Restaurants facing challenging times as economic downturn begins to bite

THE AUTUMN will be crucial in telling which restaurants survive the economic downturn, a number of managers and proprietors in the industry have told The Irish Times.

Responding to comments by Dylan McGrath, chef-patron of the Michelin-starred Mint restaurant in Ranelagh, Dublin, that market conditions were becoming more challenging, a number in the trade said they too had seen a downturn in past months.

Ross Lewis, chef and owner of the Michelin-starred Chapter One restaurant, Dublin, said he had noticed an "absence of the business people at lunchtime.

"But we are filling with other customers - the graduations, the birthdays." The restaurant was filling every day for lunch and for the pre-theatre menu, he said, though there was some "small" decline in a la carte customers.

He doesn't expect a big return of business lunches in the foreseeable future. "Business is tight now and every restaurant has to focus on offering value for money. I think the September to December period will tell a lot about how restaurants are going to do in the long term."

Set-lunch and pre-theatre menus are each €37.50 at Chapter One, with a la carte dinner costing between €40 and €60, without wine.

The manager of Bang Café in Dublin, Anthony Bonneau, said he could "feel a bit of a slowdown in business". He estimated the restaurant, which was awarded a Bib Gourmand by Michelin earlier this year, had seen a 10 to 15 per cent fall in business in past months.

"This mostly always happens anyway during the summer when people are away, especially because of our location, our regular clientele, is from local businesses."

It was also noticeable that people were being "more careful about how much money they spend".

"If in September it is still a bit slow then that is when we'll get to see what is around the corner."

Set lunch at the restaurant is €24.95 for two courses. Dinner is estimated at about €40 a head without wine.

Mr McGrath of Mint, speaking on RTÉ radio yesterday morning, said he was not fazed by being more than €200,000 in debt and predicted he would "trade" his way out of it.

"The restaurant is new in business and it has to go through a certain amount of sacrifice. It's an investment in the career and the brand."

He said dinner was about €140 a head, while set lunch was €45 for two courses.

Asked whether he expected to survive the economic downturn, he said: "Oh yeah. Well I hope, in the sense that we wouldn't be continuing on if we didn't think we could . . . I think people are still used to their luxuries and will still remain eating out. Perhaps they'll do it a little bit less."

Other restaurateurs said they had noticed no downturn in business. Neven Maguire, chef- patron of MacNean's Bistro in Blacklion, Co Cavan, said business was "as steady and consistent" as ever.

"We are booked out every Friday and Saturday night until the end of the year. I think people book so far ahead to come here and it is special. People come for value for money and for the fine, fine food and service they get here."

A seven-course set dinner at MacNean's is €70 each, and €140 for dinner and B&B.

"That's value and that's why we're busy," he said. "All our rooms are full and we fill 15 to 20 beds in other B&Bs in the village, so everyone gets a wee turn. It's great for a small place like Blacklion."

Dusan Klika, manager of the Strawberry Tree organic restaurant in Co Wicklow, said the restaurant was "doing really, really well".

A set dinner there will cost €65 each, without wine.

" Business is tight now and every restaurant has to focus on offering value for money. The September to December period will tell a lot about how restaurants will do