Andrew Abruzzese who has owned a historic Pennsylvania tavern for three decades and is known for its affordable meals, is experiencing a significant decline in business as the economy has forced consumers to cut back on spending.
The Pineville Tavern, a staple in Pineville since the 1700s, has weathered several challenges under Abruzzese's ownership including economic downturns such as The Great Recession, and the COVID pandemic that temporarily forced the tavern to halt operations.
Despite these hardships, Abruzzese told FOX Business the tavern "actually did a little better than others because we were affordable, and people knew they could get a good meal and not pay an arm and a leg."
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Today, the family-run business, founded on a mission of serving started with serving dinner for families of four for under $40, is confronting something they have never experienced: a dramatic drop in customer traffic.
Fewer customers, combined with the higher costs of doing business, has created a significant challenge. There is no foot traffic in the area, so they have been relying on their regulars who have been bringing their family and friends for years.
"When it costs more to do business, than you take in, it’s unsustainable," he said. "We try to keep a positive attitude in front of the staff every day, but when it comes time to pay the bills, and there isn’t enough money to do that, you can only imagine how we feel.
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Over the past year, Abruzzese's lunch rush has been less than half of what it was in 2022. Meanwhile, the dinner rush is approximately 10% to 15% less than what it was in 2022, he said.
"We still have the same fixed costs and expenses as we did when we were doing 25% more in revenues," he added.
"Our staff, especially our lunch crew, would always have a bright look on their face and a big smile. Now, it seems like they’re forcing a smile," Abruzzese said.
Abruzzese has 66 staff members, and he has had to cut down on the number of shifts and hours for all of them.
The 35 of them who work off tips are getting hit the hardest. Not only do they have fewer shifts, but "when they do work, their tips are half of what they used to be" given the decline in foot traffic, he said.
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Abruzzese isn't worried about the higher operation costs, saying they have been managing that for years.
Your "creative business skills and experience teach you how to handle that. But what we can't handle and what is really causing the recession in the restaurant business is the dramatic drop in revenues, the dramatic drop in people that are going out to dinner," he said.
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With the particular strain on consumer wallets today, a recent nonprobability survey conducted by LendingTree found 78% of consumers now consider fast food to be a "luxury" purchase due to how expensive the meals have become.
Half of those polled said they view fast food as a luxury because they’re struggling financially. This is especially true among Americans who make less than $30,000 a year (71%), parents with young children (58%), and Gen Zers (58%).
FOX Business' Breck Dumas contributed to this report.
