Dining-out trends threaten business

London's new giant eateries such as Mezzo and Belgo Centraal are attracting the crowds and even boast waiting lists, but there is unease among restaurateurs in the country at large.

Although many businesses are seeing an upturn in trade, considerable numbers of independent operators are reporting declining profits, falling spend per head and increasingly cost-conscious customers.

Restaurateur Clive Swonnel, who opened Swonnel's fish restaurant in Worthing, West Sussex, almost three years ago, said that after early growth the business was now experiencing a downturn. "In October to December 1994 we were up 18% on the previous year - now we're down 16% on that year," he told Caterer.

As chairman of the Worthing branch of the Federation of Small Businesses, Mr Swonnel has been keeping up to date with his peers. "I've heard reports from a supplier that many caterers across the south are experiencing trade down by a third on last year," said Mr Swonnel.

His comments are borne out by Beverley Goodson, joint proprietor of La Petite Maison, a small bistro in Bottesford, Leicestershire. "The boom hasn't hit us here, trade is steady but not very busy," said Mrs Goodson.

In nearby Nottingham, Sonny's has enjoyed its best year ever. Restaurant manager Arjen Janmaat believes that in the sixth year of trading, consistency of product is the main reason for its success. But he concedes that the food spend has changed very little over the past few years.

Further north, in Newcastle upon Tyne, the Cetoloni family - owners of upmarket fish restaurant the Fisherman's Lodge - said trade was down on last year.

Pamela Cetoloni said people were eating out more, but they seemed to be opting for casual restaurants. For example, the Cetolonis' recently opened pizzeria in nearby Heaton, Peppy's, has been full almost every night.

Other restaurateurs report that customers are looking for extra value for money, and those at the value end of the market blame pubs for taking away custom.

There is also concern that customers are being spread more thinly across the mushrooming number of places to eat.

It is a scenario that looks gloomy for many, yet David Harrold, chief executive of the Restaurateurs Association, expressed surprise at Caterer's findings. "Most of our members are experiencing an upturn in business," he said

Mr Harrold listed a spate of recent openings by big-name chefs in central London. However, he admitted these successes tended to distort the picture across the country.

He also questioned whether people were spending more when eating out. "People demand very good value. You can get a three-course meal on Old Compton Street [in central London] for only £4.95. I doubt if you would have seen that in the 1980s boom," he said.

"Restaurateurs used to act as if they were doing the customer a favour. They have had to listen to what the public want and sharpen up their act."