Bad News on the Dining Front
March 5th, 2008, 3:37 pm · 2 Comments · posted by alamancefoodie
It has been a rough time for restaurants. Last month the Times-News reported that Bob Evans and Rock-Ola Cafe shut down operations in Burlington. On Monday of this week a feature story in USA Today was headlined, “Hard times are on the menus at restaurants.”
Higher food costs, less disposable income, and a general financial pinch kept customer counts flat at chain restaurants in 2006 and down 2% last year. According to the report 49% of restaurants reported to the National Restaurant Association that January same store sales fell, and 54% reported less traffic for the fifth month in a row.
Lone Star Steak House closed 27 stores, putting 1500 out of work. Starbucks has announced they plan to close 100 units–though the foodie wouldn’t call Starbucks a restaurant.
Randy Cox, of The Village Grill and Blue Ribbon Diner reknown, agrees that things are tough right now. He says that his food prices have gone up 3% a year in each of the past two years while economic pressure have kept the restaurants from being able to raise prices. Despite all the competition from new chain restaurants at Alamance Crossing, The Village Grill was doing a brisk business at lunch last Monday.
On a local note, the foodie is very disappointed that B’s Bistro is no longer open for lunch. They closed for lunch in December to do private, holiday parties. When Chris Russell and company decided to keep Benjamin’s open for lunch, apparently the decision was made to make the Bistro a dinner only venue. Too bad. They had good lunches, and the atmosphere is great for lunch. With Spring around the corner, we’ll miss outside lunches at B’s Bistro.
March 7th, 2008 at 1:31 pm
Running a restaurant is not an easy task especially in these economic times. When you see franchise operations closing, you can only imagine what the independent, small operators are experiencing.
The closing of B’Bistro and opening Benjamin’s for lunch was not a bad move by Chris Russell. Many of the lunch favorites from the Bistro are on Benjamin’s lunch menu such as the Bistro Burger, Croque Monsieur, and their soup and salads selections that are complemented with Benjamin’s good selection of seafood lunch selections. I agree with the Alamance Foodie that dinning under an umbrella will be missed.
I am hopeful we will not have to many more closings.
March 8th, 2008 at 2:18 pm
Jim, “too bad,” wasn’t meant to imply that closing the Bistro for lunch was a bad move. Too bad meant that I’ll miss the ambience of B’s Bistro at lunch. Benjamin’s may serve the same food, but it doesn’t have the same feel.
The Saturday, March 8 issue of The Wall Street Journal www.wsj.com) had a feature article titled “Cutback Cuisine.” Randy Cox isn’t the only restauranteur facing higher food costs. According to the article, it had become a national problem. According to the National Restaurant Association, last year “restaurant owners saw wholesale price increases of 7.4%, the biggest jump in nearly three decades.” According to the feds, consumer food prices went up 4% in the same period.
Restaurants that spoke with the WSJ said their solution was to substitute pasta dishes for beef and to trim portion sizes. Expect to fine fewer European wines and more domestics on wine lists this year.
A recession, sky high gas prices and general economic malaise prevent restaurants from raising prices.
I hope we don’t lose any more local places to dine. As a foodie, I’m optimistic that the good ones will survive.
Cheers.