Tough Times For Restaurants...Toughest in a generation.

[stephendare]

http://www.reuters.com/article/reutersEdge/idUSTRE49EA3Y20081016?pageNumber=2&virtualBrandChannel=0

CHICAGO (Reuters) - U.S. restaurants are enduring their toughest time in 17 years as tight credit and falling home prices compel consumers to eat out less or spend less when they do, a National Restaurant Association economist said on Wednesday.

"This is the most challenging environment for restaurant operators since 1991," Hudson Riehle, NRA chief economist, told Reuters. "Depending on how consumer spending proceeds in the fourth quarter, it could be the most challenging environment since the early 1980s."

Using retail sales data released early on Wednesday, Hudson put restaurant sales growth at about 4.2 percent for the first nine months of 2008. But, when higher wholesale food costs are taken out, he said the industry's growth is flat.

"Restaurant spending in 2008 is definitely weaker than it was in 2001, the last recessionary period. The previous weakest year was 1991 for the industry, when real sales growth actually declined by .2 percent," he said.

So far in 2008, consumers are still spending about half of their food budget at restaurants, however it appears that spending has been at lower-cost restaurants.

"The lower the average check of the operation, the slightly more optimistic those operators are," said Riehle.

"Quick service restaurants, which have a lower average check, in general those operators tend to be somewhat more optimistic than higher average check operations," he said.

Tight credit and falling home prices have affected consumer spending as well.
"When consumers were utilizing the rapidly growing equity in their residences that translated into higher spending and the restaurant industry was definitely a beneficiary," he said. "That is definitely a dramatically changed situation."

In a recent NRA survey, NRA members named the economy as their top challenge, compared with a year ago when it was recruiting and retaining staff.

"The landscape has changed dramatically over the past year," said Riehle.

[uptowngirl]

Which is an excellent reaon to suppor tyour local favorites. Here in Springfield we have a fabulous coffee shop (Three Layers) and everyone in our neighborhood should be supporting them. We say we want businesses....well get out there and buy a damn cup of coffee people!!!

[thelakelander]

In areas like Springfield, its also important to get out and support those that may not be the typical favorites as opposed to placing a higher priority on bringing in new chains.  For example, its just as important to keep places like A-Z Sandwiches, Chan's and Carl's open.  With the economy going down the tubes, now is as good as ever to work with existing owners to increase the appeal of their businesses, buildings and products.

[alta]

I read a post on here recently that stated Springfield will be getting a trolley in the fall of 2009 (approximately when Main Street will be completed).  I hope this will draw the 60,000 downtown workers to support restaurants in Springfield.  This is a much easier trip than Riverside and less crowded.  The Uptown Market and Deli will be open by then along with the numerous existing restaurants.  There is a buzz in the neighborhood that several restaurants are in the works.   

[uptowngirl]

lake is right, we need to support what we have already. When we say we want this or want that we need to make sure we go and go often to keep our places open.

[fsujax]

I support Brown Brothers and Chans all the time, as well as the store at 3rd and Market. I am doing my part to help Springfield businesses.

[jacksonvilleconfidential]

Typically restaurant business picks up in the colder months and around the holidays. At least they have that to look forward to.

[Ocklawaha]

Another weird thing here. My son-in-law is one of the top - long time waiters with the Olive Garden - Longhorn - Red Lobster chains. He has worked for years and is now in a grad program at UNF. His past locations pretty much covered Central Florida and the Coral Springs - Pompano Beach area's. His dad has a music blues-bar place "Alligator Alley" in Ft. Lauderdale. After busting my butt to get him and our daughter here, he came home shell shocked... "THEY DON'T TIP!" We are packed all day and make $100 bucks where we could clear $500+ down state. This is sad, as the business center of a large portion of Florida - don't our professionals who "do lunch" realize these young men and women work for mere pennys? What happened to 10% - 15% or 20% based on service. T.I.P. "To insure Promptness" or "To insure politeness". No wonder everyone plays down south. Get off your wallets Jacksonville - if your going, at least do the right thing.

OCKLAWAHA

[jacksonvilleconfidential]

Another weird thing here. My son-in-law is one of the top - long time waiters with the Olive Garden - Longhorn - Red Lobster chains. He has worked for years and is now in a grad program at UNF. His past locations pretty much covered Central Florida and the Coral Springs - Pompano Beach area's. His dad has a music blues-bar place "Alligator Alley" in Ft. Lauderdale. After busting my butt to get him and our daughter here, he came home shell shocked... "THEY DON'T TIP!" We are packed all day and make $100 bucks where we could clear $500+ down state. This is sad, as the business center of a large portion of Florida - don't our professionals who "do lunch" realize these young men and women work for mere pennys? What happened to 10% - 15% or 20% based on service. T.I.P. "To insure Promptness" or "To insure politeness". No wonder everyone plays down south. Get off your wallets Jacksonville - if your going, at least do the right thing.

OCKLAWAHA

Kudos to you, I paid most of my way through college by working at Partners (now Brick), Sterlings, and Cafe Carmon and my livelihood depended on tips. Now that I have a degree and work in an office, I havent forgotten my roots and always tip at the 20% mark. I also tend to have everything at the table stacked and ready to go for the server at the end of the meal.  Oh, Im also OCD.

[Ocklawaha]

ALTA
I read a post on here recently that stated Springfield will be getting a trolley in the fall of 2009 (approximately when Main Street will be completed).  I hope this will draw the 60,000 downtown workers to support restaurants in Springfield.  This is a much easier trip than Riverside and less crowded.  The Uptown Market and Deli will be open by then along with the numerous existing restaurants.  There is a buzz in the neighborhood that several restaurants are in the works.

Sorry Alta, but that cardboard and plywood Potato-Chip-Truck-Thinks-It's-A-Trolley is more insult then asset. Once the novelty wears off and people realize it's just a sham, I believe it does more harm then good. They can cite success with "beach trolleys" or "5 Points trolleys" but frankly a branded, purpose built shuttle bus or electric bus would have done just as much or more. A shuttle going up Main and over to Shands might do pretty well - but the "trolley" part is a cheap smoke screen to call off the dogs that want REAL STREETCARS. Having just returned from a streetcar sweep of the Southwest, I'll tell you the JTA trolley is NOTHING like a streetcar, in ride quality, construction, sound, size, weight (which plays to both sound and ride) or comfort. It's a case of don't piss on my leg and tell me it's raining - I'm not buying it. Springfield needs to stand firm and united in DEMANDING REAL HERITAGE STREETCAR. Your restaurants WILL thank you!

[thelakelander]

The major negative with the faux trolleys is that they don't spur infill development, that in turn, helps build up an in-house permanent ridership base.  Transit should help drive dependent development which helps to ensure its longevity.

If Springfield thinks faux trolleys on Main are going to be a major boost for businesses, residents will be first in line for a sombering reality check.  The Riverside line is seeing success (compared to the older downtown lines) because it connects a large employment zone (with limited dining/retail options) with two major urban core dining destinations that have limited parking.  To sum it up, its really a reactionary implementation.

This method can't be applied to Main in the same manner, because Main is not a destination at this point.  Main is in need of a catalyst project or program to make it a destination.  There are several  ways to do this.  One of the options would be to work with existing building owners to create a unique visual atmosphere.  Another option would be to use existing businesses as anchors and attract complementing establishments to take up space in next door vacant storefronts.  As long as Main is not the endpoint, rail can also spur infill development, making the strip a stronger destination.  Faux trolleys won't because they are "reactionary" modes of transit.

[uptowngirl]

Another weird thing here. My son-in-law is one of the top - long time waiters with the Olive Garden - Longhorn - Red Lobster chains. He has worked for years and is now in a grad program at UNF. His past locations pretty much covered Central Florida and the Coral Springs - Pompano Beach area's. His dad has a music blues-bar place "Alligator Alley" in Ft. Lauderdale. After busting my butt to get him and our daughter here, he came home shell shocked... "THEY DON'T TIP!" We are packed all day and make $100 bucks where we could clear $500+ down state. This is sad, as the business center of a large portion of Florida - don't our professionals who "do lunch" realize these young men and women work for mere pennys? What happened to 10% - 15% or 20% based on service. T.I.P. "To insure Promptness" or "To insure politeness". No wonder everyone plays down south. Get off your wallets Jacksonville - if your going, at least do the right thing.

OCKLAWAHA

Kudos to you, I paid most of my way through college by working at Partners (now Brick), Sterlings, and Cafe Carmon and my livelihood depended on tips. Now that I have a degree and work in an office, I havent forgotten my roots and always tip at the 20% mark. I also tend to have everything at the table stacked and ready to go for the server at the end of the meal.  Oh, Im also OCD.

I do the same