Sunday, May 31, 2009

A Stifel Nicolaus analyst says that the restaurant industry is overcrowded and that 12,000 locations may have to close to 'match consumer demand' ..

Steve West, the analyst 12,000 restaurants may not want to meet, said the bar and grill segment of the industry has reported declining traffic for some time and about 7,500 bar and grills may have to shut down..West notes that business expense accounts aren't giving much business to restaurants lately..

Stifel Nicolaus is the largest subsidiary of Stifel Financial Corp. and is a member of SIPC and listed on the New York Stock Exchange.

Stifel Financial Corp offers securities-related financial services in the United States and Europe
The restaurants being focused on by USA TODAY are all chain and theme restaurants. KFC offers grilled chicken.. Pizza Hut offers pasta.. McDonalds offers nice coffee..

All interesting and yes all showing that restaurants have to change their culture and environment to keep things exciting and interesting, but the USA TODAY article didn't go as far as it could it. Taking the easy way out and just looking at the major high prized chains isn't a true snapshot of one the real restaurants are doing to survive the economic collapse the nation hasn't recovered from yet..

What are the small places doing? How are the menus changing?

I know at least two of three of my favorite places have raised prices to the point where I can't go there anymore. One in particular has excellent pizza, but a pizza, salad, and 2-liter of Coke costing $26 bucks is a bit much for my poor taste. Frozen pizzas have as much salt and fat and are much cheaper.. Frozen for me from now on..

Likewise, some higher-end establishments that I am aware of are losing some business.. Instead of raising prices too much they are trying to offer extended happy hours, newer drinks, or a lower priced menu during certain hours..

And finally, the Jackson House, my favorite burger restaurant in Harrisburg, PA, offers the same product at the same price and is still doing the same great business it always did..

The real story in the new economy is "changing" things up, but instead offering the best product at the best price.. Places like the Jackson House or Devito's in Ashland, PA (my favorite pizza joint) are offering good products at fair prices.

It doesn't mean that the restaurants won't eventually fail.. It just means that they have a good competitive edge that gives them more breathing room in a time when so many other meager and tasteless food establishments have stopped breathing...
Not all crowds are the same.. I appreciate that, really. Last night was a perfect showing of that difference in wedding guests..

It was a self-described "hick" wedding. They wore suits, though, it wasn't a ho-down .. Although could have easily become one!

The groom wore a hat the entire night.. The bride actually looked quite nice and classy..

The beer was flowing after dinner.. late-night horderves were served to compliment their drinks..

And country music playing loud. Then they did karaoke .. Yea.. karaoke at a wedding. Interesting move, I guess.

I can't say the atmosphere wasn't fun, though.

It wasn't as stuffy and edgy as some "wealthier" weddings in the restaurant.. it wasn't as tense as a few weddings where money was a consideration in everything. This wedding was simple, the cake was plain and homemade, the bar was only open for an hour and the rest was cash (a little different for a wedding, but the valley folk brought $50s with them for the evening) and the dancing went late into the night.. It switched to all country about halfway through. And never looked back with regret.
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