Steve Renshaw’s restaurant, 15 Point Road in Portsmouth, doesn’t serve kid-friendly burgers or pizza or even French fries, but he’s still seeing a distinct trend among his clientele in recent months that runs counter to his offerings.
Renshaw is finding that more children are accompanying their parents on their nights out, despite fare such as pan-seared scallops and grilled duck breast.
He says it is evidence that some people are using a trip to a restaurant as a substitute, in some small way, for the vacation that has been put on hold because of exorbitant gasoline prices and economic uncertainty.
In other words, eating out could be serving as an extreme version of the so-called “staycation” for some.
“People are going out instead of going away,” Renshaw said recently. “And they’re taking their kids, as opposed to having the family go out of town. … It’s like a mini-vacation.”
He said he has heard from other restaurant owners that, in general, the local restaurant industry is hurting, particularly in areas that depend on tourist business. Not so at 15 Point Road.
Renshaw said his sales are up 5 percent when compared with last year’s numbers.
“It’s not that the economy is flying,” Renshaw said. “It’s that people aren’t going anywhere.”
Dale Venturini, president and CEO of Rhode Island Hospitality and Tourism Association, has heard similar reports from some eateries in Rhode Island.
Yes, Venturini said, the restaurant businesses isn’t very rosy right now, with the economy sagging and food prices on a recent climb.
In fact, statewide revenue figures on which the state’s meal and beverage tax is based were down 9 percent in June, compared with a year ago. With July numbers due out last week, Venturini didn’t foresee much improvement.
It is much the same across the country. The National Restaurant Association’s monthly performance index dropped for June as average same-store sales nationwide declined as the effects of a slowing economy took hold.
Nevertheless, some neighborhood restaurants reportedly are seeing a surge in business, according to Venturini.
“There’s this doom-and-gloom feeling out there, and people are looking for whatever small relief they can get,” she said.
Brian Casey, owner of the Oak Hill Tavern in North Kingstown, said places such as his are benefiting.
Oak Hill is the type of restaurant where customers throw peanut shells on the floor and devour 25-cent chicken wings on Wednesdays. Lately, the restaurant has been going through about 1,000 pounds of wings on those nights.
Sales are up from last year, although Casey does not want to say by how much. “I don’t want to jinx myself,” he said.
What’s the secret to improved sales in this sluggish economy? “I’m a local neighborhood place,” Casey said. “People aren’t traveling far. … They’re not going to Providence; they’re not going to Newport.”
Add to that, an affordable menu. “I think that’s what people are looking for,” Casey said.
Ken Cusson, director of restaurant operations for Newport Harbor Corp. – which owns seven restaurants in Rhode Island – doesn’t necessarily agree that people are treating eating out as a mini-vacation.
“I would say people are staying more local,” he said. “In some areas, the restaurants are enjoying a bit of a boost.”
That said, “there are fewer people who are going away, and they’re just taking the family out [to a restaurant],” Cusson said. “You try to figure out what the patterns are so you can be prepared for the guests who are coming in. But it’s hard to put our finger on it right now.”
He does find that diners are more value-oriented in these uncertain economic times.
For instance, Cusson said, a local monthly magazine recently ran an article touting 10 places to get a great meal for under $20. “You’re seeing those types of promotions everywhere,” he said. “And frankly, they’re working for the most part. I think a lot of people are motivated by those value offerings.”
Case in point: Newport Harbor Corp.’s Waterman Grille in Providence offers a $19.95 prix fixe menu – a complete meal at that set price – on Mondays that has proved popular.
As a result, while many Providence restaurants are down 10 to 25 percent, Cusson said, Waterman Grille is “flat with last year’s sales, which is really pretty good for the way the economy is going.”
In Newport, where restaurants depend heavily on tourists, Cusson said sales at his company’s restaurants – the Inn at Castle Hill, The Moorings Restaurant, 22 Bowden’s Wine Bar and Grille and The Smoke House Café – are slightly below last year’s numbers. “And we’re thankful to be in that position,” he added.
Not so with Trio in Narragansett, Newport Harbor Corp.’s newest restaurant.
It opened in May with a menu that included offerings targeting children, who can also get a cheese plate that comes almost immediately. Kids also get a beach ball on the way out the door.
“We’ve definitely made an effort to let people know that their children are welcome,” Cusson said.
And it has paid off. So far, the restaurant has performed above projections, even with the honeymoon period factored in.
“We’re definitely seeing more local folks than we had anticipated,” Cusson said. “And the supplies that we’re buying [such as crayons for children to draw on their menus] indicate that we’re seeing more kids.” •
