US News: Restaurants on the Ropes

[OmahaBlueDog]

http://finance.yahoo.com/news/Restaurants-on-the-usnews-15511482.html?.v=1

<<Other eateries are in a pickle. Fancy restaurants that had long waits a few years ago are now begging for customers and offering sales. Midpriced casual dining outlets are losing customers to cheaper fast-food joints. Even some dollar-menu franchises are suffering if they're overdependent on mall traffic or clustered in regions where the economy is weakest. A key factor is debt: With sales down everywhere, many companies that borrowed heavily to remodel, expand, or buy other franchises now find that interest payments gobble up a nerve-wracking amount of cash flow.

Since debt is such an important menu item, we scoured data from ratings agency Standard & Poor's to gauge which well-known restaurants are facing tough challenges. The following list represents companies that meet two criteria: They have a credit rating of B or lower, and S&P assigns them a negative outlook. Landing on this list doesn't mean the company is likely to declare bankruptcy or close its doors. But these firms are vulnerable to deteriorating economic and financial conditions. And the negative outlook means there's a chance S&P could downgrade the company's rating over the next six to 24 months....>>

[Deja Q]

1. Uh-oh. Need a McBailout?

Don't forget, McDonalds has been given lots of government subsidy (corporate welfare) to advertise chucken nuggets in other countries too...

Why do taxpayers pay for them to do what they're supposed to havep ulled up by their own bootstraps... and them bail them out for fucking up their own attempts to dismantle America? (not McDonalds in this case, obviously, it's more a general rant not meant for all companies, but rest assured, McD will get a mcBailout...)

[Mari333]

2. I cook at home

its always better.

[MineralMan]

3. My wife and I have been going out more often, actually.

Several excellent restaurants in the Twin Cities have introduced specials that make it possible to eat there, where we could not before. A few really excellent ones are offering prix fixe menus for under $20. We skip the wine and enjoy some excellent fare on something of a budget. A few others offer daily specials at just $10. And these are not crappy places...rather restaurants that we would have loved to visit but could not afford. Again, skipping the triple-priced wine keeps the bill down, too.

I imagine similar situations exist in most cities. If you can afford to eat out anywhere, you can pretty much afford to eat there now.

I figure it's helping keep the places open and the waitstaff and food prep staff employed. We tip a higher percentage for these cheap meals.

[SoCalDem]

4. In many places, chain restaurants put many Mom & Pop eateries out of business

since people seem to enjoy the faux-folksiness of the Applebees, Cocos, Mimis, Chilis, etc, but those places will be shuttered in a heartbeat if they don't measure up, by corporate standards....and once gone, people can't "go back" to the Mom & Pop places, since they no longer exist.

Starting up a family restaurant is not much of an option these days, so people better get back into the habit of cooking again:)

[MineralMan]

6. Depends where you are, I think.

There are still lots of mom&pop operations in smaller communities around the country. It's not easy, but they still survive. In fact, even in cities, many small restaurants are still doing just fine. It's a matter of offering something you can't find at the chains. Atmosphere, specialty cuisine, whatever.

We have one such place just down the street from my house in Saint Paul, MN. It's been going for over 30 years, and it's packed every night. It serves a mix of old-style italian food, plus a decent menu of German and other ethnic european dishes. Friday night fish fries, and all that good stuff. The prices are low, the quality of the food is pretty good, and they haven't slowed down at all, as far as I can tell.

Then, there are smaller bar and grill operations nearby, too. If their food is good, they're doing a good business. You know the waitstaff, because most are family members of the owners. Mom's the hostess, Dad's the manager, and Junior runs the bar. There are four of those that I know of within a 10 minute drive of my house. I eat at two of them pretty regularly.

We have diners here, too. Most have been in business for years, and are still doing OK. The most famous is Mickey's Diner. The food's not bad, the waitresses are sarcastic, and they throw you out after half an hour because there are people waiting outside to come in and eat.

You're not going to find these places near the mall, like the chains. You won't find them at freeway offramps, either. They're where they've always been, in the neighborhoods and downtown, feeding people like they've always done.

I think you're overdrawing the decline of the mom & pop restaurant.

[SoCalDem]

7. I miss those places.. but alas, I live in SoCal. We have only ONE

such place left, and we do eat there. I envy you:) I would kill for some real homemade fresh kielbasa , or weinerschnitzel, or bratwurst.. (best bratwurst on earth? a local brewery/restaurant in West Allis, Wisconsin:)..)

[MineralMan]

10. Southern California is a big, big place.

There are lots of small restaurants there. Saying that there's just ONE mom & pop restaurant in all of Southern California is just plain silly. In fact, there are many near where you live, I have no doubt. You just haven't found them. Mexican, Chinese, Vietnamese, and other ethnic ones abound in Southern California. A German restaurant might be a bit of a drive, but I'm betting there's one within 20 minutes of your place.

I lived in Southern California for many, many years, and am not just blowing smoke. What are you looking for? Where do you live? I'll find whatever style of restaurant you're looking for, and not a chain, either.

[SoCalDem]

18. in MY town.

guess I was not specific enough :)

[MineralMan]

11. Here's just one brewery and german-style restaurant:

Karl Strauss Brewery

[phone]
Studio City
1000 Universal Studios Blvd
Universal City, CA 91608


Do a search for German Restaurants Los Angeles, and you'll find lots more.

[MineralMan]

12. And another:

Chalet Edelweiss

[phone]
Westchester
8740 S Sepulveda Blvd
Los Angeles, CA 90045

http://www.chaletedelweiss.us/menu.html

[MineralMan]

13. To find more, I suggest you look at this website and hunt for

what you're looking for. They have listings for many cities.

http://www.urbanspoon.com/c/5/Los-Angeles-restaurants.html

[SoCalDem]

19. Alas, when my husband gets home at 6 PM, we are not much in the mood

to hop back in the car and get on the freeway to head in to LA..especially when bedtime around here is 8:30 PM ..but thanks anyway:)

There are plenty of small places left, in the larger cities, but in "suburb-ville" the pickin's are kind of slim :) When we moved here in 1982, all there were here were small local eateries, but as we grew, they got edged out. We eat at home most of the time.

[OmahaBlueDog]

14. Many mid priced Mom & Pops haven't done themselves any favors

Truck stops, for example, used to do much of their own cooking, and there were good ones and bad ones. Now, they all get the same partially prepared food from distributors like Sysco. They, too, increasingly have the "everything tastes the same" problem.

Having said that, I travel a lot within 250 miles of my home, meaning I do a fair amount of overnighting (1-3 nights a month). I've found that among many local places, and even a few select chains (such as Old Chicago) offer some incredible happy hour specials that will please any expense report reviewer.

You say starting up a family restaurant is not much of an option, but it wasn't that long ago that Applebees was just an Atlanta sports bar. Local start ups can still make good if they're run well. We have a few here in Nebraska that have blossomed into successful local chains, such as Lazlo's and Upstream Brewing.

[MineralMan]

17. Yeah, some smaller restaurants are just heating things up.

Others, however, are making food. Some are good; some are awful. I like to find neighborhood restaurants and patronize them. The ones that use prefab food get just one visit. The others I return to.

Most of us fall into a pattern of restaurant dining. We keep going to the same places. Not a good idea. Finding and trying smaller restaurants is more than worthwhile. Plus, it helps keep these small businesses going and hiring staff.

My wife and I try to hit a new, small restaurant once a week or so. We've certainly had some disappointments, but also some wonderful experiences. And it doesn't have to cost a lot. Most ethnic restaurants are eminently affordable...especially if you're careful with the menu.

[AlCzervik]

5. Fridays, Applebee's and Chili's might as well be the same place.

over salted and fried shit that taste the same.

[DS1]

8. +1

My local haunt is offering 10 bucks off for dinner this month, and it's about time since their food quality nose-dived

[NJmaverick]

9. The one plus with the Restaurant industry

is there are always new ones opening up. When the economy starts to rebound they will replenish their diminished numbers.

[BlooInBloo]

15. Yep. Discretionary spending is the first thing to go in a recession.

[MineralMan]

16. What you say is more or less true.

Go! Visit the restaurants you have enjoyed, and seek out new ones. Order the special. Go at Early Bird time. Help keep them in business or all restaurants will become Taco Bell (movie allusion...I caught a serious Sandra Bullock jones from that movie.)