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Food industry feels economic crunch

10:41 PM CDT on Saturday, May 3, 2008

By JESSICA VESS
KVUE News

Video
KVUE's Jessica Vess reports
05/03/2008
Local/State Videos
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A struggling national economy hit some Austin workers especially hard.

Empty tables, empty chairs, and just a handful of diners are becoming the norm for many restaurants across town. Consumers aren't dining like they used to.

"I think it's affecting everybody, especially middle-class and lower-class people. Gasoline has just put a damper on almost everything," said consumer Lloyd Moore.

Economic experts say rising costs on everything from food to gas have pushed consumer confidence to its lowest level in five years.

"Some Fridays we're slammed. Some Friday's we're dead," said waiter Jarred Kennedy.

Kennedy has been waiting table for ten years. He's seen the ups and downs that fluctuate with the economy.

"It's kind of scary. It's a gamble you know? Working I guess in the job-industry like this is a gamble. You never know for sure how much exactly you're going to come out with," said Kennedy.

Kennedy works at Ms. B’s in East Austin. His hours are getting cut back.

"If there's not people coming in here, then there's not hours to give to people to work," said Kennedy.

There are some restaurants that aren't feeling the consumer crunch.

"Really and truly it's been real consistent. This restaurant more than most. I feel like I've made a consistent amount of money the whole time I've worked here," said Kim Singleton.

Singleton waits tables at the Waterloo Icehouse on 38th Street. She believes the atmosphere there makes the difference in business.

"We play a big role in how much money we make because people are coming out to have a good time and if you show them a good time then automatically you're going to make money off it," said Singleton.

The National Restaurant Association says the industry employs about 13.1 million people. They say even though some people are still going out to eat, they aren't tipping as much as they used to. Tipping typically makes up to 20 percent of a waiter’s salary.

However, there are signs that the economy may be regaining strength. Last week the first rounds of government checks went out to tax payers. The administration expects the $168 billion surge from the economic stimulus program to boost consumer spending.