Restaurant real estate gets a radical makeover

https://www.wsj.com/articles/too-many-seats-too-few-butts-mean-changes-at-your-favorite-restaurant-e876b092

by lxm • 3 years ago

17 48 3 years ago

wsj.com

Simulacra• 3 years ago

https://archive.is/cWxiD

wussboy• 3 years ago

I'm sorry. What's the lesson here? "People ate out in restaurants less during and immediately after a global pandemic"?

"It got darker after the sun set, and will therefore never be light again."

ghaff3• 3 years ago

In general, it seems reasonable to ask whether there are long-term patterns of change. And the article makes the case that overall sales were still down in Q4 last year in addition to the percentage of takeout still being higher than pre-pandemic.

I'm a bit surprised to be honest. Restaurants seem as busy as ever but I admittedly don't eat out a lot unless I'm traveling and obviously don't personally have hard data other than what's in articles like this. There seems to be a pretty consistent pattern that the "new normal" is mostly not radically different from the "old normal" but there are definitely some shifts at the margins.

CrazyStat2• 3 years ago

in addition to the percentage of takeout still being higher than pre-pandemic.

There's an interesting game theory problem here.

At least in my area, higher-end restaurants didn't offer takeout pre-pandemic. If you wanted to eat their food you had to go sit at their table.

But having started offering takeout during the pandemic, it's hard for any one restaurant to stop offering takeout and risk losing business to competitors that continue to offer takeout.

Larrikin2• 3 years ago

In the US, tipping culture needs to die instead of the current increase to try and make up for down sales. Any time I can, I do take out so I don't have any expectation to tip for somebody bringing my food to the table.

Bradlinc3• 3 years ago

I own two restaurants and several years ago ate out at upscale restaurants four times a week. One thing the article doesn't touch on is that the labor shortage has decreased the quality of service, which makes it less desirable to eat out. I have gone to several restaurants where the employees are on AirPods (one employee was even listening as they served me.) Many of the best servers and bartenders I know left the profession during the pandemic and have not come back. One may wonder if this due to the lack of pay keeping up with inflation but the team I have makes $35 to $42 an hour, which is up substantially from before the pandemic.

throwaway22032• 3 years ago

I don't think it's about the money.

Working during the restrictions was traumatic.

At least in the UK, a stressful and busy but ultimately friendly job was converted into playing restriction police. I'm not surprised that a ton of people just decided to sack the job off after that.

Bradlinc3• 3 years ago

I completely agree. I would have to had I been able to.

lozenge2• 3 years ago

Well, that and the constant threat of your pay going away due to another lockdown, semi lockdown, or the furlough scheme ending.

dan-robertson3• 3 years ago

I noticed a few incidents of weird service as things reopened but not so much the unprofessionalism you describe as somehow failing to sell things to paying customers (eg arriving slightly early and asking for a drink and being told no because of some silly reason). But my memory of those things is failing so perhaps it’s happening less.

qbasic_forever2• 3 years ago

$35-$42 an hour means absolutely nothing when median home prices are pushing past a million bucks in areas and you have no benefits like healthcare, retirement accounts, etc.

Bradlinc3• 3 years ago

Good point. Brand new homes within 10 minutes of my places of business 485K. Single family homes from the early 2000s start around 425K. You can buy from fixer uppers for around 300K. Townhomes start around 250K and go to around 350K.

Spivak2• 3 years ago

Two things:

* Having AirPods in doesn't mean not listening. I just wear mine and have them on transparent. For particularly loud settings I use live listen.

* I would love if my server was allowed creature comforts like being able to listen to music or podcasts. Working in a restaurant that has the same 20 terrible songs on repeat is miserable. Service jobs are miserable, people suck, the less "masking" the employees do the better.

If the cost of labor is too high just get rid of the labor. It will be a hit with young people. The last thing I want is having someone waiting on me, if people weren't already used to it we wouldn't invented it again because it's weird. The best restaurant experiences I've had are seat yourself, get your own drinks, order on the website from the QR code at the table, and pick up your food from the window.

It's why "food halls" are doing so well.

SoftTalker4• 3 years ago

It's about the impression they make. To earn good tips, servers should be 100% focused and attentive to their customers. AirPods, even if not in use, imply that they are not paying full attention.

tesseract• 3 years ago

I've definitely noticed worse service at many restaurants, but less commented-on seems to be worse food quality (lower quality ingredients and less consistent preparation) and a worse atmosphere (piles of takeout supplies in the dining room, ramshackle outdoor seating areas that were hastily built 3 years ago and never upgraded to something more permanent, etc.) both of which I am also seeing at many places I used to frequent.

darth_avocado5• 3 years ago

It started with the pandemic but stayed because of inflation. Eating out is becoming expensive. Restaurants need to pay a lot more to attract workers which gets reflected in the food prices. Restaurants who were able to transition to a take out model are able to keep prices lower as compared to a full service restaurants and customers don’t want to pay more. My favorite brunch spot for some eggs and coffee used to cost $50 for 2 even during the pandemic shutdowns (they are fully outdoors). Now, it almost touched $100. But my favorite breakfast burrito place used to cost me $13 for a loaded burrito and it now costs me $15. Guess which one gets more business from me now?

To make things work, the tip inflation has made it even worse. More tips for reduced service only encourages more people to order takeout. If I’m ordering at the counter, grabbing my order when it’s ready, eating it at a table and then cleaning up after myself when I’m done, if you ask for a 25-30% tip, I’m going to order takeout and tip 10% if I’m feeling generous.

ghaff3• 3 years ago

You're probably right and as a sibling comment noted a lot of restaurants are short-staffed which has to make service worse on average.

At the margins, also, people don't just automatically reset to all their previous behaviors. There's probably at least some subset of people who are like (to your example), "You know? Making brunch at home during the pandemic was really not a big deal. Why am I spending all that money to wait for a table at a crowded restaurant again?"

ADDED: While there's something to be said for sitting at a table on a nice weekend morning and watching the world walk by in the city, throwing together a brunch at home is probably one of the easier and cheaper meals you can do.

occamrazor• 3 years ago

Do you tip for takeout (without delivery)?

darth_avocado5• 3 years ago

Sometimes. I tip when I do it at the spots I frequent.

SoftTalker4• 3 years ago

No. Tips are for service, attentiveness, and a nice dining experience. And often servers are paid a lower hourly wage in expectation that tips will make up the difference.

Handing a bag of food across the counter does not qualify.

ethanbond• 3 years ago

Also rent. Up and up and up.

GenerWork• 3 years ago

My favorite brunch spot for some eggs and coffee used to cost $50 for 2 even during the pandemic shutdowns

Where on earth is this? This seems incredibly expensive even by East/West Coast standards.

qbasic_forever2• 3 years ago

Definitely not outrageous for the west coast pre-pandemic prices. A nice breakfast plate in a popular city was easily $15/person. Add coffee, juice, etc. for two people and then gratuity and it's $50. I'm sure it's even worse now but I stopped going out years ago. I've heard you can't even get a burger and fries for less than $20 now.

crazygringo2• 3 years ago

For NYC it seems right -- each person has a $15 plate and a $4 coffee, that's $38 which then adds 8.875% = $3.37 for sales tax and $7.60 for 20% tip, for a total of $48.97.

Where they're getting $100 from though, I have no idea. Nobody's charging $30 for eggs or $8 for coffee unless you're at a top-end business hotel in Tokyo or something. Or the eggs come with caviar or they're accompanied with a small steak.

euroderf2• 3 years ago

So many complaints. In Helsinki a weekend brunch in the range of 20€-24€ will not have warm entrees, except maybe some eggs and some weenies. 30€ or more will get you an acceptable selection of warm foods.

Altho to be fair, VAT is included and tips are unnecessary.

Maybe the math all works out w.r.t. coastal brunches.

foob• 3 years ago

I think you're spot on about the role of tips and inflation. The article brings up patrons saving on marked up alcoholic beverages, but fails to mention the rise in expected tip percentages driven by larger defaults in point-of-sale systems. Tips are effectively a premium paid to eat in a restaurant instead of getting the food to go, and it's only natural that fewer people will be willing to pay that premium as it increases and is introduced in types of restaurants where it wouldn't have traditionally been charged. Couple that with inflation dwarfing wage growth over the last two years, and people are only going to be more sensitive to price differences.

SoftTalker4• 3 years ago

Tips have inflated as well. When I was a kid a "good" tip was 15%. That became 18%, now 20% on top of the inflation in menu prices.

jghn• 3 years ago

Restaurants need to pay a lot more to attract workers

There's also been a large uptick in restaurants' costs in terms of raw materials.

xwdv• 3 years ago

Tip nothing. Even if served. Others will tip more for your lack of tipping and things will even out.

lozenge2• 3 years ago

Or even better, tip normally and post Internet comments about how you don't tip. Things will uneven out.

jaredhallen• 3 years ago

Even after the eggpocalypse, a dozen eggs is still $3.99 at the grocery store. And they only take a few minutes to fry up. Pot of coffee, maybe a buck. I like going out to brunch as much as the next person, but I've done a lot more cooking at home rather than either dine in or take out these days.

darth_avocado5• 3 years ago

I definitely agree on cooking at home more myself. Though for eating out for me used to be more for meeting people or spending time with your partner. I still do that, but instead of meeting at a brunch spot, you do a takeout and hang out elsewhere.

TuringNYC• 3 years ago

Our family went to a restaurant yesterday, and they put on a 20% gratuity by default, and then presented a credit card bill with a line for a secondary tip and suggested amounts based on percentage (18%, 20%, 25%) -- effectively tips of 42%, 44%, and 50%

The first tip (the default 20%) was hidden on the detailed receipt. The credit card receipt had no indication there was already a tip applied. I was struck by the dark pattern here.

Further, the service was so-so. We had to ask for water three times before we got refills, kids screaming the entire time. Dinner out is meant to be relaxing and enjoyable, not a quest to demand something you're already paying for.

When I spoke to a co-diner, the explanation was "well they are short on staff." OK, so if they are short on staff and couldn't refill glasses with water, how did that justify a 20% gratuity?

Also, if they are short on staff, and the smaller set of staff are sharing a tip, doesn't that even out a lower tip?

This has happened over and over and our default response is not to complain, or write bad reviews, but just to stop dining out. We cook at home, with high-quality ingredients, and enjoy the time together.

VancouverMan• 3 years ago

The inflation goes way beyond just an increase in the price.

The portion sizes often seem to be simultaneously decreasing, too.

The quality of the ingredients is also often noticeably less than it used to be.

On top of all of that, the service from the staff is also often terrible these days.

I end up paying far more, getting a much smaller quantity of food, what little I do get is inferior, and the overall experience is unpleasant.

It's not just getting the same for more money. It's now about getting far less for more money.

Restaurant real estate gets a radical makeover

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