Restaurants gain ground bit by bit

April 27, 2010 at 12:00a.m.

Associated Press

CHICAGO

It took more than a year, but American diners are coming out of hiding, starting to splurge on everything from tea to tacos and tacking on some dessert.

The meals aren’t fancy — and business is far from what it was before the recession sent the nation spiraling — but restaurateurs big and small say they’re breathing a tentative sigh of relief as tables fill up.

At Deleece, a restaurant on Chicago’s north side, crowds are bigger than they’ve been in months. It’s noisier, too.

In the depths of the recession, Deleece’s customers might order a glass of wine, a salad and an entr e. Now, they’re more likely to get a bottle of wine, a hot appetizer and an entr e. They’ll also split a dessert, which adds up to bigger bills and full tables.

The shift, which Jefferies restaurant analyst Jeff Farmer calls a “slow grind,” began in late January and is gaining steam.

“They’re not necessarily seeing the light at the end of the tunnel, but there’s a realization that things aren’t going to get any worse than they are right now,” Farmer said.

Still, it wasn’t until March that the change became downright impressive, sending revenue in restaurant locations open at least a year up at scores of fast-food and casual dining chains. There the measure has stagnated for nearly two years, experts said.

Few restaurant chains release sales by month, but data from market-research firm NPD Group showed the measure climbed for five of the past eight weeks at nearly four dozen fast-food and family-style restaurant chains.

At McDonald’s Corp., it climbed 5 percent in March. There was a double-digit increase in the figure at Panera, which along with strong sales in January and February prompted the company to boost its profit forecast.