Eateries spurred to new efforts
By BRUCE HOROVITZ
USA Today
Business has gotten so bad that the nation's restaurants are being forced to step waaaaaay outside the box to try to lure folks inside — or even online.
Ruth's Chris Steak House has begun mailing out $25 — yes, $25 — gift certificates. McCormick & Schmick's this week launches a Web site that sells many of its menu items uncooked and ships them overnight anywhere in the U.S. And Cold Stone is testing a big change in seven stores that devotes about half the sales space to chocolates.
"There's almost nothing the industry hasn't already tried. I'm not sure they know what to try next," said consultant Ron Paul, president of Technomic.
But they must keep trying. For the third quarter, Ruth's Chris same-store sales dropped about 7 percent, and McCormick & Schmick's were down 5.3 percent. Bad as it is now, 50 percent of restaurant owners say the economy will worsen over the next six months, according to a National Restaurant Association survey.
Chains are responding with:
T.G.I. Friday's and Heinz will sell frozen $6.99 T.G.I Friday's Complete Skillet Meals in markets. Burger King is rolling out a line of branded T-shirts this month and men's sleepwear in 2009 "so consumers can interact and connect with the brand," said Russ Klein, marketing chief.