After more than a year of operating under pressures from nearly every angle, including stalled consumer spending and increased operating costs, many restaurant operators have been forced to make changes. Some cut employees, others delayed maintenance or repairs to their locations and some found ways to better use what they already have to succeed.
Earlier this month, Nation’s Restaurant News canvassed restaurateurs nationwide to see what moves they have made to better their businesses during these difficult economic times.
NRN asked: "What has your restaurant gone without over the past few years to get by, and what’s been the effect on business?"
"We have tightened up labor at the restaurant level, and we’ve also shortened hours — opening later and closing earlier. We’ve lost some comp sales due to the hours reduction, but we’ve improved store-level profitability. The reduction in hours has impacted our speed of service, which is reflected in comments in ratings we see in our guest feedback surveys." — Karen Eadon, chief marketing officer of El Pollo Loco in Costa Mesa, Calif.
"Some staff. Although we have been very fortunate in that our business has been less affected than most, we have pre-emptively been very tight on scheduling. The effect in many cases has actually been positive, as everyone is busy and motivated, but in some cases, particularly when it led to a decrease in shifts, the effects on some of our staff can be tough." — Yann de Rochefort, owner of Boqueria Flatiron and Boqueria Soho in New York
"We’ve gone without increased menu pricing. For us, the major adjustments were in the fall of 2008. The product costs that shot through the roof that summer finally caught up with us. Unfortunately, we were finally forced into the position of repricing in order to survive. Prices have gotten a bit more reasonable, and we actually just lowered most of our entrée prices on the most recent menu. The current dip in the economy is forcing people to rethink how they are operating and streamline their operations without diminishing value. This will hopefully benefit everyone as we emerge from this challenging economic time." — John Currence, chef-owner of City Grocery, Big Bad Breakfast, Bouré and Snackbar in Oxford, Miss.
"The one thing we were able to do without is purchase high-end wines. Because our cellar is well-stocked with 12,000 bottles, we have been able to draw from its contents without the need to replenish. We found the demand for mid-tier wines, at $40 to $80, are the most requested in the past year or two." — Rebecca Courtright, co-owner of Courtright’s in Chicago
"We made a conscious decision at our restaurant to cut back on things the guests may notice a little less. We’ve gone from a monthly carpet cleaning to every other month, for example. Our awning was scheduled to be replaced, and I removed it for the winter instead, allaying that expense for just a few more months. I’ve asked our florist to make the weekly flower arrangement last for two weeks, and we cut out the middle man in ordering uniforms — chef coats, aprons, even staff T-shirts — and found that we save about 20 percent on uniform expense." — Jacqueline Bonanno, owner of Mizuna in Denver
"Man, lots. Our funds are simply frozen this quarter. Our manager would love to have a new computer program that does our inventory and helps with food costs. There’s just no way to further extend ourselves in this quarter, which is a bummer because it would help us save money. So, the sooner [the economy picks up] the better." — Steve McDonough of "The Hearty Boys" on the Food Network
"It’s not about going without something; it’s about using what you have. A positive attitude and a smile go a long way in this business. As long as our staff continues to keep conversation light, people will associate coming to our restaurants with an escape from reality — a place where you can forget about the down economy. We keep the dining room music strong and upbeat, encouraging a warm, social ambiance that has actually increased our business this year, despite the dwindling economy." — Jack Huang, owner of Douzo and Basho in Boston
"Instead of focusing on ‘going without,’ we have turned our focus inward to work on improving our guest experience. Our attention to detail is imperative. We focus on pushing the envelope with the highest-quality local ingredients in our food and drink at a great value. We also focus on providing outstanding hospitality to everyone that walks into on of our restaurants. We want people to relax and enjoy a comfortable neighborhood environment every time. In addition, we have re-engineered our entire marketing and [public relations] program with a brand-new team and focus for our restaurants and spent more than we ever have in a truly focused way. All of these efforts have helped us retain our guests and improve our sales each month." — John Metz, president, co-founder and executive chef of Sterling Hospitality in Atlanta
Contact editor Sarah Lockyer at [email protected] .
