Dawn Sweeney, the president and CEO of the National Restaurant Association, says restaurants are the second largest private sector employer. Is that true in Connecticut? Where do restaurants rank as private sector employers in Connecticut?
Pretty close to the national second. Not considering Connecticut’s large health care industry, restaurant jobs rank third, after durable goods manufacturers and the large retail trade. Attributed to the recession, Connecticut lost 500 restaurant jobs in 2009, after annual job growth for decades.
Is employment growth expected in the hospitality business in Connecticut in 2010? If so, what types of restaurants will see growth?
Until 2009, the restaurant industry boasted annual job growth, while other industries were already losing jobs. The reality of this recession hit restaurants last year, and we lost jobs. I do expect 2010 to see job growth but not until midyear. Connecticut’s restaurants, even the larger fine-dining restaurants, have learned to operate more efficiently. Most operators say that once the economy improves, these efficiencies will remain in place, so actual job growth will be at a very conservative rate. Growth will come for all types of restaurants, but I do not expect to see many high-end restaurants appear. I expect that fast-casual, small neighborhood restaurants, and new types of ethnic restaurants will see the highest growth in numbers of openings.
What is the state of hospitality in Connecticut? Can we expect growth in this area? What will drive growth in the hospitality industry?
It’s not all doom and gloom. Some said that we would see 10 percent of our restaurants shuttered in 2009, and that did not happen. Actually, while most small businesses, restaurants included, struggled through the year, Connecticut’s dining scene can be described in one word: vibrant. Restaurateurs all around the state stepped up their marketing efforts and created exciting new offerings, many at lower price points. Offering new daily and weekly specials, prix fixe menus, discounting and couponing … seemingly whatever it takes to attract a customer’s attention. Connecticut’s savvy restaurants worked hard for their piece of the pie. Continued success and growth will come to restaurants that recognize the customer’s focus on value for the dollar. Whether enjoying a $5 quick-service meal or a fine-dining dinner, customers wants to feel that they have received their fair share of quantity or quality for the dollars spent.
The Greater Hartford Arts Council recently sponsored the Winter Taste of Hartford, which featured $20.10 meals. How do programs like that benefit restaurants? Do they encourage people to return for a second, normal priced meal?
Citywide events like the Taste of Hartford generate excitement and draw large numbers to the participating restaurants. There are certainly some customers that will only visit a restaurant to get the discounted meal, but the restaurants most likely get their regular customers in for another visit. Frank Cohen, executive editor of our restaurantsCT.com Web site, visited Hartford every night for the last two Tastes of Hartford. In his blog entry for each restaurant, he often laments that some restaurants served just what they felt they could afford for the low price. While these are the exceptions, smart chefs realize that the event is meant to highlight the restaurant’s capability to new customers who will return. Some restaurants pleasantly surprised us with full portions while others served slightly reduced portions, which most customers can understand. The best restaurants provided choices of appetizers, entrées and desserts and impressed us with their recipes and presentations. These are the restaurants that “get it,” and know how to make such an event benefit their businesses long term.
