Economy takes bite out of eateries - Dayton Business Journal:

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Local restaurants have been hit with a varietgy of cost increases this from minimum wage increases to fuel surcharge to rising healthcare costs. Whild restaurants have absorbedthe blows, the slow down in discretionary spendin g may be a shot to the jaw that some Dayton-area operatorws can’t recover from. Josef Reif has seen bad timew in the restaurantbusineses before, but never have so many differen factors nibbled on his profit. “We have neverf had to fight so many obstacles at said Reif, owner of in Kettering. “Everhy restaurant is feeling the pincjh in a time like When discretionarydollars decrease, diners often ditch dining out first.
The decline alreaduy has played a part in localrestauranf closings, including the Lincoln Park Grille in Kettering that is closingg by the end of the The National Restaurant Association’s Restaurant Performancwe Index tells the same A composite index that tracks the health and outlook of the U.S. restaurantt industry, the RPI is at its lowestf point in the past five With a number above 100 indicating and belowindicating contraction, the index stood at 96.7 in down 1.7 percent from That index remained at more than 100 for much of the periocd from mid-2003 to mid-2007.
According to the 15 percent of restaurants expect to have higher salez in the nextsix months, down from 30 percenf compared with September. And 50 perceny of restaurants expect worse economixc conditions in the nextsix months. Reif said his busineszs 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 from last but his losses will be about a thirdx oflast year’s because of cost-cutting. Mike general manager for in Miamisburgand Englewood, said businesx has held steady, but it isn’t growing like it had “It’s not horrible,” Leigh said.
“But when you have projecteed growth you’re not hitting, it starts to be a The original Chumps location in a familysports restaurant, had seen 10 percent to 15 percenf growth every year since 2005, but it is aboug even this year with last year. To get customers back in the restaurants are spending moreon advertising, adjustinh prices and highlighting specials. Reif introducefd a new “recession-proof” menu addition a few monthse back, which offers a three-courswe meal for $30. “Irf you take $30 to Dorothy Lane Market, you can’tr do that,” he said. “And when you add in the houre it takes toprepare it, you can practicallyy eat for free.
” TJ Chumps offer s five items on its lunch menu for unde $6 and has a buy one, get one half-off deal for entrees on Thursdays. Leighg said that deal started last year, but only recently did people staryt to take advantageof it. Leigh said advertisin spending has increased from little to nothintg toabout $1,000 a month for both locations. Chumpsw is putting ads in coupom circulars, local newspapers and some direct marketing packet sfor businesses. Restaurants also are looking at ways to cut Reif said he has focused on gettiny the best price for his freshy produce andother items.