Restaurant Chains Try Downsizing Portions

According to a New York Times story, some big name chain restaurants are looking to offer smaller portions, reversing a good decade of dedication to the proposition that all things should be created in larger portions for more money. The trick was that the restaurants increased prices proportionately more than their per-meal food costs, so everything became more profitable. Friday's is trying this because it's been experiencing a business slump, attributed by the article to increased gas costs making trips more expensive and fast food restaurants improving the quality of their food. (And could someone please point out a case where this is actually true?)

There are two concerns restaurants have faced on such moves in the past: disastisfied customers feeling that the weren't getting what they should be and lower average check prices, which means less profit. So the chain is dropping prices about 20% for 30% less food. According to the article, "Though the campaign is only a few weeks old, Mr. Snead says the early numbers show that the smaller margins on the Right Size portions have so far been offset by higher traffic."

Let me get this straight: more people are coming to eat less? The article quotes some studies that suggest people think portions are too big at restaurants. Then again, it may be that, like sex, when it comes to talking about food, people lie. And then again, perhaps the increased traffic is due to heavy advertising for the new program that attracts people who might ordinarily not have come.