Will Menu Prices Matter in 2011?
Nation’s Restaurant News conducted a 1,000 people survey on whether or not consumers are willing to spend on a night out and if so, how much. 
The result: Menu prices will still be an issue in 2011 since restaurants are paying more for their goods while consumers are not willing to pay more for their meals.
The majority of the people surveyed said they plan on decreasing their restaurant spending by 5% paying $12.90 on average per meal as opposed to 2010’s $13.60 average. 11% of the people surveyed plan on paying no more than $5.00 per meal, which brings the percentage up to 6% more than last year, while 60% plan on using vouchers to help pay for their meals.
Adam Werner, a managing director at AlixPartners and the head of the firm’s North American restaurant and food service practice says that “From all indications, ‘the year of the meal deal’ looks like it may be turning into ‘the era of the meal deal...The good news is, diners are coming back into restaurants, but they remain cautious and very price-sensitive.”
However, restaurant owners are facing a huge dilemma. Do they cut their profits by paying more for their goods and keeping the menu prices status quo, or do they hike up their prices? Neither option is too good. ...continue reading
Restaurant Struggles - Is It Solely The Economy?
Seeing as I work every day at putting equipment, tools and supplies in the hands of restaurant owners, managers, chefs and cooks, it's only right that I eat out regularly and try new fare at local establishments. And it all makes me wonder, just how much is the economy itself the culprit of empty chairs and bare kitchens? 
The tried and true eateries are still quite busy. Popular chains still have wait times, and the $5 burger joint down the road? It's always packed. If people can't afford to go out and eat, I'm not seeing it to the extent that's being reported at the national level. What I am seeing is the less-favored restaurants being forced to sink or swim.
Then again, maybe I'm secluded from overall reality. See, it's not just the chains surviving 'round here, it's the little guys as well. The locally-owned pizza shop down the road? It's wall-to-wall packed when we stop for pickup. Funny, Domino's seems to be delivering faster and faster these days, while delivery times at the local shops have increased.
There's something else to think about, too. I live in an area that heavily relies on "snowbirds" during winter months. We've seen a significant decline of them this season, which is affecting some restaurants, but not all. ...continue reading