Photo: flickr: SteveHersh
Steakhouses are getting whip-sawed by our current economy, Bloomberg reports, and the wealthy aren’t doing their part to stabilise business at some of America’s favourite restaurants.This isn’t rocket science. Because the economy is erratic, restaurant-goers are erratic, and that makes for massive ups and downs in terms of revenue for 2012.
This is also what happens when you cut down someone’s corporate credit limit — corporate accounts make up 65 per cent of business for restaurants like Morton’s Steakhouse.
Sales at U.S. steakhouses, where the average check is more than $50 a person, have “bounced around” — up 4.1 per cent in August, compared with a year earlier, following a 1 per cent gain in July, said Knapp, citing the Knapp-Track High-End Steak Chain Restaurants Index, which covers $1.5 billion worth of industry sales.
Same-restaurant results at The Capital Grille, owned by Darden Restaurants Inc. (DRI), grew 2.8 per cent in the three months ended May 27 — the chain’s slowest pace since 2010…
Meanwhile, comparable sales at company-owned Ruth’s Chris Steak Houses rose 6 per cent in the three months ended June 24, following a 3.7 per cent gain the prior quarter, based on data from Ruth’s Hospitality Group Inc. (RUTH), which is slated to announce third quarter results Oct. 26.
This is pithy stuff in a country that loves red meat as much as we do. Watch Bloomberg’s breakdown on video below.
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