As woes begin to weigh on patrons, some upscale eateries cut back

A couple of months ago, after Vincent Ranhorn and Todd Leutner looked at the 2007 numbers for their local restaurants, they went on a retreat to decide on some needed changes.

Economic pressures had taken a toll on their profits. They could no longer manage the increasing costs of delicacies such as lobster and lamb. With customers cutting back on visits to their upscale eateries - and on the amount they spent on wine and meals - the proprietors couldn't sustain the same dining options they had for almost seven years.

"It just started getting exorbitant," said Ran-horn, co-owner of Fusion 440 Bistro in downtown Portsmouth and Trilogy Bistro in downtown Norfolk.

"I'm not willing to take the huge risks," he said. "I just can't carry the inventory like I could."

Restaurateurs today are struggling with the same economic concerns that consumers face: the rising costs of food and fuel and the dilemmas of the real estate market. Declining property values have led to the demise of one local restaurant. And owners have noticed Hampton Roads diners watching their wallets. Some have given up the luxury of dining out; others do it less frequently or try to minimize their tabs.

"It's a crazy time in the restaurant business now," said Mark Sauter, owner of Zinc Brasserie in the Hilltop area of Virginia Beach, which has seen sales dip about 15 percent from a year ago. "In a recession, nice restaurants are one of the first things they cut out."

Darlene Lascano, 45, said her Suffolk family used to eat out many nights each week, finding it easier with the busy after-school schedules of two teenagers. "It's just too expensive now, especially with a family of four," Lascano said.

She said she has learned to use herbs and spices to make dishes as good as or better than those in restaurants. "Now, I try to get home to fix a nice, decent meal," she said, "And I'm really saving."

Lascano still splurges but waits for Restaurant Week events twice a year. Then, the fixed-price deals ease the costs to eat at the more pricey restaurants in Norfolk and Virginia Beach.

From their retreat, Ranhorn and Leutner decided to change their menu, reducing entrees to an average of $25 from a previous range that topped $40. They offer a half-rack of lamb for $28 instead of a full rack for $39, though they give diners the option of ordering the larger size.

"We brought the prices down. We brought the portions down," Ranhorn said. "And we actually made it more affordable for more people."

The pair also own the more casual Velvet Lounge on Granby Street, which remains closed while the owners await renewal of their license from the state Department of Alcoholic Beverage Control.

Eric Stevens and Karl Dornemann decided last week to close Locks Pointe Restaurant, which has operated for 25 years in Chesapeake. The closing has more to do with the real estate than the restaurant's sales, which have fallen slightly in recent months.

The owners set up a separate company, The Pointe LLC, to buy the property, but it filed for bankruptcy late last year. The property's value has fallen too much for them to continue the venture, Stevens said. They plan to shut down April 12.

The partners, who also own Bardo Edibles + Elixirs in Norfolk, have made other adjustments to cope with economic instability. They set up a consulting company to run food operations for three local hotels, which gives them a stake in the proceeds but diminishes their risk.

They remain "cautiously" bullish on the outlook for Hampton Roads restaurants, Stevens said. They are about to begin construction on Still, another "small plates" concept like Bardo planned for downtown Portsmouth. And Bardo's business has inched up slightly from last year, Stevens said.

"At Bardo, we have what we call professional diners," he said, referring to customers who make dining a priority and have a unique love of food. "It's their entertainment."

Those consumers continue to spend money on meals, Stevens said. Locks Pointe has depended on less-serious eaters who cook at home or order a pizza more often these days.

"It's that fine-dining diner that we used to see twice a month, we're now seeing once a month or every other month," Stevens said.

Bo Perkinson and his wife are among diners who have continued their frequent restaurant jaunts. They rotate among a variety of eateries - from the casual Italian chain Olive Garden to the locally owned fine-dining room Steinhilber's in Virginia Beach.

"I eat out - out of seven days - about five nights a week," said Perkinson, 55, who lives in Chesapeake. "I work hard, so I enjoy it."

Eat: An American Bistro, at the Virginia Beach Oceanfront, still welcomes a steady stream of regulars from the nearby North End neighborhood and decent crowds on Thursday, Friday and Saturday nights, owner Erick Heilig said. A spectrum of entree prices aids Eat's appeal in a tough economy, he sai d, allowing diners to choose the $16 meatloaf instead of the $38 veal chop.

He has heard some patrons talk of tightening their budgets. "Midweek, I've seen it slow down a bit," Heilig said. "It's a concern, but I'm an optimist."

At Fusion, where sales have slowed the most among Ranhorn and Leutner's restaurants, more customers are coming to Ladies Night on Wednesdays for half-price appetizers and drink specials. Heilig also has noticed a boost in traffic at Eat on Monday nights, when he offers bottles of wine for half off.

For restaurants, wine serves as something of a barometer on the economy. "I'm seeing more people order wines by the glass rather than go for the bottle," Heilig said.

Wine aficionados continue to clamor for unique and hard-to-find bottles at the highest end but are eschewing the expense for a more-common label, even on a finer wine, said Bill Averett, sales consultant in Virginia Beach for Roanoke Valley Wine Co., a distributor of specialty wines based in Troutville.

The diner who never ordered a $100 bottle but spent $50 to $80 on wine has dropped to "the value under $40," he said. Those who would have paid between $35 and $50 a year ago are now ordering by the glass.

"It's not that they're quitting drinking wine, it's just that they are spending less money on a bottle," Averett said. "And I think they are looking for more bang for their buck."

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com