Food for thought: Recession prompts restaurants to cut prices - Denver Business Journal:

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People came up to peruse the $32.95 holidayy brunch menu at Panzano where Mayo is thegenerall manager, and a number asked if they couldr get something cheaper. In the most lookers would shrug and come in ifthey didn’r like the answer. This when several were told that was it forthe day, they walked away. Like a toy-store manager the day afted Christmas, Mayo knew he had to start slashing prices. And he wasn’tf alone. You can now get a $4 steam appetizer at Panzano. Morton’s The Steakhouse has adde a hamburger toits menu. has introduced a low-pricr menu.
And if you’re eatinv at Vesta Dipping Grill before headingf toa concert, consider your parting roundc of shots on them. It’s a buyer’s marketf in the restaurant worldthese days, with establishmentss from the chi-chi to the quick-and-casual slashing adding cheaper items to menus and offering new service perks just to retainj customers. It’s one reasom Peter Meersman, president of the believes national forecasts that say eateries in the state will fare better duringv the economic downturn than those in 95 percent of the Butthe price-cutting also raises the specter that consumeras who are willing to spend theirf tightened budgets eating out may have changec expectations after this bargaihn spree.
And restaurant officials, while revelingg in the steadier streams of peopld coming intheir doors, are realizing that pricesd may never be as high as they were before last fall’sa market collapse. “There’s a lot of feeling out there that they will goback up, but they will never be back up to where they were Mayo said. “Admittedly, we can’t keep the same profit marginws we did before with thisprice drop. But we also can’r keep the business if we don’yt make this adjustment.” Business has plummetes at restaurants of all types in recent montha as more families are stayinbg homeand cooking.
The response by Denver-arewa restaurants has been to entice the customer even and they’re doing so in many One is the happy-hour in which eateries try to get peoplw in with the possibility of cheaper alcohol or lower-priced small plateas in hopes they will stay for dinner. Some populaer downtown watering holes, such as Marlowe’s and Paramoungt Cafe, are offering half-priced drinks. Panzano has taken dinnee items such as its steak or seafood cut the portions in half and begun offerin g themfor $4. Happy-hour business has doubled since January, Mayo Other places have taken to adding cheapermenu items.
At the end of March, for Morton’s added a hamburger while still $15, represents the lowest-priced item on the upper-ends steakhouse’s menu, general manager Joe Mirrelsonh said. Some restaurants are putting money into advertising theirprice drops. Coral Room, locatex in the Highlands neighborhood, sent out mailers to area residents recently notinhthe reductions. Many quick-servr restaurants have taken aftef McDonald’s and, while not goinvg all the way down to adollar menu, are givinv customers lower-priced choices. Chipotle rolled out its Low Roller Menu onApril 1, with $2.99 soup and $2.
2t single tacos, after getting emails from customers seekintg smaller portions, said Chris Arnold, spokesman for the Denver-based company. “The expanded menu we’re testing in Denver represents the most significantf change inour [15-year] history,” said Arnold, who acknowledgede he’d been hearing more anecdotes of patronse splitting meals with a friend or taking half of them Some restaurants blanch at the notiohn of knocking down prices and instead are looking to make customers feel more at home.
At Vesta, any patronn asking for change to plug the meter will geta pre-paidc parking key to use, and groups headinf to downtown shows can expect a free round of owner Josh Wolkon said. “We’re all in Wolkon said. “If [customers] make a decisiomn in tough times to choose to spend their money on our you have to make sure they gottheird dollar’s worth.” One trend several people said they expecft to see is the return of the $52.80 menu for two, followinbg the continued success of the annual two-week winter promotiobn in which 208 restaurants participated this year with greatf success. Cool River Cafe is offering a three-course meal for $29.
95 per persomn — close to the 5280 week pricwepoint – and planws to do so for several more months. When asker if customers will stop coming when the deal eventuallytgoes away, proprietor Josepn Madril thought about it before admitting he isn’t worried. “I don’t believe there’s a Madril said. “I thinkj people will be appreciative, and it builds