Chefs have to go from thinking about cooking to finances. Restaurants have to tighten their belts because of the financial crisis that is affecting people’s spending habits.
“This is really the toughest operating environment for the industry in 20 years,” said Hudson Riehle, senior vice president of research and information services for the National Restaurant Association.
Restaurants tend to run on tight profit margins — an average of about 4 percent before taxes, Riehle said. “When that margin is under pressure, there is less room for error,” Riehle said.
Food writer and blogger Andrea Strong said she thinks the downturn will translate into restaurant closures, citing the recent shuttering of the contemporary American eatery Sheridan Square, after less than six months, and its sister restaurant Tierra, which was open only two days.
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