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There's one thing that's saving the restaurant industry from becoming a disaster

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Wacky restaurants 29

The restaurant industry is facing dire straits.

Labor costs, one of the biggest expenses for the industry, are on a steady rise. Sales are declining, and companies are resorting to discounts and incentives to get customers in the door.

Despite all this bad news, one thing is keeping the business afloat: Food is cheap.

Customers aren't necessarily seeing the advantages of lower costs in the food they're being served, but the raw ingredients that restaurants are using appear to be going lower.

For instance, steakhouse chain Texas Roadhouse cited "commodity deflation" of 6.8% from the same quarter a year ago as a positive factor in otherwise dismal earnings.

"We're pleased with our momentum through the first half of the year, particularly as it relates to restaurant margins. Commodity deflation has certainly been the biggest contributor in addition to the benefit of sales growth," said CFO Scott Colosi.

Texas Roadhouse also projects deflation on these prices of 2.5 to 3% over the next year.

Part of the decline (certainly for a steak-focused company like Texas Roadhouse) has been the drop in the price of beef from all-time highs. Beef is still more expensive than its historical average, but the pain is lessening and helping to support the earnings of these restaurants.

Cheesecake Factory CFO Douglas Benn also cited the company's 1.2% drop in ingredient prices as a support for the firm.

"I think that commodities, though, are — there's not anything putting a lot of big upward pressure that I see on commodities," Benn said in the company's earnings call.

"So we even feel for the last half of this year, we're able to keep our earnings guidance intact despite taking down our comp store sales thoughts, at least from where we previously were, because of even better commodity environment than what we anticipated when we talked three months ago."

Even McDonald's CFO Kevin Ozan said the fast food giant saw "favorable commodity costs" in the past quarter.

"Turning next to menu pricing and commodity costs, in the US commodity costs declined 4.5% during the second quarter," Ozan said in the quarterly earnings call.

"Looking to the second half of the year, we expect commodity costs to remain favorable, maintaining our outlook for the segments' full year basket of goods to be down 3.5% to 4.5%."

This doesn't seem to be the case only for big companies. The consumer price index for food at home, which tracks grocery prices (a little different from the situation for restaurants buying food at wholesale, but still a useful indicator of direct food sales) has been declining since December 2014 and has been in deflation territory since December 2015.

food at home cpi

Interestingly enough, the price of food away from home (read: at restaurants) has stayed roughly the same over that period.

food away from home cpi

SEE ALSO: A huge part of the economy is hitting a wall

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The 25 best Brazilian restaurants in America, according to Foursquare

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estilo gacho

With the Summer Olympics in Rio de Janeiro fast approaching, you may find yourself craving some top-notch Brazilian food. 

Luckily, popular city-guide app Foursquare is here to help: using ratings and comments that touch on everything from food, to service, to atmosphere, Foursquare has compiled a list of 25 of America's best Brazilian restaurants.

This means that even if you haven't secured tickets to see the games in person, you can dine just like a true spectator.

Read on to find out where you can enjoy authentic feijoada, churrasco, and caipirinha without boarding a plane to South America. 

 

SEE ALSO: The best steakhouse in every state

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25. Moqueca Brazilian Cuisine

Location: Oxnard, California 

Foursquare rating: 8.7

Moqueca, a traditional Brazilian fish stew, is clearly the main attraction at this Californian locale — and with their multiple varieties (including a vegetarian option that features plantains) there's little reason to order anything else. If you're looking to try something else, though, you can't go wrong with some picanha



24. Brazilian Bowl Grill

Location: Chicago, Illinois 

Foursquare rating: 8.8

From their signature Brazilian Bowl (the restaurant's namesake), to the burgers, beef, sausages, and smoothies, customers' rave reviews prove that this joint does everything well. Most importantly, though, the Brazilian Bowl Grill passes the authenticity test with flying colors: "Tastes like home!" said a Foursquare user who apparently hails from Brazil himself. 



23. Favela Grill

Location: Astoria, New York 

Foursquare rating: 8.8

Native Brazilians and native New Yorkers alike can't seem to get enough of the variety of beef dishes, rice and beans, and caipirinha. Live music on weekends makes for a fun atmosphere, and notoriously big portions means you can take home plenty of leftovers. 

 



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The chain that serves America's best burger thinks consumers are in a bad place right now (HABT)

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habit burger 3958

Habit Restaurants, which sells the best burger in America, thinks that US consumers are in a bad way. 

On the company's earnings conference call on Wednesday, Habit CEO Russ Bendel said the promotional and discounting environment seems more aggressive than it was during the last recession. 

"We feel the biggest headwind we have with sales right now is a little bit of the state of the consumer," Bendel said on the call. 

"I am not an economist, so I am not going to get into that. But without question the amount of discounting and aggressive promotional offers both below us and above us feels like it's heavier than it was in 2008 and 2009." 

More discounting most simply indicates a lack of demand, so the immediate read-through here is bad for the economy. 

The latest economic data we've gotten on the state of the consumer, in a bit of a contrast to Bendel's view, is that the consumer remains pretty solid

Personal consumption was up 4.2% in the second quarter of 2016, one of the best quarters for consumer spending since the financial crisis and serving as the saving grace for what was otherwise a disappointing GDP reading

Recent readings on consumer confidence from The Conference Board and the University of Michigan's survey also indicate that despite some concerns among high-income households over Brexit, consumers remain broadly optimistic. 

Bendel and Habit, however, are dealing with what appears to be a clear slowdown in the restaurant sector. A drop in the price of food at home as well as rising labor costs — which Bendel also mentioned on Habit's call — are putting other pressures on the restaurant space more broadly. 

On Wednesday Habit reported second-quarter earnings that were a bit disappointing, earning $0.09 a share on an adjusted basis on revenue of $71.1 million. Wall Street expected earnings per share of $0.10. 

Shares of the burger chain, which are down about 45% over the last year, were little changed in pre-market trading. 

In 2014, Consumer Reports named Habit Burger Grill the best burger in America.

(h/t @BarbarianCap)

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We went to the NYC restaurant that serves grasshoppers and they're delicious

After 4 years taking advantage of NYC restaurant week, here are my 7 best tips to get more out of it

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root and bone

I found out about New York City Restaurant Week when I was a sophomore in college. I was living in the city and my roommate and I decided to give it a try. 

NYC Restaurant Week happens twice a year; during the winter and the summer. This year, from July 25-August 19 (not technically a week), over 350 restaurants offer pre-fixe menus — $29 for lunch; $42 for dinner. The promotion allows diners to experience fine dining at a discounted price. 

As a college student and self-proclaimed foodie, I was excited by the prospect of experiencing upscale restaurants while not completely breaking the bank. 

Four years later and I treat restaurant week like it's a holiday. I've become so accustomed that I know exactly when it's happening and make plans in advance so I don't miss it. I went from dining at one or two restaurants to having a total of six reservations for NYC Restaurant Week Summer 2016.

I'd be lying if I said all of my restaurant week experiences were great. There have been instances were I've paid way more than expected or the food was not up to par. But there's a reason I never miss it.

Here are my tips for making the most of NYC Restaurant Week.

SEE ALSO: I've lived in New York City for 22 years, and here are my favorite places to eat for less than $20

Book reservations in advance

While reservations aren't needed, the more popular places book up quick. I suggest booking in advance — reservations open two weeks before it starts. If you sign up for the NYCgo.com newsletter, you will be alerted to the date reservations open. 



Score points on OpenTable

Calling to make a reservation is fine, but if you plan to become a restaurant week regular, I suggest starting an OpenTable account.

Not only do all the restaurants take reservations through the website, but you score 100 points for each restaurant where you dine. Once you hit 5,000 or 10,000 points, you can claim a $50 or $100 gift certificate. 



Watch out for supplement pricing

NYCgo has the majority of the restaurant week menus on the site. Check for supplement pricing — when restaurants tack a few extra dollars on the bill for a certain dish — because you can end up spending a lot more than anticipated.



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15 trendy San Francisco restaurants you need to try right now

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smitten ice cream shop

It's believed that we humans are creatures of habit, but there's something to be said for trying great new restaurants, especially in a city as vibrant and diverse as San Francisco. 

Whether you've just arrived in "The City by the Bay" and are looking for some good local eats, or you're an old-timer wanting to change up your usual restaurant routine, Foursquare's "Trending This Week" list has your back. 

To establish the coolest new joints in town, the city-guide app combines implicit visits from its users with check-ins from its sister app, Swarm. The list is published every Tuesday morning.

Be sure to check out these popular new locations before everyone else gets the same idea. 

SEE ALSO: The 25 best Brazilian restaurants in America, according to Foursquare

DON'T MISS: Follow Business Insider's lifestyle page on facebook!

15. Ohana Poke Bar combines chill surf vibes with top-notch Hawaiian grub. It seems to be flying fairly under-the-radar for now, so visit soon before it starts to draw a crowd.

605 Kearny Street, Chinatown



14. If you're looking for incredible ice cream creations, The Baked Bear is a place you have to try. The Bear Bowl is a special favorite: a warm cookie base topped with cold ice cream is a combination that can do no wrong.

303 Columbus Avenue, North Beach



13. Little Giant Ice Cream will satisfy any sweet tooth cravings with their funky flavors. Mexican Rocky Road and Dirty South have rave reviews, while the asparagus flavor is perfect for those seeking a little adventure (apparently, it tastes a bit like caramel).

214 Sutter Street, Union Square



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How to get a ton of food at Chipotle for under $5

The world's most renowned cuisine can't gain mainstream traction in America

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escargot

Something's missing in the US fast-casual sector.

Flashy and aromatic flavors found in Mexican food and Asian cuisine are proving immensely popular.

Even more adventurous fare, such as Middle Eastern and African, is on the rise.

But of all the varied and respected global cuisines, there's one glaring omission from the US restaurant market: French food, according to Nation's Restaurant News.

French cooking is renowned the world over; it's synonymous with fine eating.

And while there's certainly a strong market for upscale French restaurants, there's a conspicuous lack of fast-casual chains focusing on the courtly continental cuisine.

Why is this? What's the French misconnection?

There are a few reasons. Current trends lean toward the bright and exotic "ethnic" flavors of South American and Asian cuisine, driven by millennials' ongoing quest for spicy and authentic foods. Typically, the flavors of these cultures are quickly prepared and instantly recognizable.

duck confit

French food, conversely, is a tradition best enjoyed slowly. The tastes are mellow, rich, and luxuriant — savored languidly and cozied up to over time. Bouillabaisse and duck confit are meals that require time and attention that can't be properly served or enjoyed in a fast-casual setting.

Nor is a steaming plate of escargot the most practical choice for those looking for a quick and filling bite — a burrito is a more viable option. Grab-and-go has become the norm in casual American dining.

Of course there are a handful of exceptions. The café chain Au Bon Pain has met with national success, yet the menu is more broadly based in light American fare than anything truly French.

au bon pain

And Southern chain La Madeleine has made headway, expanding to 94 locations in 10 states and Washington, DC. But its service model is cafeteria-style and focuses on dining in, and the menu is something of a French-Southern hybrid — no snails here.

Also of note is that French cuisine, for all its oddities like frog legs and beef tongue, is not as exotic here as one may imagine.

French culinary customs are forever intertwined with American food, from steak sauces to apple pie, according to Bret Thorn of the Nation's Restaurant News. One can't run a kitchen without bumping into something lifted from the gastronomy of Gaul.

So for now, France's culinary appeal in the US remains decidedly high-end. After all, one can't expect fast-casual foie gras for the price of french fries.

SEE ALSO: Surprising fast-food items that contain a shocking amount of hidden sugar

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A restaurant where everything on the menu contains duck has just opened in London

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Duck burger

London loves poultry. The city is already home to countless chicken-only restaurants, and earlier this summer turkey-focussed restaurant Strut & Cluck opened in Shoreditch. 

Hot on the feathertails of these sites, a new restaurant serving only duck dishes has arrived in Shoreditch. 

The Duck Truck in Boxpark — which serves dishes including duck spring rolls, pulled duck burgers and duck fat chips — is the first bricks and mortar site from the team behind the street food van of the same name, which has been a festival favourite for the last few years.

The company was founded in 2012 by Ed Farrell — who has impeccable quackers-for-duck credentials, having previously worked on a duck farm — and Vernon Blackmore. 

The new restaurant serves some of the pair’s street food classics such as duck salad, duck wraps and duck scotch eggs, along with new dishes such as confit duck and duck breast steak.

Visit theducktruck.co.uk.

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Shake Shack will give out free burgers on Tuesday, but you'll need to get there early

The 10 best US cities for foodies, according to travelers

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Taste of Chicago Kebab

Let's be honest, traveling is just as much about the food as it is about the sights.

Travel + Leisure released its World's Best Awards for 2016, which are based on a survey that includes responses from thousands of experienced travelers.

Along with hotels, islands, and cities, Travel + Leisure ranked the 10 best places for food in the US. Some of the results are expected, but others are surprisingly out of left field.

Keep scrolling to see which US cities have the best restaurants and most innovative chefs — and no, New York City is not number one.

10. Portland, Maine



9. Portland, Oregon



8. Austin, Texas



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Times Square's infamous spring break-themed restaurant has mysteriously closed — take a look back on its glory days

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Senor Frogs New York

This week we mourn the loss of one of New York City's happiest restaurants: Señor Frog's

The New York location has unexpectedly closed, without a word as to why. Just one year after opening, the Manhattan-based location has abruptly shut its doors forever. 

Even the notoriously tough New York Times restaurant critic, Pete Wells, had a soft spot for the restaurant's sugary margaritas served in neon plastic cups, and food plated onto skateboards. "I had more fun at Señor Frog’s than at almost any other restaurant that has opened in the last few years," Wells wrote.

I went to Señor Frog's New York during its heyday, while the weather in New York was frigid and all I wanted was a spring break style party. Luckily for those Señor Frog's fans that just can't let go, there are still open locations in Miami, Aruba, Puerto Rico, and more. 

Ahead, a look back at an average night at Señor Frog's New York. 

SEE ALSO: Heidi Klum's Halloween party is one of the hottest tickets in town — here's what it's like inside

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On this particular Friday in January, there was a cover to get into the building: $5 for the ladies, and a whopping $15 for the guys.



The drink prices range from $11 to $62 for huge drinks that come with refills.



The "Froggy Rita" is a house favorite, made with Señor Frog's house tequila, triple sec, sweet and sour mix, and a choice of fruit flavors.



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Restaurants have started using 'living wage' surcharges to raise servers' incomes

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A waitress serves a steak and fried shrimp combo plate to a customer at Norms Diner on La Cienega Boulevard in Los Angeles, California May 20, 2015.  REUTERS/Patrick T. Fallon

Amid the push for restaurants to pay their employees a fair wage, certain restaurants are trying out a unique idea: Tack on a fee to customers.

Restaurants Unlimited, Inc., a national franchiser with 20 restaurants in 44 locations, recently started charging customers a 1% "living wage" surcharge.

And in New Hampshire, Hermit Woods Winery has started adding a 3.5% surcharge in addition to its $12/hour minimum wage.

The trend suggests a departure from the traditional conversation surrounding wages. 

While restaurant owners have felt compelled in recent years to hike up servers' wages, which normally are well below the hourly minimum because the difference gets made up in tips, some locations are seeing surcharges as another option for just compensation.

"Some of our employees are in school or just out of school and have college debt to pay off while others have families to support, two of whom are single moms," Bob Manley, co-owner of Hermit Woods, recently told Fosters. "If they're going to work hard to help us grow our business, we want to make sure they have the resources to afford to live."

But the group that has the most to gain from the strategy might not be as enthusiastic as hoped.

One employee at Henry's Tavern in Portland, Oregon, who chose to remain anonymous, told their local Fox station that the policy creates an uncomfortable interaction with their guests.

 "We're the frontlines and having to talk to the customers and explain what the charge is, even if we don't agree with it," she said. "Yeah, I'd like them to come down here and talk to the customers themselves." 

restaurant billIn 2013, a sushi restaurant in New York City made headlines for its radical departure from the typical restaurant business model.

Instead of paying workers well below minimum wage and expecting diners to make up the difference in tips, staff at Sushi Yasuda were brought on to the regular-wage payroll. Diners were told not to tip.

"Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore gratuities are not accepted," the restaurant started printing on its bills.

Restaurants Unlimited didn't immediately respond to Business Insider for comment, so it's unclear how many of its 44 locations have brought on the living wage surcharge, or whether it is an ongoing plan or just a temporary experiment.

Even if servers may reap the benefits of a living wage surcharge, customers may think they're essentially tipping twice — not an easy conversation to have during what they'd like to be a pleasant meal.

SEE ALSO: Some San Francisco tech workers have to spend half their salary on rent if they live close to work

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These are London's 9 best restaurants for doing business

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Octopus carpaccio at Scott's by Paul Winch Furness HR  (3)

Taking clients out for a working lunch or dinner is a crucial part of doing business.  

To help you navigate the minefield of business eating, Business Insider decided to take a look at the best restaurants in London for sealing a merger or crucial investment from a private equity firm.

We scoured the hugely well-respected Harden's London Restaurants 2016 and chose the places that the guide recommends for those crucial business meals.

The restaurants range from super luxe eateries in London's most exclusive postcodes to a hyper modern dining room at the top of one of the capital's tallest buildings.

So check out London's best restaurants for doing business:

 

9. SCOTT'S — Located in the heart of Mayfair, right next to the American Embassy, Scott's first opened in 1851. Expect discretion from the staff, and lots of very tasty, but very pricey seafood.



SIGNATURE DISH — Octopus Carpaccio with chilli, spring onion and coriander



8. THE DON — Right between Bank and Cannon Street tube stations, The Don is in a perfect place to pop out of your City office for lunch. Dishes include lobster risotto, roast mallard duck, and 42 day aged rib eye of beef.



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The 20 best US cities to live in if you love to try new food

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Maguro Brothers Hawaii

Trying new cuisines is one of the best things about traveling to foreign places. But depending on where you live, you may not even have to leave your neighborhood to indulge.

In a new report from online real estate database Trulia ranking the 20 most diverse dining destinations in America, we discover that some US cities have enough culinary culture to last a lifetime.

To compile its ranking, Trulia gathered data from Yelp on the total number of restaurants and types of cuisine (Thai, Caribbean, Chinese, Polish, Italian, etc.) in the 100 largest US metro areas. Additionally, as an indication of a booming culinary scene, Trulia took into consideration the amount of money people spent eating out at restaurants versus the amount spent at grocery stores. After combining all metrics, each metro area was given a final score out of 100 (read the full methodology here).

Perhaps unsurprisingly, large metro areas in California — the second-most ethnically diverse state in the country with more Latinos, Asians, and American Indians than any other state — took five spots on the list, including the top three.

Read on to check out America's 20 most diverse dining destinations.

SEE ALSO: The 30 best cities for foodies around the world

DON'T MISS: The best restaurant in every state

20. Houston, Texas

Final score: 61.9

Restaurants per square mile: 1.24

Types of cuisine: 83



19. Raleigh, North Carolina

Final score: 62.0

Restaurants per square mile: 0.87

Types of cuisine: 64



18. Miami, Florida

Final score: 64.0

Restaurants per square mile: 2.41

Types of cuisine: 74



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Celebrity chef Robert Irvine says these are the top 7 factors that determine whether a restaurant succeeds or fails

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robert irvine

Chef Robert Irvine has spent the past five years attempting to save 140 failing restaurants across America for the Food Network show "Restaurant: Impossible," now in its 13th season.

Of the 137 restaurants whose episodes have aired, 82, or 60%, have closed since their makeovers, according to the blog Food Network Gossip.

That's actually not bad, since these restaurants were so poorly managed that Irvine and his team only took the job if there was essentially a 100% chance of imminent failure.

In fact, according to a frequently cited study by Ohio State University on failed restaurants, 60% do not make it past the first year, and 80% go under in five years.

Business Insider recently spoke with Irvine, who shared his top factors that result in a restaurant thriving or flopping.

SEE ALSO: Celebrity chef Robert Irvine explains the top 5 reasons most restaurants fail

Attention to detail

In March, Irvine, his wife, and some of his colleagues arrived unannounced to one of his biggest "Restaurant: Impossible" successes, Dodge City Steakhouse in Harrisburg, Pennsylvania. "I walk into the refrigerator, straight in the kitchen — everything was exactly what I taught them to do," Irvine said. "Fresh food, stored correctly. I had the most amazing meal."

The one negative thing that caught his eye was an area of floor tile, which he wants replaced. The owners told him they were already on it.

Successful restaurant owners know that every small detail matters. To teach this point, Irvine likes to say that a Fortune 500 company would never have a receptionist at their headquarters who is rude or lazy, and so it's remarkable how often he finds restaurant hosts chewing gum and playing with their smartphone when he walks into an establishment.



Financial competency

Great food and service mean nothing if owners aren't properly managing money, and ensuring that their chef is ordering a sustainable amount of food.

Irvine said that it's unfortunately a common occurrence for him to ask owners of a "Restaurant: Impossible" location about their food and labor costs and how their revenue and profits stack up only to receive a dumbfounded look.

Another common mistake is that there's no system to ensure that numbers are kept up to date.

"One particular owner was so proud of himself for being able to report a 33% food cost until I dug a little deeper to see that his costs were based on old figures and that the cost of ingredients had risen significantly since he last did his calculations," Irvine said.



The owner's relationship with the staff

Nine times out of 10, restaurants are in better hands if the owners worked their way up through the restaurant industry hierarchy, Irvine said. It's typically easier for an industry insider to earn the respect of everyone from the line cooks to bartender.

Insiders also know how to better help the staff. "The more experience you have and the more jobs you've done in restaurants, the more you tend to understand the nuances of failure and where the systems can actually fail," Irvine said.

To succeed as an outsider, he added, it's necessary to set aside one's ego and learn how every function of the restaurant works.



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Here's what's dragging down the restaurant industry

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brunch lunch food plate yum restaurant

April 2015 marked a milestone for the restaurant industry: For the first time ever, sales at restaurants and bars surpassed those at grocery stores.

But while the trend has continued, the restaurant industry has been struggling, with at least one investment bank analyst warning of a “restaurant recession” — an industry-wide downturn that could portend danger for the economy overall.

Second-quarter earnings released in recent weeks showed disappointing same-store sales for many of the industry’s publicly traded chains, including Burger King, Chipotle, McDonald’s, Shake Shack, Wendy’s and Zoe’s Kitchen. Alongside weak same-store sales numbers, Ruby Tuesday announced earlier this month that it would close 95 restaurants.

Nation’s Restaurant News, a trade publication, reported recently that the slowdown in same-store sales is affecting almost the entire industry, with a 1.7 percent median drop in sales from the first to second quarters among companies that had reported earnings by mid-month.

Industry executives and analysts say that the turn in restaurant sales isn’t necessarily a sign of a broader consumer pullback, though.

It might just reflect a shift away from those large chain eateries. And analysts point out that restaurant prices have been rising more rapidly than those at supermarkets. Falling food prices at grocery stores may simply be prompting consumers to cook more and spend less money eating out.

“We have a value offering that continues to compete and draw customers into the restaurants, but when you look at what you pay, what you get on some of the core items, it's gotten a lot cheaper relatively speaking to go get fresh beef at your local butcher and go home and grill it,” said Todd Penegor, CEO of Wendy’s, in a call with analysts earlier this month.

Between July 2015 and July 2016, prices for “food at home” fell 1.6 percent, while prices for “food away from home” — from full-service restaurants, fast food, delivery and take-out joints, concession stands, buffets, cafeterias and even vending machines and mobile vendors — rose by 2.8 percent, according to the Bureau of Labor Statistics.

The steepest drops in grocery store food prices were for meats, poultry, fish and eggs, while fruit and vegetable prices edged up 1.4 percent. The gap between supermarket inflation and restaurant inflation is at its highest point since 2009, according to analysts at investment bank Cowen and Company.

That helps explain why, since the beginning of the year, the gap in sales growth between restaurants and grocery stores has widened, according to MillerPulse, a nationwide restaurant industry data and benchmarking firm. “As grocery prices have gone down and restaurant prices have held firm, you’ve seen a decrease in traffic in restaurants,” says Larry Miller, founder of MillerPulse.

A man enters a McDonald's restaurant in Singapore July 25, 2016.  REUTERS/Edgar Su

Restaurants, says Miller, aren’t easily able to hold prices down because they face rising labor costs driven by minimum wage hikes in many parts of the country. The sector employees more minimum wage workers than any other.

In addition, some industry watchers argue that grocery stores could be cutting into restaurants’ market share by increasing the quality and range of prepared foods. “Five years ago, it was meatloaf with mashed potatoes and peas on a black plastic plate that you came home and microwaved,” says longtime food industry analyst Phil Lempert, founder of supermarketguru.com. “Now it’s gone way past that to a point where supermarkets are on a daily basis offering specials the same way that you would see in a restaurant.”

Lempert says restaurants are now competing with “grocerants,” or grocery stores that offer prepared meals, often with seating areas inside the stores. Some of America’s leading grocerants include Mariano’s in the Chicago area, Shoprite and Wegmans, he says.

Still, the outlook for the consumer isn’t completely clear. Hudson Riehle, senior vice-president of research for the National Restaurant Association, stresses that consumers are being cautious about spending.

Penegor, the Wendy’s CEO, also suggested that economic uncertainty, including uncertainty around the presidential election, has weighed on consumer spending at restaurants. “When a consumer is a little uncertain around their future and really trying to figure out what this election cycle really means to them, they're not as apt to spend as freely as they might have even just a couple of quarters ago,” Penegor said on the company’s second-quarter earnings call.

Regardless of the challenges restaurant operators face, Lempert suggests they must from the success of grocerants and pay closer attention to customer preferences to stay competitive.

“What restaurants need to do,” he says, “is really understand what pricing needs to be, what people are looking for in terms of a dining experience and be able to offer something unique.”

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One of New York's best Chinese restaurants is preparing for a major expansion

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Xian Famous Foods 11

TimeOut US recently named Xi'an Famous Foods the second-best Chinese restaurant in the US, and now hand-pulled noodle spot is reportedly planning to expand.

According to Eater NY, the New York City-based chain (pronounced "she-ahn") has purchased a central kitchen in Queens that could help support the chain's ambitious expansion plans up and down the East Coast.

Xi'an's northwestern Chinese food has enjoyed a lot of attention since it launched as a food stall in the basement of a mall in Queens. The likes of Anthony Bourdain and Bobby Flay have given it their thumbs-up.

Since 2005 the chain has grown to 11 (soon to be 12) locations throughout New York City, and is proving to be incredibly popular. Xi'an also landed on Zagat's first "11 Hottest Fast-Casual Chains" list, further proof of its rapid rise to fast-casual stardom.

It may just be popular enough to take on a larger market and bring real Chinese fast-casual to the Panda Express fast-food market. Here's what it's like to eat there.

SEE ALSO: We visited the burger chain that's embroiled in a 'David and Goliath scenario' with alleged copycat Chipotle

NOW WATCH: How a son turned his dad’s food stall into the #2 Chinese restaurant in the US

I visited the 34th Street location, right off 5th Avenue, steps from the Empire State Building.



One wall near the register is dedicated to the numerous celebrity foodies who have visited. The chain has quite an impressive fan base.



The menu is simple yet enormous. There's an amazing assortment of meals to choose from for such a no-frills establishment.



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We tried Boston Market's new chicken Marsala, but it did not compare to the classic rotisserie

Here's all the amazing food you can eat at the US Open this year

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Clothes-line-bacon

For some, the US Open is about tennis. For others, like me, it's about food.

And let me tell you, there are some pretty fancy food options this year.

I attended a press preview last week of all the grub available to ticket holders, and the list is impressive. There's everything from fried chicken to sushi, plus plenty of cocktails to keep the good times rolling.

After sampling a lot of food (like, a lot) I can tell you that if you're lukewarm on sports but love food, and a friend is asking you to puh-leez go with them to watch some tennis, you should go. If nothing else, you'll eat very, very well.

Check out what I stuffed my face with below!

First up: a loaded bulgogi bowl

Food truck turned restaurant Korilla started things off with a delicious bulgogi bowl, made with rice, corn, kimchi, and other goodies. I devoured it immediately.



Clothes line bacon

Clothes line bacon. Genius! It was really tasty, too. It was broiled with lots of seasoning and some sugar for a nearly candied result. I ate two.



Country crepes

Tennis and crepes are both sort of fancy, so this makes sense to me. Having said that, I couldn't actually find a crepe of sample. So sad.



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