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DO YOU REALLY NEED TO BE TOLD HOW AWFUL THE ECONOMY WAS LAST YEAR? We didn't think so. And despite small signs of hope on the economic horizon, the truth is most industry experts and Las Vegas odds-makers aren't betting this will be a breakout year. Where does that leave you?

The answer to that question depends on what kind of person (boss) you are. If you spent 2009 cutting to the bone without a sense of positive, forward-thinking energy behind it, you just may be screwed. This year you're going to have to make some smart, proactive moves to get butts in seats. Do you have it in you? We hope so.

The good news is that nearly everyone made his or her operations lean and mean last year. It was the smart thing to do during these tough economic times. But this is going to be a year for sorting out, separating those with vision from those who are lacking, says Bob Derrington, an equity research analyst for Morgan Keegan & Co.

“It is an interesting landscape out there,” Derrington says. “Companies that squeezed the life out of their operating costs last year must figure out what to do this year. You can't continue cutting operating expenses to the bone or you'll drive customers away.”

GROW: Panera ceo Ron Shaich says a recession is a good time to move ahead.

He points to smart moves made by two stalwarts — Chili's and Applebee's. The casual concepts, after driving down their store-level labor and operating costs, began employing similar two meals for $20 promotions. “Because their costs were lean, they could afford to make such an offer,” says Derrington. “And that's the key: What can you do to drive traffic without hurting profit margins?”

“In 2010, it will all be about value,” says Fred LeFranc, a founding partner of Results Thru Strategy, a restaurant consulting company. Consider Steak 'n Shake, he says. It had always had a la carte menu, but the economy forced it to redefine its value proposition. As a result, it came up with a 4 Meals Under $4 promotion, which bundled menu items and led to a sales increase of 10 percent.

Value has a different definition depending on the category you're in, says LeFranc. “Several of the high-end chains and independent restaurant operators who said they would never discount have begun to do just that because they had no choice.” It's not unusual for restaurants with $85 check averages to be offering three-course prix fixe meal offers for $35 or so to drive customer traffic. “If customers perceive value, they will show up,” says LeFranc.

Value. Get used to that word. It's ground zero for shell-shocked customers who have changed their spending habits and are now living within their means.

“Consumers are now seeking value propositions in every aspect of their life,” say the experts from National Restaurant Consultants. The new mentality is ‘Give me more but don't charge me for it.’”

Not what you wanted to hear, but NRC says innovation will be key, whether that means a change in service formations or serving size options. “Offering a wide variety of options makes a lot of financial sense for you as the owner and also for your guests.”

PRIME: In a very rough economy, Brad Friedlander opened a second unit of Red, the Steakhouse, in Miami Beach. It achieved new sales records by offering Certified Black Angus prime and top-notch service.

Denny's, which is still formulating its next round of menu changes, is considering more customer ordering flexibility in the year ahead. Its new premium burger, which sells for $6.99 with fries and a drink, may be offered for $3.99, with toppings, fries and a drink costing extra. It's what Denny's did with its “Grand Slam” breakfast. By allowing customers to build their own version of the Slam, customer traffic increased dramatically and made it five times more popular than any other menu entrée, reports Knapp-Track, which surveys restaurant sales.

More versatile menu options make sense because the economy has had a wide variety of effects on your customers. Currently 15 million Americans are unemployed, but millions more still have jobs. And while some of those who have jobs are living on tight budgets or trading down, others refuse to alter their old habits. You've got to be ready to cater to anybody who walks through your door. And, most importantly, you have to take care of them like you've never taken care of them before.

What worries most people today no longer reflects abstract and idealistic pre-recession issues, says Michael Whiteman of the Joseph Baum & Michael Whiteman Co. People are now focusing inward. Their concerns are personal, emotional and ethical. This year's hot buttons include reassurance, intimacy, friendship, neighborhood, comfort and safety, he says.

“Hotels and restaurants should be luring their hunkered-down consumers from their psychological storm cellars by replicating the campfire experience, building emotional ties and connecting to communities,” says Whiteman.

No, he's not suggesting a kumbaya sing-along with guests. Consider, instead, looking for more creative “snacky things,” more small plates, more portion options … things sized for one, for two, for a crowd. “It isn't about the size of the plate,” says Whiteman. “Sharing is the key. Sharing responds to consumers' needs for comfort and safety, for intimacy and friendship.”