Wow... what a question! It's rather difficult doing this without hard data or facts. The first and most obvious observation is that you're losing market share. The second might be a problem in operations. Your job is to analyze why you're losing market share and making sure that the operations side is running efficiently. I assume from your post that you've already taken steps to fix the operations and quality issues
You say that you're a resort restaurant with 200 seats. The first thing you need to do is to analyze your market. Is the market large enough to support your restaurant? What is the general trend for restaurants in your area? Are they seeing a decrease in sales as well? If the trend in the area is going down, don't feel bad. Everybody is experiencing the same woes. Your job is then to reposition yourself so you can grab a larger share of the market. Also, a change in resort marketing might affect your restaurant for better or worse. If, for example, you are a family style restaurant, and the resort decides to go upscale. You will find that the market for your restaurant dwindling.
Responding to changes in the marketplace is something many independent restaurants fail to do well. The e-world is changing the way people eat. If you don't respond immediately, you might never recover. This adds to the headaches of the restaurant owner.
Who is your customer?
Who are the resort's customers?
Is the overall market for the resort trending up or down and are you simply riding the resort's coattails?
Lastly and perhaps most important. Talk to the marketing departments of these resorts. They are the ones who steer the image and hence the type of guest they attract, and the more guests come to play, the more potential customers your restaurant will have. Have you found out if there was a change in marketing strategy 7 years ago when the restaurant was sold? Perhaps your guests are younger/older, more/less affluent, have/havenot kids? Talk to other business owners. Perhaps they might be able to help.
Good luck, don't hesitate to email me if you have any questions!
[ June 11, 2001: Message edited by: kuan ]