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California's Restaurants Feeling Economic Pinch

Higher prices for everything from gas to dairy are hitting California's restaurants. Since the start of this year, restaurant owners around the state have been feeling the pinch. From Sacramento, Jenn

Higher prices for everything from gas to dairy are hitting California's restaurants. Since the start of this year, restaurant owners around the state have been feeling the pinch. From Sacramento, Jenny O'Mara reports.

Two for one deals and shorter hours --these are some of the strategies being used by restaurant owners to lure in more customers and cut back on expenses. California Restaurant Association President Jot Condie says he's hearing from his members that business is slowing down.

Condie: You know at the end of the day, just people aren't feeling good about the economy and usually eating out at restaurants is one of the first things to go.

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Condie says sales are down for some restaurants anywhere from three to seven percent-which he says is significant as profit margins are already low. Condie says the casual/family dining places often feel the hit first-while fine dining establishments hold out a bit longer-due in part to corporate accounts.