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For a nation that loves to eat out, there are cheap eats to be had. But even $5 footlongs and dollar burgers may not be enough to entice recession-era diners.

Confronting declining traffic, rising food prices and the normal winter slowdown, restaurant owners are fighting back - touting value, slashing prices, running specials, increasing marketing and promoting loyalty clubs - amid faint hopes of turning a profit.

For many, it's a matter of survival.

''It's like operating in quicksand," said Arthur Gordon, proprietor and chef at Raleigh's Irregardless Cafe, which has been in business since 1974. "As soon as you think you have some solid footing, it seems to dissolve."

Already, there are a growing number of Triangle businesses closing, including two Prime Only steakhouses, Yancy's in downtown Raleigh and the Symposium Cafe in Durham.

Gordon isn't giving up. He kept his restaurant open on Thanksgiving, Christmas Eve and Christmas Day. He is offering more small plate options, and has resisted raising prices. He offers some live entertainment.

''I'm not willing to sit in the cave and curse the dark," he said. "What I'm waiting on at this particular time is to see what really is going to unfold in the next 60, 90 days. That will tell the tale."

Other companies are also trying to recruit customers:

* The Cheesecake Factory is now pushing a "something for everyone" message and last month introduced a special menu with seven entrees and one salad all priced $11.95 to $14.95.

* Wendy's is actively advertising the three sandwiches on its dollar menu.

* Subway has found great success with its $5 footlong campaign.

Still, it may not be enough.

Consumer confidence has slumped, hitting its lowest point in December since 1967, when tracking began.

Restaurant sales - which had enjoyed steady growth - are predicted to be down 1 percent this year, after adjusting for inflation, according to the National Restaurant Association.

Fast food soldiers on

Fast food and "quick serve" restaurants such as Moe's Southwest Grill are still faring well, as some consumers choose cheaper options. But mid-tier restaurants and upscale dining are feeling the effects of the recession.

Shares of Texas Roadhouse dropped Monday after a Deutsche Bank analyst downgraded the company's stock, saying, "the fact remains that a trip to Texas Roadhouse is a lot more expensive than eating at home."

Chicago research firm Technomic estimates a net loss of 9,400 restaurants this year nationwide, up from the net loss of 7,700 restaurants in 2008.

''In my mind, it's the worst since we've been measuring 1/8since 19723/8," said Bob Goldin, executive vice president for Technomic. "'08 was bad, and '09 we think is going to be worse."

Most small restaurateurs are reporting sales down 10 percent to 20 percent, said Paul Stone, president of the N.C. Restaurant and Lodging Association, and check averages are also down as people buy a glass of wine instead of a bottle or a Bud instead of a microbrew. Some have cut staff or reduced hours.

''Right now in the middle of January, it's notoriously slow," he said. "Around Valentine's Day, it picks up again. It's fairly steady after that."

There are still diners such as Odis Newsome, who said he and his wife still dine out two or three times a week.

Newsome, a Durham resident who works as a computer technician at N.C. State University, said he and his wife stick to mid-level restaurants like Brixx pizza, Bogart's and Armadillo Grill.

While he hasn't cut back on dining out yet, Newsome said he has started paying more attention to sales at the grocery store and using more coupons there.

''The restaurant is sort of like our special thing," he said.

But without enough diners like the Newsomes, some restaurateurs are worried about making it through the next month of business.

Arthur Gordon at the Irregardless Cafe said he simply hopes to break even this year.

In 2008, he said, volume was down about 15 percent, though he did get a boost at the end of the year from people coming for special holiday meals.

Many upscale restaurants are trying to generate at least some growth by revamping their menus to be more budget-friendly.

The Mint in downtown Raleigh said this week that it will begin offering a three-course dinner for $30, about half of the average dinner price until now.

Fins, another downtown fine dining restaurant, will also be remaking its menu, said chef and owner William D'Auvray. He plans to offer less expensive options by simply buying different ingredients that are still of good quality but just cheaper.

''There's wonderful deals to be had," he said.

'It's cutthroat'

Other restaurateurs are trying to drive traffic by offering additional discounts and specials.

This week, Margaux's in North Raleigh started offering what it calls a BluPlate special Tuesdays through Thursdays. Tuesday's special was roast chicken with sausage gravy and mashed potatoes for $12.95.

Raleigh's 518 West Italian restaurant is lowering the prices on a few dishes by $1 or $2, and is bringing back half-portions of pasta next week -- something the restaurant offered when it first opened in 1996.

And at the Fayetteville Street Tavern in downtown Raleigh, owner Carter Powell dropped his lunch prices to compete.

Powell is offering all lunch items and a drink for $7, including tax. There are also 10 items that are $5 by themselves, a deal designed to counter the $5 footlongs offered at a nearby Subway.

''It's cutthroat," he said. "If you want to make it and not close, you've got to offer them an option."

Still, Powell added, "I don't know how much lower it can go."

As the recession continues, restaurants will have to find draws other than discounting to attract diners, said Joel Cohen, founder of Cohen Restaurant Marketing Group, a Raleigh restaurant consulting firm. They'll have to push value, do more marketing and find ways to make personal connections.

''There's people out there who have dining dollars to spend," he said. "The question is, will they spend it with you, or will they spend it with another restaurant? The owner of a restaurant has to be like a mayor. The mayor has to go out and win votes."