<< Previous   of   Next >> Snohomish County Business Journal/Christina Harper  (click to enlarge) Luca Nasti prepares a pizza to be cooked in a wood stove at his restaurant in Lake Stevens. Luca’s offers a ‘kids eat free’ menu on Thursdays and Sundays.

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CONTACT SCBJ John Wolcott, Editor jwolcott@scbj.com Dave Clark, Assistant Editor dclark@scbj.com

Snohomish County eateries cook up ideas to boost business

By Christina Harper
Special to SCBJ

Families tightening their household budgets to get through tough economic times usually start by cutting back on eating out.
Restaurants in Snohomish County are feeling this pinch along with other economic woes: the recent Boeing strike, a 9 percent increase in food prices throughout the past year and the increase of the minimum wage to $8.55 an hour.
Luca Nasti, owner of Luca’s Ristorante and Pizzeria in Lake Stevens, is offering a “kids eat free” on Thursdays and Sundays to encourage families to come to the restaurant.
One year ago, Nasti had just expanded the restaurant and put in a pizza oven. Business was pretty good, but the economic downturn and the Boeing strike meant Nasti’s business took a hit. Business is down 30 percent to 40 percent, and Nasti has laid off two employees. His philosophy is to keep up the restaurant’s customer service and quality menu.
“It’s a challenge,” Nasti said. “But I always try and keep positive and hope for the better.”
Typically, 36 percent of each dollar spent in a restaurant goes for wages, 30 percent for food, and 30 percent for other costs, leaving 4 percent for profit, said Anthony Anton, president and chief executive of the Washington Restaurant Association.
“If traffic is down and if you are not carefully watching food and labor costs, it doesn’t take much for the 4 percent margin to disappear,” Anton said.
Restaurant owners need to make sure they examine all their costs and labor output as customers scale back, he said. At the same time, restaurant owners need to maintain quality and preserve their reputation. Nothing makes owners better than new competition and tough times, Anton said.
A little over a year ago, when Alligator Soul moved from its spot on Hewitt Avenue to its new home on Broadway, the restaurant was doing twice the business it is now.
Brian Young, sous chef, said staff has concentrated on new ways to keep their business going. They updated their Web site and began an online club called the Gator Club. The restaurant has expanded its catering and banquet services and started hosting cooking classes and tasting dinners. Beginning this month, the restaurant will begin serving breakfasts, an idea that came up because of the slowing economy.
Young also set out to find as many food vendors as possible and had them bid against each other for Alligator Soul’s business. If he had his choice, Young would not want to do that. But he wants to keep the doors of the restaurant open. He tries to get the best prices on produce and ingredients while keeping the quality of the food he serves paramount.
“It’s difficult and stressful, but with careful planning it can be done,” Young said.
Barring any agricultural disasters, Young believes Alligator Soul will have a better year in 2009.
There has been a shift from higher-end dining to more casual, and some very casual dining establishments have seen increases, Anton said. The economy’s impact varies from region to region.
As a local business owner, Nasti is glad to see that Boeing workers are no longer on strike, but knows it takes those families time to recuperate.
“We have to give them time to pay their bills,” Nasti said. “We are very blessed. We probably would be a lot worse off without them.”