Susan Gordon, Staff Reporter
Patrons at 'America's best BBQ' at TGI Friday's Restaurant & Bar, Hope Road, St. Andrew on April 4. - WINSTON SILL/FREELANCE PHOTOGRAPHER
THE ECONOMIC bite imposed on Jamaican consumers over the last two years is being felt in the restaurant industry, which is now experiencing a major slowdown in business.
"Business is very, very slow," said John Davis, managing director of the Guangzhou Chinese Restaurant in Montego Bay. Though located in the heart of the tourism capital of Jamaica, Mr. Davis said business at his restaurant is slowing.
"Business has fallen more than 50 per cent," he estimated. Davis said he knew of other businesses near his restaurant and around Montego Bay which are having a tough time coping.
There has been a significant change at supermarkets and some restaurants, confirmed Patricia Isaacs-Green of Jamrock in New Kingston, St. Andrew. "You'll notice crowds are not there."
LESS DISPOSABLE INCOME
The former McDonald's franchise-holder attributed the decline to consumers having less disposable income.
The economy grew by 1.4 per cent in the last financial year and is expected to show a slightly higher level this year. This was accompanied by double digit inflation of 11.4 per cent last year, the Statistical Institute of Jamaica reported.
To bring the country's parlous finances under control, an agreement was reached with the country's large body of public sector workers, limiting their wage increases two years ago. In conjunction with high inflation and the recent cement crisis, many consumers do not have the resources to maintain the lifestyle they previously enjoyed.
Mrs. Isaacs -Green said people are eating out less at restaurants. She said when they do go out, they are looking for value for money, which means good food at a good price.
George Makhoul, bar manager at the St. Andrew based TGI Fridays' told Wednesday Business that his restaurant launched a promotional campaign a little over a week ago to make lunches more affordable. That campaign seems to be working.
"Last Monday, we noticed a difference in the number of people who started to come," Makhoul said. The secret of the promotion is simple, "You get the same food but in smaller proportions for less money."
The lunch meals which were anywhere between $500 and $670 plus tax and service charge have been reduced to $325 plus tax. Mr. Makhoul said at that price, people are better able to afford a meal.
However, Mr. Davis said he has not been in a position to alter his prices. He said he has been forced to keep his prices stable for the last year and half as increasing them would only make matters worse.
STAFF CUT LIKELY
Although Mrs. Isaacs-Green envisions that some of the food places may have to cut staff to make up for the downturn in sales, Mr. Davis explained that he has tried to be creative by using a smaller staff complement to cover two shifts for the past year. Instead of employing 8 to 10 waiters he uses four for day and evening shifts.
"On Mother's Day, we were full, but that was still nothing in comparison to two years ago," Mr. Davis said. He noted that Guangzhou catered mostly to a Jamaican clientele with less than 10 per cent of his customers being tourists.
Even in mid-Jamaica, buoyed by bauxite alumina operations, restaurants are not immune to the economic realities of the rest of the country. Managing director of Bamboo Garden Restaurant Limited in Mandeville, Manchester, Alex Cheung said business this year was down somewhat. His problem is that, "We cannot increase our prices," because of the competition.
