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Outlook for restaurants falls to record low
The National Restaurant Association reports that the outlook for the industry fell to a record low in November.
The association’s Restaurant Performance Index, which measure the health of the industry based on surveys of restaurateurs from across the country, sagged in November, when the drumbeat of bad economic news grew loud and ominous. Many restaurant owners told the association their sales were down and they were pessimistic about the next six months. Here’s an excerpt from the report:
The November decline in the Restaurant Performance Index was the result of broad-based declines across the index components, with the Current Situation index falling to a new record low. A solid majority of restaurant operators reported negative same-store sales and traffic levels in November, while nearly one-half expect their sales in six months to be lower than the same period in the previous year. …
Restaurant operators are more pessimistic about sales growth in coming months. Only 21 percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), matching the proportion who reported similarly last month. However, 48 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, up from 43 percent who reported similarly last month and one of the highest levels on record.
I was in a restaurant last week and heard the owner tell the guests at one table, “We really appreciate all your support over the holidays — but we really need your support in January and February.”
Permalink | Comments (20) | Post your comment | Categories: Restaurant industry news
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By Denise
January 7, 2009 12:48 PM | Link to this
January and February have always been slow months - before the smoking ban, before the layoffs, before $3.00 gasoline. That’s why Restaurant Week is held in January. We’re getting the bills for our Christmas gifts and parties, making New Year’s resolutions to lose weight, and just feeling guilty and are trying to make up for all the party foods and Holiday pastries we ate between Thanksgiving Day and New Year’s Day. If you make smart choices, you can still dine out this month and not feel badly about it. Try it.
By Eddie
January 5, 2009 4:36 PM | Link to this
“null” I was with you up until the “Buy American” comment. What does that have to do with the restaurant industry. Is it even possible to not “buy American” when dining out (aside from actually leaving the country). If you are suggesting boycotting Chinese / Mexican restaurants then you are crazy. They are the only places that offer something different from the Applebeez/Max & Irma/Bob Evans/O’Charley’s/every other Middle-America restaurant. Plus Chinese and Mexican restaurants give you great value for your buck. You can go to El Toro and leave absolutely stuffed, with a doggie bag and pay less than $10! Sarcasm aside, I get you meant “Buy American” autos or whatever other goods are still actually made in the US. However in this terrible economy I would much rather buy a car that has the best quality/warranty/fuel economy than a junk car, just because it was made in the USA by corrupt US Corporations. Sorry the Buy American philosophy simply doesn’t work anymore.
By Rusty
January 5, 2009 4:29 PM | Link to this
The problem is that most restaurants get their food from some common supplier (probably GFS for most local places) so there is little to differentiate them from other similar places. And to top it all off they are staffed with managers who simply want to improve over last quarter’s profit so they can bonus, and teenage wait staff that simply want to make enough gas/beer money to go party. All that adds up to mediocre food and crappy service. The places that are different simply overcharge for what they are serving (which is simply not an option in this time).
By Oldtimer
January 5, 2009 4:00 PM | Link to this
We’ll be happy to see you go, Joe. And take all that acrid smoke with you!
By null
January 5, 2009 2:53 PM | Link to this
I think it’s the economy as well, I smoke but not in resturaunts, it ruins the taste of the food! Anyway with GM closing and companies downsizing the extra money just isn’t in folks budget anymore..I hope that this recession doesn’t last too long or many more will be out of work not just locally but across the country. Support America Buy American! BTW for the best prime rib in the city for a rather reasonable price check out the Chateau Club on Wagner Ford Road… you won’t be dissapointed
By McRib
January 5, 2009 1:31 PM | Link to this
Does “Uncorked” ever produce an article of his own? If so, I ve never seen it. He always has a paragragh about something he’s read and then a couple of quote paragraghs. What a lazy reporter.
By Karon
January 5, 2009 1:28 PM | Link to this
Ohio needs affordable mass transit. This would in turn help the restaurant business as diners would have quicker and better access to areas with restaurants.
By Patty
January 5, 2009 1:08 PM | Link to this
Don’t eat at chains. If you want good homemade food when you go out eat locally. There are plenty of family owned restaurants/bars that serve wonderful homemade food and for a reasonable price. Support the people of Ohio - eat locally owned.
By Nicole
January 5, 2009 12:51 PM | Link to this
People are tightening their belts because of lost jobs, fear of losing jobs, etc. We eat out, but far less often and usually at cheaper locales than before. Stop making the smoking ban your scapegoat. If you want to move because of it, move. I, for one, enjoy going out more than before BECAUSE of the ban.
By Frank
January 5, 2009 12:48 PM | Link to this
Yes it has to be the smoking ban. Not the fact that hundreds of people recently got laid off, food prices are spiking, and its healthier, cheaper, and you get higher quality food by cooking at home. Who is going to pay $18 for a tiny “choice cut” steak thats served at all the carbon copied resturant chains when you can get much better for cheaper at home. Nah, its the smoking ban…
By Barry
January 5, 2009 12:42 PM | Link to this
how long before someone makes a comment about how magic trains will fix this problem?
By Lizzie
January 5, 2009 12:40 PM | Link to this
It’s not the smoking ban. Hop the border to Indiana and you’ll see the same problems growing with empty restaurants.
By joe
January 5, 2009 12:33 PM | Link to this
Well I for one don’t go out to eat in Ohio. I drive to Indiana to Gamble, smoke, and eat out. When I sell my house I’ll be leaving this wonderful state.
By rene
January 5, 2009 12:07 PM | Link to this
Smoking has nothing to do with it…if you have the extra $$ to eat out, by all means do! However, most people are watching pennies these days and you can cook a week of meals at home for 4 for the one meal at a decent restaurant for $50.We still eat out, just only 1 time a week now.Support ‘em if you can folks!
By Julie
January 5, 2009 11:55 AM | Link to this
I don’t think that people are dining out less due to the smoking ban. The increase in gas prices increased the cost of just about everything, leaving consumers less money to spend at restaurants. During the holidays, people chose to spend $20 on a gift for someone instead of paying for a meal at a restaurant.
By ted
January 5, 2009 11:51 AM | Link to this
(Sigh) The same ol’, same ol’ comments about smoking. Lame. Let’s move on, shall we?
By Al
January 5, 2009 11:41 AM | Link to this
Danny, you are an idiot. If they where caving in then they wouldn’t have this problem with sales. Food, booze, and cigs go hand in hand. You are telling the smokers that they can’t smoke. Who’s controlling who’s life. I don’t even smoke but I’m not interested in having rights taken away by anybody my Nazi dictator.
By Danny
January 5, 2009 11:23 AM | Link to this
Sorry Mr. Restaurant Owner, I would love to help you out - But as long as you are going to cave in to the Smoking Nazi’s who think that they have the right to control MY life - you can let them support you.
By Dayton is Dead!
January 5, 2009 11:17 AM | Link to this
…
By mikey
January 5, 2009 10:56 AM | Link to this
smoke em if ya got em