Opinion
By Steve Nicklas, 6-10-24
U.S. consumers are facing leaner cuisine options this summer after a gut full of restaurant closings.
Inflated costs are pressuring restaurants, even the established, deep-pocketed chains. Exorbitant expenses arise from staffing/wages, food costs, rent, insurance, etc. Everything costs more.
Popular companies like Cracker Barrel, Pizza Hut, Red Lobster and Applebee’s are shuttering locations nationally. Smaller, mom-and-pop restaurants prevalent in Nassau County fight the same fight, without the financial backing and purchasing power of chains.
Ironically, restaurants around Nassau County have persevered, heading into the peak summer season. There have been a few casualties; however, the causes are more personal than professional. The Marina Restaurant and Joe’s 2nd Street Bistro and Parkway Grille have closed on Amelia Island, but reportedly will be replaced with newer dining versions.
Locally, tourism numbers may tread water this year, but that is compared to recent blockbuster years. Tourist totals here exceeded 1.2 million in the last couple of years. However, visitors are impeded today by higher fuel costs, whether driving or flying.
Around the U.S., the economy overall is gradually softening, strangled by inflationary forces. Layoffs are widespread, but not around resilient Northeast Florida. And national employment is not as advertised, with part-time workers and migrants boosting the statistics.
We have a dynamic restaurant scene locally. It’s part of our broad appeal. On Amelia Island alone, there are still some 100 restaurants. However, you wonder how they find workers. The well-heeled retirees moving here want to eat at restaurants, not work at them. And we have become primarily a retirement destination.
Hiring, paying and retaining employees are dominant challenges. Spiraling food costs are next; however, restaurants can only raise prices and pare portions so much. And higher interest rates further pressure restaurants’ finances.
Beer, wine and alcohol prices are not as inflated in price as food. Therefore, restaurants can recoup profits by bumping alcohol prices.
Some states are also strapped with higher minimum wages for restaurant workers. This especially hurts the fast-food sector, where margins are razor thin.
Fast-food destinations like Burger King and Krystal and Pizza Hut have failed on Amelia Island. However, there is no shortage of choices in Yulee. And more are opening almost daily.
On the west side, both full-service and fast-food restaurants are blossoming. At a slower pace, however. Restaurants follow mouths to feed. And the Yulee population growth is spilling over to the west side in a big way.
Even if a restaurant closes around here, another one or two opens. So the culinary cuisine in this area is anything but lean, bucking the national trend. It’s tastefully robust, actually.
Steve Nicklas is the managing partner of Nicklas Wealth Management in Fernandina Beach. He is also an award-winning columnist. His columns appear in weekly newspapers in Northeast Florida and in Southeast Georgia, and on his website at www.SteveNicklasMarketplace.com. He has published a book, “All About Money,” of his favorite columns from the past 20 years. The book is available on Amazon. He has also done financial reports for area radio stations and for National Public Radio in Jacksonville. He can be reached by email at [email protected] or by phone at 904-753-0236.)
The long running “Investing in Today’s Financial Markets” series will resume on Thursday, June 27 (noon to 1:30 p.m.) at the Nassau County Council on Aging in Fernandina Beach. The series has been offered locally by financial advisor Steve Nicklas for more than 20 years.
The topic is “Developing a Financial Plan.” The class will cover a variety of financial-planning aspects, from drawing up a realistic plan to executing it. Important issues like identifying income-producing investments, titling assets, utilizing insurance, etc. will be covered. The COA can be reached at 904-261-0701.
The views expressed in this commentary are those of the author and do not necessarily reflect the official position of Citizens Journal Florida