Like so many other businesses, restaurants in Louisville have had a tough few months but there are signs of recovery.
In its latest issue, Louisville’s Food and Dining magazine points to over 30 restaurants that opened here in the last three months compared to 17 that closed.
Restaurant owners say the secret to success is respecting a customer's budget. It's lunchtime at Tequila Factory on Baxter Avenue and the wait staff is busy.
“Business is doing good,” said Ramiro Gandara, Co-Owner of the Tequila Factory.
The Mexican restaurant opened only three months ago in the middle of the recession but owners say they're surviving by respecting the customers budgets.
“We try to keep our lunches between $7 and $9 and also our dinners, we try to keep between, $9-$13. We price everything accordingly and try not to overcharge because if you do, you're just not going to make it,” said Gandara.
Some of Louisville’s fine dining restaurants like Cafe Metro have had to close recently because customers are staying away from expensive meals.
“People are more conscious of their budgets right now, there's a great opportunity for a casual restaurant with a low-average ticket,” said Iraj Rahmani of Bunz.
Iraj Rahmani helped open Bunz, a hamburger and French fry joint on Baxter, and he's also the general manager of the more upscale, Browning's Restaurant.
“People, in the days that there was a lot of money to go around with the dotcom area, would oftentimes see in the fine dining restaurants and other restaurants, a lot of things would've been wasted.
Frankly, the situation right now has caused people to become much more watchful. They don't take what we have for granted,” said Rahmani.
And neither do the restaurant owners.
Although Texas Roadhouse announced Monday its earnings rose 28% this last quarter, they still see the business as trench warfare.
“We're seeing more mom and pops close than we are on the chain side but there's still a lot of restaurants and there's a lot of competition and we've got to be in the top of our game if we're going to survive,” said Scott Colosi, Chief Financial Officer of Texas Roadhouse.
Texas Roadhouse has 20 entree items under $9.99 with two sides like a baked potato and salad. The restaurant says this value deal brings its customers back for more.
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