A New Restaurant

I write last week about rising prices, and how that can have a negative affect on your business.  That does not mean that it is time to panic.  They say every dark cloud has a sliver lining.  For you, that means that even in a down economy there is opportunity for growth for those that are prepared.

There is the potential to gain new customers as struggling restaurants close their doors.

It is inevitable that there will be a slew of restaurants closing in teh near future.  They do it often enough when the economy is good.  The upcoming price increases will force many of them to close.  As they do close, their customers will need a place to go.  If you can give them a good reason to try your restaurant, many of them will.

There is the potential to gain price concious customers.

The reaction of many restauranteurs will be to jack up the prices as quickly as they can to try to recoup some of the cost increases.  The problem is, they are raising prices at the same time their customers are feeling the budget pinch.  With less entertainment dollars to spend, and the dollars not buying as much, these customers will be looking for alternatives.  You need to ask yourself whether it is better to have nice profit margins and a half empty dining room, or thinner margins and a full house.

The point being, there may be some very good opportunities if you keep your wits about you, don’t panic and overreact to changes in the economy, and most importantly, plan ahead.