Mahoning Valley restaurants cook up recipes for survival

October 20, 2011 at 12:07a.m.

YOUNGSTOWN

Appetite for success consumes Sports Grille owner

Restaurant owners served up helpings of pessimism in a nationwide industry survey — but local owners said they are cautiously upbeat about their livelihoods.

Only a third of owners surveyed nationally expect to have increased year-over-year sales six months from now, while 23 percent said they expect sales to drop, and 31 percent said economic conditions will worsen.

The industry’s stability will depend on jobs and bolstering consumer confidence, said Hudson Riehle, senior vice president of the research division of the National Restaurant Association, in a news release.

Those sentiments were echoed locally.

“If you don’t have confidence in your paycheck, you don’t go out. You stay home and eat,” said Dorothy Boggio, business service director for the Youngstown/Warren Regional Chamber.

With unique challenges such as a perishable inventory, restaurants have more to consider than other types of business, Boggio said.

“Restaurants always operate close to the bone,” she said.

Boggio, however, pointed to the recent opening of several restaurants as evidence that confidence seems to be increasing in the Mahoning Valley.

“It seems to signal that the local business owners are preparing for a boost in the local economy. There’s a lot of confidence in this area becoming more prosperous because of that development in the oil and gas industry. ... People are expecting others to have more disposable income,” she said.

Frankie DelGarbino, manager at Leo’s Ristorante in Howland, said though business doesn’t always boom, he thinks patrons will still dine out regularly.

“We have great clientele, regulars, and we couldn’t do it without them,” he said.

DelGarbino said the Valley Classics marketing campaign that features Leo’s, as well as, Caffe Capri, Alberini’s, Vernon’s Cafe, Salvatore’s, Buena Vista Cafe and Sunrise Inn, has helped attract customers.

“It’s been a great thing for us,” he said.

Even though effects of the recession remain, DelGarbino said his restaurant is doing better this year than last.

“We’ve had to tighten our belt, but we’re doing fine,” he said.

Concern about the economy remains consistent, reports the NRA Performance Index, based on 600 owner responses nationwide.

For the past two years, survey respondents listed the economy as the top challenge they face, said Annika Stensson, the association’s director of media relations.

She also pointed out, however, that 17 percent of respondents chose food costs as the top challenge, compared with 4 percent in August 2010 and 2 percent in August 2009.

The rising cost of goods such as meat, oil and potatoes concerns Sean Pregibon, owner of the Youngstown Sports Grille on South Avenue in Boardman.

“Revenue and sales have dipped, but costs have increased, and that’s a bad equation,” Pregibon said.

Although Pregibon said he’s optimistic as his restaurant prepares to mark its ninth anniversary, he said the business has battled challenges, such as three increases in minimum wage and another increase in January.

The economy has claimed some Mahoning Valley eateries as victims. It was the main reason that downtown restaurant and wine bar Rosetta Stone closed 14 months ago, co-owner Chuck Sop told The Vindicator at the time.

Even chain restaurants have felt the pinch. Jillian’s in the Southern Park Mall abruptly closed in February. Jillian’s Entertainment Holdings of Louisville, Ky., had filed for Chapter 11 bankruptcy protection May 23, 2004, according to Vindicator stories.

Another sudden exit was the May closing of Rusty’s South Side Grill in Boardman. The restaurant – also featured in the Valley Classics campaigns – closed after receiving a notice from the Ohio Department of Taxation about sales tax. Department spokesman Gary Gudmundson said in May that notices are issued because of failure to file or pay sales tax.

The South Avenue property is now available for sale.

Despite the turbulent economy, restaurants continue to open in the Valley.

Juan Vasquez’s Mexican restaurant, Fiesta Tapatia in Liberty, along the Belmont Avenue restaurant strip, opened in early August. Vasquez said business has been strong.

“The economy started going downhill three years ago, and we were kind of scared because we have another restaurant in Cleveland,” he said. “We were a little shaky, and we actually got faith here. When the economy’s bad, people can’t afford vacation so what they do is go out to dinner.”

Joe Saadey, owner of The Upstairs along Austintown’s restaurant-ladened Mahoning Avenue, said his 23-year-old business is having its most successful year to date.

“We’ve got a lot of good restaurants in town, and I feel we’re one of them,” he said.

Saadey said that while The Upstairs has a steady flow of customers, the cost to operate a restaurant continues to rise.

“Costs are through the roof. ... I’m very fortunate that we’re as busy as we are,” he said. “It’s not easy, and nobody in the industry will tell you that it is.”

In Boardman Township, trustees there report confidence in the restaurant industry, which they say goes hand-in-hand with the township’s retail corridor.

“I think people come here as a destination. They plan a day. They’re going to come shop for a little bit, eat, go to a movie,” said Trustee Larry Moliterno.

He said the township benefits from the variety of food options ranging from small chains to large family-owned operations.

Doug Esenwein, regional manager for BW3, said his Boardman location and the other three in the Valley, have weathered the economic upheaval relatively well.

“The good thing about a franchise is you have great support — from guidance and training and development — and there’s always somebody else somewhere going through the same thing. But that comes with a cost,” he said.

Winter is prime time for Esenwein’s BW3 locations in Youngstown, Boardman, Austintown and Niles, and overall he’s optimistic, adding that the renovation of the Boardman restaurant has sparked renewed interest.

And Esenwein said rumors that the downtown BW3 is going to close or move are false.

“People are always going to love wings, beer and sports in Youngstown, Ohio. It’s something that’s not going away any time soon,” he said. “More restaurants are opening, and there’s room for them in this market.”