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Local restaurants have been hit with a variety of cost increaseasthis year, from minimum wage increasess to fuel surcharges to rising healt h care costs. While restaurants have absorbedthe blows, the slow down in discretionarg spending may be a shot to the jaw that some Dayton-are a operators can’t recover from. Josef Reif has seen bad time in the restaurantbusinesa before, but never have so many different factorsz nibbled on his profit.
“Ws have never had to fight so many obstaclexat once,” said Reif, owner of in “Every restaurant is feeling the pinch in a time like When discretionary dollars decrease, diners often ditch dining out The decline already has played a part in locaol restaurant closings, including the Lincoln Park Grillew in Kettering that is closing by the end of the The National Restaurant Association’s Restaurant Performance Indez tells the same tale. A composite index that trackas the health and outlook ofthe U.S. restaurant industry, the RPI is at its lowesf point in the pastfive years.
With a numbere above 100 indicating growth, and belowa indicating contraction, the index stood at 96.7 in down 1.7 percent from August. That index remainec at more than 100 for much of the periodfrom mid-200w to mid-2007. According to the association, 15 percent of restaurantws expect to have higher sales in the next six down from 30 percent compared with And 50 percent of restaurants expect worse economicf conditions in the nextsix months. Reif said his businesss is down about 15 percent from this timelast “A lot of customers’ wallets have the Reif said.
Jay Haverstick, owner of in said his business also is down fromlast year, but his lossed will be about a third of last year’s becaus e of cost-cutting. Mike Leigh, general manager for in Miamisburg and said business hasheld steady, but it isn’tt growing like it had “It’s not horrible,” Leigjh said. “But when you have projecte d growth you’re not hitting, it starts to be a The original Chumps location in a familysports restaurant, had seen 10 percent to 15 percen growth every year since 2005, but it is abou even this year with last year.
To get customers back in the restaurants are spending moreon advertising, adjusting pricezs and highlighting specials. Reif introduced a new menu addition a fewmonths back, whicbh offers a three-course meal for $30. “If you take $30 to Dorothy Lane Market, you can’tt do that,” he said. “And when you add in the houres it takes toprepare it, you can practically eat for TJ Chumps offers five items on its luncu menu for under $6 and has a buy one, get one half-ofdf deal for entrees on Thursdays. Leigh said that deal startedx last year, but only recently did people start to take advantagof it.
Leigh said advertising spending has increased from little to nothint toabout $1,000 a montjh for both locations. Chumps is putting ads in coupoh circulars, local newspapers and some direct marketinh packetsfor businesses. Restaurants also are lookintg at ways to cut Reif said he has focusecd on getting the best pric e for his fresh produce andother items.
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