Gas crunch leads to less restaurant munch


As the price of gas tops $4 a gallon in some areas and approaches it just about everywhere else, US citizens are looking for places to save money, and one of the first luxuries to go are trips to mid-range restaurants and places like Starbucks, according to a Reuters report. The theory goes like this: Wealthy restaurant patrons can shrug off the new gas prices, so the high-end restaurants aren’t losing business. Value oriented fast food restaurants are priced low enough to remain a viable option. But the outlets in the middle are feeling the pinch, as their clientele eats at home more often and spends less when they do pay a visit.

RBR/TVBR observation: We see that restaurants are a prime target of belt-tighteners. Sales people need to remind the eateries on their client list of the recession rule. When business gets tight, advertising is often an early target of belt-tightening businesses. That is an open door for some of them to run full, aggressive schedules and take market share, often permanently. Advertising is not just about surviving a downturn, it can be all about winning in spite of a downturn.