Restaurants Facing a Hard Knock Year

Back in May when we visited the National Restaurant Association trade show, that organization was projecting a 4.4 percent increase in sales for the restaurant industry. That was before the economy became worse than that of a banana republic.

Monica Eng looks at the determining factors in today's Tribune. The major factors (natch) are the death spiral stock market, rising fuel costs for transport and cooking and the resulting higher food costs from that. The combination of factors, as well as an easier time of finding quality restaurants in the suburbs, is taking its toll on Our Town's dining industry. With the recent closings of Brasserie Ruhlmann and Avenue M, not to mention the closing of Bennigan's, all is not bread and circuses.

Eng quotes Ina Pinckey as saying that she loses money with a serving of eggs and potatoes at $5.49, saying "it would actually be better for me to give that person a dollar to not eat in my restaurant." Faced with declining receipts, restaurants are now emphasizing minimum purchase prices, menus trimmed down to only their best-selling items, carryout business, promotion-themed nights like half-priced wine bottles and more comfort foods on the menu. The downturn has also put a crimp in the organic movement. With average costs for organic foods higher than regular produce, more restaurants are reluctant to embrace the organic movement. Crust owner Michael Altenberg told Eng that he's going "week to week, payroll to payroll, sweet talking vendors and (his) landlord." Altenberg may also cut Crust's lunch service two days a week.