The Chicago Tribune – February 28, 2003

Restaurants, diners relish cuisine a la coupon trend

By Kathy Bergen
Tribune staff reporter

Dining out? You may want to shop around.

On Mondays, any bottle of wine, whether a $40 Riesling Grand Cru or a $125 La Croix de Beaucaillou, is half-price at French bistro La Sardine.

Parties spending $100 or more at Phil & Lou's, a casual West Loop spot, got $20 sliced off the bill in a recent coupon promotion.

And fast-growing Web-based marketers are hawking discounts at hundreds of Chicago-area restaurants, from Cafe Spiaggia and Aubriot to Red Light and Hugo's Frog Bar & Fish House.

Since the economy softened in 2001, Chicago's spunky restaurant scene has evolved into a frugal diner's paradise as establishments from the deluxe to the down-home work like the devil to drive customers through their doors.

Business-hungry restaurateurs are cooking up a buffet of discounts, perks and special promotions. They are paying Web-based marketers to help fill their tables. And they are cranking up their levels of personalized service. Their modest goal, in this murky economy, is to stand their ground and resume the climb toward healthy growth--no easy trick in a notoriously competitive business where four of five start-ups fail in the first year.

"The growth of new restaurants being built has slowed, and that has helped existing operators," said Dennis Lombardi, executive vice president at Technomic Inc., a Chicago food-service consulting firm. "However, that has not been enough of a factor to offset margin erosion."

Due to the decline in business and convention travel, and the rising pressure to cut business-entertainment spending, "we're seeing less frequency in the number of times people go out to eat at the upper end of the casual and fine-dining realm," Lombardi said. "And when they do go out, they tend to be more price-sensitive about what they're ordering.

"Combine that with an increasing cost structure--not just labor but also insurance costs and utility costs--and you begin to see it's difficult at best."

All this pressure has pushed restaurateurs to be creative, and their customers are reaping the benefits.

"It's a diner's market," said Rick Scarola, a marketing consultant who last year launched GrabbingABite.com, an informational Web site for diners. "The time to get out is now."

Many of the deals are offered in off-peak times, often Mondays through Wednesdays, "the mortuaries of the restaurant business," as Scarola puts it. And a number of local restaurateurs report success with their specials.

"Monday typically is not a great day for restaurants," said Jean Claude Poilevey, owner of La Sardine, a West Loop bistro. But with the new half-price wine night, "we're at full capacity on Mondays--really booming."

Promotions grow on Web

Restaurateurs are turning to Web-based marketers such as iDine Rewards Network, Restaurant.com, DinnerBroker and OpenTable Inc. to channel customers into their dining rooms.

At iDine, customers who pay $49 a year can get discounts of up to 20 percent at nearly 10,000 restaurants nationwide. Or, for no fee, they can get 10 frequent-flier miles for each $1 spent on a meal.

In Chicago, 600 restaurants participate, up 20 percent from a year ago. And 71,000 Chicago-area diners are paying for the service, up 61 percent from a year ago.

Restaurant.com, also is growing quickly. It sells discount gift certificates to restaurants. So far, only 200 Chicago-area restaurants have signed on, but that's double the number a year ago.

"Our model is very recession-friendly," said Scott Lutwak, chief executive at Restaurant.com. "When the economy is slow, restaurants are more realistic about the need to do marketing to get people in the door."

But price is only part of the equation, diners say.

"I tend not to worry about the price if I'm getting the service I want," said Michael Monar, an Evanston-based organization consultant who eats out frequently.

Helene Fronteras, an executive recruiter who dines out often for work and pleasure, thinks many restaurants have been knocking themselves out lately to provide especially good service.

She recently organized a luncheon at the Smith & Wollensky steakhouse downtown for the women's board of a favorite charity.

"I told them, 'We are a group of ladies ... and we want it delicate, but beautifully served. We don't want huge portions," she recalls.

The restaurant performed well, she said, serving half-portions and then offering guests the other half as a take-home meal.

"They read our needs. They were clever. I liked that."

Emphasis on service

P.F. Chang's China Bistro on the Near North Side recently launched a curbside carryout service, with the order delivered to the customer's car. It's an attempt to win business through convenience at a time when every little effort can win or keep a customer.

Sapori Trattoria, a small Italian spot in Lincoln Park, is pulling in customers with special events: dinner with an Italian winemaker, cooking classes and an "Italian Peasant Dinner" cooked by the owner's mother (who hates the name, by the way).

At top-tier Tru, the staff tries to wow first-time customers.

"We might start them out with champagne or a tour of our art collection, which includes pieces by Andy Warhol and Maya Lin," said Adam Seger, the general manager. Or they may receive a special tasting, or a dessert like a pair of souffles or mini-root beer floats.

"We like to do a little something unexpected to make them feel special," he said.

What's also effective, says Ann Bloomstrand, an executive recruiter specializing in the restaurant business, is when chefs and owners mingle with customers. It's happening more often simply because many restaurants have culled middle managers to cut costs.

"I see chefs who own restaurants really work hard, mixing with people now, trying to be as hospitable as possible, delivering dishes themselves," Bloomstrand said. "It's kind of refreshing, actually, to see people concentrate on service."

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