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While many industries in Maryland have struggled to add, or even hold onto, workers this year, restaurants have been hiring in recent months, according to labor department figures.

Still, many restaurateurs are struggling. Only 19 percent in the state reported higher same-store sales in August; 59 percent reported a sales decline, according to a National Restaurant Association survey released by the Restaurant Association of Maryland.

Overall sales at Maryland restaurants during the first eight months this year were down 0.1 percent from last year to $5.86 billion, according to an analysis by the restaurant association of figures from the state Comptroller's Office. Sales declines were seen in Montgomery County and Baltimore city, while Prince George's and Frederick counties posted gains.

Still, some in the fast-casual segment have done well during the 22-month recession — which is now over, at least according to a survey of 44 economists released this week by the National Association for Business Economics. Chains such as Qdoba Mexican Grill, Noodles & Co. and Potbelly Sandwich Works have added new restaurants in Maryland this year.

The high-quality, fresh food offered at affordable prices by Qdoba has enabled the company to thrive during lean economic times, said Richard Pawlowski, owner of six restaurants in Maryland plus three in Washington and Northern Virginia.

Pawlowski is scouting new locations and said he hopes to be up to 13 to 16 restaurants by the end of next year.

"People understand our product," said Pawlowski, who has offices in Wheaton and New York City. "We make everything fresh every day, and we charge a fair price."

Finding the right real estate for a restaurant in Montgomery can be challenging, Pawlowski said. But rates have become more competitive during the recession, he said.

Financing can also be a challenge in down times. But Pawlowski, a native of the U.K. who developed his taste for Mexican food while working as a consultant for businesses in the Western U.S., said he has had success with community banks.

"They understand the local market very well," he said.

Being a locally owned franchisee, rather than an eatery owned by an out-of-state chain, helps build community relations, Pawlowski said. Qdoba, a wholly owned subsidiary of Jack in the Box with more than 500 restaurants nationally, works on community projects with schools, colleges and others.

A restaurant's business can be affected by circumstances beyond owners' control, such as a decline in traffic at Westfield Montgomery mall in Bethesda or construction in downtown Silver Spring, Pawlowski said.

Growth driven by

fast-casual segment

In Maryland, seasonally adjusted employment in the food services and accommodations sector rose 1.6 percent in August from a year earlier, according to figures from the state labor department. Food service was one of the few private industries to add jobs that month in Maryland, as the number of overall jobs declined by 2.4 percent.

The fast-casual segment has driven industry growth during the recession, analysts say. Sales for the largest 100 fast-casual chains grew 10.8 percent in 2008 to $16.7 billion, compared with 3.4 percent growth at the 500 overall largest U.S. restaurant chains, according to Chicago food service consulting company Technomic.

Owners of fast-casual chains are being pushed toward higher standards by the recession, Darren Tristano, Technomic executive vice president, said in a statement.

"Leaders are innovating by introducing new value-priced menu items, retooling menus to boost sales during slower day parts and developing new programs like catering and selling retail packaged goods to supplement the bottom line," he said.

Chipotle, a key competitor of Qdoba in the fast-casual segment, opened 50 new restaurants nationally in the first half of the year, down from 77 in the same period last year. But comparable restaurant sales increased 1.9 percent in the first six months, while net income rose 46 percent to $60.8 million.

Noodles & Co. plans to open its 13th restaurant in Maryland next week at Westfield Montgomery mall. The company has 218 restaurants in 18 states and expects 10 percent to 15 percent unit growth this year. Same-restaurant sales have grown this year, Preston said.

This report originally appeared in The Business Gazette.

Employment change,

seasonally adjusted,

August 2009 from August 2008:

-Health care, +2.2 percent

-Food service and accommodations, +1.6 percent

-Professional, scientific and technical services, +0.9 percent

-Retail, -4.7 percent

-Manufacturing, -4.8 percent

-Arts, entertainment and recreation, -5.3 percent

-Finance and insurance, -7.0 percent

-Real estate, -8.9 percent

-Construction, -16.1 percent

Source: Maryland Department of Labor, Licensing and Regulation