Metro Atlanta restaurateurs say they expect holiday business to be brisk, with their industry continuing to show signs of recovery from historic lows two years ago.
Same-store sales for metro eateries — from fast food to fine dining — were up 6.4 percent in the recent third quarter over the same period a year ago, according to NetFinancials, a tax and accounting services provider for the restaurant industry.
However, as Atlantans plan their office parties and family gatherings, they are making reservations a bit later and choosing less expensive menu items, the restaurateurs said.
“A lot of people are telling us they have tight budgets,” said Phillipa Giesbert, director of beverage and food operations for the Renaissance Midtown Atlanta, which operates Briza restaurant. “We’re seeing a lot of smaller groups come in and want salads and small entrees. Instead of surf and turf or three-course dinners, they are looking for more family-style choices.”
A good showing this holiday season is critical to restaurants. The days between Thanksgiving and New Year’s Eve are the biggest revenue drivers for eateries. For some, the majority of their income is made from year-end holiday parties and family gatherings.
Groups from 10 to 100-plus have started booking business for Thanksgiving through the end of the year, but many of the confirmations were made in mid- to late October, which is a little later than usual, restaurant operators said. Customers said they waited to make sure there was money to pay for the outings.
One of the first budget cuts for companies and individuals following the nation’s financial collapse in late 2008 was dining out, said Karen Bremer, Georgia Restaurant Association executive director. The ensuing nationwide job layoffs led to large declines in customer patronage at restaurants.
“Two thousand and nine was probably the worst year in the restaurant industry in many, many years,” Bremer said, adding that the average profit for restaurant operators is about 4 percent to 6 percent.
Metro Atlanta’s third-quarter 6.4-percent increase comes despite price hikes that restaurants passed on to customers because of a 2.6-percent increase this year in commodities costs, according to the U.S. Bureau of Labor Statistics.
To lure customers, many restaurants are offering discounts or special packages designed to suit different budgets.
Erick Tousek, a partner at Fleming’s, said the Perimeter-area restaurant is giving a $25 dining credit to customers who spend at least $50 through the end of the year. Diners at Spice Market at the W Atlanta can earn Starwood Hotels & Resorts loyalty points while those who have booked holiday events with the restaurant in the past can get a percentage off their final receipt this year.
“It builds business,” Tousek said in explaining why he is offering discounts. “It builds traffic. The week of Thanksgiving can be a slow week for us, but we did these promotions last year and they brought in a lot of business.”
Not all restaurants are experiencing customer budgetary restraint. Leslie Battle, who handles events for Ormsby’s on Howell Mill Road, said she has booked a mixture of business, from the frugal to the lavish. Companies with strong entertainment expenses, for instance, booked in August and were looking at full dinners, complete with a bar and appetizers.
“The corporate events have bigger budgets this year and they have more flexibility,” she said.
Holiday bookings have been so positive for Ray’s Restaurants, which has locations in Cobb County, Alpharetta and downtown Atlanta, the chain is opening for Saturday lunch for the first time, marketing director Claire Brimmer said. And diners want it all, from small plates to three courses with wine pairings.
“We’re seeing all ends of the spectrum,” she said.
Robert Gerstenecker, chef at Park 75 at the Four Seasons Atlanta, said a strong finish to a good year will allow restaurateurs needed relief after slogging through some tough times.
