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Dining Out Economics
Mothers Day is always a busy day for restaurants. Despite the economic slump this year was no different. Brunch business was booming! But local restaurant owners are bracing for tough times.
By Theresa Petry,
May 11, 2008, 7:14 PM CDT
Mothers day is always a busy day for restaurants. Despite the economic slump this year was no different. Brunch business was booming! But local restaurant owners are bracing for tough times. Watch
It's no secret Americans have a love affair with food, plates full of palate pleasing goodies and savory sweets. We dine out more than most, but is the trend changing with the pinch at the pump and a slumping economy? "Gas went up and business went down and taxes were due," stated Jan O'Leary, owner of O'Leary's Restaurant.
Many restaurants are taking a hit making Sunday's crowd a site to celebrate. Helen Fitzgerald's restaurant had 800 reservations.
Some customers say a slump won't stop them from enjoying special occassions.
"I think people are complaining about it more and worried about it more, but overall if it is $100 more a month that is not going to make or break most people. And I'm not going to let it get in the way of me enjoying myself," commented customer, Keith Kulich.
"We'll go out to eat less and go more expensive rather than cheaper and just think about it more," said customer, Judy Knobbe.
Restaurants are getting hit with higher prices from food costs to deliver surcharges. They're trying to eat some of the cost. "We try not to pass it on to our customers. We try and give value for a buck," said Brett Syberg, owner of Helen Fitgerald's restaurant.
While Helen Fitzgerald's reports a two percent decrease, just down the road at O'Leary's they estimate, sales dropped about 25 percent. Both restaurants say they're looking at ways to entice customers. "Some new marketing techniques, but basically we haven't had a menu increase since over 15 months or so," said O'Leary. "We do a strip steak special on Wednesday for $5.95, and then you sign up for a mailing list, and we send a monthly list," said Syberg.
They hope specials and deals will bring more customers, but it's not make or break yet. "We'll just keep our fingers crossed," O'Leary said hopefully.
Restaurants, pubs, and bars say while dining has declined beer and alcohol sales have remained steady.
Copyright © 2008, KPLR
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