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Despite economic woes, new restaurants open

Despite economic woes, new restaurants continue to open in South Florida. But with diners saving cash by eating out less, can they survive?

ewalker@MiamiHerald.com

If Chef Todd English had a choice, he wouldn't be opening his first South Florida restaurant during an economic slowdown.

But plans for English's da Campo Osteria in Fort Lauderdale were made more than 18 months ago, when the economy was booming. Now, English's place is one of a plethora of high-end and upper-moderate restaurants coming onto the scene as nervous consumers dine out less and food costs soar.

''You can't just roll over and play dead,'' said English, who was in town for the opening of da Campo Osteria in Il Lugano Luxury Suites, plus Figs at Macy's in West Palm Beach. ``You have to be smart about how you move forward. You have to focus on the things that we can manage -- like our pricing, food costs and labor.''

English, an award-winning celebrity chef who owns 21 restaurants, is one of the biggest names on this season's list of South Florida openings that includes high-profile national chains like The Grill on the Alley from Beverly Hills and another Morton's. And a number of well-known locals -- Chef Johnny Vinczencz and the owners of Miami Beach's former Touch restaurant -- are expanding, as well.

The recently renovated Fontainebleau's dining options include pricey Hakkasan, the U.S. debut of Britain's only Michelin-rated Chinese; Scarpetta, an Italian place from New York up-and-comer Scott Conant; and Gotham Steak, by well-known New York chef Alfred Portale.

LOW PRIORITY

They all face the same challenge: how to lure diners cutting back on unnecessary spending as they lose jobs or watch investment portfolios disintegrate. Spending $50 to $75 a head on dinner is no longer a priority for many, and lower priced restaurants may not have it much easier.

''There are very few safe places that are immune from this economic malaise we're in,'' said Dennis Lombardi, an executive with restaurant consultancy WD Partners. ``It's going to depend on how well capitalized they are to cover the initial operating losses.''

Industry analysts have sobering news. Even in good times, restaurants often fail in the first year. Economic woes already have led a number of South Florida cafes to shutter this year, including Mark's Las Olas, The Palm in Coral Gables and Café Tu Tu Tango in Coconut Grove.

''There will be a lot of fallout,'' said Richard Lackey, a West Palm Beach restaurant broker. ``Regrettably it will be more from the independent operators, who in most cases don't have the combination of things you need to survive a downturn.''

Location is always critical to a restaurant's success, and that may carry even more weight right now. Sites popular with tourists will probably stand up better.

Philip Gay, chief executive of the Grill on the Alley, put a lot of other new locations on hold because of the economy, but not Aventura Mall, the Beverly Hills chain's first East Coast space.

''When you have a premium location, you have to beg, borrow and steal to make it happen,'' Gay said. ``This is a AAA location. You're going to get a lot of people through the mall during the holidays. I think we're going to get a lot of exposure and start off fine.''

Given the one or two years it can take to open a new restaurant in Miami-Dade or Broward counties, most of the owners say they were too far along to turn back by the time the economy turned bad.

Instead, they are counting on the fact that, even in a bad economy, people still have to eat, even if they go out less often and spend less when they do.

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