FT:How to survive a downturn
How to survive a downturn
By Nicholas Lander
Published: May 17 2008 01:48 | Last updated: May 17 2008 01:48
Not all restaurateurs seem to have realised that the economic sands – so firmly in their favour for the past few years – are shifting. That is the conclusion I draw from two recent anecdotes.
The first concerns a visit to Tom Aikens’ restaurant in London’s Chelsea by two managers of the highly regarded Singaporean restaurant Les Amis. When booking they had been made aware of the restaurant’s dress code – in particular, no trainers – so they arrived suitably attired, although one of them was wearing what he described as a pair of shoes “like Tod’s”. One of the waiting staff promptly told him that his manager had said that as a result of what he was wearing on his feet the two men would not be served. They then asked to speak to the manager, who refused to change his mind but, as a conciliatory gesture, offered to pay for a taxi to take the visitor back to his nearby hotel, wait while he changed his shoes then bring him back. The two walked out, undoubtedly leaving the restaurant unable to fill the table at the last moment. Knowing this pair’s interest in food and wine, I would guess that Tom Aikens had deprived itself of a lucrative lunch. The restaurant’s public relations representative said the restaurant is reconsidering the policy.
This is one example of how restaurateurs are failing to inform their receptionists that they must respond more courteously to customers if they want to fill their tables. But there are other cases. Over the past month, for instance, I have experienced abrupt service trying to book tables at the Square in Mayfair and Roka in Fitzrovia. At the former I wanted a table for two at 12.30 in a week’s time but was told the only available table would be at 2pm by a receptionist who didn’t bother to take my name and number in case of a cancellation. I then phoned the restaurant’s PR, who was able to secure a 12.30 booking. Over a slightly disappointing meal, I could not help but notice that no fewer than four tables for two remained empty through lunch.
The switchboard at Roka was even less forthcoming. When I asked for a table for dinner three days in advance I was immediately told that all that was available was 6pm or 10pm. There was no interest in knowing the number in my party or at what time I might like to come, nor whether there would be any flexibility in my timing. I put the phone down and went elsewhere.
All the early signs suggest that this economic slowdown will follow the pattern of its predecessors: the inexpensive restaurants will flourish, as will the most expensive, while those in the middle will suffer the most.
One important aspect of this was explained to me recently by a successful New York restaurateur. “I’ve been in business for over 20 years now and this is my fourth economic downturn,” he said. “As a result, I think I know how to manage this one better than the previous ones but an additional management challenge for me is that I’ve a lot of staff who’ve joined our company over the past six years and who have only experienced the good times.”
Equally important is that while companies have sought to limit extravagant expenditure there are still many wealthy individuals who are keen to eat and drink well. Tourists, particularly now that menus and wine lists in the UK and the US seem inexpensive if you are paying with euros, are filling the tables left by the native high-spenders.
Certainly, Mario Batali of Del Posto, a high-end Italian restaurant in New York’s Chelsea district, agrees. “I was concerned about any fall-out from Wall Street because initially we received a great deal of corporate business from there. So I was more than pleasantly surprised to see that our turnover for the first quarter was seven per cent up on last year and almost all of this had come as a result of a conscious decision by management to concentrate on securing events and dinners from private individuals and their families rather than relying on companies.”
But a weak dollar is also playing its part. “What’s crucial here is that we are now attracting far more customers than before from South America and Spain who are more than happy to come along and have a drink at the bar and then eat around 10pm or even 10.30pm. This means we can now comfortably fit in a third sitting after those at 6pm and 8pm and this makes a big difference to the bottom line,” he said.
A strong euro is obviously going to have serious implications for European restaurateurs this summer and for the imported ingredients on British menus and wine lists. An old friend, who specialises in supplying the wild mushrooms that are currently so popular with chefs, recently told me that he has barely been trading profitably over the past few months as he tries to absorb the rising costs for as long as he can.
Top chefs and restaurateurs are able to command their price in a currency to suit them and demand for their services is still strong. The most depressing press release I’ve seen in a long time arrived recently announcing the appointment of the Paris-based chef Hélène Darroze to the Connaught Hotel, whose management appear to have a short memory. For a long time when British produce and ingredients were looked down upon by many, this hotel trumpeted both. Now, in my opinion, it appears to be giving up its claim to individuality and respect for local flavours of the country in which it is located.
Experience will, I hope, guide many sensitive restaurateurs through this tricky period but one thing is certain: those who show the greatest consideration for their customers, the staff they employ and the produce they handle are those that will flourish.
More columns at www.ft.com/lander
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