WWE Cake

WWE Cake
Cake I made for my girlfriend's son

Show piece I made in culinary school

Show piece I made in culinary school
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Monday, April 11, 2011

Restaurant Industry Economy and Down Sizing

The economy is still trying to recover. Family restaurants, carry outs, and fast food are all doing well because people still have to eat.  Some food service companies are downsizing and changing their operations.  Contract food service operations downsize their operations to meet the clients needs in this economy by cutting service,  changing menus to lower or raise prices and downsizing staff.  Restaurants downsize and change their menus to get rid of high food cost items.  They also change operations to to reduce labor intensive things so that they need less staff to run their operations.
       Higher end restaurants and food service operations may have to downsize to or restructure.  Most people can't afford to eat fine dining in this economy but people still have special occasions to celebrate or occasionally want to treat themselves to a nice meal.  This keeps the higher end food service operations in business.
        The cost of everything is on the rise.  The rising cost of gas costs consumers more to get to and from work. It costs more to ship a truck load of food to a restaurant thus the rising cost of food.  That cost is then transferred to the consumer.  Another factor is natural disaster which destroys crops thus driving up costs which is then passed along to the consumer so that these restaurants and food service companies can turn a profit.
        The economy greatly impacts everything not just food service and as with everything you have to change with the times.  Those restaurant and food service operations that can't make the changes will most likely go out of business or struggle to stay in business.

       

        

8 comments:

franchising business philippines said...

A business owner always try to get success. So try to collect all previous financial data and should conservative about revenues and expenses. Always try to use the highest estimate for expenses and the lowest of the range for revenues. It is safety. Thanks a lot.

sugar

franchising business philippines said...

Opening your own business is an exciting venture. One of the first things you should do to ensure your success is write a business plan. Well, I was thinking to have a restaurant business now.

sugar

Refrigeration Parts And Supplies said...

Great read! Our business to has been effected by the down turn of the economy. We sell commercial restaurant parts and accessories to the food service industry. A1service.com and cold supply.com we have gone from a static web design to a automated platform thru the great recession. Our sales have been relatively flat, and are exploring new ways to meet our customers needs.

Refrigeration Parts And Supplies said...

Great read! Our business to has been effected by the down turn of the economy. We sell commercial restaurant parts and accessories to the food service industry. A1service.com and cold supply.com we have gone from a static web design to a automated platform thru the great recession. Our sales have been relatively flat, and are exploring new ways to meet our customers needs.

wine training said...

Thanks for sharing this useful information with us.Yes this true with the economic meltdown it does take an effect on the restaurant industry also.

robby said...

I strongly agree with your statement in the article. The impact of slow economy growth is really making a very hard time for restaurateurs in these days, sighh....

Robert said...

Great info! I have a new Directory and I am always looking for ways to help our restaurant owners.
Thank you for the insight.
Robert

chris said...

Look - if you have a solid plan and a niche market - you will do fine.

The issue is that restaurateurs are generally people who love to cook or love people - not business planning and marketing.

In times of economic downturn - there are still ways you can succeed.

Cheers,
Chris
www.foodiebizz.com