CBS 19 - The Eye of East Texas News - Tyler restaurant industry affected by recession

Tyler restaurant industry affected by recession

By Hayley Wielgus

TYLER, TX (KYTX) - The restaurant industry in Tyler has been historically strong, but over the past year, the recession has forced some restaurants to shut their doors.

At J.W. Finn's, you won't find white table cloths, an expensive menu or even a wait staff.

"The way we designed this restaurant is for more of a recession-proof type restaurant," J.W. Finn's owner Jim Finninger said. "The cost overhead is at a low enough figure that during the lean times we can still stay open."

Jim Finninger reopened J.W. Finn's in August.  It originally closed in 2000 after a 15-year run in Tyler.  Finninger said the key to staying open during a recession is value.

"We've done some bringing back specials, what we had when first opened up years ago, reducing some prices, making things more attractive, getting customers in," Finninger said.

"The higher-end restaurants, they're getting hit a little tougher because people, our average customer, is watching where they spend their dollars," said Bob Westbrook, president-elect of the Texas Restaurant Association and owner of Cici's Pizza in Tyler. 

Westbrook said the restaurant industry is the largest private sector employer, so when their business suffers, it affects sales tax revenue and that affects the economy.

"The city, county and state really feel it whenever our business is off also," he said.

But Westbrook said compared to most of the country, Rose City restaurants are holding strong.

"Some days are slower than others, but we're at what we projected to do," Finninger said.

In the meantime, restaurants like J.W. Finn's will count on items, such as budget-friendly burgers, to keep business cooking.

Westbrook said many other businesses are affected when the restaurant industry suffers. He points to suppliers, maintenance crews and uniform companies.