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No recession at R.I. restaurants / Video

09:24 AM EDT on Wednesday, August 27, 2008

By Paul Edward Parker
Journal Staff Writer

Toby and Larry Rossner, of Providence, dine outside The Capital Grille in Providence on Tuesday. Capital Grille managing partner Christopher J. Phillips says he’s seeing more families at his establishment in the early evening. The Providence Journal / Steve Szydlowski

Despite rising fuel costs and a sagging economy, Rhode Island’s food-service industry posted a 4-percent increase this June over last year, new figures from the state Department of Revenue show.

That increase followed May numbers that had declined 9 percent over the previous year.

It may be that the weak economy has been a boon for Rhode Island restaurateurs.

“Instead of people traveling, especially with the gas prices, people are staying a little closer to home, and we had a great summer at Twin Oaks,” said manager Michael Regine. “I noticed this summer I’ve seen a lot of new faces I have not seen before.”

Video

'People are spending more time with their families'

The observation was shared by Dale J. Venturini, who, as head of the Rhode Island Hospitality and Tourism Association, tracks the business statewide.

“I don’t think there’s any magic to this,” Venturini said. “People are staying close to home, I don’t care who you talk to.”

But while they’re trimming travel, they’re holding on to some of life’s luxuries, such as dining out, she said. “It doesn’t surprise me because, as I’ve seen the trend go, when people tend to pull back . . . they’re going to stand back and say, ‘I’m not giving it all up.’ So they might do small things.”

And the weather has cooperated, she said. “For the most part, we’ve had some great, hot, sunny days. And what better to do than go out to eat?”

Consumers pay two taxes on food and drinks sold for immediate consumption. The state collects its 7-percent sales tax plus a 1-percent meals and beverage tax, which is returned to the community in which the sale was made. The meals and beverage tax applies to food and drink sold in various establishments ranging from restaurants, delis and coffee shops to grocery stores, sports arenas and vending machines.

Providence, which makes up about a fifth of the state’s restaurant business each June, saw its 1-percent share grow 5 percent, from $335,438 last year to $352,085 this year. That indicates customers in restaurants and other establishments in Providence spent $1.7 million more this year, excluding taxes and tips.

Part of that has been driven by a trend that exploded this summer, industry insiders said.

“People are spending more time with their families,” said Venturini. “We’ve seen a real uptick with people bringing their children out to eat more than ever before, and it’s not only family restaurants they’re bringing their children to; they’re bringing them into the higher-level dinner places, what we call a white-tablecloth restaurant.”

That’s true at the Capital Grille in Providence, according to managing partner Christopher J. Phillips. “If you come in here during the week — and even the first turn on a Friday or a Saturday night — you look around the room, and it’s changed so much than what it was 10, 15 years ago. ... It’s families coming in to enjoy experiences,” he said.

As a result, even high-end restaurants are looking to cater to families.

“We try to create little flourishes for the children,” said Phillips. That includes bibs with the restaurant’s logo for infants, plastic drink cups with the logo for older children and hand-held video games for teenagers. The restaurant even does children’s birthday parties now.

Venturini said she has heard from restaurants around the state that are seeing record numbers of children.

“They’re telling me that the crayons that they buy or the little placemats that have the games on them, that they’re going through more,” she said, adding that one commented, “I can’t believe I ran out of crayons within a week that normally would last me a month.”

Meals & beverage taxes

The state collects an 8-percent tax on meals and beverages — 7 percent for the state and 1 percent for the local community. This chart shows the 1 percent returned to communities for June and the percent change from last year.

> > > >
> June ’07 June ’08 Change
Barrington 10,236 14,713 +43.7%
Bristol 36,581 38,111 +4.2%
Burrillville 17,718 13,703 -22.7%
Central Falls 7,089 10,048 +41.7%
Charlestown 13,888 12,805 -7.8%
Coventry 29,602 32,858 +11.0%
Cranston 115,347 133,733 +15.9%
Cumberland 27,009 33,878 +25.4%
E. Greenwich 36,482 53,427 +46.4%
E. Providence 60,458 60,934 +0.8%
Exeter 4,754 5,510 +15.9%
Foster 2,323 563 -75.8%
Glocester 4,493 5,551 +23.6%
Hopkinton 5,895 4,036 -31.5%
Jamestown N/A N/A >
Johnston 35,261 35,862 +1.7%
Lincoln 48,918 62,764 +28.3%
Little Compton 2,809 2,888 +2.8%
Middletown 50,163 58,782 +17.2%
Narragansett 48,035 53,101 +10.5%
New Shoreham 35,502 43,975 +23.9%
Newport 207,110 206,698 -0.2%
N. Kingstown 41,695 37,973 -8.9%
N. Providence 33,564 34,986 +4.2%
N. Smithfield 11,803 11,578 -1.9%
Pawtucket 57,016 64,304 +12.8%
Portsmouth 15,810 18,132 +14.7%
Providence 335,438 352,085 +5.0%
Richmond 9,617 11,504 +19.6%
Scituate 4,904 4,865 -0.8%
Smithfield 40,993 50,321 +22.8%
S. Kingstown 44,091 47,882 +8.6%
Tiverton 20,626 17,123 -17.0%
Warren 20,265 23,747 +17.2%
Warwick 200,232 213,699 +6.7%
W. Greenwich 6,836 6,745 -1.3%
W. Warwick 28,831 32,521 +12.8%
Westerly 67,448 23,493 -65.2%
Woonsocket 41,506 42,046 +1.3%
> > > >
STATEWIDE 1,797,801 1,876,946 +4.4%
> > > >
NOTE: Statewide total excludes Jamestown, which was not available.
> > > >

SOURCE: R.I. Department of RevenueTHE PROVIDENCE JOURNAL

pparker@projo.com

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