CHICAGO —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Olson, owner of the Metropolitan, wants to see what’s new in dining tables as she continues tweaking her white-tablecloth, fine-dining restaurant to make it a little less formal and a little more approachable to customers. Sales are down about 20 percent at her 13-year-old concept, she says. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“We’re down like everyone else,” Olson says. “I try not to worry; nothing positive comes out of that.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The economy has packed a wallop on operators across the country. High unemployment, layoffs, tight-fisted consumers and reduced customer traffic have created a challenging environment for the restaurant industry. Restaurant owners, managers and executives going to the show are looking for tools and ideas to improve margins, while others are staying in their restaurants, working it out the best they know how. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Even though his restaurants are in Chicago, Jami Bay, president of Love’s Eateries Ltd., franchisor of the five-unit Love’s Yogurt & Salads, is skipping the show this year to continue managing his two company-owned units. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Customer traffic is always your No. 1 concern,” Bay says, “and even if you have customer traffic, you are worried about sustaining it. You can have the best prices, product and service, but without the customer, you are nothing.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Restaurant industry traffic has been weak for the past six months, according to NPD Foodservice, a division of the Port Washington, N.Y.-based NPD Group research firm. The steepest decline was recorded in January, when traffic was down 3 percent from January 2008. Traffic remained depressed in February as well. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Monthly same-store sales also fell steeply in January and February, compared with the same period in 2008, according to NPD Foodservice. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
During an industry update to operators at the University of Chicago in April, Dave Jenkins, president of NPD Foodservice, noted also that retail spending was down in January and February and consumer confidence had tumbled to its lowest level ever. In addition, Jenkins said, half of all surveyed consumers had stated they were worse off financially than they were a year ago, and many consumers said they believed the economic crisis would not be over soon. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Unemployment has a strong impact on the restaurant industry, Jenkins notes. The unemployed obviously spend less, and those with jobs worry more about losing them and also become more conservative in their spending. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Nationally, unemployment hit 8.5 percent in March. Since the recession began in December 2007, the nation has lost 5.1 million jobs, with almost two-thirds, or 3.3 million, of the decrease occurring in the past five months. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The industry also has laid off thousands of employees. The Bureau of Labor Statistics reports that there were 132 layoff actions in the fourth quarter in the accommodations and foodservice industry. That amounted to 27,019 people losing their jobs, and 22,767 who made claims for unemployment insurance. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“The effects of unemployment are depressing the entire industry,” Jenkins says. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
In the past two months, however, the industry has seen what could be signs that it has hit rock bottom and glimmers that a recovery may be on its way. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Data from the U.S. Census Bureau and the Bureau of Labor Statistics show that real sales for restaurants dropped to a low of negative 4.7 percent in December but have inched up to negative 2 percent in January and February. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Restaurant closures, job cuts and salary reductions also appeared to be slowing in the first quarter of 2009, according to People Report, a Dallas-based firm that tracks human resource issues in the industry. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Most of the downsizing was over early this year for the majority of the 111 restaurant companies that participated in People Report’s Workforce Index published in March. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The RBC Consumer Attitudes and Spending by Household, or CASH, Index rose to 38.3 in April, up substantially from 8.2 in March. The index, sponsored by RBC Financial Group, measures consumer viewpoints on the current economy, expectations for the future, and feelings on job security and personal financial situations. Consumers had registered pessimistic responses related to the future economic outlook almost every month since January 2008. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
In March, two studies, one from the University of Michigan and the other from the Conference Board, also tracked minor upticks in consumer confidence levels. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
But even with signs of a possible rebound, some trends sparked by the recession are likely to continue in the near future, industry observers say. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
First, consumers are not likely to abandon their cost-consciousness quickly, NPD’s Jenkins says. Many are likely to continue frequenting lower-priced concepts, ordering from dollar and value menus, and using discounts and coupons. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The dinner daypart has also taken a drumming from the economy. Supper traffic was down as much as 6 percent in November, according to NPD. While traffic has improved slightly since then, it was still down more than 3 percent in February. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Dinner seems to be something that has fallen out of favor,” Jenkins says. “We’ve been asking consumers for three years: Are you trying to go out to eat more, or cutting back more? They’ve been cutting back more than they have been trying to go out more.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
While lunch business has been strong at TeddyFabz, a fast-casual restaurant in Deerfield, Ill., owners Teddy and Cynthia Spears are trying to build more dinner traffic. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The Spearses opened the restaurant in October 2008, just as the economy was picking up the pace of its downward slide. The 120-seat restaurant offers Chicago-style hot dogs, sandwiches, wraps and salads. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“We opened in the wintertime and in a bad economy,” Teddy Spears says. “It was like a perfect storm for when not to open a restaurant.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The Spearses also opened in a location where an earlier restaurant had failed, forcing them to overcome the previous concept’s poor reputation in the neighborhood. They have tried some couponing, but have been focused more on food, service and word-of-mouth. Teddy Spears is in the restaurant every day, greeting and talking with customers. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Our numbers are going up every day,” he says. “Customers have told me how much they like our price and how much food we give for the prices we charge. Our average check is between $8 and $10.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Many quick-service and midscale restaurants are faring better in this economy than casual- and fine-dining ones, NPD’s Jenkins notes. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“The lower check average is doing better than the higher end,” he says. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Metropolitan owner Olson says she had begun to detect changes in consumers’ attitudes toward fine dining even before the economy slowed to a crawl. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Fine dining began waning several years ago, and I wanted to move ahead of the trend as much as possible,” she says. “We want to make sure we become more approachable and are not only for special occasions and business meetings, but so if you’re downtown, you can stop in for a drink and a burger at the bar and not feel you have to be dressed to the nines.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
She has been changing her servers’ uniforms, the fonts on the menu and removing the white tablecloths. She replaces the flowers once a month rather than weekly, and has renegotiated contracts to get better terms from suppliers for linens, recycling and trash removal. She hasn’t had to cut staff, but employees now report to work a half hour later. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
While keeping most of the prices the same, the Metropolitan offers a bar menu and is serving lunch for the first time in its history. Olson also reduced the tasting menu from 10 courses to seven. Mondays are “Locals Appreciation Nights,” when two prix-fixe menus are offered. One offers three items for $30, and the other features five items for $45. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
A lower price point has helped Panchero’s Mexican Grill stay afloat in the economy’s rough seas. Based in Coralville, Iowa, the more than 50-unit fast-casual chain has a check average between $7.80 and $8, says Jay Hochenedel, director of operations, who will be attending the NRA show to investigate technologies for online ordering. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“We’re very cognizant of keeping the check average below $10,” Hochenedel says. “Some consumers may have traded out of full-service dining and into the fast casual. We’re offering a great price point, fresh food and quick service. We’re very convenient, and there is a simplicity to what we’re doing. It’s attracting more people overall.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Panchero’s expects to open 10 or 12 restaurants this year, he says. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Panchero’s has avoided the discounting, dollar menus and value deals many other restaurants are doing. But operators who are using those tactics are seeing upticks in traffic. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
The industry saw a nearly 8-percent increase in traffic among operators offering some type of deal in February and a 4-percent decline in traffic among those that didn’t, according to NPD. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
While dollar menus and discounts have become commonplace among quick-service operators, even venerable casual-dining concepts are using them. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
High-grossing Bob Chinn’s Crab House in Wheeling, Ill., has been running $5.95 lunch specials and bar menu offerings for $1.95, $2.95 and $3.95. The restaurant, which usually does more than $20 million in sales, making it one of the top-grossing restaurants in the nation, has not been immune to the economy’s downturn. The restaurant saw sales dip 4 percent last year, says founder and co-owner Bob Chinn. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Chinn says he is also considering offering breakfast for the first time. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Last year was our worst in history,” Chinn says. “We had the worst weather in 18 years—snow and freezing temperatures just about every weekend. We dropped below the $20 million mark. I didn’t lay off anybody. I thought it would pick up.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
When it didn’t, the restaurant began focusing on meal deals to drive volume. Chinn worked out a deal with his beer supplier to offer $2 16-ounce beers in combination with a $5 pizza that can feed four to five people. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“These are all ideas I’ve had before, but we never needed to put them in place,” Chinn says. “You have to create promotions to bring in people.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Casual-dining operator Isaac Nava took his inspiration for his restaurant, La Casa de Isaac in Highland Park, Ill., from operators like McDonald’s Corp. The quick-service chain’s low prices create high volume, says Nava, who opened the restaurant two years ago with his brother, Moshe. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Entrées range in price from $8 to $21 at their kosher-style Mexican restaurant, which serves no pork or shellfish products, and is closed from sundown Friday to sundown Saturday for the Sabbath. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Many people come up with a restaurant idea to make a lot of money,” Nava says. “That wasn’t my idea. My idea was to come up with a place where I can provide people with good cooking. Eventually in the future, by doing more volume, I will be making money.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Nava recently expanded his business with the addition of a grocery-deli near the restaurant. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“People said, ‘Isaac, you are crazy to open in the middle of a crisis,’” Nava says. “I don’t worry about it. I got faith, and I know that I can make it work. I know myself. The personality we have is not fake; it’s from our heart, and people feel it.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
Independent operator Spears also remains optimistic that TeddyFabz will survive the recession, especially if the recovery is on its way with the changing season. —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
“Let’s see what happens with the warmer weather,” Spears says. “We’ve got a patio, we can put more chairs out. We’ve sponsored some baseball teams in our hometown and neighboring community. Let’s see what happens.” —Tabletops. That’s what Salt Lake City restaurateur Karen Olson wants to check out while on the exhibit floor of McCormick Place during the National Restaurant Association’s annual Restaurant, Hotel-Motel Show here May 16-19.
