The number of people visiting restaurants has plunged for four quarters in a row, according to NPD Group. Some higher-end establishments are offering discounts for holiday parties.
Adele Cabot and her husband used to dine out three to four times a week, regularly spending $75 to $100 at a sushi bar sampling rainbow rolls and yellowtail nigiri sushi.
But that changed after Cabot, an adjunct professor of theater at UCLA, had to take a 6% salary cut. The couple now eat out half as much and frequent less expensive Mexican and Italian places.
"I just don't want to spend the money to eat out a lot," Cabot said.
With Thanksgiving this week and Christmas next month, restaurants are eager to win back customers such as Cabot who seemed to disappear amid a brutal summer for the nation's eateries.
Restaurant owners are worried that tight corporate entertainment budgets, cash-conscious consumers and greater competition from price-cutting supermarkets will make for another dreary Christmas.
The number of people visiting restaurants has plunged for four consecutive quarters, according to NPD Group, a market research firm. Companies as small as Tender Greens, with just three restaurants, and as huge as the Denny's chain are braced for another difficult year.
"Until the economy gets through these unemployment and foreclosure issues, we are going to have a tough time," said Nelson Marchioli, chief executive of Denny's Corp., of Spartanburg, S.C. "The economy has really put our customers in a tough position."
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My favorite downtown restaurant for the last four years might as well close its doors. No one goes out anymore unless it is a special event.
ReplyDeleteEateries are waiting to be eaten...
ReplyDeleteMy favorite downtown resaurant is two cheesy perverts cooking shit on a plastic grill. Suddenly, everyone oohs and ahs at the burgers going postal with bright colors and some sort of stinking fumes. Then, everyone bends over and gets the useless ream from the government we all love at gunpoint.
ReplyDeleteI went to a restaurant the other day. Ordered a grill cheese and side order of cole slaw. After chomping it all down, I had to shit. So I went in the bathroom and there was this guy shooting up and peeing on himself at the same time. I busted out laughing as I thought of the Congress of these united states of common greed and indifference. I messed with him cause he was sooooooooo stonnnnned. Told him God loves him and Uncle Sam was outside wanting to have a word with him. Ha, what a bunch of losers we've become. Just, mix it, cook it and shoot it. Yeah, Americana!
ReplyDeleteLeading the pack in the idiotic moves dept has to be the new City Center in Las Vegas.
ReplyDeleteIt is a race to the bottom. Who will get there first ?
ReplyDeleteRestaurant Owners, Real Estate Agencies, Hotel Owners, or Small Banks ? Too small to succeed ?
Rampant greed consumes all as Ancient Rome II gets ready to fall!
Stay Tuned Opera Fans because the cats are falling from the sky too...
For people new on this site , new to what is going on in the economics world , look at this video , best 30 mins of basic monetary education , spread the word
ReplyDeletexxx.inflation.us/videos.html
Give me a break. I don't know where you people live, but in my town (generic town in midwest US) restaurants are busier than ever. Last Tuesday I had to wait 15 minutes to get seated at a chain restaurant!
ReplyDeleteThe depression might be here and everything but I often scratch my head in amazement at how everything is holding up so well.
6:52 Take notice of how everyone is paying for their meals. Mostly all credit cards and little cash. In our area (Dallas, Tx), a major resturant, Luby's has closed most of its cafeterias. Sad. The resturant business is only holding up well now because most people are using what credit they have left thinking it will all get better soon. All IMO of course.
ReplyDeleteFunny how people confuse bad and slow service with a resturant being busy. Maybe these places should start focusing on customer service and get these people back. I waited for 15 minutes for a draft beer from a chain resturant that had 5 people inside. Its just bad slow service.
ReplyDeleteNow that we all know what the banksters credit cards stand for, look around. That is all you will see this holiday shopping season. More saps with no assets, no equity, getting themselves further into 25.5% interest slave debt.
ReplyDelete8:07, I agree 100 percent. THere is soooo much room for improvement in service in restaurants it's not funny. Across the board, service is lousy.
ReplyDeleteTake outs at grocery deli's are better and cheaper, far more efficient than most loud, lousy service & crowded resturants. Take it to the local city parks or home and eat in peace and quiet. Laura
ReplyDeleteWTF? This must be taking place in Deetroit? The economy is booming here in north TX! Why I was at the store this afternoon and it was crowded with shoppers. My TV is telling me we are in a recovery now and the economy is coming back!
ReplyDeleteAs long as we can make bombs to kill them terrorist, our economy will be just fine!
GO COWBOYS!
Restaurants will do well in this depression if there are plenty of employers nearby, good visibility, good service/food, great ambiance inside and out, decent prices.
ReplyDeleteIf not they won't be around for long.
The landscape will change drastically
in January. They will hold out for the holiday shoppers then...poof.
The reason why no one is eating out is because everyone is too busy taking it up the rear.
ReplyDeleteThis friendly service announcement brought to you by Capital Investment Partners Inc.
I am so terrified of terrorists doing terrorism on me and my country that I have lost my appetite. I am so scared. I can only hope the government finally wakes up and raises our taxes so we can put more troops in Afghanistan and Iraq and Iran to destroy all those terrorists that hate freedom and democracy. Only then will I be able to eat out again.
ReplyDelete