Toll on local restaurants
Consumers will be looking for value this year not indulgence.
One way to budget during a declining economy, is to cut back on your dining expenses. As food prices rise, some proprietors will be locked into leases that can not be broken. As a result, many restaurants may be forced to close due to the pressure to tighten their belts.
The percentage of restaurants that close may be close to 10% said Christopher Muller professor of UCF Rosen College of Hospitality Management. Overal projections for restaurant sales may decrease as much as 1% in 2009 said the National Restaurant Association.
This might be the "most challenging period for the industry in several decades" said a leading authority in the industry senior vice president of NRA. Among the most vulnerable might be the casual dining chains.
Conversely, some restaurants such as Olive Garden & Red Lobster have fared well against the trends reporting strong fourth quarters marked by continual growth in revenue for 37 straight months. This can be attributed to more sophisticate menus including items that are prepared over a wood-fire grill at Red Lobster said Aaron Allen at Quantified Marketing Group based in Lake Mary.
Disregarding the gloomy outlook for 2009, some brave entrepreneurs will be opening new restaurants including Cube Libre Restaurant in Orlando.
The good news is that Darden Restaurants who is building a $100 million headquarters on John Young Pkwy has outperformed most upscale dining during 2008. This glamorous new building will house test kitchens for it's 6 signature brands, a wellness center and a fitness center.
Although Darden has scaled back due to the economy, it plans to maintain 75 - 80 open restaurants during 2009. Nevertheless, consumers will not be frivolous in their spending but look for healthy items that give them a sense of value.
One way to budget during a declining economy, is to cut back on your dining expenses. As food prices rise, some proprietors will be locked into leases that can not be broken. As a result, many restaurants may be forced to close due to the pressure to tighten their belts.
The percentage of restaurants that close may be close to 10% said Christopher Muller professor of UCF Rosen College of Hospitality Management. Overal projections for restaurant sales may decrease as much as 1% in 2009 said the National Restaurant Association.
This might be the "most challenging period for the industry in several decades" said a leading authority in the industry senior vice president of NRA. Among the most vulnerable might be the casual dining chains.
Conversely, some restaurants such as Olive Garden & Red Lobster have fared well against the trends reporting strong fourth quarters marked by continual growth in revenue for 37 straight months. This can be attributed to more sophisticate menus including items that are prepared over a wood-fire grill at Red Lobster said Aaron Allen at Quantified Marketing Group based in Lake Mary.
Disregarding the gloomy outlook for 2009, some brave entrepreneurs will be opening new restaurants including Cube Libre Restaurant in Orlando.
The good news is that Darden Restaurants who is building a $100 million headquarters on John Young Pkwy has outperformed most upscale dining during 2008. This glamorous new building will house test kitchens for it's 6 signature brands, a wellness center and a fitness center.
Although Darden has scaled back due to the economy, it plans to maintain 75 - 80 open restaurants during 2009. Nevertheless, consumers will not be frivolous in their spending but look for healthy items that give them a sense of value.
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9:12 AM
