Let's do lunch - but not at most of the old familiar eateries along University Avenue. Several restaurants in the plaza areas just east of campus recently closed their doors, including Reuben and Wong Restaurant, Hucksters Grill, Don Cherry's and the briefly opened Gibs. New ones opening in their places include Little Ditty's, Fox and Pheasants, and K-W Rotisserie Chicken. Why are some restaurants folding and others rising, phoenix- like, from their ashes? UW's director of food services, Mark Murdoch, keeps on eye on his competition. He says that restaurants along University Avenue "aren't failing at a higher rate than in the general public. New restaurants have a 35 per cent failure rate in the first year." But he says there are several reasons why restaurants near the university are folding. "Rents are high and the owners were expecting to ride on sales to UW faculty, staff and stu dents. But they over-estimated the size of the market, so they had no cash flow to renew their leases." Murdoch says that UW students are more professional and don't drink as much as other students. Alcohol consumption at the University of Guelph, a much smaller university, is much higher - ten-fold, Murdoch claims. As well, UW co-op students travel more than other university students so their expectations are higher and their tastes are more cosmopolitan, he adds. Some restaurants set up in the "heyday of the late 1980s" heavily financed their ventures and had few of their own assets. So when the recession hit and the money dried up there was no one willing to bailout highly-leveraged owners. "Restaurants can't have a $4.95 pasta special every day. Even if the place is full, you couldn't make money," Murdoch says. Perhaps UW faculty, staff and students could have contributed to some of the closings by bringing their custom back to where it was twenty years ago, before the extensive plaza-buliding started. Murdoch speculates that more UW people are eating on campus in the last couple of years because the food services department has improved its services. Since the creation of the Davis Centre food fair, now the flagship operation for food services, Murdoch has hired more qualified cooks, set up a Taco Bell and a Pizza Pizza franchises in South Campus Hall, and changed the residence meal plan to include a balanced vegetarian meal plan and several eating options. As well, UW food outlets have longer hours, and UW people using the Value Plus card get a dis count on their purchases. And the director expects that the new dining facilities in the soon-to-be-built Student Centre will again improve food choices at UW. "It's going to be the most dramatic in Canada, possibly in North America." Still, not all of the restaurants close to UW have folded. East Side Mario's is still dishing up the pasta, and Caravan Cafe, Almadina Egyptian Cuisine and Second Cup are doing well. They cater to a niche and have specialized menus that are easy to serve, Murdoch points out. And other restaurants are opening. Little Ditty's opened in mid August where Huckesters once was, and K-W Rotisserie Chicken started serving last week in the building that was formerly Reuben and Wong.. Richard Madison and Paul Wilson, owners of Little Ditty's, have been more than pleased with business so far. Madison opted not to return to 3A math at UW this fall when the chance to set up Little Ditty's with Wilson, formerly an assistant golf pro, came up. "The business is dynamite," he says. "We've had way more (customers) than we expected. We opened two weeks before classes to work out the kinks. We've had to work them out on the fly. We're making money." Why? "We're different. We're an eatery and a bar with no cover charge. The food is good and inexpensive." Ed Moscoe of Chego Investment International, the landlord of the plaza between UW and Phillip Street, says Madison and Wilson's theory is that "UW students don't have a place to go when school is over. After dinner what do they do?" At Little Ditty's there's ongoing and continuous entertainment, an idea that students in other university towns seem to like, Moscoe adds. "The fellows seem to listen to what the market seems to be saying," he says. Moscoe also expects that K-W Rotisserie Chicken will do well. The owners have modeled their restaurant on two successful chains that sell chicken- Swiss Chalet and Kenny Rogers. The menu is limited to chicken. Customers add salads, potatoes and gravy cafeteria-style. That should make their overhead 30 to 45 per cent lower than Swiss Chalet's because there are no waiters and waitresses, he says. "For restaurants to be successful in the recession, they need to have excellent prices on their food, otherwise the overhead will kill them," Moscoe maintains.