Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Home › Business › Retail

Growth predicted for Colo. restaurants

Population gain, income expected to aid industry

By Joanne Kelley, Rocky Mountain News (Contact)

Published December 19, 2008 at 12:51 p.m.

Text size  

More Retail

More stories »

Colorado restaurant sales likely will grow at the third-fastest pace in the nation next year, according to the industry's annual forecast.

The state's population gains, as well as its high ranking for disposable income, will buoy eateries during a tough economy because both factors have a strong influence on restaurant growth.

Slightly higher prices for menu items could also contribute to an expected sales boost of 3.4 percent to $8.4 billion in 2009, according to the survey from the National Restaurant Association.

"Colorado restaurants will fare much better than restaurants in most other states in 2009," said Peter Meersman, president of the Colorado Restaurant Association. "While most of this growth will be fueled by modest menu price increases, we are better off than 46 other states."

The data showed Texas posting the fastest sales growth, followed by Nevada.

The report tied Colorado's expected gains to forecasts for the state's disposable income to increase by 1.4 percent in Colorado. The state's population also is expected to increase by 1.4 percent, which would tie for eighth highest in the nation.

So-called fast casual restaurants such as those franchised by Denver-based Quiznos are helping to fuel growth, according to restaurant consultant William H. Bender.

He predicted that falling gasoline prices would encourage people to continue traveling and dining out, even during the economic downturn.

The report included data showing Colorado would experience a smaller payroll decrease than most other states even though 49 states will likely experience job losses.

Top five states for sales growth in 2009

1 Texas 4.0 percent to $35 billion

2 Nevada 3.5 percent to $5.2 billion

3 Colorado 3.4 percent to $8.4 billion

4 New Mexico 3.3 percent to $2.7 billion

5 Arizona 3.2 percent to $8.7 billion

Comments

  • December 20, 2008

    6:09 a.m.

    Suggest removal

    44roger writes:

    catch 22, falling gas prices encourage people to go out, then more use of gas causes prices to go up, and you're back where you started. people drove far fewer miles when gas was up, now they will drive more and up it goes, has already started.

  • December 20, 2008

    7:09 a.m.

    Suggest removal

    SanctuaryCity writes:

    The dishwashers are leaving

  • December 20, 2008

    7:11 a.m.

    Suggest removal

    OneFly writes:

    This is BS. Not going to happen.

  • December 20, 2008

    7:54 a.m.

    Suggest removal

    fender_man writes:

    I hope she is right. We need some good news. Restaurants are a vital part of Colorado's growth.

  • December 20, 2008

    8:18 a.m.

    Suggest removal

    SheikYurBooty writes:

    2 more restaurants just closed in Parker this week alone. You'd have to be crazy to open one up now...

  • December 20, 2008

    9:26 a.m.

    Suggest removal

    johna writes:

    I used to be in the resturant business in Colorado and trust me the business is going to suffer like everything else. I used to belong to the resturant association and they are pretty much worthless.

  • December 20, 2008

    10:28 a.m.

    Suggest removal

    KelcyCo writes:

    What is she smoking? More disposable income? Oh, I get it. When folks go into foreclosure and their monthly payment is cut in half as they are now renting a two bedroom apartment then they will have more disposable income to go out to eat. Kind of discounts all those folks that have been laid off this year though.

    Why would RMN print such a bizarre article? Is there some government propaganda machine out there putting these article out in the press with the thought being if we hear it often enough we will believe we are all having a great time?

    Alice through the Looking Glass.