13 WTHR - Indianapolis News |Restaurants offer deals to lure customers

Restaurants offer deals to lure customers

Hamilton County - With the economy in turmoil, more families are buying more groceries to cook at home instead of eating out. According to USA Today, restaurant sales are down overall.

Cheaper fastfood-style restaurants are seeing a slight uptick in sales at nearly two percent. Family-style restaurant sales are down almost one percent and casual dining sales are down over four percent.

Restaurants are offering big deals to bring you back while grocery stores are trying to convince you to stay at home and cook.

The economy is making restaurants tighten their belts and come up with creative ways, in some cases, to survive.

"Restaurants feel it first. Discretionary income turns down, people trade down because they have to eat out to a degree, so they trade down," said John Livengood, Indiana Restaurant and Hospitality Association.

For example, high-end restaurant chain Ruth's Chris, which reported a seven-percent decline in the last sales quarter, is offering $25 gift certificates, and offering lower prices on certain items.

Another fine dining chain, Kincaids at Carmel's Clay Terrace, is offering free $20 gift certificates, a promotion the restaurant's offered for five to sx years that's paying off for customers pinched by the economy.

"It's a way to infuse a little energy and guest counts into the restaurant and to get new people into the restaurant to see what we do and then let what we do bring them back," said Danny Dirscher, Kincaid's general manager.

With sales off at nearly all restaurants except for fast food, many are coming up to gift cards, special promotions and new menu items to boost revenue.

"I've got a coupon from Bravo for $10 dollars off two entrees," said David Taylor, who plans to use it.

Supermarket chain Marsh is doing what it can to trump restaurants by advertising dinners for under $10.

"You could go to even a fast food restaurant and spend $35 on a family of four, or cook a healthy meal for four for under $10," said Connie Gardner, Marsh.

While the low-price incentives are to get consumers to part with their dollars, experts say that in a business known for it high rate of failures, the ecomony will likely claim restaurants that won't survive the downturn.

Local restaurant coupons

Valpak

Freemania