Economic crisis does not hold back South End restaurants

By Kate Klinck

He knew the economy was in a major slump, but he also knew he had all the ingredients for a personal bailout plan.

When Malcolm Aalders opened the restaurant Circle: Plates and Lounge last month, he did not hesitate when the economy worsened.

“For me, it was a drive to push to make sure everything I make is of the best quality as possible,” Aalders said. “Even if people only go out once every two weeks, I want them to come here because it’s affordable dining. It’s the same caliber as what most people get who spend $50 a plate.”

As the slowing economy forces some city restaurants to close, several have recently opened in the South End, such as Circle: Plates and Lounge, the Savant Project and Sage. The new businesses are finding ways to survive, despite difficulties such as rising costs of staple products such as flour and fewer customers who are more likely to order a drink at the bar than a three-course meal.

Peter Holm, the general manager of Sage Restaurant, which recently moved from the North End to the South End, said they have made some changes to the menu because people want to spend less.

“We expanded the menu to do half pastas, and stuzzi, an Italian version of Tapas,” Holm said. “People can order three or four to share.”

Holm also said the price for commodity items such as flour are also rising.

“Funny, where high end places used to give you a bread basket, they are less inclined to do that now,” he said.

The Boston Restaurant Group’s sales are down 25 percent, said Charlie Perkins, the owner of the real estate agency.

Currently, approximately 25 restaurants are for sale through the Group. Perkins predicts he will sell about 35 restaurants this year, where as last year he sold 45.

The Savant Project opened 15 months ago in the South End. Benny Kraines, owner of the restaurant, said business for them has not suffered tremendously.

“September was a little weird with the financial crisis and no one going out, but that passed,” Kraines said. “We didn’t change anything directly through that, but we had a few financial crisis specials on the menu to capitalize.”

The Massachusetts Restaurant Association, a non-profit dedicated to helping the food and beverage industry, has not seen a drop off in members.

“We’re actually adding members,” said Nick Spidalieri, the director of membership services at the association.

“We provide information to folks about health insurance and cheap services for gas and electric. We try to help them save money in whatever way

possible.”