Restaurant Closures: Another Sign of a Faltering Economy

When a major manufacturing base - like the automakers -- falters, it may take a while but there is a trickle down contraction for the rest of the community.

Here in Michigan, the shuttering of restaurants is becoming commonplace as belts tighten. Last night brought news that monster upscale steak chain Morton's of Chicago was closing their Southfield location. The Southfield Morton's once was a lucrative location and was a fixture for 17 years. A quick check online revealed that several Morton's have been recently closed all over the country, some with little or no notice.

As luck would have it, we dined at that particular Morton's about a month ago. It was a Saturday night and all of us remarked that the place was so empty reservations were placed but not needed. Ten years ago the place would have been packed with diners shoulder to shoulder.

With the country in a recession, it is not unusual to see fine dining establishments bite the dust. It happened in the early '80s under similar economic conditions. The "destination" restaurants - places where one would go for a special occasion dinner - are often the first to close, as the number of potential customers who are able to splurge on $100 dinners dwindle.

Destination restaurants like Morton's, Fleming's and the locally based Matt Prentice Group (which includes the stunning Coach Insignia high atop the GM building in downtown Detroit, No. VI Chophouse and Northern Lakes Seafood Company, just to name a few) have been getting creative in an attempt to draw customers in the doors. Matt Prentice regularly sends out coupons in mass mailings and also has a frequent dining program. Morton's and Fleming's offer creative meals that are priced under $40, so one can buy into glitzy ambiance at a fairly reasonable price point.

But it's not just the trendy eateries that are suffering. In our small town alone, the last couple of years have seen the closures of both Wendy's, several coffee houses, two rib joints and a couple of Chinese restaurants just to name a few. The family diner next door has been bought and sold three times in the last five years. Two weeks ago I wanted to satisfy a craving for sushi, but when I called Musashi, my favorite Japanese restaurant, I learned with dismay that the place has been closed since March.

Fast food joints like McDonald's are said to be immune from the economic downturn, but if I'm going to pay good money for a restaurant meal, it's not going to for a Big Mac.

I'm fairly skilled in the kitchen and rarely dine out, but I am one who takes my gastronomical excursions into the realm of restaurant food seriously. As the economy continues its downward spiral, the struggles of restaurant owners will only increase.