The
Massachusetts Restaurant Association (MRA) has criticized the proposal
that, in their view, singles out one industry for an additional tax.
Small profit margins and unusually high operating expenses make
restaurants particularly vulnerable to the economic crisis, they said
in their press release. Adding, "[Restaurants] employ approximately
9.5% of the Massachusetts workforce; now is not the time to put more
jobs in jeopardy."

Restaurants around Somerville, big and small,
are grappling with what the passage of the restaurant tax could mean
for business during a time when they see customers cutting back on
spending.

The Great Thai Chef, a 38-seat restaurant in Union
Square, has already been trudging through what one server called
slowest time in its 10 year history.

"Even the regulars who used
to come in 5 times a week are now coming in 3 times a week," she said,
"it seems like everyone's trying to save money." She wasn't sure about
how the additional tax would affect their business, but said that she
couldn't imagine it being much slower. Two of the five staff members
have already left in recent months because they couldn't make enough in
tips.

But the restaurant is innovating with the hope of
attracting tentative customers. They will soon start serving Thai tapas
at night, offering a menu of small plates created with the assistance
of J.J. Gonson, a local chef who has become a local favorite with her
catering business and cooking classes.

Taqueria La Mexicana,
located a few doors down in Union Square, has also been dealing with
slower-than-usual business in recent months. Co-owners Robert and
Carolina Rendón have run the Taqueria for 13 years, attracting a
following with their tasty and very reasonably priced Mexican dishes.
This past spring they decided to expand and created the Cantina, a
bright and festively adorned dining area with a full bar.

"Whatever's
going to happen is going to happen" said Mr. Rendón about whether the
legislature would decide to approve the tax increase. His attention is
more focused right now on bringing people back in, and taking advantage
of their larger space's amenities to do this.

One way they
hope they can attract larger crowds is through live entertainment. On
Fridays, a mariachi band plays for diners in the Cantina from 8 to 11
p.m., and they recently began hosting salsa nights on Saturdays, when
they offer lessons and dancing on the Cantina's sizable hardwood floor.
They have also started serving Sunday brunch, and are considering
hosting a Tango night. Generally, they are keeping their ears open for
what their customers want.

The news of the tax increase is also
resonating just North at Highland Kitchen, the Spring Hill area
restaurant which has been serving upscale comfort food since it opened
in late 2007.

Business is still good at Highland Kitchen, a
feat that co-owners Mark Romano and Marci Joy attribute to "a great
neighborhood and a cast of regulars." The 90-seat bar and restaurant
has also become a destination for those outside of Somerville, perhaps
in part because of the high-profile backgrounds of its proprietors,
good reviews and reasonable price points.

"Hopefully the tax
won't affect our pricing," Mr. Romano said of the potential increase.
Should the measure pass, they'll have to look at their finances more
closely, but he hopes that they will be able to absorb the extra tax as
a cost of the restaurant, rather than pass it on to the customers.
"Sure it's a business," he said, "but you also want to make it
affordable for people, especially in these tough times."

Mr.
Romano hopes lawmakers take the state of the economy into consideration
when they vote on the tax increase. "For other small businesses that
are not doing as well," he added, "this measure could be the final
straw."

At the other end of the spectrum is the Ninety-Nine
Restaurant and Pub, a chain that runs 60 restaurants across
Massachusetts. Although a manager at the 220-seat Assembly Square
location declined to comment on how business has been there, the
company's president John Grady outlined the possible effects that a tax
increase would have on their business.

"I understand the
challenges the state is facing, but it is unfair to single out
individual industries" he said, echoing the sentiment expressed by the
MRA. He worries that the increase will be detrimental to business,
saying that "any time you raise the price there are going to be
customers who don't come with you."

He also drew attention to
difficulties the proposed tax increase could create for companies that
operate in multiple municipalities, saying "it could be cumbersome
trying to keep track of the different laws in different places, and
would add an administrative expense."

Mr. Grady fears that
ultimately the additional tax will affect their profitability, which
could effect their servers' hours or benefits. The number affected
would not be insignificant, since the chain is one of the largest
employers in the Massachusetts, employing about 4,200 across the state.

So as Somerville restaurants work hard to get people through
their doors, it appears that the biggest question on their mind may
actually be for their customers: how would they respond to the tax
increase?