Restaurants squeezed by economy, price-conscious consumers

Restaurants squeezed by economy, price-conscious consumers
June 10, 2008

The Atlanta Journal-Constitution: Restaurants, including fast-food operations, are trying to balance rising costs with keeping customers satisfied.

At the same time, revenue growth is slowing as consumers become more budget-conscious, selecting lower-priced dining options or choosing to dine at home instead.

Chicago-based restaurant consulting firm Technomic projects retail sales for the U.S. food service industry to grow only 2.2 percent this year, down from a 3.8 percent increase in 2007. Fast-casual and fast-food restaurants began to experience a slowdown in the first quarter of this year.