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French restaurants hit by economic gloom

  • Story Highlights
  • 3,000 restaurants in France have gone bust in first quarter of this year alone
  • Number of restaurants going bankrupt rose 25 percent over last year
  • Restaurant and bar owners seeing fewer international tourists visiting France

(CNN) -- The global economic downturn is taking its toll on gastronomic traditions in France where 3,000 eateries are reported to have gone bust in the first quarter of this year alone.

Unions in the country, which is like many suffering from a sluggish economy, are predicting many more closures of restaurants, bars and cafes as diners worry about paying the bills.

Le Figaro newspaper reported that the number of restaurants going bankrupt increased by 25 percent compared to last year, while 56 percent more cafes were forced to close in the same period.

Instead of their usual steaks diners are increasingly choosing cheaper beefburgers, with restaurant chain Hippopotamus reporting a three-fold rise in sales of "steak haches" compared to last year.

Le Figaro's restaurant critic François Simon said French consumers' frugality was changing habits and pushing restaurant owners to the edge.

Perhaps heeding the plea of President Nicolas Sarkozy, who came to power last year urging the French to curb their long lunches, diners are now avoiding aperitifs and starters, even drinking tap water instead of wine.

Daniele Deleval, vice president of the UMIH restaurant and hotel union, told The Guardian: "We're very worried. Since the start of the year, the number of restaurant customers has dropped on average 20 percent and we're seeing no signs of improvement."

Jean Guillaume, owner of Le Bouquet brasserie on Boulevard Haussmann in Paris's chic 8th arrondissement, added: "Lunch customers used to order a main course, dessert, coffee and a bottle of wine. Now they're limiting themselves to a main course, tap water, and giving up the rest.

"Of 75 customers in this lunchtime, none had a bottle of wine ... It's the end of a tradition of lunching out and it looks like figures will stay this low for two to three years."

Restaurant and bar owners are also reflecting on a poor summer with fewer international tourists visiting the country partly due to the strong euro.

 
 
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