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Restaurants Give Deals To Stay Afloat

Reported by: Janna Clark
Email: jclark@fox23.com
Last Update: 1/20/2009 9:54 pm
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It looks like we're seeing the effects of an economic slow down in Tulsa.

Dozens of restaurants and retail businesses have closed in the past few months.

And nearly half of consumers polled by a market research firm say they'll spend less money going to restaurants this year.

FOX23's Janna Clark shows how some local restaurants are now giving you a deal just so they can stay in business.

A quick drive around town and you'll see restaurant after restaurant has closed its doors for good. It's why some restaurants are taking drastic measures just to stay afloat.

When Fuji opened on Brookside three-and-a-half years ago, business was good.

But then in September, about the time the nation hit its financial crisis, Fuji hit one too.

Owner Nobu Terauchi says business dropped 30 percent.

"Because the economy is tight, and you cannot spend much money," Terauchi said.

He saw other restaurants closing.

"Absolutely, our competition, Tsunami, they closed," he said.

Economists say when people cut back financially, they cut back on eating out. 

"We have a lot of restaurants and at some point, everybody's gonna feel the pain. The first two things to go are going to the store to buy clothes you don't need and going out to eat... there's going to be a lot more restaurant closings," said Jake Dollarhide with Longbow Asset Management.

Experts say restaurants will have to offer deals to stay afloat.

Nobu knew his restaurant was in big trouble.

"Definitely, nobody showed up," Terauchi said.

He had to do something drastic or his restaurant would go under too.

So he started an all-you-can-eat sushi for $9.99.

And it brought the business back.

Now many customers like David Johnson eat here several times a week.

"It's the best bargain on sushi in town... it's packed out here every day at lunch," Johnson said.

Nobu says because the profit margin is lower, he has to make it up with volume, which means more work.

But it also means holding on when times are tough.

Fast-food restaurants are doing what they can to stay competitive, too.

Oklahoma-based Sonic just launched its new one-dollar value meal.

A representative with Sonic says the drive-in is just trying to give customers a good deal during tough economic times.




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