Business has declined at some restaurants
By BRETT DUNLAP, bdunlap@newsandsentinel.comPARKERSBURG - Local restaurants have seen a decline in business along with the downturn in the economy in recent months.
Residents have less disposable income to spend because of higher gas prices which recently reached above the $4 a gallon mark, they said.
''Business has dropped some due to the higher gas prices,'' said Brenda Miller, manager of Don Emilio's, a Mexican restaurant at the Traffic Circle in Parkersburg.
The restaurant has continued on as usual, she said, adding they are continuing to offer the same specials they always have and trying to make things work.
''Our prices have always been lower compared to a lot of places,'' she said.
To cut back on some expenses, the restaurant has not been hiring new employees and has been shifting other people's responsibilities as people have left, Miller said..
Restaurant performance nationwide has remained sluggish in July, as a recent survey from the National Restaurant Association indicated on business being done during the month of July.
Restaurants reported a sales decline in July, though the results were better than June, according to the survey, adding 36 percent of restaurant operators reported a sales gain between July 2007 and July 2008, up from 32 percent who reported a sales gain in June. Also, 50 percent of operators reported a same-store sales decline in July, down from 53 percent who reported similarly in June.
In addition to sluggish sales results, most restaurant operators across the country continued to report less customer traffic in July, the survey said.
Twenty-five percent operators reported an increase in customer traffic between July 2007 and July 2008, up from 21 percent who reported similarly in June. Also, 57 percent of operators reported a traffic decline in July, down slightly from 58 percent who reported negative traffic in June.
''Restaurant operators reported negative same-store sales for the seventh time in the last nine months, with customer traffic levels also remaining below year-ago levels,'' said Hudson Riehle, senior vice president of research and information services for the National Restaurant Association. ''For the sixth consecutive month, the sluggish economy topped the list of challenges reported by restaurant operators.
''Twenty-five percent of restaurant operators said the economy is the number-one challenge facing their business, while 23 percent identified food costs as their top challenge.''
Colombo's restaurant in Parkersburg has reported little change in its business.
''I really haven't noticed a decline in our business in this economy,'' said Michael Colombo. ''It hasn't affected the casual dining. People continue to come in regularly.''
Colombo is the third generation to run the restaurant.
''We have been here for 60 years,'' he said. ''We have not made too many changes over the years. People who haven't been here in 20 years, can come back and it is still what they remembered.''
Tom Hughes, owner of J.P. Henry's, said turns in the economy always impact the restaurant business.
''When the price of gas is over $4 (a gallon), you notice people changing their spending habits,'' he said. ''(The gas prices) have affected people's disposable income. Everyone has to eat, but ordering things like filet steaks and lobsters has become luxury items versus the daily norm.''
Since the gas prices have dipped below $4 a gallon, Hughes said their daily counts are coming back up.
J.P. Henry's will be introducing a new menu in the next week that focuses more on casual dining and items $10 or below.
''We are scaling down to a more casual concept,'' Hughes said of the menu which will focus more on 16 gourmet burgers, flatbread pizzas, a dozen type of chicken wings and other items suited to the more casual diner.
J.P. Henry's is also entering into a partnership with Lui Lui's restaurant where Lui Lui's will make all the sauces and marinades for the burgers and wings.
''We are working to help support our fellow independent restaurants,'' Hughes said.
The restaurant is also trying to appeal more to people coming out to enjoy televised football games on the weekend with their regular West Virginia University Mountaineer football days on Saturdays and the restaurant will now be open Sundays for NFL football. The restaurant has purchased a number of television sets and now has 12 plasma screen TVs and 40 televisions. The restaurant has also purchased some pool tables, a table shuffleboard game and more to give people more to do.
''We want to accommodate the person who wants to come in and have a sandwich and watch part of a football game,'' Hughes said. ''We still get our best crowds for Mountaineer football games.''
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KenJudy
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09-13-08 7:13 AM
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Wow buffster1. Thats a little harsh. I will say that service has went down. But its not just in the food business. I have notice a steady decrease in friendly service in the past few years. It reminds me of a trip to Florida 2 years ago. The service was horrible at most places. They act like I owe them something for waiting on me. I am a firm believer that when I go in a store I should be greated in a friendly manor and I am the reason they have a job at that time. Customers pay for employees to be employed. So not treating them that way will cause business to slow down. Customers will forgive bad food but they wont forget bad service. Prices on everything else has kept my family from eating out as much. You pay not to cook and it is always going to be a little higher.
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Wildcat
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09-10-08 3:03 PM
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El Ranchero is still pretty good, if you don't mind broken English.
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buffster1
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09-09-08 10:08 PM
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Here's another couple of reasons the restaurant business is declining. Overpriced food. Meals that are being served at some places i wouldnt even feed a dog. Crap service, and a rude, snotty staff of servers.
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