by Lenna Gonya

Created on: August 05, 2010   Last Updated: August 19, 2010

Anytime that the economy takes a plunge, the first things that people give up are entertainment and dining out. Restaurants are facing this fact right now, and everywhere you go, there are signs that they are being affected.

If you go into any town or city in the country today, you are likely to see a lot of empty stores and businesses. A lot of these are restaurants that were either forced to close their doors after years of operation, or never quite got off the ground to begin with. Eating out has become more and more expensive over the last few years. In fact is that the cost of a meal has just about tripled over the last decade. This isn’t entirely the fault of the restaurant owner, but instead, the normal course of events, as prices increase all the way down the line.

In a falling economy, prices inevitably go up as each link in the chain gets hit with increasing costs of doing business. In the restaurant business, this starts with the farmer or rancher who is faced with growing costs of doing business. It continues with the food processor, distributor, and delivery person, and finally results in increased pricing on the menu. When this is coupled with increasing utility bills, taxes, and insurances, the business may be operating on a very narrow margin.

Unfortunately, the restaurant, since they need to make a profit after making payroll, and paying their own bills, must raise prices, and today, many families are no longer able to spend money on a night out, or even a quick lunch. Certainly, if you have a large family, a night out may be reserved for a special event, if then. If it is between spending $100 on a family night out and paying the bills, there is pretty much no contest. A dinner out is not a tangible thing that can be enjoyed and used for years to come. It is a luxury.

Eating out can get expensive, and even a lunch, purchased daily can result in $50 dollars or more a week in added expense. This is something that working people cannot afford. The brown bag lunch is making a comeback in factories and offices as people begin to crack down on spending and readjust their budgets. Dinners at home are becoming more and more popular. While eating out was often more convenient, now it just isn’t practical.

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