Feb. 12--Bob Evans Farms Inc. is scaling back expansion plans in the face of a difficult economy and after reporting a loss of $51.4 million last quarter.

The Columbus-based company said it plans to build only one new Bob Evans Restaurant this year and none in 2010, while plans for Mimi's Cafe call for adding three restaurants to that chain this year and two next year.

The decisions were made as the entire industry faces "difficult economic times," said Steve Davis, chairman and chief executive, during a conference call yesterday with analysts.

Bob Evans reported more than $75 million in one-time charges, mostly related to Mimi's Cafe. The company reported a loss of $1.67 per share for its third fiscal quarter, compared with a year-ago profit of $20 million, or 61 cents per share.

A new report quantified what restaurant operators already are feeling: Consumers have cut back on dining out as the economy continues to struggle.

Forty-eight percent of consumers say they're eating out less now than they were six months ago, according to a new study by Morpace Inc., a Farmington Hills, Mich., market-research group.

Analysts say the trend likely will continue.

With rising food prices and the tight economy, more people are buying food at grocery stores and dining at home rather than in restaurants, said Christopher Shanahan, an analyst who covers Bob Evans for Frost & Sullivan, a Mountain View, Calif., growth consulting company.

"People are more cautious with their spending and are more uncertain," he said. "Their wants are easier sacrificed, and they're eating out less

In an attempt to reduce costs, Bob Evans has cut the number of busers at Bob Evans Restaurants and relies more on servers to clear tables. The company is also focusing its marketing on 30 meals for $5.99 or less and is touting its "unbelievable food at unbelievable prices."

"Bob Evans does have a good brand as far as being associated with comfort food," Shanahan said. "And people are not as likely to turn away from brands they trust or associate with comfort."

Sales at restaurants open at least a year fell 1.3 percent at Bob Evans restaurants and 6.8 percent at Mimi's Cafe.

tturner@dispatch.com

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