Saturday, February 2, 2008

STARBUCKS is abandoning its hopes for new restaruants in the United States.. And economic downturn isn't helping across the world.

But it made me think. If people can't afford the $4 dollar cup of coffee, are they affording to go out to eat as much as we all think they do?
What are the trends during a downturn? After all, if you went to the grocery store lately, everything is getting higher in price.

In 2007, the downturn started to effect the food service industry. With the exception of a few places that never seem to get hurt quickly by economic problems.

The National Restaurant Association said that the food service industry declined for a fourth consecutive month in 2007. December 2007 saw the lowest level of sales since February 2003, according to the Association report.

And it's not just customers changing their habits. According to the report from the Association, the percentage of restaurant owners that are concerned about the performance of the economy is also up. More from the report..



And with all the news of the industry a little nervous about the future, Burger King is boasting big sales. BK claims big growth in sales globally..



What will 2008 bring?
Can America stop dining out as much as it does?
One restaurant owner told me that he sees the same if not more people coming to his establishment. But what they order is different. No prime rib dinners.. instead it's baked pork chops, chicken, or a sandwich.

Our love for dining out isn't going to change. If the market changes the industry, the industry will evolve. The true people that the downturn could eventually hurt would be tipped employees..

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