The Three Brothers Diner has been serving the Danbury, Connecticut community for the last 50 years. The family-run business, which is managed by Stanley Kallivrousis, has navigated economic uncertainty before, including the 2008 recession and the COVID-19 pandemic.
However, it is the decrease in consumer sentiment that’s now plaguing the Danbury hotspot.
“People aren’t as jolly as they used to be,” says Kallivrousis, who’s noticed a decrease in foot traffic over the last few months and a change in eating habits among those who do come in.
“People are sharing things a lot more than they used to. Nobody leaves any leftovers at all. People are taking everything home. You’re noticing they’ll have water or a bowl of soup or have an English muffin. Whereas they used to get a full breakfast.”
According to The Conference Board’s Consumer Confidence Index, consumer confidence dropped 7.9 points to 86 in April, a level which has not been seen since the onset of the COVID pandemic.
According to the National Restaurant Association, 57% of restaurant operators said their traffic declined in March, down from 66% in February.
With fewer customers, Kallivrousis has paused expanding, including adding staff, and the uncertainty around business has made retaining the staff that he does have difficult.
“Some of the best cooks I know drive for Uber now,” says Kallivrousis, who has seen workers leave the restaurant workforce for the flexibility that accompanies the gig economy.
According to the National Federation of Independent Business, 34% of small business owners reported job openings they could not fill in April.
Economic uncertainty
John Samuels serves as a Partner and Managing Director for AlixPartners, a business consulting group that helps companies react to changing consumer behavior. According to Samuels, “companies are scrambling” for what’s “shaping up to be a full-blown crisis,” with many having to make decisions using “imperfect information.” For some companies, that may mean canceling orders or raising prices.
A recent survey given by AlixPartners reveals that 70% of corporate executives expect to raise prices. The change comes as companies plan to absorb the large cost of tariffs on their goods. Samuels says that companies, in addition to pulling back on hiring, are “pulling back on capital investments and on infrastructure investments.”
There is one bright spot. The price of food has remained relatively steady since January.
Diner staples, including tomatoes, bread and chicken saw flat or decreasing prices, while a dozen eggs are up 26%.
Despite all of the uncertainty, Kallivrousis says that running the Three Brothers Diner is about more than just food and profits. It’s a place for the community to come together.
“I know the overwhelming majority of all my customers,” says Kallivrousis. “They still keep coming out and supporting. We’re a part of the routine. I think that’s the best part about the whole business. Sometimes that is the whole business.”
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