Tampabay.com
JULY 08, 2009

Unemployment may be tougher on foodservice sales

According to a July Technomic report, the unemployment rate hitting a 26-year high may have protracted consequences in the restaurant world.

According to the firm’s consulting economist, Arjun Chakravarti, "Consumer anxiety will remain connected to their prospects in the labor force, and the likelihood of layoffs, unanticipated part-time work, and slashed benefits will promote a continued culture of restraint for what consumers deem non-essential spending.”

A year ago I asked readers about their dining-out habits and heard again and again that consumers had changed their ways, were opting for quick-serve, order-at-the-counter places and takeout versus full-service sit-down establishments. This trend obviously continues, prompting the lion's share of restaurant openings to be more "down market" (see my crepe piece in tomorrow's paper, the raft of pizza joints that have opened, diners, pubs, etc.). But I wonder if the belt tightening has prompted most people to just go out less, as opposed to less expensive. I'd be eager to hear how people's dining-out habits continue to evolve.

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