Restaurants get whacked

It's been a rough few months for chains like Calabasas-based Cheesecake Factory and L.A.-based California Pizza Kitchen - and why wouldn't it be? With $4-a-gallon gasoline, consumers are being careful about discretionary spending - as in shelling out $50 for a quick bite with the kids. “The rising price of crude is a detriment to the consumer. It's not that big in terms of absolute dollars, but the psychological impact is hurting sentiment,” said Bucky Hellwig at Morgan Asset Management (LABJ). The stock market took it on the chin again today and restaurant issues were especially hard hit. Cheesecake was down 6.4 percent and CPK was down 5.3 percent. The NYT just posted a wrap-up of consumer frugality.

For many people, higher energy costs mean fewer restaurant meals, deferred weekend outings with the kids, less air travel and more time closer to home. Big box retailers are suffering as customers balk at driving to the mall, airlines have slapped on steep fuel surcharges and carmakers have seen their sales slump. On Thursday, the Ford Motor Company announced production cuts because of sharply lower demand for sport-utility vehicles and pickups. In Los Angeles, Ron Lowe and his wife, Patricia, spend more time at home on weekends, hanging out and barbecuing. They are also more likely to leave their house together now, scheduling fewer car trips and bundling their chores to cut the gas bill. “If I go to the grocery store, and the mall and pick up some prescription, I do it in one shot,” he said.