Locally-owned restaurants fear more closings coming

News that a locally-owned restaurant in Cedar Rapids plans to close soon may be a sign of more to come-at least according to some restaurant owners.

Hamburger Mary's owners confirmed this week that the business will shut its doors after New Year's Eve.  And one owner of an independent restaurant fears as many as a dozen more may close before winter is over.

Tony Kassouf, owner of Cibo Fusion in Marion and the American Skillet in Cedar Rapids said restaurants need repeat business to survive.  He said he has loyal customers from 15 years in the restaurant business locally.  But it's a fact that diners in the Cedar Rapids area prefer the chain or franchise restaurants-and the independent restaurants like his are struggling to get people to try “local.”

Kassouf said the last couple of years have been more of a struggle than usual.

“There's only so long you can hold on and with the profit margins narrowed down for the big chains as well-they can still sustain that,” Kassouf said.

Kassouf said the chains have the advantage of much bigger advertising budgets and the resources to survive lean times longer.  Another local restaurant operator, Basil Hadjis of the Vernon Inn in Cedar Rapids, said February is typically the slowest month of the entire year for dining out.  And he's also worried some independent operators will make it through the holiday season and give it up then.

The Vernon Inn celebrates a 35

^th

anniversary this coming February and Hadjis said he's seen some time times in all those years.  But it's hard to argue the last few years have been the toughest.

“Back in '79-80 we had issues with paying 20 percent interest on our loans and we thought that was tough.  But I think the last couple of years have been the toughest,” Hadjis said.

Independent restaurant owners have talked about trying to cooperate with each other and perhaps sponsor a “buy local” campaign for diners.  But getting customers in this area out of their comfort zone to trying something new isn't easy.

One diner today, Ronda Harriott, said “I talk to a lot of people who go to those places because they know exactly what they're going to get.  Here (Cibo) it's something different and they're not sure they're going to like it-so they don't try it.”

Hadjis said he has another concern as well.  In a poor economy seeing people cut back on eating out isn't surprising.  But his concern is as the economy finally does improve he's fearful some of those new habits will stick and people just won't visit any restaurants as often.