Restaurants fighting recession

McClatchY Newspapers

For a nation that loves to eat out, there are cheap eats to be had. But even $5 foot-longs and dollar burgers may not be enough to entice recession-era diners.

Confronting declining traffic, rising food prices and the normal winter slowdown, restaurant owners are fighting back — touting value, slashing prices, running specials, increasing marketing and promoting loyalty clubs — amid faint hopes of turning a profit.

For many, it’s a matter of survival.

“It’s like operating in quicksand,” said Arthur Gordon, proprietor and chef at Irregardless Cafe in Raleigh, N.C., which has been in business since 1974. “As soon as you think you have some solid footing, it seems to dissolve.”

Gordon isn’t giving up. He kept his restaurant open on Thanksgiving, Christmas Eve and Christmas Day. He is offering more small plate options, and has resisted raising prices. He offers some live entertainment.

“I’m not willing to sit in the cave and curse the dark,” he said. “What I’m waiting on at this particular time is to see what really is going to unfold in the next 60, 90 days. That will tell the tale.”

Other companies are also trying to recruit customers:

UThe Cheesecake Factory is now pushing a “something for everyone” message and last month introduced a special menu with seven entrees and one salad all priced $11.95 to $14.95.

UWendy’s is actively advertising the three sandwiches on its dollar menu.

USubway has found great success with its $5 foot-long campaign.

Still, it may not be enough.

Consumer confidence has slumped, hitting its lowest point in December since 1967, when tracking began.

Restaurant sales — which had enjoyed steady growth — are predicted to be down 1 percent this year, after adjusting for inflation, according to the National Restaurant Association.