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Long term thinking helps ride out the crisis says Sam Kazzaz (Photo Ray Buthcer)

Around this time of year, restaurant owners in coastal resorts would normally be seen sprucing up their establishments, awnings torn down by winter winds replaced, chairs and tables repaired, the air redolent with the smell of freshly applied paint. Everything was being made ready to welcome in the tourist season, which officially kicks off in April.

Walk around some of the more popular tourist areas though and you now sniff the dubious aroma of desperation as many establishments still have doors firmly closed after what was, for many, a disastrous 2009 summer season.

According to president of the Paphos restaurant owners association Fitos Thrassivoulou, “Most restaurants in Paphos stayed open until mid November to see if business would pick up and they could make it through the winter. But sadly many had to close; this isn’t out of choice but necessity.”

And the Vice President the Cyprus Chamber of Commerce, Ilias Milianthou has expressed concern over the drop in visitor numbers to Paphos. “We can forecast that there will be a drop in visitor numbers to Cyprus for 2010,” he has said.

The question now being asked is ‘Who will still be in a strong enough position to once again open for business? Will establishments find properly trained staff and be able to pay them the going rate? Will they be able to rework their business plan to take into consideration the drop in both incoming traffic from tourists and the demise of the once thriving local expat trade? Can they realistically adapt to the changes that have been forced on them and will venues ever be able to extend their creativity to both pricing and food?

The basic aim of every restaurant should be to serve good quality, good value food and always keep the punters happy; it’s not that complicated but is still a sum that is very easy to get wrong.

The clever pricing of dishes is critical and even more so when trying to keep a business afloat during a recession. The cost of each dish served in an average restaurant is generally calculated on 70 per cent gross profit, with 30 per cent of the charge going to cover ingredients. The balance covers overheads such as staff costs, bills, VAT and actual profit. One also has to keep in mind that even in a recession, fuel and food prices have risen in the exact same manner for restaurants as for their diners.

There is no doubting the quality of the cooking or the keenness of the pricing at one successful restaurant in the tourist dependent village of Pissouri. Here in 2005, Sam Kazzaz opened his Limanaki restaurant and over the years he has implemented and nurtured a long-term plan that he believes is the cornerstone to running any successful restaurant and the reason he is weathering the current storm.

“What I do in my restaurant isn’t rocket science its just good business practice,” he explained “but there has to be total commitment to the basic philosophy or else the formula will never equate. I consistently invest in three very clear directions: first, the regular investment in new restaurant items according to the change of the menu and from the comments made to me by my customers.

“Next I invest in my customers - it’s got to be a mutually beneficial situation as they have always supported me in the past. I now try to support them by keeping prices reasonable. Regular diners now enjoy personal loyalty cards which entitle them to genuine benefits every time they dine here”.

The loyalty card entitles holders to a 15 per cent discount on food at lunch time and 10 per cent in the evening when choosing off the Main Menu or ordering Mediterranean Lebanese Meze. All accompanying guests are included in the offer.

“Last but by no means least, you have to invest in your staff; we are probably one of only a handful of restaurants who don’t change them on an annual basis, with most having been with me since the day we opened. My job may well be that of ‘boss’ but I retain them by making sure they feel part of a team. My understanding of being the boss is to be the one who guides, rather than shouts at staff. Their personal welfare also concerns me and I will always take care of them, in return they treat both me and the customer with respect and professionalism.”

To this end Sam pays for staff health care needs and makes sure each member of staff takes time off to be with their family. He also gives on the spot training if any of them wish to move up in addition to arranging their accommodation and transport.

So it all comes down to commitment and not being in it for a fast buck. “If you love the profession and manage to make your diners feel that they are at home whenever they walk in the door then, and only then, can it be said you are doing things right for everyone. In the end, everyone, including the staff, yourself and customers will be in a win-win situation as a direct result of that constant level of commitment”.

An example of how not to do it though was clearly seen this week in the tourist area of Paphos, which advertised the following: ‘Recession busting food, home made Chicken Tikka Lasagne, with Chips, Peas, roll, and a pint of local lager. €12’.