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How's the Restaurant Biz Near You?

20090318-helpnotwanted.jpgIn today's New York Times Julia Moskin lays out in clinical, terrifying fashion the awful current state of the restaurant biz in New York and the rest of the country. Although Moskin has dug up some truly terrifying statistics (between October 2008 and January 2009, the New York restaurant business lost more than 10,000 jobs, and nationally the restaurant industry has cut more than 100,000 jobs since September), I didn't need to read them to know that things are bad all over. What have you noticed where you live?

Here's what I have observed and heard from many well-known chefs and restaurateurs about their collective plight:

  • Servers have bigger stations with more tables and diners to take care of. The result is sometimes but not always slapdash, imprecise service
  • Shifts are being cut among both front of the house and kitchen staffs
  • Overtime for cooks is verboten
  • Restaurants are cutting their hours and in many cases, reducing the number of days they are open
  • Restaurateurs are getting unprecedented numbers of front of the house job applications from folks with long, successful histories in other fields
  • Private dining rooms, which often provide the real profit margins at many upscale restaurants, are being reserved and used far less often. This is a silent killer for many celebrated restaurants

But there are a couple of bright spots for serious eaters among the darkness:

Reservations are far easier to come by, which is obviously a good thing. But sometimes they are so easy to come by that the resulting dining experience is more than a little terrifying and unsettling. A restaurateur friend told me that he and his wife and two Japanese visitors were the only people recently in the very expensive but very good Masa in the Time Warner Center in New York City. I'm sure they got great service from Masa and his crew, but that must have been a very weird experience.

Bargains are everywhere. Twofers, cheap prix-fixe menus, free wine, cheap wine, gratis cocktails. It's never been cheaper to eat at some of the best restaurants in the city and country.

All in all, it's mighty sobering out there if you are working in a restaurant.

Related

Sign of the Times? Lots of Restaurants Closing in My Area [SE Talk, 1/15/2009]
Have You Noticed Any Restaurants Closing Lately? [SE Talk, 2/8/2009]

14 Comments:

Wow.

Where I live, we have not seen a shift--in fact, my husband and I, whose schedules allow us to have a "date night" out only one night a week, were happy to see across the past 5 weeks that the 5 restaurants we frequent have no perceptible loss of staff. In fact, the only shift we've seen at all is that one of the five is now opening an hour later than it had previously for dinner.

But then, we live in an area of the country that has been "slumped" for decades...

These numbers, though--am I the only one questioning some of this? Holla, I only know one person who is NOT working (but was before this sudden down-turn of last fall. Nor do I know anyone who has lost hours or colleagues. Again, I'm in a "weaker" are, but I know people all over the country and the world. And with the numbers being reported in the various employment sectors, I'm kinda thinking we should "all" be outta work any minute now...

The fine food and wine business is dire. I am in the business, and I don't know a single person who is not struggling right now. Some states are hit harder than others, true, but people are not spending money on higher-end food and wine.
In my city, 42 restaurants shuttered their doors last year, not all were fine dining, but a fair enough number were. You notice the difference.

You would think that since Orange Co. Florida is among one of the counties with the highest foreclosure rates, we would be suffering. I live in Windermere and we are consistently amazed at how at our local outdoor "mall" there is a wait nearly every night of the week upwards of an hour just to eat at Longhorns, Mimi's, or Macaroni Grille. I realize these are chains, but wow! I can see how the more fine dining non chains may be suffering, but from the looks here, the chains aren't losing any money.

I'm in St Louis, and my friend who works in the industry says that there are several notable restaurants on the verge of going bust--vendors and staff unpaid for weeks/months, backtaxes owed, etc. A couple of our favorites have already closed--places that were loved by many people and were cooking great food. It's a bummer.

In Asheville, NC, there are definitely more reservations and more bargains to be found. The bar scene and local music scene seem to be suffering a bit lately. I've read on Chowhound that a couple of restaurants have 'closed temporarily' or have changed their hours, but hopefully that will change when tourist season picks up in the spring/summer.

One positive thing is that the local restaurants I frequent seem to be doing well. Our favorite locally owned (cheap) mexican restaurant is getting ready to open a third (big!) store in a different part of town. A couple of new bakery/cake shops have opened up in the last few months and seem to be doing OK. Our favorite restaurant (dive bar with upscale menu) is still reservations-only for dinner unless the weather is nice enough to sit outside.

As always in Asheville, it's hard to find a job anywhere. But, I think I only know one or two people who have lost a job in the last few months, and they weren't restaurant jobs.

I live in Cambridge, UK, and the pubs and restaurants are empty, while our lone supermarket is packed. Things still get busy on weekends, but people aren't going out for pub lunches or restaurant meals on weekdays.

We get a deal where we get two-for-one pizzas and two-for-one cinema tickets on Wednesdays, so that's our 'date night'. While it's less of a problem in the UK (as servers earn a decent wage) I want to remind everyone who gets two-for-one or a freebie to tip your server based on the amount of a full-priced meal. It's only fair.

In Seattle, some places have closed and there are deals to be had. My restaurant cut foh staff by 25% (leaving us with 2-3 servers to work an occasionally packed house of 150+. Hello, walkouts.) and us cooks are looking at about a 20% cut in hours. I picked up a second job to fill in the gap but just recenly was told that the $ wasn't there to support me and to wait it out a few weeks in hopes business would pick up...

Looking thru craigslist there seems to be a decent amount of ads for restaurant staff, but for all I know, those positions may be flooded with applicants.

On the other hand, the bars are doing well...

Right now in my husband's restaurant there are three managers from corporate fine-dining restaurants who are working as servers. They were all laid off from salaried positions. Payroll is always a controllable cost.

Sadly, people who only dine out on Fridays and Saturdays assume that restaurants are doing fine bc Fridays and Saturdays are always busier than say, Tuesday, but most places need to do decent business during the whole week. We usually see multiple corporate/business dinners during the week, but these days we aren't seeing the volume of corporate dining as in the past. And when they do show, it's a real toss-up how generously they are able entertain their clients.

I've worked mostly in low-volume establishments. Where the per person check averages more than make up for doing less than 100 covers every night (with exception on NYeve, VDay, Mother's Day). Quality not quantity. I just spoke to the Managing Partner of my old restaurant and he grudgingly admitted that sales were down slightly. The nice thing is that he might be in a protected niche--old money, old habits.

To some extent, this is when good management is most important. Control costs, maintain quality, keep up morale, drive word of mouth advertising, be creative about keeping your name out there.

I'm somewhat bugged by:
Restaurateurs are getting unprecedented numbers of front of the house job applications from folks with long, successful histories in other fields.
I'm not bugged that you wrote it, but the assumption by some that anyone can wait tables or bartend. My BIL, a lawyer, thought that he could walk into any bar and get a bartending gig and was baffled when no one called him for an interview. I explained that most of the good places are looking for experience--just like any other field. When the real estate market started slumping, a realtor wanted to work as the private dining director (a full time, salaried plus bonuses, managerial postition) at my husband's restaurant...part-time. Why do people think that the restaurant business doesn't have dedicated professionals at work?

Not much of a difference in southeastern Va. Well, other than some of the bigger chains adding more coupns to the sunday paper like they used to do several years before the latest turn down.

Not related, but I have noticed that many employers are taking advantage of the job market by lower starting wages below what they were not even a little more than year ago. I've been looking for work lately myself and have seen job offers where last year(Jan.) they started at $12 an hour, but now thay start at $8 and $9 an hour. Pathetic if you ask me.

Both front & back staff have been cut at the restaurant I work at. Its not that our numbers are down though. I think it is anticipation by management in case we slump so they'll still make their numbers. People are ordering less (check average is down). But, fortunately, my tip percentage is the same. I appreciate all of those guests who do not do their cost cutting that way. Especially since, with less staff, I'm not sure they are getting the attention they deserve.

@wookie-- word.

The silver lining may be made of lead. Though some of the cream may rise to the top, you get the sense that some rising young stars might be forced to pursue other careers if there are too many fish in the pond. This is a sad day for good food...

@wookie
You are so right. I am a law student and former bartender, so I troll both the law and food blogs. I can't tell you how many lawyers post that if they lose their job that they'll "go and bartend or something." I hate to tell them but, unless you either: 1. know someone; 2. are very good-looking; 3. or both, you aren't going to find a job without any experience. I also don't think they realize the physical toll bartending takes. A desk jockey doing doc review for the past few years won't be in good enough shape to carry cases of beer, kegs, ice buckets, etc., not to mention stand for extended periods of time. But you can't tell these people anything. They think it's an easy job, but it is far from it.

I think that the higher end restaurants and wineries are indeed seeing a downturn. More and more families and single folk are looking for less expensive but tasty fair in my area here in the Tampa Bay area. At least that's my experience.

But opportunity abounds for restaurant owners. I know of a Mediterranean restaurant, Zeko's, that just opened up in the last 6months up the street from me. It cost over a Million dollars for the owner to get it going. But the place is frequently busy whenever I go there because the atmosphere is family and the food is really good. They pride themselves on the quality of food for a decent price. The typical meal is $8 with a drink for me (generally a really good gyro).

That isn't to say that other restaurants aren't seeing a down turn. Some are. But I think the ones that are willing to work hard at gaining a relationship with the customer are the ones that will survive.

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