by Stan Dyer

Created on: November 23, 2008   Last Updated: February 04, 2009

In the past few years, there have been many restaurants opening up all around the country. Even in an excellent economy, there just is not enough room for every one to make a go of it. Something had to give eventually. Now, major employers are lining up for government handouts like hobos at a soup kitchen; layoffs are piling up as fast as overdue bills, and everywhere we look, the signs say things will get worse before they get better. Usually in times like these, the first things to go are the indulgences, the luxuries and the special treats, like dining out, at least for us working stiffs. Only time will tell how the slowing economy will affect restaurants.

A first impulse is to believe that prices will come down as clientele diminishes. In fact, a few restaurants, like Cucina Roma Roma, already reduced prices to help their loyal customers, but do not expect that kind of wholesale change right away. History shows this type of response to be the exception rather than the norm. Even during the Great Depression, those who had money to begin with felt little need to change exorbitant spending habits, and just the other day, American automobile manufactures climbed aboard private jets to fly to Washington to plead for financial help from the government. Even fearing bankruptcy, they were not willing to part with their private jets.

Given that evidence along with what we know of American greed, it becomes difficult to believe that the nation's CEOs are not already strapping on their Golden Parachutes, organizing their financial pillows, and readying themselves for retirement surrounded by the splendor that marked their corporate lives even as the people who helped them there, their workers, prepare for uncertain futures. The ultra rich and the establishments they patronize will probably continue regular business no matter what happens to the economy and it may take some time before prices drop in response to reduced business.

If history is any indication, the economy will affect the price of dining out much the same wasy that confidence affects the Stock Market. The longer the downturn persists, the more people of lesser means will feel the pressure, and the more consumer confidence will wane, requiring either a reduction in prices from vendors or the ultimate loss of business. Those people further down the ladder just will not be able to justify such expenditures and the restaurants relying on that business just to stay in business will need to adjust their prices

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