Tactics for tough times

Attempting to bring the state of the restaurant industry into focus, Tim and Nina Zagat, founders of the Zagat Survey dining guides, spearheaded a series of forums in Atlanta, Chicago, Boston, San Francisco and Los Angeles. In Chicago, the Zagats led a panel discussion with local chefs and restaurateurs

Despite a modest inflation rate, the industry is growing, says Tim Zagat, with new concepts, a generation of young chefs and smarter, more demanding customers. Among other factors driving growth is the presence of more women in the workforce, resulting in families dining out more frequently. Operators also expand business with discounting via dining clubs and coupons as well as better deals and wider selections in wines and menu prices. Prix-fixe menus, special events and pitches to media are among the ways to raise awareness in the local community.

Keeping tighter control on operations is critical today, says Rich Melman, chairman of Chicago-based Lettuce Entertain You Enterprises (above). "You've got to watch the numbers, not every week or month, but every day. Invest in the best [point-of-sale] system in order to retrieve data fast and react to it.'' Anticipate economic cycles and "be paranoid, but in a healthy way,'' he advises.

Gale Gand, partner and executive pastry chef of Chicago's Tru, finds new customers in nontraditional ways such as by doing cooking demonstrations at local farmers markets and writing cookbooks. She says Tru tapped an audience of younger customers when the restaurant introduced tasting plates of appetizers and desserts at fixed prices. Offered during off-peak hours, the small plates appeal to customers less familiar with or intimidated by upscale dining. "It keeps our seats filled and the staff busy,'' says Gand.