How Restaurants Can Survive the Economic Downturn

The current economic downturn has affectedequipment you need to produce on a large scale.
every aspect of the American economy, includingSadly, your restaurant is seeing falling or stagnant
the food service industry. The NRA has projectedvisits every month.
a 1% drop in all restaurant sales for 2009 (whenYou are all dressed up with nowhere to go. So go
adjusted for inflation), potentially making 2008 andout.
2009 the only two consecutive years whereMany large chains like Applebees, Chili's, and
restaurant sales have fallen since the NRA startedO'Charley's have developed very successful fast
keeping track in 1971.takeout operations to supplement sales of their
That's sobering news for any restaurateur, andcore menu items. Now some of these businesses
many restaurant managers can tell you after aare getting into full catering services as a way to
quick glance over last quarter's books that thisboost sales in a gloomy economic environment.
NRA prediction isn't coming as a huge surprise. ButRecent surveys of restaurant patrons have
there is silver all over the huge cloud bank ofindicated they plan to stay home in record
gloom that is our economy, and a smart businessnumbers in 2009, but that doesn't mean they
owner should be able to hang on until the ride isalways want to fire up the home kitchen. And
over. The key lies in holding down costs whilesmall to medium sized get-togethers (of 10 - 50
attracting new customers and retaining existingpeople) still happen all the time, just not at your
ones.restaurant. Customers see a great value in
Sounds easy enough, right? Right.serving familiar foods from their favorite eatery
Here's a few food service trends that can helpright in their home, and you already have the
you survive:staff and tools to service them there. A little
Comfort foods are rising in demand. Chicken,marketing, a slight adjustment in your menu
beans, and even spam all saw significant increasesofferings, and you're on your way to finding your
in sales in the last quarter of 2008. Thesecustomers even if they aren't coming to your
products can help your business manage costsrestaurant as often as they used to.
while you portray them to the customer as aGift cards help. More and more chains are
value menu item (well, maybe not spam),marketing gift cards, and smaller operations can
especially if you highlight them against perceiveddo the same. Not only are gift cards a quick and
luxury items like beef. Put together a value menuconvenient gift for your customer, but they
of comfort foods to bring customers in, thenguarantee future sales that can help you through
hope they decide on dessert.slow times. They can also help bring in new
Divide best sellers into smaller portions. Popularclientele if they are offered as a promotion. And
menu items are always going to be popular, nobest of all, customers who use gift cards tend to
matter what the economy is like. It's just thatoverspend the gift card amount, which means
when your customer takes his wife out thissome added sales for you. Meanwhile, the
month, he doesn't want to spend like he did in thecustomer leaves full and happy, having spent less
freewheeling days of 2007. Many restaurants arethan he or she expected.
responding by taking popular menu items andYou can survive. The salient point here is that
offering an appetizer version of the same thing,customers still want your product. They haven't
or a two person value platter that can be shared.forgotten how good it tasted two years ago.
Taking your core product offerings and makingThey just don't want to pay the same amount
them affordable to your customer is a great wayfor it. You have rising expenses to deal with, but
to retain your faithful base while enticing newthat doesn't mean a little repackaging and some
customers who are searching for value.clever marketing can't help your customer realize
Take your product to the customer. You haveexactly why they fell in love with your restaurant
already developed delicious entrees, trained yourin the first place.
kitchen staff to cook them, and purchased all the