How one diner is navigating economic uncertainty in Danbury, Connecticut

The Three Brothers Diner, a beloved establishment in Danbury, Connecticut, has been a staple in the community for the past five decades. Managed by Stanley Kallivrousis, this family-run business has weathered various economic challenges over the years, including the 2008 recession and the recent COVID-19 pandemic.

However, the current issue plaguing the diner is a decline in consumer sentiment. Kallivrousis has observed a decrease in foot traffic and a shift in eating habits among patrons. He notes that people are now more inclined to share dishes and take leftovers home, opting for lighter meals like soup or an English muffin instead of a full breakfast.

Recent data from The Conference Board’s Consumer Confidence Index indicates a significant drop in consumer confidence, reaching a low of 86 in April, a level not seen since the start of the pandemic. Similarly, the National Restaurant Association reports that 57% of restaurant operators experienced a decline in traffic in March.

In response to the decrease in customers, Kallivrousis has put a hold on expansion plans and struggles to retain existing staff. Many workers have left the industry for more flexible opportunities like driving for Uber, contributing to a labor shortage in the restaurant sector.

Economic Uncertainty

John Samuels, a Partner and Managing Director at AlixPartners, warns of a looming crisis as companies navigate changing consumer behavior with limited information. Many businesses are considering raising prices or canceling orders to offset the impact of tariffs on goods.

A survey conducted by AlixPartners reveals that 70% of corporate executives anticipate price increases to cover rising costs. Despite these challenges, the cost of food items like tomatoes, bread, and chicken has remained steady, with only a 26% increase in egg prices.

Despite the economic uncertainty, Kallivrousis remains committed to serving the community through Three Brothers Diner. He values the relationships with his customers and sees the diner as a place where people come together as part of their daily routine.