Plastic Surgery, Divorces Sag With Economy

The pro-cyclic indicator of whether hotcakes are selling like hotcakes: You know the economy's hurting when a restaurant recommends that Americans who can't afford to fly to Hawaii this summer take a "pancation" instead, which is what IHOP did in June. "Save on the expensive plane trip and hotel fares this summer and instead enjoy the ultimate indulgent 'staycation,' " a company press release read, going on to suggest that potential customers "grab a Hawaiian shirt or grass skirt" and head to IHOP to try its new tropically themed banana macadamia nut pancakes. This followed the January announcement of IHOP's "Hungry Consumer Bailout Plan," an all-you-can-eat pancake deal starting at $4.99.

In July, DineEquity(DIN), the parent company of IHOP, reported a decrease in domestic same-store sales. In an earnings call, company Chief Executive Julia Stewart blamed "the difficult macroeconomic environment."

-- Reported by Carmen Nobel in Boston.

>To order reprints of this article, click here: Reprints