too.....

.... but every now and again I can't resist a little faux Japanese from Benihana.

:)

[Mind_your_head]

18. Well, the Korean couple that I personally know, who have opened up

three locations in the past 25 years (yeah, they stood the test of time......2nd location opened 6 years ago.....after 19 years of REAL appreciation (or was it just 5 years off of paying off a 30 year mortgage?) and showing up day after day after endless day.........the third location they just opened up last year.

[LibDemAlways]

38. More or less off topic, but years ago husband and I were

in Hawaii on vacation and ate one night at Benihana in Honolulu. Around the table with us were maybe 8 college age Japanese girls who spoke no English. The only item on the menu in Japanese was also the most expensive item on the menu - a multi-course dinner that included way more food than any of those girls could eat. Sure enough, they all ordered it, and before long entire lobsters were going uneaten. It was such a blatent rip-off. I felt bad for them.

Of course I'm sure Americans are frequently "taken" abroad as well, but I hated to see it happening to foreign tourists on American soil.

[Manifestor_of_Light]

55. could you please tell me...

why it's fake Japanese?

I am not an expert on oriental food by any means.

Thanks.

[Maine-ah]

15. heh, could have fooled me, but the only time we're slow is when a snow storm hits.

"Same-store sales at Applebee's dropped 2.9% in the fourth quarter. "Despite a challenging environment, we believe we can reverse this trend," says Julia Stewart, CEO of parent IHop (IHP). She says a new menu is in the works."



p.s.

our new menu came out almost 2 weeks ago.

[earth mom]

26. So what, it's not your problem because it's not in your area?

:wtf:

[Maine-ah]

56. wow, there's puttin' some words in my post.

you just come out of GDP?

[Ghost in the Machine]

19. Yep, hard times is all my restaurant is serving now... I had to shut it down

right at christmas time. I struggled through several months of trying to stay open, but all it did was wipe me out financially. At least I tried to keep my employees working until christmas, though. I should have shut down 6 months earlier and saved a bundle, but kept hoping that things would pick up. They didn't... and the smoking ban didn't help matters either. My business actually cut in half once they started enforcing the ban.

I took January off to try to regroup and see where I can from here, with not many options to choose from. I'm in the "unhirable" category with my injuries and health problems, so it doesn't leave much. That's the reason I opened my own business in the first place, so I could work on my own terms and limits. Now I'm trying to make my money online through reseller and dropship programs, plus selling some of my own stuff. It hasn't really produced anything yet, either, but it's all I got right now... besides the will and determination to keep plugging along, no matter what...


I have a baddddd feeling that things are going to get worse before they get better, too.

PEACE!

Ghost

[knitter4democracy]

53. I'd bet everyone misses your restaurant, too.

We lost a great local place before Christmas, and Hubby was disconsolate. Best Indian food in the entire area and his favorite restaurant. They just couldn't keep it going. We miss them.

:hug:

[Ghost in the Machine]

54. I have many people asking when I plan to open back up... sadly, my answer is "never"...

The whole economy has taken a hard hit here in this area. It doesn't help that I live in the 4th smallest, and one of the poorest, counties in Tennessee....

The bottom line right now is that I'm penniless, have no other source of income and I'm scared for the first time in my life.


PEACE!

Ghost

[Mugu]

20. Well thank goodness the smoking ban is going to bring in new customers. n/t

[nadinbrzezinski]

21. We do a lot less of that any longer

[SoCalDem]

24. We usually go to CoCos once a week, and for about a month now

we never have to wait..we can park right in front..and the staff is very solicitous..

Until recently, we always had to wait for at least 15 minutes and always had to park a distance away..

The prices on the menu have gone up too.


I only cook at home on Mondays, Fridays & Saturdays..and every place we go shows signs of a lot fewer customers..

We like it, because it means we get faster service, but the flip side is that ..some places may be closing.:(

[Peace Teacher]

33. Gas prices threaten disposable income

Gas prices threaten disposable income which will affect our economy across the board. Restaurants will not be the only ones suffering.

[goforit]

34. Prices for meals have gone up at least 50%.

[dysfunctional press]

40. our favorite sushi place is still going strong.

midori on bryn mawr in chicago.

mmmmmmm....sushi...aaaaarrrr...

[El Pinko]

41. If the Chilis Applebees RubyTuesday Bennigans etc. joints want to survive...

...they're going to have to move their price structure down so that it's more affordable. First they can accomplish this by reducing the gargantuan sizes of their portions.

They'll have to promote themselves as offering "bargain fare", just a smidge higher on the ladder than Denny's.

They can save on labor (and customer's can save on tips) by going cafeteria style, or letting customers order at a counter then pick up the finished meal at another counter.

If I want a sit-down meal where I have to pay a tip, I don't want it at some chain that's just a glorified fast-food joint that serves its food on real plates. I'll go to a real locally-owned restaurant, thanks.

[AlCzervik]

43. they should all try making food that doesn't taste the same as well, no matter which

chain you go to it all taste the same, all greasy and way too salty.

[Mugu]

44. Hear that strange cackling sound?

That's me laughing. You were gullible enough to believe the smoking Nazis when they told you that nonsmokers would come out in force once the smokers were gone. You might have survived while the economy was strong, but now the economy has gone south and you alienated 22% of the population. You can expect me to extend to you the same sympathy that you extended to me. If you lose your life savings and die in debt, take it up with the people that promised you prosperity. You were their legitimate prey and you took the bait.

[Mugu]

45. It's going to get even better.

In my town they realized that there would be lost revenue due to smokers no longer patronizing local businesses. So the same day that the smoking ban took effect they raised sales and gasoline taxes. Now that restaurants which paid higher sales taxes than regular businesses are suffering, they will have no alternative but to raise other taxes as well. All the taxes that the smokers once paid are now going to have to be paid by the non-smokers. You only thought that the non-smokers squealed loudly before.

Edit: Did I forget to say just how much that I'm enjoying this? I'm saving several hundred dollars a month. With stock prices down I have someplace for the money.

[bedazzled]

47. we can only afford to eat out every few months & the food always sucks

there are nothing but chain restaurants around here. the food is so
salty it's inedible.

there's only one place we can safely eat, a little distance away, a
tiny little greek hole in the wall with great food. guess we'll have
to stick with eating there. it'd be nice to have a choice, though.

[Vinca]

48. Actually, I think the restaurant industry should blame Gordon Ramsey.

I haven't been able to eat out since Kitchen Nightmares began airing. Rat droppings, dirty grease, cockroaches, rotten food . . . not to mention chefs picking food up off the floor and serving it. I'd rather eat at home anyway.

[Thothmes]

49. Guess the five second rule is alive and well in the restaurant industry.

[knitter4democracy]

51. We're eating out a lot less. Can't afford it.

One of the best places to cut the fat in our home budget was in food and entertainment. We don't rent many movies at all anymore, hardly every go out to movies (Cheap Flicks when we do), and we eat out half as much as we used to (or less).

[bdamomma]

57. this filthy regime is taking everyone down with them, or don't they

realize that they will go down too. it's the ripple effect.