LOS ANGELES South Florida—two regions that have seen the worst of the national housing crisis, making consumers there particularly unwilling to open their wallets. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
What has been described as a housing bubble over the past six years has looked more like a blimp in California and Florida, where home values soared and low interest rates, combined with the ready availability of subprime loans, resulted in a real estate boom that surpassed other regions. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
However, as the credit markets tightened and adjustable-rate loans began to rise, more homeowners have found that they can no longer afford their mortgage payments. Home values have dropped steadily, and much new construction was put on hold. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
California and Florida now lead the nation in home foreclosures. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
In January, for example, an estimated 57,158 homes were on the foreclosure track in California, more than in any other state and an increase of 120 percent over the state’s levels of January 2007, according to Irvine, Calif.-based RealtyTrac Inc. The company also reports that the California city of Stockton and the Riverside-San Bernardino area have seen the most foreclosure activity. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Florida came in second in total foreclosures in January with 30,178 filings, a 158-percent increase over the previous January, with the Cape Coral-Fort Myers area leading that state’s housing slump. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Some foodservice operators, convinced that the economic situation won’t change anytime soon, have taken drastic measures. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Lone Star Steakhouse & Saloon Inc., based in Wichita, Kan., for example, last month laid off 1,500 workers upon closing 26 low-performing restaurants, including seven of its eight Florida branches. The company blamed soft economic conditions there, such as high insurance, food, occupancy, utility and labor costs. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Other chains that have closed Florida locations in recent months include Carino’s Italian Grill, Don Pablo’s Mexican Restaurants and Mel’s Diners. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
“Stores where the housing market has seen the greatest reverse are definitely seeing the greatest pressure on sales,” said Nick Vojnovic, president of Tampa, Fla.-based Family Sports Concepts Inc., operator or franchisor of 240-unit Beef ‘O’ Brady’s. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Across the state, restaurants also struggle with higher insurance taxes and higher labor costs due to a minimum-wage increase. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Sales at Beef ‘O’ Brady’s units in South Florida have dropped up to 10 percent, but units in the state’s panhandle are “doing pretty well,” and the company has no plans to close any units, Vojnovic said. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
The casual-dining brand has been looking to expand franchising efforts, but Vojnovic said company officials are not sure whether they want to go into California, where the economic climate appears even more dismal. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
There, consumers have also been hit by atypically higher fuel prices—in some cities gas is more than $4 per gallon—and increasing unemployment. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Yet operators are optimistic about unit economics for chain restaurants in California, despite declines in sales and traffic that have dampened same-store sales. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Linda Lang, Jack in the Box’s chairman and chief executive, blamed a lower-than-expected same-store sales increase of 1.5 percent for the Jan. 20-ended first quarter on low sales certain Western markets, including California. In response, the company last month launched a value-priced $1.99 Ultimate Cheese-burger available only in the San Diego and Los Angeles markets. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Systemwide, Jack in the Box also is rolling out smoothies, iced coffee, and more all-day breakfast and snack items. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
The 707-unit smoothie chain Jamba Juice, based in Emeryville, Calif., recently outlined struggles in its core market of California. In its fourth-quarter report, Jamba said company-owned stores in California saw same-store sales drop 4.7 percent for the quarter while stores outside California saw an increase of 1.7 percent. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Paul Clayton, Jamba Inc.’s chief executive, disclosed plans to drive new traffic, including a rollout of new cold breakfast items this month, as well as new breakfast pastries. In April, the company plans to expand tests of a Hot Stuff’d Pocket in select markets. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
However, despite dipping sales, the chain’s unit-level economics in California are strong, with average unit volumes nearing $900,000, Clayton indicated. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Huntington Beach, Calif-based BJ’s Restaurants Inc.’s same-store sales rose 4.9 percent for the fourth quarter, but those numbers would have been 1 percent higher if not for weak volumes at Southern California branches of the 69-unit casual-dining chain, said Jerry Deitchle, president and chief executive. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Winter storms in Southern California may be partly to blame for slow fourth-quarter sales, he said, adding that “there is probably more going on in our January California sales than the weather.” —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Of 50 BJ’s branches used to track comparable sales, 33 are in California, he explained. As a result, BJ’s expects an overall same-store sales increase in fiscal 2008 of 1 percent to 3 percent, compared with the 2007 year-over-year increase of 6.9 percent. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Still, BJ’s restaurants in Southern California still average about $5 million in annual sales, and the company has no plans to shy away from building new units in the region, Deitchle added. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
BJ’s has new initiatives planned to counter slow sales, including car-side cashiering for takeout orders, online ordering and call-ahead seating to reduce wait times. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Rick Rosenfield, co-founder, co-chairman and co-chief executive of California Pizza Kitchen, also said he is happy to do business in California, despite slipping sales. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Though the Los Angeles-based company’s fourth-quarter same-store increase in sales of 1.8 percent was lower than expected and guest counts were down, Rosenfield said California CPK branches still averaged about $71,000 in weekly sales, around 6 percent higher than the chain’s national average. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
“California is under big pressure right now, with housing and the brink of recession,” Rosenfield said during a recent presentation to analysts, “and, yes, we saw relative weakness there and negative traffic in the third and fourth quarters. But California restaurants are still above average in sales, almost 300 basis points above the system.” —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
To protect and expand market share in areas where sales are softening, the company plans to remodel about six restaurants and to give another 20 “mini freshenings” to enhance store ambience, Rosenfield said. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Independent restaurants also are struggling to bring in customers in California. Diners responded so well to Restaurant Week promotions in San Diego and Los Angeles this year, for example, that many fine-dining establishments decided to extend their value-priced prix fixe offers. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
Other restaurants are dropping corkage fees, offering lower-priced midweek specials and reformatting menus to lower prices. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
For example, San Diego nightclub and restaurant Stingaree has extended its three-menu-items-for-$30 Restaurant Week deal through the end of the year, available Sunday through Thursday. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
“It’s about keeping people coming in, but even more important for us is that we don’t want to lay people off,” said James Brennan, chief executive of Endev LLC, which operates Stingaree and four other restaurant and nightclub venues in the San Diego area. —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
“We see a rocky road ahead,” he added. “I think it’s a national trend, though. Everybody’s in for what’s to come. The question is how long it will last.” —It’s bad everywhere, but it’s even worse in California and Florida. So say restaurant operators across the country, who blame softening sales on the challenging macroeconomic climate. Many national chains and local restaurateurs now cite poor business at establishments in Southern California and
