BALTIMORE (Map, News) - Hudson Riehle is the senior vice president of research and information services for the Washington-based National Restaurant Association.

Riehle and the restaurant association last week released the 2007/2008 Restaurant Industry Operations Report, which provides new research that can help restaurateurs plan ahead and adjust to changing economic conditions.

Riehle spoke to The Examiner about what economic challenges restaurants are facing and what food service businesses are doing to maximize profits.

How does the Restaurant Industry Operations Report help restaurants?

It helps individual restaurateurs compare their income statements to those of similar business structures.

It’s helpful for operators to access their cost structure and determine where there can be effective gains.

By monitoring and adjusting their budgets, restaurant operators can effectively respond to new challenges.

What economic pressures are affecting restaurants?

The industry is feeling the pressure from elevated energy and wholesale food prices.

[Last week’s] Producer Price Index showed that wholesale food prices increased 7.5 percent from March 2007 to March 2008.

That’s a substantial increase.

From 2006 to 2007, the increase was 7.6 percent.

Those are the highest increases in 27 years, so it’s at historic growth levels.

What are some things restaurants are doing to maximize profits?

More and more are making long-term investments in technology, such as online reservation systems, table-flow management systems and wireless ordering systems.

Some are making increased investments in training and staffing to have skilled servers and limit employee turnover.

Others are allocating more money to marketing and advertising — through the Web, e-mail and cell phones — to drive traffic.

Do you think we’ll soon see consumers cut back on dining out?

In March, restaurant sales volume actually increased for the first time since December 2007.

It’s important to recognize the increase reflects general inflation trends, but the increase is a testament to how essential the restaurant industry is today.

Comments from Examiner Readers

12:15 PM MST on Mon., Mar. 17, 2008 re: "New eateries may bud in Haight-Ashbury"

Gaza George said:
Let them eat and drink. Too many hemp products can be harmful to the multinational restaurant bottom line. Go liquor holes.

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7:27 AM MST on Fri., Oct. 5, 2007 re: "Chef Paolino�s dishes pasta with pizazz"

Examiner Reader said:
I was very surprised by the comment. When we go to eat at Chef Paolino, I always take the kids to a table first and either my husband or I order for all of us. Our first time there, we all took a menu to a table and then my husband went up and ordered for the family. I think the writer just misunderstood.

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8:42 AM MST on Wed., Sep. 12, 2007 re: "Chef Paolino�s dishes pasta with pizazz"

Examiner Reader said:
On the evening of 09/07/07 my family and I went to eat at this restaurant for dinner at 5:30 pm. Being our first time there I questioned if they would seat us or should we seat ourselves. The employee advised me we had to go order our food then we could seat ourselves. I ask him if I could please sit first. In my arms was my handicapped 5 year old daughter who from Spinal Bifida can not walk, my husband was carrying our 3 month old son and I had 3 other children with me ranging from 7 to 9. I explained to him I could not continue to hold her and go order my food due to her wait. It would be impossible to hold her and order, pay, ect. Even after explaining why I needed to be seated first he refused to do so. My family and I had to leave that establishment and to say the least was very dissatisfied with our first experience at the Chef Paolino Cafe.I believe this restaurant needs to change there process of ordering and seating customers. This process is very difficult for the handicapped

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12:51 PM MST on Mon., Jun. 25, 2007 re: "Powell brings Jamaican spice to Penn Quarter restaurant"

Anon said:
Chef Alex Powell's enthusiasm for his work and his creations comes across well in this article. As a food connoisseur and a lover of island flavors, it will be my priority to visit the 701 Restaurant. The chef takes me back to my own roots where the belief is that you can never go wrong with simple, natural ingredients. Way to go chef and welcome to DC!

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5:39 PM MST on Mon., Jun. 4, 2007 re: "Beer soup brightens meal in Ellicott City"

Examiner Reader said:
Sounds like a typical visit to most restaruants these days. Steak are always "iffy" I try to avoind them because a chef will tell you fat on a steak helps retain juices, but I don't like fat. Also, if I see a sauce on anything I avoid it. especailly at a place where I have never eaten. I had a friend that was a professional chef. I was grilling steaks at my house one day and asked him to show me how he made his steak taste so good. He rubbed both sides with salt.

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