Against the odds

Tana Rekofke knows her timing could be better. After selling her Spokane catering business a few years ago, the 51-year-old entrepreneur decided to start her own restaurant.

Now that it’s set to open within the next month, Rekofke admits she’s picked one of the worst economic climates in which to do so.

Her restaurant, Vintages at 611, will be a neighborhood hangout with “eclectic American” cuisine and reasonably priced regional wines, she said. Its name comes from the address – 611 E. 30th Ave., in the Manito Shopping Center in south Spokane.

“Yes, I know it’s not the best time to do this. But I am an eternal optimist,” said Rekofke.

People in the restaurant business here say it’s a tough time to open an eatery. If Rekofke puts together a solid menu and offers great service, many say her restaurant should make it through the downturn.

“Starting a new place now is going to be a challenge,” said Jim Rhoades, owner of Rock City Grill, a downtown restaurant in River Park Square.

Rhoades said a good food concept and solid execution should carry Rekofke through the first few months. Later in 2009, what happens to new businesses may depend on the regional economy, he said.

“Frankly, I’m scared about what’s going to happen in January and February, after the holiday season,” Rhoades said.

He and others said restaurant sales have slowed in the past six months. “I’m down a little less than 3 percent for the year,” said Rhoades, adding he expected Rock City sales to fall more than that.

Other owners say they’ve adjusted prices, offering more “value” dishes. They say they’re seeing the impact of the economy in fewer large holiday parties. And they’re seeing customers opting for thriftier meals.

Jonathan Sweatt, owner of popular north Spokane eatery Downriver Grill, said his sales are good, but they are slower than what he saw last year. Diners have adjusted to the economy, as well. Sweatt said lower-priced items are gaining in popularity.

“We’ve seen an increase in people ordering beer and a couple of hamburgers, instead of coming in for steaks and wine,” he said.

Mike George, president of the Spokane branch of Food Services of America, said his company has seen a decline in orders from many of the more than 1,000 restaurants he supplies with food.

“It’s not a normal time,” George said.

Waiters as well as food distributors are sharing the pain.

Jaymie Crafts, co-owner of Gordy’s Sichuan Café, said her waiters have seen tips slip to about 15 percent, from around 18 percent.

Crafts said an upside to the downturn is less turnover in food service workers. In general, college-age waiters and table busers tend to change jobs frequently. But that pattern has changed, she said.

“They seem to have figured out those jobs are hard to come by,” Crafts said.

Gordy’s has seen a shift among customers toward penny-pinching. Fewer people come in for business lunches, replaced by more takeout dinners, she said.

George, of Food Services of America, said he still sees some companies expanding or opening new restaurants. “One customer added a second restaurant in Butte, a new steakhouse. It’s a success so far because they do it very well,” he said.

Fewer large holiday parties are scheduled this year, said Tom Sciortino, co-owner of the downtown Wild Sage American Bistro. Parties with 20 or more guests a year ago are much smaller this year.

“People call and say they want to bring a smaller group. We don’t see those big open-bar, sky’s-the-limit-extravaganzas anymore,” Sciortino said.

Another shift, he said, is more people paying for meals with cash rather than credit or debit cards. He surmised that reflects the way people are trying to live on tighter budgets.

Some Spokane-area restaurant operators are not seeing a significant decline in business. Marshall Powell, general manager at Elk Public House in Browne’s Addition reports business has been close to normal and no worse than last year.

“Things have slowed down in the past two months,” Powell said. “But it’s nothing to worry about. We fill a niche. We’re not a fast-food place. But we also don’t charge $20-per-plate.”

South Hill fine dining restaurant Luna has also seen a decline in sales this year, co-owner William Bond said. But the other restaurant he and his wife, Marcia, operate, Café Marron in Browne’s Addition, has seen a sales upswing compared to 2007.

Their response at Luna is to not cut corners on quality or service. “You do have to cut costs. But you don’t shave your menu. We’re putting more emphasis on service and on making sure we provide the best quality food,” William Bond said.

Rekofke has worked in the area long enough to have an established group of friends in the restaurant community. She’s financing Vintages at 611 on her own, and she’s developed her own survival strategy for the next year in business.

“They’re saying, ‘What’s this nutty woman opening a restaurant in these times,’ ” she said.

“It all depends on what you’re offering. I know we’ll be on our honeymoon period for the first few months,” Rekofke said. “We’ll be new and we’ll be jamming along.

“We just have to keep executing and provide excellent food and excellent service. That should keep us going,” she said.

Anthony Anton, president of the Washington Restaurant Association, said the worst scenario is the continuing of the recession through March and April.

“At that point, I know we’ll see operators decide that it won’t be worth the pain to keep going,” Anton said.

“It’s challenging now, but many owners are hanging on.”