In our food world, there are far too many signs that the worst recession is not yet over. Not nearly over. Just this past weekend in New York City a landmark restaurant, Cafe des Artistes, decided to take down the “Renovation” sign and replace it with a “Closed” one: Permanently . That is the same story that occurred not that many weeks ago in Washington, DC with Olives, the popular Todd English restaurant just blocks from the White House. Same Scenario: “Renovation” became “Closed”. Name a city, and the story has repetitive qualities. It’s a war of the plates. Those restaurants that were merely hanging on are finding it difficult to grab an additional lifeline.

As for some of the big national steakhouses such as The Palm, The Capital Grille, or Morton’s Steakhouse you see other ways the message is being transmitted: Deals, specials, promotions that keep getting extended. The Palm’s lobster and  steak special are both extended until the end of September. Am losing count how many times these have been extended! The Capital Grille just announced their $39 3-course dinner will be good until the beginning of November!  Morton’s has a similar promotion which continues until the end of September. These types of ongoing promotions were previously unheard of. That says a lot about projections, numbers, and negative info. It only works if the consumer believes that such a promotion is a good deal and not something that is still difficult to swallow.

Restaurant weeks have become multi-week and seasonal promotions. Restaurants tout that a single week could not accommodate all the interest. I think that is part of the story. Having visited a number of such establishments, I believe the other component to the decision is why not extend it an extra week if it helps draw the numbers and fill the tables. Why not?

BTW, the restaurants that did a good job during restaurant weeks are those that either let guests choose items from the regular menu or established a creative menu and not a skimping one that left people grousing about overpaying for something ordinary. The restaurants that have it figured out will garner long-term customer loyalty.

Restaurants can learn plenty from guest response. Listen.