Restaurants Deal With Economic Trouble

Even when their wallets are thin, people will always need to eat—and despite the economic crisis, they might still be willing to spring for their favorite restaurant’s seared hanger steak with a glass of red wine.

Considering that the Square’s eateries are part of an industry that depends almost entirely on disposable income, they have been keeping their heads above water in the economic recession. Owners reported a few dips and changes in business patterns, but overall, they remain optimistic.

Business on Tuesday and Wednesday nights—never a restaurant’s money-making time—has been in decline. Some eateries said that diners have been spending less on average while regulars have been dropping in less frequently. But on weekends, restaurants are still packed—and alcohol sales have been resilient.

The key to riding out the recession, according Paul D. Consorti, president and co-founder of Finale, is flexibility, something which Square restaurants have demonstrated by offering specials and extra attentive service.

CASE BY CASE BASIS

But despite their concerted efforts, Square restaurants say the economy has taken its toll on business.

“We haven’t been immune,” Consorti said.

The recession has not been equal in dampening business—expensive eateries have been hit harder and casual sit-down chains have seen sales slide dramatically, while more adaptable, locally-owned restaurants have been faring better.

“I’ve been hearing mostly bad news from casual dining chains,” Consorti said. “Local restaurants with local followings are doing well. Even the high end restaurants...it’s kind of on a case by case basis.”

“It’s more on the Tuesday, Wednesday night time frame,” he said, adding, “The weekends are still very busy.”

Though the Square has been riding out the recession without too much difficulty, the broader restaurant industry is weathering a rough climate, with diners cutting back on the number of visits, ordering less when they come in, and cooking at home much more often.

Sales for cookbooks and cooking utensils have gone up, while many restaurants have had to shut their doors.

“It’s been very tough,” said Jerome R. Picca, co-owner of Small Plates. “Talking to a lot of my friends who either own restaurants or manage restaurants or are thinking of opening a restaurant, what they’re talking about is that their sales are down from 20 to 50 percent.”

He said that the biggest casualty has been high-end restaurants, particularly ones that opened recently and have not had time to develop loyal customer bases.

Small Plates’ opening coincided with the beginning of the recession in late 2007, unfortunate timing that the tapas restaurant has been recovering from.

“[Reservations] did go down definitely in the fall,” Picca said, adding that they have “picked up a little bit since the beginning of the year.”

At Henrietta’s Table in the Charles Hotel, executive chef Peter W. Davis said that business is “a little bit slower,” but the drop has not been dramatic.

On the other hand, Christopher T. Principe, general manager of Cambridge 1—a casual sit-down restaurant known for their thin-crust pizzas—said, “We haven’t felt too much of a loss. We’re still surviving over there.”

The restaurant hasn’t seen bill figures going down, either. But in places where diners are now spending less, collateral damage is felt throughout the ranks.

Chez Henri, a Porter Square restaurant that offers French and Cuban food, has seen diners ordering less. Dining room manager, Christy Leveroni said her conversations with servers have revealed that times are tough.

“They’re not thrilled,” she said.

SUNNY IN A SNOWSTORM

Although most Square restaurants reported at least a small dip in their business, Ten Tables, which opened its Cambridge location last month, has not been negatively affected by the downturn.

“We actually got busier,” chef and co-owner Krista Kranyak said of Ten Tables’ Jamaica Plain location. She attributed the uptick in business to pricing, since Ten Tables is positioned to be a more affordable alternative to older sit-down restaurants.

Denise A. Jillson, the executive director of the Harvard Square Business Association, attributed good business to creativity and dedication on restaurants’ part.

She pointed out that many restaurants have been participating enthusiastically in Square promotional events—for instance, some chefs have been willing to get up early to flip pancakes for breakfast events.

“These people are really committed to making sure people come to the Square,” she said.

HSBA’s Restaurant Committee has been active in thinking up new ways to cross-promote the well-being of Square eateries at large. Jillson said that the most clicked-on link on the well-trafficked Harvard Square homepage has been the Square restaurants page.

At the upscale Upstairs on the Square, business has been good, possibly even a little better.

“You are seeing people ordering more,” director of operations Matthew C. Lishanky said. “In terms of the food, people are always going to be drawn to great food on any menu.”

Most restaurants reported that alcohol sales have been one constant in a uncertain landscape.

Om Restaurant and Lounge, an Asian fusion restaurant with a focus on after-hours nightlife, has been moving its signature aromatherapy cocktails at a steady clip, despite an otherwise very slow winter, Event Coordinator Leah E. Horgan said.

“The bar has been steady. That’s something people are seeing all around,” Horgan said.

Across the street, Upstairs on the Square has been no different.

“People are definitely still drinking lots of wine, and lots of cocktails,” Lishanky said. “Alcohol sales have probably been on the rise, if there’s anything to numb the pain.”

In addition, every restaurant interviewed reported a strong Valentine’s Day weekend, as diners spent with abandon and tipped generously.

“What we’ve seen as a trend overall in restaurants is that people are still doing the special occasions and the Saturday nights,” said Michael J. Mooney, the general manager of Rialto, an Italian restaurant that ranks among the Square’s swankiest.

But weeknight business is another story.

“Less people are going out on Monday and Tuesday for dinner,” Mooney said, adding that diners who come in “are spending less.”

THE SMALL THINGS

In the recession, even the most expensive restaurants are pulling out all the stops to let customers know that they appreciate their business—lowering prices and offering specials to allow their patrons to indulge while economizing.

And diners are taking advantage of cheaper alternatives, such as moderately-priced bar menus in high-end restaurants. In addition, the are gravitating towards fixed price specials offered by eateries eager to lure in bargain diners.

“We can only control what happens in the restaurant,” said Harvest General Manager Ivan T. Law. “The experience is what we can control.”

For Om, change has meant offering more specials and deals.

“We adjusted our prices,” Horgan said. “We try to be accommodating.”

At Small Plates, Picca said he sees students order a lunchtime sandwich while catching up on their coursepack readings—something which he encourages, although high-end restaurants usually frown upon loitering patrons.

At Chez Henri, business has been just fine, according to Leveroni.

They haven’t made changes to the menu; rather, it’s about what hasn’t changed.

“What we haven’t done is put up prices in the last 7 years,” she said.

Harvest, which serves high-end New England cuisine, has lost out on much of its usual corporate dining due to company budget cutbacks and firms going under. But on the other hand, the cheaper menu options have been getting more traffic.

“We definitely see more bar business,” Law said.

—Staff writer Lingbo Li can be reached at lingboli@fas.harvard.edu.