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Restaurants

High-end Restaurants Facing Difficult Times

By Josh Splilker, posted Sep 4, 2009

There are a few items different from the Business Journal’s Most Exclusive Restaurants List this year compared to last. Namely that our restaurant with the most expensive entrée last year, Soho Steakhouse, is now closed. Also closed is Mediterra and Tayste Restaurant, two other restaurants in our top ten from last year. Those followed closings by Max’s and Savannah’s, both of those restaurants were closed before the Journal completed last year’s list. With the recession, some restaurants seem to be having a harder time maintaining their high-end clientele.

“(The recession) drastically changed the dining scene, and no one wants to be known as an expensive restaurant,” said Lisa Layman, of DineWilmingtonOnline.com.

Instead of concentrating on a variety of steaks for instance, restaurants may have cut down on the variety of steaks and offered more affordable fare.

“They’re still offering high-end items, but they’re increasing the number of items they’re offering in a more reasonable bracket as well. They have a fuller spectrum of items on their menu,” Layman said, who has written before about restaurants for the Business Journal.

This is true for Port City Chophouse, according to Keith Hall, the owner of Port City Chophouse and four other Chophouse restaurants across the state.

“We’re doing a lot more specials than we normally did we before. We’re doing some smaller portion steaks at a cheaper price. Dinner for two’s that include house wine, just to keep the traffic count coming,” Hall said.

Aubriana’s in downtown Wilmington has looked locally for produce to cut down on shipping and transportation costs from larger companies.

“One of the things our chef has done is shopped around for local things,” said Aubriana’s General Manager Sean Kelly. “We get everything fresh.”

Kelly also mentioned that they are offering more specials than they were a year ago, when the restaurant first opened.

“Since we opened, we have definitely dropped our prices,” he said.

But Hall said that the Wilmington market has not been as affected as some of his other locations.

“Wilmington hasn’t really hit as much in the Winston and Greensboro economy,” Hall said, adding that they are bringing out new menus with fewer items to lower costs.

Restaurants are also being affected by a fluctuating pricing market. Hall said he used to contract his beef prices every 6 months to a year and now he must renegotiate his beef price every month.

“Right now, the cost of the product is so high,” Hall said. “The product is so volatile. We’re vulnerable now, and that’s why there’s a lot of things going on in the restaurant menu.”

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