Informational Interview

I interviewed Steve Efstathiou, owner of three diners in New York and Virginia. The interview was very helpful in understanding the competition in the restaurant industry. Mr. Efstathiou informed me that the industry is very competitive. The increase in national chains, for instance, Chinese and Italian chains, has made it hard for diners to gain support, especially with the economy how it is now. He said the restaurant industry was hit hard five years ago and he has seen a turnaround this year that he expects to last into the future. To gain consumers, restaurants must differentiate themselves from others. The main way restaurants differentiate themselves is by pricing. Offering 2 for the price of 1 meals, and discounts draw consumers in. I mentioned the high demand of diners in the area, especially around the college where students see many diners in their hometowns, and he said that he would love to open one around the school but property prices are way too high. This is very important to consider when opening a business since you need to be able to cover your costs.