What choices have you been making when it comes to spending discretionary income? If you’re like most, one activity that’s taken a hit is dining out. And restaurateurs everywhere are reeling from the losses.
I just got off the phone with a Manhattan-based chef/restaurateur. "We take in close to $500,000 in November and December," he confided. "I’m talking exclusively private parties. We’ve got just over $200,000 on the books now. The business is off by 50 percent. No one’s booking anything," he shared with worry. "I don’t know what we’re going to do." He’s already laid off 1/3 of his staff.
Did you see the piece in The New York Times, "Across the Country, Restaurants Feel the Pinch"? Nick Fox reported that "in Southern California, restaurateurs interviewed said business had dropped by as much as 20 percent from the same time last year."
Or maybe you read the article in The Record, "Restaurants Focus on Value as Economy Slows." Mondo Zelaya, a 30-year restaurateur in Little Falls and Haledon had this to say: "I’ve never seen it this bad." His "fine-dining sales are down 30 percent and pizza sales 15 to 20 percent," and he has "40 percent fewer holiday parties booked this year compared with this time last year." He’s not alone.
I asked the owner of Nauna’s Bella Casa, Tom Moloughney, if business decreased in a noticeable way over the last eight weeks. Our credo has always been, if red sauce Italian places are feeling the pinch, then the industry’s in serious trouble. Guess what? They are.
"It’s true," Tom confirmed. "We had a pretty good September; our numbers were about where they were last year. However, once October came, we had a distinct drop-off.
"We may have been able to hold our ground a little longer than others because of our price points," he continued. "There [are] a significant amount of options on our menu that allow customers to have a real affordable meal."
But then he added, "There’s another side to this restaurant dilemma. During the first nine months of this year, and particularly January through June, restaurants saw food costs skyrocket. I’ve been in business over 20 years, and have never seen a period like this — where most of my raw products have gone up so dramatically and quickly. Some goods have gone back down, like flour, but many have not. I don’t know how the little guys can survive without a price increase, and I don’t know how they can raise prices in this market and not anger customers."
Tom also sits on the Board of the Montclair Economic Development Corp.
What are consumers saying about restaurant-going in this economy? I checked in with Margery Deibler, a great friend who lives on the Upper West Side. "The economy has definitely affected the frequency with which we dine out, where we go, and even the [number] of times we order in," she reported. "I think twice before going out, and if we do, I choose less expensive restaurants and, once there, less expensive entrees.
"Like any good New Yorker," Margie laughed, "we’re used to ordering in a lot. We’ve cut back considerably and are cooking more" (to her chagrin!). "I’ve read that people are reevaluating the quality of food they’re purchasing — fewer organic veggies, etc. [But] I still feel that buying local and organic when available, despite being more expensive, is a healthier alternative."
Sound like your family?
If there’s an upside to this scary tale, it’s this: restaurateurs are offering incredible value and service — not just on à la carte, but on holiday banquets and catering.
At Greek Taverna — where we’ve enjoyed several good meals — they just put the finishing touches on a handsome private party space. The new room features a decorative fireplace, rustic red brick walls, hardwood floors, chandeliers, candles on every table, and a faux-tin green-bronze ceiling with classic wreath motif. They’ve just booked their first event, a holiday office dinner for 40.
According to owner Wei Chen, "We’re happy to work with guests at whatever budget they present. An economy like this means opportunities for customers. From customizing a menu to arranging music, we’ll accommodate. We can make even better arrangements for weekday parties since weekends are so busy. We take events in this economy very seriously because everyone’s affected."
Whatever style guests prefer, Wei says her team is eager to deliver: buffet or sit-down, family-style or fixed menu. For parties, she recommends starting with platters of their superb specialty dips, from the garlicky Tzatziki to Skordalia and Taramosalata. "Guests can graze upon arrival," she notes, "then we can start bringing out hot food once everyone’s seated.
And with a spacious parking lot, Greek Taverna offers something that few others in town can match: accessible parking and plenty of it.
Over at Sesame — where the food is sophisticated Chinese — owners Alex Lee and Sue Sein acknowledged that their number of holiday bookings is less this year. "Especially businesses, they've stopped doing private parties altogether," Alex noted sadly. Sesame has two party rooms: a private space which seats up to 50 guests, and a semiprivate room for up to 26. Successful events in the past have been both buffet and sit-down, and Alex and Sue have hosted everything from bat mitzvahs and annual Kiwanis dinners to a party for Seton Hall Business School staff.
"Whatever we can do to make a function successful, we’ll do it," promised Alex.
Back to Nauna’s, where Moloughney and team are launching a 20 percent holiday catering special to run the month of December. Additionally Tom disclosed, I’m planning a weekday $18.99 special. I want to offer a family of four a couple of options for dinner, from pizza to pasta to chicken. It comes with salad, drinks and free refills, and garlic bread, all served family style. The offer will be good for dine-in only." And they’ve got great parking too.
Here’s the new bottom line: local restaurants and chefs — your friends and neighbors — are hurting. They need our collective support. So wherever you head — casual Italian, hearty Chinese, or tavern-style Greek — they’ll be glad you’re spending your time and money with them. And if they aren’t — let me know.
In this column:
Greek Taverna: 292 Bloomfield Ave., Montclair. 973-746-2280.
Nauna’s Bella Casa: 148 Valley Road, Montclair. 973-744-3232.
Sesame: 402 Bloomfield Ave., Montclair. 973-746-2553.
