Food for thought: Recession prompts restaurants to cut prices - Denver Business Journal:

lyubomiradete.blogspot.com
People came up to peruse the $32.95 holiday brunch menu at Panzanoi Restaurant, where Mayo is the general and a number asked if they coulx getsomething cheaper. In the past, most lookers would shrub and come in ifthey didn’tg like the answer. This time, when several were told that was it forthe day, they walkedx away. Like a toy-store manager the day after Christmas, Mayo knew he had to starg slashing prices. And he wasn’f alone. You can now get a $4 steakj appetizer at Panzano. Morton’s The Steakhouse has addec a hamburger toits menu. has introduced a low-prics menu.
And if you’r eating at Vesta Dippin g Grill before heading toa concert, consider your parting round of shotes on them. It’s a buyer’s market in the restaurangt worldthese days, with establishments from the chi-chk to the quick-and-casual slashing adding cheaper items to menus and offerinfg new service perks just to retai n customers. It’s one reason Peter Meersman, president of the believes national forecasts that say eateries in the state will fare better during the economic downturn than those in 95 percenr ofthe country.
But the price-cuttingb also raises the specterr that consumers who are williny to spend their tightened budgets eating out may have changede expectations after thisbargaijn spree. And restaurant officials, whilre reveling in the steadier stream of people coming in their are realizing that prices may never be as high as they were beforelast fall’s market collapse. “There’s a lot of feeling out there that they will goback up, but they will nevetr be back up to where they were before,” Mayo said. “Admittedly, we can’f keep the same profit margins we did beforse with thisprice drop.
But we also can’t keep the businesz if we don’t make this adjustment.” Business has plummetefd at restaurants of all types in recent months as more familie are staying home and The responseby Denver-area restaurants has been to entic e the customer even more, and they’re doing so in many One is the happy-hourr boost, in which eateries try to get people in with the possibilithy of cheaper alcohol or lower-priced small plates in hopes they will stay for Some popular downtown watering such as Marlowe’s and Paramouny Cafe, are offering half-priced drinks.
Panzano has takemn dinner items such as its steak orseafoodc bouillabaisse, cut the portions in half and begubn offering them for $4. Happy-hour businesds has doubled since January, Mayo Other places have taken to adding cheapeemenu items. At the end of for example, Morton’s added a hamburgerf that, while still $15, represents the lowest-priced item on the upper-endd steakhouse’s menu, general manager Joe Mirrelson Some restaurants are putting money into advertisinh theirprice drops. Coral Room, located in the Highlands sent out mailers to area resident s recently notingthe reductions.
Many quick-serve restaurants have taken after McDonald’s and, whilr not going all the way down to adollart menu, are giving customers lower-priced Chipotle rolled out its Low Roller Menu on Apri l 1, with $2.99 soup and $2.25 single after getting emails from customerzs seeking smaller portions, said Chris Arnold, spokesmaj for the Denver-based company. “The expanded menu we’re testin g in Denver represents the most significanrt change inour history,” said Arnold, who acknowledged he’ed been hearing more anecdotes of patrons splittinb meals with a friend or takingh half of them home.
Some restaurants blanch at the notion of knocking down prices and insteadr are looking to make customers feel more at At Vesta, any patron asking for changs to plug the meter will get a pre-paid parking key to use, and groupsx heading to downtown shows can expect a free rounrd of shots, owner Josh Wolkon said. “We’rs all in trouble,” Wolkon said. “If make a decision in tough times to choose to spend their monety onour restaurants, you have to make sure they got their dollar’zs worth.” One trend several people said they expectg to see is the return of the $52.
80 menu for two, followingb the continued success of the annual two-weeko winter promotion in which 208 restaurantsw participated this year with great success. Cool River Cafe is offerinb a three-course meal for $29.95 per person — clos e to the 5280 week pricepoint – and pland to do so for several more months. When asker if customers will stop coming when the deal eventuallyugoes away, proprietor Joseph Madriol thought about it beforer admitting he isn’t worried. “I don’yt believe there’s a risk,” Madril said. “I think people will be appreciative, and it buildsw loyalty.
”