Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Monday, October 03, 2011
Wednesday, January 14, 2009
Restaurateurs' Recession Survival Guide
Melanie Lindner
Rosati's Pizza has been serving up pepperoni pies since 1964. Lately, though, things aren't looking so saucy.
"We always thought pizza was a recession-proof business," says Jeff Rosati, chief financial officer of the Warrenville, Ill.-based franchiser, now with 170 stores throughout the Midwest and Southwest. "But in 2008, for the first time, our customer count went down 5%."
Rosati navigated previous downturns by angling for customers looking to substitute swank dinners with more modest pizza nights. Coupons worth a dollar or two help, but in recent months he's gone to further extremes to stay afloat--like offering a free 12-inch cheese pizza with the purchase of a large or extra large pie.
In Pictures: Seven Recession-Survival Tips For Restaurateurs
In Pictures: Seven Cheap Ways To Get The Word Out Locally
In Pictures: 14 Creative Ways To Keep Costs Down
He also jacked up prices by some 10% last year to offset the spikes in critical commodities like cheese, cooking oil and flour--each up anywhere from 70% to 300% between 2007 and 2008. Prices have since come down, but not nearly enough. "The bottom line is that people just aren't spending, and you can't make them spend money they don't have," laments Rosati.
Rosati's Pizza has been serving up pepperoni pies since 1964. Lately, though, things aren't looking so saucy.
"We always thought pizza was a recession-proof business," says Jeff Rosati, chief financial officer of the Warrenville, Ill.-based franchiser, now with 170 stores throughout the Midwest and Southwest. "But in 2008, for the first time, our customer count went down 5%."
Rosati navigated previous downturns by angling for customers looking to substitute swank dinners with more modest pizza nights. Coupons worth a dollar or two help, but in recent months he's gone to further extremes to stay afloat--like offering a free 12-inch cheese pizza with the purchase of a large or extra large pie.
In Pictures: Seven Recession-Survival Tips For Restaurateurs
In Pictures: Seven Cheap Ways To Get The Word Out Locally
In Pictures: 14 Creative Ways To Keep Costs Down
He also jacked up prices by some 10% last year to offset the spikes in critical commodities like cheese, cooking oil and flour--each up anywhere from 70% to 300% between 2007 and 2008. Prices have since come down, but not nearly enough. "The bottom line is that people just aren't spending, and you can't make them spend money they don't have," laments Rosati.
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