Published: Sunday, December 13, 2009
Recession hard on Snohomish County eateries
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Dan Bates / The Herald
Bill Polimenakos, owner of the One Twelfth Street Diner, is busy making soup in the kitchen while restaurant staff greet the lunch crowd.
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At the One Twelfth Street Diner, waitress Tonja Cram (left) takes a little kidding around from two regular customers, Dan Patrick and Bill Pittwood, both of Silver Lake.
EVERETT — In past years hungry shoppers would wait in the parking lot when the One Twelfth Street Diner opened on the day after Thanksgiving.
This year, the lot was empty.
There were still door-buster deals at the nearby mall — and chances are shoppers were ready for breakfast after racing for discounted gifts in the wee hours of the morning. But as far as diner manager Rececca Robinson could tell, they all went home to eat.
“Not one car,” she said. “Not one. It's just not happening.”
The lingering recession has Washington state's restaurant owners counting customers. And the head counts are backing up sales totals, which have decreased by double-digit percentages over the last year.
“People are scared,” Robinson said. “I think people are going to pull it in tight and sit back and really watch.”
The staff at the One Twelfth Street Diner know the tell-tale signs of frugality pretty well. The shared entrees. The requests for “just water, please.” And cash or debit payments — credit is like a hot poker no one wants to touch.
Then there's the obvious clincher: All the empty chairs.
“We have a large senior-citizen clientele,” Robinson said. “Obviously, they're living on a controlled income. They've taken a hit.”
Eating out is one of the first things to go when budgets are pared back.
A survey by the Washington Restaurant Association showed year-over-year sales declined for 76 percent of businesses responding in September, the most recent month for which data was available.
September of 2008 marked the start of a drought for the state's restaurants, with Washington Mutual's decline and a Boeing Co. strike combining with a crashing stock market. Still, this year's sales have declined even more, with customer counts, number of full-time employees and employee hours continuing to sink.
‘Pray for rain'
The menu at Alligator Soul in Everett features endless jambalaya, a recession-inspired steal at $9.95.
But appetites are motivated by the weather — Executive Chef Ryan Sturm knows that. Stormy skies could mean a lunchtime craving for comfort food.
Lately, Sturm finds himself checking the sky for signs of gumbo weather.
“We kind of pray for rain every day,” he said.
Alligator Soul was empty before hours one morning last week, with chairs on top of tables and just a few employees in the kitchen. Staffing is one of the biggest challenges for restaurateurs trying to do a two-step with recession-shy clientele.
It's never clear if the customers are coming or not.
When they do come, they bring war stories about how hours were cut at work or how their kids just moved back home.
Strum has his own stories. His dishwashers speculate about the impact Boeing layoffs have had on the economy. His school-age part-time help talk about the stock market. Everyone's watching and wondering if business will rebound, and if their jobs will be safe.
“Everyone's getting smarter,” Strum said. “You have to sharpen the pencil a little more.”
Alligator Soul jumped on the Twitter bandwagon, along with a number of other restaurants around the world. They alert followers to two-for-one deals, reminders about specials — or sometimes just the restaurant equivalent of a sweet nothing, meant to get customers thinking about them again.
“Come out for a little late-night happy hour tonight starting at 9 p.m. and enjoy an ice cold beer and some of the best Cajun food around,” Alligator Soul's Facebook status read a few weeks ago.
Word of mouth isn't a viable form of promotion anymore. Neither is having a Web site. Now it takes Web coupons, online ordering and a constant stream of tweets and Facebook messages.
And even then, there's no guarantee customers will be lured away from the frozen pizzas and noodles waiting home in their kitchens.
“I have to stay positive,” Strum said. He added that he's tipping more when he eats out, hoping to break the cycle of low tips leading to low spending leading to layoffs.
As he talked, an employee started slowly taking chairs off tables, getting ready for a lunch crowd he knew might not show up.
‘The new reality'
The business climate is tough for most small businesses — but especially tough for those that depend on serving up food to pay the bills. And some say that's not going to change
The restaurant industry has always served as a barometer for the economy, said Diane Symms, president of Lombardi's Neighborhood Italian. The restaurant's three locations in Everett, Issaquah and Seattle feel every blow struck by economic forces. So when customers start coming, the recovery should follow.
But Symms isn't convinced things will ever be the same again. She's worked in the restaurant industry for decades but hasn't ever seen a recession land a punch like this one. “I believe this is the new reality,” she said. “I believe it's going to be here for quite a while. And I have to learn to operate in this new reality.”
That means running a leaner ship. In addition to overseeing her three locations, Symms now manages one. She's had to reduce staffing levels and revamp menus to make prices more appealing. Starting next year, she'll roll out more extensive take-out offerings and discounts for ordering ahead.
She expects her dining rooms will still fill up on the weekends, but she's planning how to make it through the rest of the week.
“You've got to make hay on Friday and Saturday to get through the rest of the week,” she said.
State and federal political climates aren't helping, Symms said.
The Liquor Control Board recently raised wholesale liquor prices and fees between 8 percent and 10 percent. Health departments are considering imposition of higher fees to compensate for revenue shortfalls.
And a national health care debate continues in Washington, D.C., the outcome of which could be a mandate for a higher percentage of insured employees.
If that happens, Symms said she might have to reduce employee hours. Ideally, private insurance companies would offer lower-cost basic plans her employees could afford, she said.
But there's a glimmer of hope. The holiday season could mean a boon for restaurants, with holiday parties and celebrations making spending a little extra on food and drink more appealing.
Anthony Anton, president of the Washington Restaurant Association, said he's hopeful that traffic and sales will be bolstered in the fourth quarter. But even he isn't totally convinced the holidays can smooth out the industry's slump.
“Realistically, my hope is based more on optimism than analysis,” he said.
Read Amy Rolph's small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.
This year, the lot was empty.
There were still door-buster deals at the nearby mall — and chances are shoppers were ready for breakfast after racing for discounted gifts in the wee hours of the morning. But as far as diner manager Rececca Robinson could tell, they all went home to eat.
“Not one car,” she said. “Not one. It's just not happening.”
The lingering recession has Washington state's restaurant owners counting customers. And the head counts are backing up sales totals, which have decreased by double-digit percentages over the last year.
“People are scared,” Robinson said. “I think people are going to pull it in tight and sit back and really watch.”
The staff at the One Twelfth Street Diner know the tell-tale signs of frugality pretty well. The shared entrees. The requests for “just water, please.” And cash or debit payments — credit is like a hot poker no one wants to touch.
Then there's the obvious clincher: All the empty chairs.
“We have a large senior-citizen clientele,” Robinson said. “Obviously, they're living on a controlled income. They've taken a hit.”
Eating out is one of the first things to go when budgets are pared back.
A survey by the Washington Restaurant Association showed year-over-year sales declined for 76 percent of businesses responding in September, the most recent month for which data was available.
September of 2008 marked the start of a drought for the state's restaurants, with Washington Mutual's decline and a Boeing Co. strike combining with a crashing stock market. Still, this year's sales have declined even more, with customer counts, number of full-time employees and employee hours continuing to sink.
‘Pray for rain'
The menu at Alligator Soul in Everett features endless jambalaya, a recession-inspired steal at $9.95.
But appetites are motivated by the weather — Executive Chef Ryan Sturm knows that. Stormy skies could mean a lunchtime craving for comfort food.
Lately, Sturm finds himself checking the sky for signs of gumbo weather.
“We kind of pray for rain every day,” he said.
Alligator Soul was empty before hours one morning last week, with chairs on top of tables and just a few employees in the kitchen. Staffing is one of the biggest challenges for restaurateurs trying to do a two-step with recession-shy clientele.
It's never clear if the customers are coming or not.
When they do come, they bring war stories about how hours were cut at work or how their kids just moved back home.
Strum has his own stories. His dishwashers speculate about the impact Boeing layoffs have had on the economy. His school-age part-time help talk about the stock market. Everyone's watching and wondering if business will rebound, and if their jobs will be safe.
“Everyone's getting smarter,” Strum said. “You have to sharpen the pencil a little more.”
Alligator Soul jumped on the Twitter bandwagon, along with a number of other restaurants around the world. They alert followers to two-for-one deals, reminders about specials — or sometimes just the restaurant equivalent of a sweet nothing, meant to get customers thinking about them again.
“Come out for a little late-night happy hour tonight starting at 9 p.m. and enjoy an ice cold beer and some of the best Cajun food around,” Alligator Soul's Facebook status read a few weeks ago.
Word of mouth isn't a viable form of promotion anymore. Neither is having a Web site. Now it takes Web coupons, online ordering and a constant stream of tweets and Facebook messages.
And even then, there's no guarantee customers will be lured away from the frozen pizzas and noodles waiting home in their kitchens.
“I have to stay positive,” Strum said. He added that he's tipping more when he eats out, hoping to break the cycle of low tips leading to low spending leading to layoffs.
As he talked, an employee started slowly taking chairs off tables, getting ready for a lunch crowd he knew might not show up.
‘The new reality'
The business climate is tough for most small businesses — but especially tough for those that depend on serving up food to pay the bills. And some say that's not going to change
The restaurant industry has always served as a barometer for the economy, said Diane Symms, president of Lombardi's Neighborhood Italian. The restaurant's three locations in Everett, Issaquah and Seattle feel every blow struck by economic forces. So when customers start coming, the recovery should follow.
But Symms isn't convinced things will ever be the same again. She's worked in the restaurant industry for decades but hasn't ever seen a recession land a punch like this one. “I believe this is the new reality,” she said. “I believe it's going to be here for quite a while. And I have to learn to operate in this new reality.”
That means running a leaner ship. In addition to overseeing her three locations, Symms now manages one. She's had to reduce staffing levels and revamp menus to make prices more appealing. Starting next year, she'll roll out more extensive take-out offerings and discounts for ordering ahead.
She expects her dining rooms will still fill up on the weekends, but she's planning how to make it through the rest of the week.
“You've got to make hay on Friday and Saturday to get through the rest of the week,” she said.
State and federal political climates aren't helping, Symms said.
The Liquor Control Board recently raised wholesale liquor prices and fees between 8 percent and 10 percent. Health departments are considering imposition of higher fees to compensate for revenue shortfalls.
And a national health care debate continues in Washington, D.C., the outcome of which could be a mandate for a higher percentage of insured employees.
If that happens, Symms said she might have to reduce employee hours. Ideally, private insurance companies would offer lower-cost basic plans her employees could afford, she said.
But there's a glimmer of hope. The holiday season could mean a boon for restaurants, with holiday parties and celebrations making spending a little extra on food and drink more appealing.
Anthony Anton, president of the Washington Restaurant Association, said he's hopeful that traffic and sales will be bolstered in the fourth quarter. But even he isn't totally convinced the holidays can smooth out the industry's slump.
“Realistically, my hope is based more on optimism than analysis,” he said.
Read Amy Rolph's small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.
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