Restaurants Feel Economic Squeeze
Restaurants Feel Economic Squeeze Save Email Print
Changes taking shape
Posted: 10:12 PM Apr 11, 2008
Last Updated: 12:53 AM Apr 12, 2008

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Plenty of dining options combined with a blistered economy are making things difficult for the restaurant business in Omaha.

Village Inn filed for bankruptcy protection this week and the days might be numbered for for a once popular local chain.

Joe Donovan loves to dine out, but avoids big chains.

He says he likes to, "support the local economy. Support the people that spend their time learning the craft."

He was dining a Le Voltaire Friday, a restaurant that is doing well. We found plenty of other diners who also strongly support local flavors.

Cedric Fichepain, with the Omaha Restaurant Association says, "It's been like three or four years where all this big franchise industry just swarmed Omaha, and they pretty much just saturated the market."

Speaking of saturation, the operators of Austin's Steakhouse say there's too much competition for steak. The last location, at 120th and L, saw profits decline three percent in the first quarter.

General Manager Gary Shaddy says, "We have a lot of regular customers -- been here close to 20 years."

But the owner is switching gears.

Shaddy says, "We feel with the competition in steakhouses, it would be a wise move to bring in the barbeque venue."

Austin's will close in a couple of weeks and become Famous Dave's. Employees will be retained and re-trained for the new restaurant.

Joe Donovan believes, "The economy will drive out some of the weaker hands."

And Cedric Fichepain says, "When you see all our people losing money on the stock market, doesn't help -- doesn't help. People, first thing they're going to cut out is entertainment."

But Fichepain thinks local, independent places like Le Voltaire, will weather the storm.

"You know, I think, surprisingly, I think it's certainly us independents who are going to come out best in there, that we can manage it maybe a little bit better, that we're smaller than them."

Fichepain says you can tell how strong the economy is by looking at the classifieds. If there are plenty of openings in the food industry, that's good. He's not seeing very many right now.

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Posted by: Biff on Apr 15, 2008 at 12:34 PM
We don't eat out much because (1) I have teenagers ('nuf said!) and (2) we're too busy running here and there, but when we do, we always tip when we have good service - most of the time, more than 20%. If you can't afford to tip, stay home. Your servers are trying to make their way in the world, whether they be college students, helping to support a family, or make a little extra post-retirement.

Posted by: Liam on Apr 14, 2008 at 11:28 AM
To all those bashing the earlier post by "your server," it's obvious you don't understand how the restaurant biz works. I used to be a server, and it wasn't easy back in my day (early 90's). We were paid $1.85 per hour, plus tips. Servers are exempt from the minimum wage applied to everyone else; current Nebraska minimum is $2.13, plus tips. In my day, you bussed your own tables (unless it was busy and the dishwasher could do it). Now one person seats you, the server takes care of you, someone else brings the food from the kitchen, the bartender mixes the drinks, and the busboy cleans up. The server has to split their tips with these others. Also, law requires that servers claim 10% of their sales as tips. If your table orders $200 in food, the server MUST claim no less than a $20 tip for tax purposes, and may not get that full amount due to tipping out. You can read more at http://blog.laborlawtalk.com/2008/02/15/nebraska-tipped-minimum-wage/. Remember to tip, and tip well.

Posted by: Liam on Apr 14, 2008 at 11:19 AM
I don't recall where I heard the number, but it was in the paper or on TV a while back; anyway, it was a report saying 20% of adults living in Omaha work at a restaurant. I've heard too many times a person ask what there is to do in Omaha, and the inevitable answers start with "the zoo, there's lots of restaurants..." The dollar is WEAK - Canadian Loons are worth more! People are losing their jobs. In good times, restaurants fail 80% of the time. What other reasons could there possibly be? More food than I can possibly eat priced at an uncomfortable rate? How about smaller portions - which are healthier, anyway - and a similarly reduced ticket? Want to really see restaurants die? Let's see what happens if the INS really cracks down and migratory workers are replaced with Americans... 59 cent head of lettuce will be $2 in the bat of an eyelash, and it just gets passed along to you. Until the economy improves and we get off oil dependence, this trend will continue.

Posted by: NO SMOKE on Apr 14, 2008 at 07:19 AM
Give me a break, the smoking ban is exactly why I go to many of the restaurants I choose now. Many are places I avoided before, I don't really care to smell your smoke or have my food taste like it! Let me check the yellow pages and choose where to go tonight! Go on over to Iowa if you need to have a cigarette in order to eat!

Posted by: Smoker on Apr 12, 2008 at 09:49 PM
Say what you want, but the smoking ban has had an impact on restaurants. Many owners and operators stated on local TV that the ban would put them out of business. Well, that time has come.

Posted by: RM on Apr 12, 2008 at 04:55 PM
Why should the servers have to tip out everyone else let the restaurants pay there help. Also sorry Just Me but Iowa will have a total smoking ban before Neb does accept on the casino floors also in a lot of places gas is not much cheeper in Iowa so who is making the extra money there

Posted by: Just Me on Apr 12, 2008 at 04:03 PM
Let's see here first all yu restraurants wants to be non smoking so us smokers go somw where that smaoking is allowed sometimes across the river to yes.... IOWA where smoking is allowed for now and while we are there we can fill up our car with gas which by the way is cheaper and the fuel tax is better.. I don't feel one bit sorry for you restruants that won't allow me my right to smoke that you are feeling an economic squeeze serves you right. is Iowa is smart they will learn from Nebraskas mistakes and will not have a smoking ban.

Posted by: kathy on Apr 12, 2008 at 03:52 PM
the smoking ban has NOTHING to do with the slow business for restaurants. for us, the smoking ban has made it more enjoyable for us to go out. and we do try to support the local restaurants. i can see, tho, that when money gets tight for people, the first things to go are the "extras", like dining out and other entertainment.

Posted by: shelly on Apr 12, 2008 at 03:19 PM
tip 20% ? i tip on the service and not on the check...with the high gas prices and groceries going up the tip is the last thing on my mind. If its just me i will tip anywhere from 1.00 to 3.00..thats just the way it is. If i get Great service then i might give 5.00..it would be nice to know which places are locally owned and operated. if there was a guide somewhere out there...

Posted by: You're stiffed on Apr 12, 2008 at 03:07 PM
"Your server". I think I've had you wait on me before. You're the one where my bill's $14 and I give you a $20 bill and you ask if I want my change back.

Posted by: J on Apr 12, 2008 at 01:28 PM
Actually, one of the places that I visit regularly went non-smoking pre-ban and saw a sharp up-tick in business. Slightly upscale. Another place I visit - down-tick when the ban went into place, because they're on the border between city and county. Slightly above fast-food. Runza in Bennington always has great business. And Bennington isn't subject to the smoking ban until June 2009. I guess that it all depends on the nature of the restaurant and its clientele. Draw whatever conclusions you want. Oh - and last time we went to Le Voltaire - absolutely packed and it's non-smoking.

Posted by: Your Server on Apr 12, 2008 at 12:23 PM
Please don't forget to tip if you are still going out...20%...most resturants the servers have to tip out the bar, bussers, hosts & food runners & if you only tip 15% we are paying to wait on you...

Posted by: Bill on Apr 12, 2008 at 12:00 PM
I'm surprised there is no mention of the Smoking ban as a reason for the down turn.

Posted by: former smoker for smokers on Apr 12, 2008 at 11:45 AM
Has anyone noticed that the politicians and press blame the restaurant closings on the economy, but I have seen a lot of closings in Omaha while the restaurants in surrounding area are doing well? Could the answer be that Omaha has pushed the smokers away?

Posted by: t on Apr 12, 2008 at 08:04 AM
When my money is tight, one of the first things I eliminate is eating out. Or if I do go out, it's fast food because it's cheaper than a sit down restaurant. And I do try to support locally owned restaurants as much as I can -- Petrow's rocks!

Posted by: Linda on Apr 12, 2008 at 05:09 AM
Now let's add additional tax for the ballpark. There won't be any places to even eat in Omaha!!

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