Adapting to an Evolving Restaurant Landscape: How Local Establishments Are Navigating Challenges
The restaurant industry has taken a significant hit in recent years, with many establishments struggling to survive. Amidst this tumultuous landscape, larger chains have managed to freeze prices, creating substantial pressure on local eateries. A prime example is McDonald’s, which recently announced it would freeze prices on small coffee and McVal meals for an entire year. This strategic maneuver has left many small business owners feeling overwhelmed and puzzled about how to compete with such well-resourced giants.
Cindy Santiago, owner of the Beastro on Avenue, is one of those local restaurateurs grappling with these new economic realities. With her establishment having adapted and pivoted significantly during the pandemic, Santiago highlights how community businesses are finding their footing while navigating a challenging economy and shifting consumer habits.
Santiago’s journey as a restaurateur is marked by creativity and resilience. "I amalgamated three restaurants under one umbrella as part of my pandemic pivot," she explains, referring to her decision to broaden her menu. Known primarily for their wings, Beastro has diversified to include a ghost kitchen featuring Stern’s Deli, alongside reviving a 70-year-old neighborhood icon, the Steak Pit, renowned for its ribs.
In the initial months after this pivot, the response was overwhelmingly positive—“we were lined up out the door,” she recalls. However, as economic conditions deteriorated, customer habits shifted once again, leading to a stark decline in in-person dining. "I thought they’d all come back, but not in the same volume." Santiago found herself faced with difficult decisions, ultimately pivoting to focus on takeout and delivery, which has historically constituted 75% of her sales.
The financial realities are striking. Santiago notes that her rent is now a quarter of what it was during the peak of the pandemic, and payroll has halved. Against these odds, Beastro is starting to see a return to profitability, a trend that raises questions about how larger establishments manage their operations with their set pricing strategies. "I don’t know how the large restaurants are making it work, and I genuinely wish them the best," she says.
Santiago believes the infusion of takeout and delivery options could become a long-term model for success. "People don’t want to spend big money going out anymore," she states. This observation is further substantiated by her sales data, which reveals that 50% of her delivery orders originate from partners like Uber Eats, accompanied by higher price points due to commission fees.
Interestingly, she highlights how customers have been largely unaware of her dining room’s closure. "The biggest thing I found was that people coming in for pickup would say, ‘When did you close the dining room?’ and I’d have to explain it to them," she remarks. This disconnect points to a larger trend: consumers have adapted their dining habits, with many opting for convenience over the traditional dining experience.
Despite these challenges, there’s a sense of optimism. Santiago is considering expansion to smaller locations, while her partner Santiago—an accomplished chef—has spearheaded the development of a new catering menu. Catering, too, aims to meet evolving consumer needs, especially with many businesses mandating a return to in-office work.
While the broader restaurant industry faces daunting statistics—thousands of establishments closed last year and predictions of further closures this year—Santiago stresses the importance of adaptability. "If you can’t be nimble and adapt, you won’t survive in this climate," she underscores, reflecting a philosophy that many in the industry are beginning to adopt.
Cindy Santiago’s journey is emblematic of the challenges faced by local restaurants. The numbers may be alarming, but with innovation, resilience, and a willingness to pivot, there’s a path forward. As consumers continue to redefine their dining experiences, local establishments like Beastro will need to embrace change to thrive within this new landscape, forging a unique identity amidst the noise of global giants.
