Food costs making Woodland restaurant business tougher

This past year could have been kinder to Woodland restaurants.

Ruby Tuesday's and the Capital Saloon & Grill both locked their doors and left town as the city continued its sluggish climb out of the recession.

Those closures came after the October 2010 shut-down of Morrison's, a decades-long Woodland institution.

Now, as the city enters 2012, the local restaurants face fresh challenges originating as much at the supermarket as they do with attracting diners.

Eggs, milk, coffee and meat have all gone up in price, increasing expenses for restaurateurs even as they struggle to draw customers.

"Basically what it boils down to is that there's been a strong demand worldwide for a number of products, grains and meats

Edna and Carla Bohon make preparations for the lunch rush at the Fat Cat Cafe in downtown Woodland. (Deo Ferrer/ Democrat)and other foods," said Dave Kranz, a spokesman for the California Farm Bureau Federation.

Food costs are expected to rise worldwide, not only because the population is growing, but because the standard of living is growing in what used to be third-world countries like India and China. As the country of those economies improves, so do the appetites of their residents, who, with their disposable income, are buying foods that were once considered a luxury.

Their demands put a greater strain on the grains and plants needed to feed poultry and cattle, driving up the cost of eggs, meat and dairy. The same demands mean more exports for American meats: Last year, the United States set a record for exported meat -- only to beat it again in 10 months time, Kranz said.

These problems have been further compounded by a continued drought that's hit the center of the country, further driving up the cost of cattle, he said.

"There's been extreme weather conditions around the nation that have further compounded the issue ... Primarily the drought in the plain states Texas and elsewhere," Kranz said. "They've had a significant problem there."

The problem, of course, doesn't just affect restaurants. It's more expensive to put everything from peanut butter to eggs and milk on tables at home.

But restaurants have it doubly tough as they try to attract patrons while managing costs to stay in business. New restaurants, of course, have opened, such as Maria's Cantina, but others are facing tough times and may not survive.

But there is some good news: At the Fat Cat Cafe, the mother-and-daughter team of Edna and Carla Bohon have been serving up coffee and sandwiches for eight years. And in spite of the recession, the last year has been good to the tiny cafe.

The family estimated customer service has jumped up to pre-2008 levels, even as the same prices eat into their profits -- though what used to be a $50 order now runs up to $70, even as the Bohon's bounce between grocers, looking for the best prices.

The price jumps also come just as Edna Bohon is preparing to leave her business, passing it onto either her daughter or a buyer. She plans on opening "The Cup and Spoon" soon, instead -- a dishware store she's described as a kind of "retirement job" for herself and her husband.

At the longtime local barbecue restaurant, Ludy's owner Paul Ludovina also counts himself one of the lucky ones.

He said he had noticed higher food prices throughout 2011.

Yet with the restaurant's loyal clientele, and a reputation that stretches back 17 1/2 years, he said Ludy's had been able to cope with the costs by increasing their prices by as little as 2 percent.

"We kind of hold our own, because we've been here a long time," he said.

"We've been one of the lucky ones," he said.