Restaurants stress service, value for customers

SSP in the News 20-February-2009

Joe Bartolotta is working harder than ever to keep customers coming to his Milwaukee-area restaurants during the recession.

That means the co-owner of The Bartolotta Restaurants group spends even more time talking with customers in his restaurants.

“I go into restaurants. I shake hands. I thank them for coming, and that has an impact,” he said.

Local restaurant operators are feeling the effects of the recession, and say maintaining a high level of service is one way they’ll succeed.

Some are changing their menus and wine lists either to reduce inventory or to offer customers more items at lower prices. Many are trying promotions to attract diners.

“The big thing that restaurateurs have to face is that you can’t really cut the service or the quality,” said Ed Lump, president and chief executive officer of the Wisconsin Restaurant Association. “The value has got to be there for the customer.”

Bartolotta Restaurants, which includes five restaurants and a catering business, this month opened a new restaurant called Nonna Bartolotta at General Mitchell International Airport. Bartolotta developed the concept for SSP America, a Virginia-based company that will own and operate the restaurant under a royalty agreement with Bartolotta Restaurants.

“It’s an opportunity for us to develop a concept or a prototype that could be replicated in other airports around the country,” he said.

“We’re running our business much more efficiently than we did six months ago,” Bartolotta said.

The company looks for opportunities to cut expenses that won’t affect customers.

Those opportunities include scheduling staff to make sure top employees get the most hours and getting competitive pricing from vendors.

“I believe it’s an opportunity to grow our business because I think as other restaurants and businesses fail we have an opportunity to grab market share,” he said.

Bartolotta cautions against discounting food because profit margins already are small and it can erode a restaurant’s brand.

Marc Bianchini, owner of three Milwaukee restaurants, agrees that dropping prices can send a message to customers that a restaurant was overcharging before.

“I think any restaurant can make a mistake by not being true to its soul,” Bianchini said.

But there are opportunities to try new things to improve business, he said.

For example, his highest-priced restaurant, Osteria Del Mondo, in January started offering a recession special — an entrée priced at $10 — only on Monday nights.

The special is increasing customer counts on Mondays, which are typically slower. The restaurant won’t make money on the entrée, but customers also buy appetizers and drinks.

Bianchini thinks the Monday night special is appropriate, but he doesn’t want to diminish business by offering specials all the time.

Bianchini also owns Cubanitas and Indulge on Milwaukee Street. The group’s overall business is down less than 5 percent, and Osteria Del Mondo is the only business showing a decline.