'Mom and Pop' restaurants feel the pinch in a tough economy

by John Paul (jpaul@wsbt.com)

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Hensell's Oaken Bucket

Vickie Narkawicz serves customers at Hensell's Oaken Bucket in South Bend. (WSBT photo)

By WSBT News1

Story Created: Aug 12, 2008 at 1:59 PM EST

Story Updated: Aug 17, 2008 at 9:27 PM EST

SOUTH BEND — The economy is affecting just about everyone, but smaller businesses, especially restaurants, are feeling the pressure.

Larger chain restaurants can afford a million dollar advertising budget and spread the costs out over all of its restaurants. But smaller "mom and pop" shops have a different strategy to stay in business.

Vickie Narkawicz walks from table to table to assist hungry customers during the lunch rush at the Oaken Bucket. The growing number of patrons filling the seats on the patio keeps the waitress staff busy.

The food is always fresh at the restaurant but the stale economy takes a big bite out of the restaurant's bottom line.

Owner Diana Hensell said, "We try to keep our prices reasonable which is hard right now because our costs have gone up with produce and dairy products and so on."

Narkawicz added, "People are getting out less than what they used to."

It's not just the owners feeling the pinch. Tough times are affecting the servers ... and their tips.

"Straight across the board it's 15 percent," said Narkawicz. "Sometimes people can be more generous, but lately it seems people have been sticking strictly to 15 percent."

Customers, they're more likely to order specials and fewer items, doing their best to watch their money.

"Maybe we've cut down on a couple of days per week," said John Bencsics. "We used to go out almost every day of the week."

While much of the seating is outside along the St. Joseph River, and waterfalls set the dining experience at Oaken Bucket apart from others, new restaurants arriving to the Michiana area make competition for customers and their dollar challenging.

"It's just more of a variety of places for people to go," said Narkawicz.

Since business is good, Hensell says, she'll stay optimistic. "I'm hoping that we can ride this out, and everything will be OK. I'm very optimistic."

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