Wishing one’s life away is something I find offensive, even in tough times like these. But it certainly isn’t a stretch to say that most people are eagerly awaiting the chance to say good riddance to 2008.
This week’s issue of Nation’s Restaurant News features a rundown of all the events, news and issues of the past 12 months that have impacted the foodservice industry. Though much of the narrative is negative, there always is something positive to take away.
So much can be learned from the past, and there’s no better place than the pages of NRN or our website,
As our challenged nation turns the page on another year, it makes sense to reflect on what is working in our businesses and what is not.
Clearly, the yearlong recession has created a malaise that has been hard to shake for many American consumers—people who have seen their jobs, credit and investments evaporate. Optimists seem as hard to find these days as cupcakes at a Weight Watchers meeting.
Even in the hospitality industry, which for the most part is comprised of upbeat professionals, nerves definitely are frayed. Articles about the industry, especially those published during the last half of 2008, have been bleak. Readers of NRN have read about Chapter 7 bankruptcy liquidations, countless layoffs and thousands of store closings chronicled on our pages.
In this dismal economic climate, few operators have been spared from margin erosion, prompting many to try any tactic at their disposal, from raising menu prices to driving traffic by couponing or discounting.
Prognosticators forecast that the economy will get worse before it gets better, and most restaurant operators know that simply hunkering down and waiting out the storm will not be enough. A proactive, engaged and strategic stance is necessary at this critical juncture.
But make no mistake: Opportunity exists, even in the teeth of a recession, and a forthright, end-of-year assessment of your business well could yield dividends in the upcoming months. Take a hard look at your operation and evaluate where you can make improvements that will not only help shore up your bottom line in the near term, but will enhance your image moving into the future as well. It is essential, now more than ever before, for smart and savvy operators to act.
Consumer behavior has been shifting as a result of the confluence of economic bombs that have been exploding all around us. But even in the face of so much turmoil, chains like McDonald’s are flourishing, and newly opened restaurants like Corton in New York, operator Drew Nieporent’s latest entry into the fine-dining market, are challenging the times with great food and great hospitality, long the hallmarks of the foodservice industry.
Dining out always has been a favorite pastime of most Americans and has become even more inextricably bound up in our culture over the past several decades. Consequently, it’s safe to assume that as the economy settles down, American consumers will come streaming back into restaurants in the numbers to which we’ve become accustomed.
In the meantime—and no one knows for sure just how long the meantime will be—it is essential that operators adjust, upgrade and re-engineer their restaurant operations. Now may be the perfect time to reinvent or revitalize your brand, so listen to your customers to find out what they want when they do dine out.
Meanwhile, the staff of NRN will continue to cover the news and trends of the foodservice industry, and strive to provide you with the information and tools you need to make it through these tough times.
Hopefully, when we look back on events a year from now, we will have a lot more positive news to report to you.