HOUSTON —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
As thousands of operators and vendors gathered here for the Texas Restaurant Association’s Southwest Foodservice Expo late last month, they expressed relief that Texas’ booming oil and gas industry and a housing market that has held much of its value are easing national economic woes in that state. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
One reason for the underlying strength in housing is because Texans largely sidestepped the early-2000s bubble that affected so much of the nation. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
Bob Barnes, a former Schlotzsky’s chain executive who owns a restaurant in Odessa, Texas, and heads Vision Asset Management, said: “We here in Texas are blessed because the economy has been good. It’s the one of the best states in the nation to be doing business today.” —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
Roberto Denegri, president and chief operating officer of Campero USA, whose 40-unit Pollo Campero chain recently debuted in a Walmart store in Rowlett, Texas, said the state remains the brand’s strongest market, moreso than California and the Northeast. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
“The economy in Texas is holding a lot stronger,” he said. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
The Texas Workforce Commission reported early this month that the state’s seasonally adjusted nonagricultural employment grew by 8,700 jobs in May, bringing the state’s new-job total over the preceding 12 months to 238,700, a 2.3-percent growth rate. The annual job growth rate nationally was 0.2 percent. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
After a record-low Texas unemployment rate of 4.1 percent in April, statewide seasonally adjusted unemployment rose to 4.5 percent in May, up from 4.4 percent a year earlier. The U.S. seasonally adjusted unemployment rate was 5.5 percent in May, up from 5 percent a month earlier. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
By Texas region, the lowest unemployment rate in May remained in Midland at 2.7 percent, followed by Odessa and Amarillo at 3.1 percent. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
The leisure and hospitality sector led the job growth, adding 1,300 jobs in May for a 4-percent growth rate over the prior month. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
“Job growth in Texas remained strong, outpacing the national trend,” said Tom Pauken, chairman of the Texas Workforce Commission. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
Richie Jackson, executive vice president and chief executive of the Texas Restaurant Association, said: “While restaurant owners in Texas are experiencing some issues related to the economy, overall sales remain strong and customer counts are up in our state. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
“Over the last six months, 37 percent of all new jobs created in the U.S. were created in Texas, and the restaurant industry continues to grow and provide opportunities to our members and those looking to get into the business.” —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
Barnes, who moderated a panel at the Southwest Foodservice Expo on “Surviving the Economic Downturn,” said Texas restaurateurs nonetheless experience many of the pressures of peers nationwide. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
“Costs are up,” he said. “Labor costs are up. Food costs are up. Your occupancy costs are up. Utilities are a big part of it.” —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
However, he added: “We in Texas aren’t seeing so much pressure on the top-line sales. As long as we keep those sales up, we can handle those costs. When costs go up and sales go down, that’s what’s plaguing most of the nation. We know we could likely get there.” —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
Russell Ybarra, owner of seven-unit Gringo’s Mexican Kitchen in the Houston area, said the oil and gas business, which makes up a large part of the economy of Texas’ largest city, has been bustling as the price of oil passes $140 a barrel and refined gasoline remains above $4 a gallon. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
“You still have to stay focused on what’s important,” said Ybarra, who is planning to launch a burrito concept called Bullito’s by the end of August. He has seen the cost of tortillas skyrocket because of rising corn and wheat commodity prices. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
Jerry Morales of casual-dining Gerardo’s Mexican Food in Odessa, said the economy in Midland, which also is heavily based on oil and gas exploration and production, has actually produced a problem with finding employees because unemployment is so low. —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.
“You can’t find anybody to work,” Morales said. “It’s very challenging.” —The smaller economic downturn in Texas compared with the nation’s overall sluggish economy is alleviating concerns somewhat for restaurateurs in the Lone Star State.