Restaurants expect full tables in 2005
Alicia Robinson
Restaurant-industry experts are predicting a gut-busting year in
2005, and local restaurateurs also are loosening their belts for
expected profits.
The National Restaurant Assn. last week projected total sales of
$476 billion for next year, a 4.9% increase over 2004 sales.
Restaurant-industry observers in Newport-Mesa were cautious but also
positive in their predictions.
“I expect a modest increase just because product costs are going
up, so somehow those prices are going to be reflected on menus,” said
Dave Salisbury, co-owner of the Newport Landing and Harborside
restaurants in Newport Beach.
“I’m forecasting between a 3% and 5% increase [next] year.”
This year’s sales were about on par with 2003 for Salisbury, but
he had enough confidence in the market to open Harborside this spring
in a Balboa Pavilion space he renovated.
His banquet business has taken off, and he attributes it to his
location.
“It’s [had] double-digit increases because of our uniqueness,”
Salisbury said.
“There’s really no other facility in Newport Bay that can take on
500 people and be on the water.”
Others are even more optimistic. Business at Plums Restaurant in
Costa Mesa was up about 16% this year, and owner Kim Jorgenson
expects more of the same in 2005, barring a recession or problems
with the dollar, she said.
In some cases, restaurant sales success in 2004 has not been
limited to a specific concept or price range.
The Irvine Co. has opened eight restaurants at its properties in
Newport Beach, including a deli and a sushi and sake joint, and all
have done well, said Nina Robinson, vice president of marketing for
the Irvine Co.’s retail properties.
“It just shows us that our customer is looking for a variety of
experiences,” she said.
“It’s about the experience as a whole as opposed to a certain type
of cuisine.”
In Costa Mesa, sales-tax figures for April through June of 2004
show fast-food sales were flat compared with the same period in 2003,
while restaurants that serve beer and wine saw sales grow close to
2%, and eateries with full-service bars boosted sales 11.5% over the
same quarter of 2003, Costa Mesa Chamber of Commerce President Ed
Fawcett said.
Individual style was key to 2004’s average sales increase of 20%
at sit-down restaurants at the Camp and the Lab in Costa Mesa.
“I think people are looking for these specialty restaurants that
are more personalized, that they can feel comfortable in,” said
Shaheen Sadeghi, developer of the Camp and the Lab.
“Last year was our best year, and this year will outperform last
year.”
* ALICIA ROBINSON covers business, politics and the environment.
She may be reached at (714) 966-4626 or by e-mail at
alicia.robinson@latimes.com.
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