Restaurants in recession: “Pay whatever you want to for dinner”

A large part of disposable income is spent on dining out. When consumers have less extra cash, restaurants often feel the consequences first. To get customers back, restaurants are trying everything they can to attract patrons. In sameDenver, a restaurant opened with an attractive option for diners; pay whatever you want for your meal. There is no cash register, no prices listed, and no credit card machine. Diners decide on what they want to pay, and put the money in an envelope. This is no soup kitchen, the establishment is run by Brad and Libby Birky, and features pizza, pasta, and daily menus that are mostly organic. In fact, most of its ingredients come from Whole Foods Market. They serve approximately 15,000 diners per year, and “they are making quite a bit of sales and quite a bit of money,” according to one of the workers.

Many traditional chain restaurants are using specials and discounts as a marketing strategy to get more diners back in their locations. TGIFridays, Ruby Tuesdays, etc. all have specials listed on WalletPop.com. They are likely trying to avoid the fate of Bennigans, and Steak & Ale, both chains filed for bankruptcy last year.

In New York City, the signature “hard-to-get” attitude of many New York eateries is giving way to more customer restaurant1friendly operations. Joan Rappoport, a Manhattan event planner who lives in the West Village and eats out regularly, said that she sensed a climatic shift as early as six months ago. “The attitude that a number of places used to have, they don’t have that anymore,” Ms. Rappoport said, her tone of voice communicating equal measures bewilderment and relief. “That attitude of ‘we’re doing you a favor,’ that frosty condescending attitude — I don’t find that anymore. And I’ve experienced that change over and over again.”

In Boston, dozens of restaurants have specials including $1 tacos at la Verdad and 50 cent appetizers at Masa. In central Ohio, 57 eateries are offering complete 3 course meals for $20.

Loyal patrons of neighborhood eateries, coffee joints, lunch spots, drink spots and gathering places are seeing their favorite places close, leaving them not only with one less place to eat, but often a missing reliable hangout.

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~ by Dave on February 26, 2009.

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