Economic downturn takes bite out of high-end Calgary restaurants

High-end restaurants in Calgary are feeling the pinch of a strained economy.

It's been a quieter December compared to last year at Rouge, a fine-dining restaurant in Inglewood, according to owner Olivier Reynaud. He says withcorporate bookingsdown andcompaniesparing back ontheir tabs, he's been looking for ways toboost business in2016.

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"We might have to market ourselves a little bit differently for next year.What I mean by that is, we know corporations' budgets might be down, but tourism is going to be hopefully updue to lower travelling fees as well as our low dollar. So hopefully we will get through thisas well."

Drop in sales is 'significant'

Other high-end restaurants in Calgary, like TeatroRistorante,are seeing asimilar drop-off in corporate spending, as well asmore conservative dinner reservationsandprivate bookings over the holidays.

"We would see our private rooms as well as our main dining room, say in the months of November and December, booked out nearly every evening, and we've seen a good cut inthat happeningthis year," saidKaren Kho, service director for Teatro.

Instead of companies booking the entire restaurant, Kho says each department may be booking a 25-person eventon a smaller-scale budget.

"Bookings are down about a quarter,which is significant for us," saidKho.

'Downturn-related deals' pop up

Some restaurants saythisdownturn is forcing them to come up with creative marketing ideasto entice more customers through their doors.

Barcelona Tavern, a downtown Spanish-style eatery, started a promotion last January called"Time to Wine about Oil," which offers cheaper wine at certain times until a barrel ofoil reaches $70US.

"Right now it's at around $40, we're a little off the mark, but we're going to hold true to it becausethat's a promise we made to our guests," said Nathan Jokela, the assistant general manager.

TheTeatro group of restaurants, which includes Teatro andsixother eateries around Calgary, started offeringregular happy hours this year as a way to bring in the after-work crowd.

"That's one area that we've opened up,something we didn't necessarily do verystrong in the past, and now all of our properties do it all across the board," said Kho.

As for what to expect in 2016, Kho saysit would beeasy for the company to be negative and focuson the money it's losing, but insteadit's trying to keep upbeat.

"There's still people walking in through the door and that's something we are thankful for."