Diners returning to restaurants, starting to splurge
It took more than a year, but American diners are coming out of hiding, starting to splurge on everything from tea to tacos and tacking on some dessert.
The meals aren’t fancy — and business is far what it was before the recession sent the nation spiraling — but restaurateurs big and small say they’re breathing a tentative sigh of relief as tables fill up.
At Deleece, a restaurant on Chicago’s north side, crowds are bigger than they’ve been in months.
“People are out, and they’re spending a little more and maybe they’re buying that extra appetizer they didn’t before,” said Brandon Canfield, the restaurant’s chef.
In the depths of the recession, Deleece’s customers might order a glass of wine, a salad and an entree. Now, they’re more likely to get a bottle of wine, a hot appetizer and an entree. They’ll also split a dessert, which adds up to bigger bills and full tables.
The shift, which Jefferies restaurant analyst Jeff Farmer calls a “slow grind,” began in late January and is gaining steam. “They’re not necessarily seeing the light at the end of the tunnel, but there’s a realization that things aren’t going to get any worse than they are right now,” Farmer said.
In Colorado Springs, Concept Restaurants co-owner Luke Travins said he’s not necessarily seeing people opening their wallets more once they arrive, but he is starting to see more diners. Business was flat in the first quarter at the group’s three restaurants — Jose Muldoon’s, MacKenzie’s Chop House and Ritz Grill. But, he said, “the past three weeks, or all of April, has been really, really good.”
During the worst of the recession, people were spending less and staying home more, said Pete Meersman, president and CEO of the Colorado Restaurant Assocation. “People learned to cook last year,” he said.
Now, he said, “things are getting back to what used to be considered normal.” And Colorado could lead the way: According to data released in January by the National Restaurant Association, Colorado is expected to post the strongest restaurant sales growth in the country this year. The state’s restaurant sales are expected to grow 2.9 percent this year from last, to $8.7 billion.
Across the country, March was a key month in the industry’s recovery, with revenue in restaurant locations open at least a year rising at scores of fast-food and casual dining chains. At McDonald’s, that measure climbed 5 percent in March. There was a double-digit increase at Panera Bread.
A number of factors could be behind the recent upswing: An influx in cash from tax refunds; warm weather that drew people from their homes; and increasing confidence that the economic recovery isn’t a mirage.
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Gazette writer Bill Radford
contributed to this report.
