Falling Unlike Domino's - Restaurants Feel the Credit Crunch

->company's flotation in 1999 - now have over 500
Recent studies carried out by the Clapham Housestores across the UK and Ireland, and are hoping
Group and Regent Inns correctly predicted ato have doubled that number by 2017: proof that
slowdown in consumer spending, causing a slumpDomino's, for one, are confident about making
in the share prices of restaurants and bar chainssomething of the UK's economic problems.
across the UK. There were a variety of reasonsComparing the more credit card -friendly cost of
behind this predicted slump in consumer interest,a takeaway pizza, Chinese meal or Turkish kebab
including the continuing impact of the smoking ban,with a wallet-busting sit-in restaurant meal, it's
England's failure to qualify for the Euro 2008hardly surprising that the fast-food industry has
Championships and, of course, the continuingexperienced an upturn in trade and profits, given
credit crunch.that the average two adults and two children
One of the companies whose initial shares'nuclear' family can feed themselves for the
tumbled under the Clapham House Group andequivalent cost of a three-course dinner for one in
Regent Inn warnings was takeaway companymany restaurants. Add in the cost of a bottle of
Domino's Pizza. But fast-forward a few monthswine and a few beers, drinks and ice-cream for
and things are certainly looking up financially fordessert from the local supermarket and the cost
Domino's, who in February 2008 recorded a 33%of eating in as a family weighs far below the likely
increase in full-year profits, and an 11% increase inrestaurant bill - plus by eating in at home, you
profits for the first six weeks of the year,won't have to tip the waiter!
compared with profits from the same period ofThere are other advantages to eating in at home,
the previous year.too. For starters, you won't be limited by the
So why has Domino's seen such an increase inrestaurant's choice of dishes as everyone can get
popularity? Quite simply: because other, eat-inexactly what they want from any manner of
restaurants have seen a decline. Because of thetakeaway establishments - after all, most towns
credit crunch, people are now unwilling to pay theand cities have any number of fish-and-chips
high prices of restaurants and bars, and are eatingshops, Chinese takeaways and local pizzerias as
out a lot less than they have done in the past.well as takeaway shops catering for other types
Instead, more and more people are staying atof food. Plus, depending on what you order, there
home and ordering take-away pizza and othermay not be any washing up afterward; just
fast food.throw the empty container in the bin and you're
As a result in the upturn of fast-food, Domino's -done!
whose shares have climbed 14-fold since the