HC,
I am a restaurant owner in the midwest, and have been for the past 11 years. As I mentioned in an earlier post, the consumer has become much more value oriented at least in my neck of the woods. I am in a constant state of marketing specials in order to keep our volume in tact. Over the past two years bottom line sales have remained about the same but our margins have tightened dramatically and when the fed begins raising interest rates and inflation returns you will see many restaurants and small retail shops close their doors. I am a hands on business owner and find ways to cut costs daily. Many chains do not have that luxury. I can tell you too, that all vendors in my field are also doing what they can to maintain volume business, from dumpsters to cable TV. I have decreased my fixed subscriptions dramatically over the past 18 months. This has a spiral effect. Only so many companies will survive the battle for the same customer by reducing price whether it's the retail diner or business supplier. Food costs have elevated which obviously hurts more and more restaurants but I think they will deflate during the course of the next year. Soon there after the ship will more than likely correct itself and many small business owners will fall victim to inflation and a lack of consumer spending. It will be interesting to see what spin the fed can put on the nationwide failure of our country's small businesses. A country built by small business has now been decimated by government manipulation, debt, and banker greed. Our children's futures will pay the price and our government has willingly put the control of our country's growth solely in the hands of the banks. Why do you think so many businesses are hoarding cash. They know consumer spending is tightening and the credit markets have closed their doors. This speaks of very tough times ahead for commercial business within our boarders. Not to mention that most restaurants deal on volume and with government intervention pertaining to statewide smoking bans, obesity and non drinking campaigns they are slowing gaining control bit by bit of my customers social mindset and choices keeping them from entering our doors. More and more people are drinking and smoking in their basements and backyards. Just what the government wants. A camera at every intersection and a GPS on every cell phone. Control, control, control. Welcome to the new socialistic america. The government knows what you want and will be happy to make up your mind for you! F4T
