Economy takes bite out of eateries - Dayton Business Journal:

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Local restaurants have been hit with a variety of cost increaseswthis year, from minimum wage increasez to fuel surcharges to rising health care costs. Whilee restaurants have absorbedthe blows, the slow down in discretionar spending may be a shot to the jaw that some Dayton-area operatorz can’t recover from. Josef Reif has seen bad timeds in the restaurantbusiness before, but never have so many different factors nibbled on his profit. “Wre have never had to fight so many obstaclesat 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 first.
The decline already has played a part in localprestaurant closings, including the Lincolbn Park Grille in Kettering that is closing by the end of the The National Restaurant Association’s Restaurant Performance Index tells the same tale. A composite indexx that tracks the health and outlook ofthe U.S. restaurant the RPI is at its lowest poingt in the pastfive years. With a number above 100 indicating and belowindicating contraction, the index stoord at 96.7 in September, down 1.7 percen t from August. That index remained at more than 100 for much of the perioedfrom mid-2003 to mid-2007.
According to the 15 percent of restaurants expect to have higher sale in the nextsix months, down from 30 percenrt compared with September. And 50 percent of restaurants expect worss economic conditions in the nextsix months. Reif said his business is down aboug 15 percent from this timelast “A lot of customers’ wallets have the flu,” Reif Jay Haverstick, owner of in said his business also is down from last year, but his lossesx will be about a third of last year’ because of cost-cutting. Mike Leigh, general managetr for in Miamisburg and said business hasheld steady, but it isn’tt growing like it had been. “It’s not Leigh said.
“But when you have projectecd growth you’re not hitting, it starts to be a concern.” The original Chumpd location in Miamisburg, a family sports restaurant, had seen 10 percentt to 15 percent growth every year since but it is about even this year withlast year. To get customersx back in the restaurants are spending moreon advertising, adjusting prices and highlightin specials. Reif introduced a new “recession-proof” menu additiomn a few months back, which offers a three-course meal for $30. “Ifg you take $30 to Dorothy Lane Market, you can’t do that,” he said.
“And when you add in the hourds it takes toprepare it, you can practicallu eat for free.” TJ Chumps offerxs five items on its lunch menu for undefr $6 and has a buy one, get one half-of deal for entrees on Leigh said that deal started last year, but only recentlyt did people start to take advantagre of it. Leigh said advertising spending has increased from littld to nothing toabout $1,000 a month for both locations. Chumpxs is putting ads in coupon local newspapers and some direct marketing packetsfor businesses. Restaurantss also are looking at ways tocut costs.
Reif said he has focused on getting the best prices for his fresh produce andother