RETAILERS: TAKEOUT VARIES IN THIS WAR

Roseanne Harper

NEW YORK -- During the last Gulf War, many retailers and restaurants saw carryout sales soar, but this time it's a mixed bag.

Indeed, retailers told SN last week there are numerous factors, besides the war, that could be causing upturns or downturns in takeout sales. The one thing that's clear is there's no definite pattern, as there was during the 1991 Gulf War or after the Sept. 11, 2001 terrorist attacks.

Other reasons include the late-season Easter and Passover holidays, the economy, the weather and in some cases, the implementation of desperate-measure specials to boost long-lagging sales.

"Some of it could be the war, but the timing of Easter could be a factor, and also our competition has some troubles. The net result is good sales for us," said Dale Riley, chief operating officer, for eight-unit Kowalski's Markets, Woodbury, Minn.

At Rouse's Markets in Thibodaux, La., Donald Rouse, president/co-owner of the 15-unit independent, sees the war playing a big part in keeping sales pretty healthy.

"With the war, not only is there more takeout from deli, but the trend is not to eat out so much at times like this, so that enhances the entire business. People can be home watching the news even if they're cooking. If they went out to a restaurant, they'd miss three hours of evening news," Rouse said.

Churchill's Market, a single-unit, upscale retailer in Toledo, Ohio, has seen an upswing.

"It is hard to gauge the war's effect since we're only three weeks into it; our overall sales are up, particularly in prepared foods. But I have no tangible proof it's because we're at war," said Bill Stimmel, vice president of Churchill's.

Jimmy Higdon, owner of Higdon's Foodtown, Lebanon, Ky., said his hot-table sales are way up, but he gives most of the credit to midweek specials he launched earlier -- like a special for seniors on Tuesdays and a specially priced, family pack of fried chicken on Wednesdays.

"Midweek sales had gotten really ugly. We had to do something. The specials got meals sales up, and they're actually bringing more people into the store."

People are just afraid to spend money because of a lot of things, said Richard Travaglione, vice president, deli/meat, at nine-unit Morton-Williams Associated, Bronx, N.Y., with stores in Manhattan, where hot-table business is normally brisk.

"Our deli/hot-table sales are down, but meat sales are up nearly 2%. That's not prime rib or racks of lamb. They're going back to basics, making pot roast," Travaglione said.

And out on the West Coast, Tidyman's, Greenacres, Wash., hasn't seen any difference in sales of deli takeout, but Glenn Hedlund, director of perishables at the 22-unit chain, said the war is having a negative effect on overall sales.

Restaurant takeout sales aren't getting a boost either like they did in 1991. The NPD Group, Port Washington, N.Y., which tracks restaurant sales, expected to see a hike with the war, said Harry Balzer, NPD vice president, because during the first Gulf War, restaurant takeout zoomed up 7%. Not so this time.

"There's no difference in the [long-term] trend. It continues to be down," he said.