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Bill Morin of Morin's Hometown Bar and Grill in Attleboro blames fuel prices and faltering consumer confidence for a 10 to 15 percent decline in business the past few months.

"You see it a lot during the slower days, like Monday and Tuesday," Morin said. "People who used to go out five times a week are now maybe eating out three times a week."

Meanwhile, the costs of food and supplies used by the restaurant are skyrocketing - bacon up $6 a case in one week, cooking oil boiled from $18 to $47 in less than a year. The wholesale cost of meats, produce and grains is also jumping.

Down the street, Attleboro House of Pizza has seen business falter by up to half over the past few months. Manager David Jorgensen says it's directly tied to the cost of gasoline and heating oil paid by his customers.

"It's gas in the car and oil in the tank," said Jorgensen, who said his middle-class customer base is feeling the heat of rapidly increasing prices. Jorgensen said he's fighting the trend by stepping up coupon offers to attract new business and hopes to see a turnaround soon.

At a time when many consumers are concerned about the cost of living, the luxury of eating out is one some diners are thinking twice about, said Peter Christy of the Massachusetts Restaurant Association.

Massachusetts meals tax collections declined 2 percent in January, while recovering modestly in February and March, Christy said.

He said he looks for continued improvement later in the year.

Christy said restaurant owners are attempting to hold the line on prices while at the same time battling energy and food costs.

"They're sacrificing margin to avoid losing market share and discouraging consumers," Christy said.

As a result, many owners are working harder and making less.

Waitstaff are also being affected because fewer customers means fewer tips.

Restaurants in Massachusetts employ an estimated 300,000 people and account for $11.7 billion in annual sales according to the association.

Although restaurants in the Northeast have been hit harder than restaurants elsewhere in the country, the National Restaurant Association reported that a slowdown is also evident across the nation. Restaurant operators reported negative same-store sales figures in March for the fourth time in the previous five months. Only 28 percent of restaurants reported gains.

Restaurant owners in a national survey were also less optimistic about sales growth in coming months. Industry experts had been predicting a record $558 billion in restaurant sales during 2008.

Food costs remain a major concern.

Hudson Riehle, senior vice president of the national association, said wholesale food inflation is the highest in 27 years. During 2007, wholesale costs rose 7.6 percent. For the 12 months ending in March, the increase was up to 8.5 percent with critical commodities such as flour, eggs, fats and oils, cheese and rice posting unprecedented hikes.

To combat the downturn, national chain restaurants were resorting to updated advertising campaigns, new products and recipes aimed at promoting health.

Rick Hendrie, senior vice president for marketing at UNO's Chicago Grill, said the restaurant chain has focused on service and healthy food, for which the chain was recently recognized by Prevention Magazine.

The company is also rolling out a new "fast casual" restaurant that will offer quick service with UNO's-typical foods.

"We're holding our own," Hendrie said. "I don't think anybody is really gaining right now."

Rich Jeffers, a spokesman for Darden Restaurants, operators of the Olive Garden, Longhorn Steak House and Red Lobster chains, said the Italian-themed Olive Garden remains poised on a growth trajectory despite the economy and fuel costs. The company has opened about 30 restaurants in the past 12 months.

Not every restaurant owner is complaining about tough times.

Lianne Jodoin of Norm's Seafood in North Attleboro, said customer volume hasn't suffered in spite of gas prices and and job worries.

"It really hasn't affected us at all," said Jodoin, who said she concentrates on keeping prices low and meal quality high.

She did say that rising materials costs - particularly cooking oil - is a heightened concern.

At least a few restaurateurs think increased fuel costs might actually favor family restaurants that serve a local clientele and don't depend on travelers or business off the interstate highway.

Jay Tyler, owner of the Moose Cabin restaurant in Attleboro, said that the economy affects "all of us," but that business at his restaurant hasn't suffered tremendously.

Tyler said his restaurant caters to local families and entertainment at low prices and draws its customers primarily from local neighborhoods.

Tyler says he's working to maintain price levels, but it hasn't been easy, with wholesale produce costs jumping 20 percent and meat and seafood also on the rise.