When you think about penny pinching what gets cut first? Coke and strippers, shoes for every occasion, electronics, and of course eating out. Restaurants across the country are beginning to see the fallout from the market, increasing food prices, and substantial loss in customer turnout. In New York it’s unclear how much of an impact there will be. Over at Chow, the kids are talking. I had to ask too, have you cut your restaurant/bar budget or changed your diet? Are you seeing increases in entree prices or pre fixes? Or more happy hours and value meals?

The New York Times reports that upscale restaurants in Miami, Chicago, and Los Angeles have experienced traffic dropping by 10-20% in the last few months. When customers do come out, they are drinking less wine and sharing meals. In the recent Q&A with Frank Bruni, the critic speculates that the economy impact will affect the mid-level restaurants the most, but that New York is (hopefully) too large and diverse a city see a major hit in restaurant-goers.

The New York Times also reported on the introduction of savings and value-driven ad campaigns from big players. Anticipating the shift to home cooking, KFC launched the “KFC $10 Challenge” to suggest that Americans cannot find (or make, in this case) a meal of better value than theirs. Their level of disgusting is unparalleled. Here’s another opinion.

USA Today reports on the price hikes in wholesale foods affecting restaurants, especially the larger chains, that may affect our menu choices in 2009. Some chains, like Chipotle, are cutting their costs in hopes to keep customers, while others like Chili’s are increasing prices on the basis that they are still cheaper than the independent restaurants.

On Oct 3, the restaurant industry published a statement on the government’s actions and its positive affects on the reported “13.1 million employees in almost one million locations nationwide.”

On a funnier note, Spam, the food for troops during the war and dubbed “The Miracle Meat” is now back in vogue.

As well, I’ve seen tons of questions regarding what people ate during the Great Depression. During times with little extra money, people processed food themselves. They bought cheaper cuts of meat, used scraps in stocks, and made a lot of soup. They pickled and preserved ingredients, used whatever they had in one dish meals (like casseroles or stuffed pies), and made things like pudding for dessert. Growing and garden were also a huge help. During the ware they accounted for 40% of the produce people ate.

My advice? Support the restaurants you love and those that give good values so they will stick around. Don’t freak out. It’s pointless and will only prevent you from getting any nutritive value from the food you just stressed over.

Eat frugally. The average person throws out at least 20% of the food they buy. Learn to process foods like chicken yourself, from start to finish. Enjoy meals and wine at home. Have a dinner party. Cook more foods that use spices instead of fresh herbs. Purchase groceries only from companies and grocers you trust.

MOST IMPORTANTLY, do NOT take the KFC challenge or let anyone you know start eating fast food. Don’t take out the economy’s crash on your own body. It’s not your kidneys’ fault.

Photo by Thomas Hawk.