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.