New Orleans Restaurants Fare Well In Economic Crisis
Tourism Officials Say Tours, Conferences Help Area
11 October 2008
NEW ORLEANS-It seems every industry is keeping a close eye on what's happening with the economy.
The service industry is the New Orleans area's bread and butter, so WDSU NewsChannel 6 wanted to find out how restaurants are faring.
Industry experts said growth in the service industry was basically flat in 2007. That's why now more than ever local restaurants have to pinch pennies to earn every customer.
Phil Degruy owns Phil's Grill in Metairie and Mandeville.
With gas prices already eating many restaurants profits, he said the failing economy making matters worse.
"Here in Metairie, it's great," Degruy said. "Mandeville is a little slow taking off, and I think that has to do with the economy right now."
Even so, the Louisiana Restaurant Association said New Orleans restaurants are doing better than national ones.
"Here in New Orleans, eating out is such a strong part of the culture that we really will give up other things before we give up going out to eat with our friends or family," resident Wendy Waren said.
As a precaution, many restaurants are instituting cost-saving strategies.
"They're ordering less frequently, thinking more long-term about perishable and non perishable items they will need and reducing food spoilage and waste in the kitchen," Waren said.
Restaurants are also coming up with creative marketing campaigns.
Phil's Grill has a rewards card.
"Royalty Rewards is like a frequent flier deal," Degruy said. "Every time you eat, you earn points and I buy you burgers."
Degruy hasn't raised his prices yet. In this economy, he said he's banking on burgers.
"I think the fine dining establishments will suffer more as disposable income becomes less," he said. "People are still going to eat out and people are still going to eat burgers."
Tourism officials said one of the things that's helping the New Orleans area are tours and some large conferences scheduled earlier this year for fall.
11 October 2008NEW ORLEANS-It seems every industry is keeping a close eye on what's happening with the economy.
The service industry is the New Orleans area's bread and butter, so WDSU NewsChannel 6 wanted to find out how restaurants are faring.
Industry experts said growth in the service industry was basically flat in 2007. That's why now more than ever local restaurants have to pinch pennies to earn every customer.
Phil Degruy owns Phil's Grill in Metairie and Mandeville.
With gas prices already eating many restaurants profits, he said the failing economy making matters worse.
"Here in Metairie, it's great," Degruy said. "Mandeville is a little slow taking off, and I think that has to do with the economy right now."
Even so, the Louisiana Restaurant Association said New Orleans restaurants are doing better than national ones.
"Here in New Orleans, eating out is such a strong part of the culture that we really will give up other things before we give up going out to eat with our friends or family," resident Wendy Waren said.
As a precaution, many restaurants are instituting cost-saving strategies.
"They're ordering less frequently, thinking more long-term about perishable and non perishable items they will need and reducing food spoilage and waste in the kitchen," Waren said.
Restaurants are also coming up with creative marketing campaigns.
Phil's Grill has a rewards card.
"Royalty Rewards is like a frequent flier deal," Degruy said. "Every time you eat, you earn points and I buy you burgers."
Degruy hasn't raised his prices yet. In this economy, he said he's banking on burgers.
"I think the fine dining establishments will suffer more as disposable income becomes less," he said. "People are still going to eat out and people are still going to eat burgers."
Tourism officials said one of the things that's helping the New Orleans area are tours and some large conferences scheduled earlier this year for fall.
Labels: Dining, Economy, Housing, Katrina New Orleans, Tourism, United States
posted by HRM Deborah of Israel and the Messenger of Peace at 5:31 PM
1 Comments:
New Orleans definitely has an understanding of how to capitalize on culture to further their economy. In fact, we are hosting the the World Cultural Economic Forum (WCEF) which takes place throughout Louisiana in October with three key components including a two-day Forum in New Orleans Oct. 30-31 for global cultural economy leaders to discuss best practices for growing cultural industries; a World Bazaar and Marketplace showcasing artisans and vendors from around the world in the Ernest N. Morial Convention Center Oct. 30-Nov. 1; and the Passport Events across the state throughout October showcasing all of Louisiana’s unique cultural assets.
With representatives from over 60 countries, it should be a big boon to the local economy. Please check it out!
http://www.wcefculture.org
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