Restaurant owners respond to dieting food budgets

When it costs $100 to fill up the car on the way home, the idea of ordering pizza for the family may be panned, said Rick Rosati, who runs a growing pizza chain.

"Anybody in the restaurant industry knows it's one of the toughest times, if not the toughest time ever to operate," said Rosati, whose family has grown the pizza empire to more than 150 locations, half of them family owned, since opening in Mount Prospect in 1964.

As families try to make ends meet and often cut restaurant outings from the budget, restaurants are feeling the pinch and facing challenges they haven't encountered in years, as evidenced with this week's bankruptcy declaration by the Bennigan's restaurant chain.

One of the toughest challenges for many restaurateurs is keeping the prices right for the customer while also maintaining a profit.

"Trying to give the customer value while staying profitable is tough," said Fred Hoffmann, owner of Ala Cart Entertainment, a Schaumburg firm that runs 30 restaurants and bars including Chandler's Chophouse in Schaumburg and Moretti's Ristorante and Pizzeria in Fox Lake, Schaumburg and Bartlett.

Rosati says he meets with food suppliers on a weekly basis rather than monthly as in the past. "Everyone is sharpening their pencils," he said.

Applebee's also is making changes to meet the economic climate. For example, the restaurant has re-introduced a promotion where for $9.99, guests can choose an appetizer, entree and dessert.

Entrepreneurs just getting into the industry are struggling as well. "It's slower than I thought it would be," said Joseph Rzeznik, who opened a Moe's Southwest Grill franchise in Deer Park nearly a year ago.

The Atlanta-based Mexican food chain is expanding rapidly across the country, including Gurnee, Aurora and Northbrook.

"Things could be better," said Rzeznik, of Lake Zurich. "People are spending less money than they used to to go out to eat," he said.

When looking at the fall of Bennigan's, some area restaurateurs say they have an edge because they can better accommodate their customers.

"While the national companies can expand, they have a disadvantage because it's harder for them to keep their finger on the pulse of the local market," Hoffmann said. Because he's in the area, he's more able to respond to the different markets and economic conditions.

Andy Zatos, owner of Brunch Cafe in Fox River Grove and Kojaks in Cary, agrees.

"We're here every day. We listen to customers and are able to change our menus faster. We get to know the people coming in the door," Zatos said.

It takes creativity to survive. "We do daily specials and have tightened up the ship internally," he said

He also holds meetings to motivate his wait staff charged with ensuring customers enjoy the experience at his restaurants.

When will consumers return to their old dining habits?

"I'm not expecting it to be this year. We're going to be in for a long ride," Rosati said.