LOS ANGELES —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
In cities across the country like New York, Washington, Denver and San Diego, operators are wrapping up winter restaurant week events, which typically feature a three-course lunch or dinner or both at upscale restaurants at uniform prices designed to appear affordable. Such programs are being embraced more as an opportunity to pack dining rooms during typically slow seasons. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Los Angeles, for example, is in the midst of its first such citywide event, called “dineLA.” Other cities are adding a second restaurant week event and developing more sophisticated options to encourage participation, such as multi-tiered pricing, or are encouraging operators to extend the promotions beyond designated time periods. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Some restaurateurs, however, are concerned that the troubling macroeconomic climate may dampen restaurant week bookings. Given news of the nation’s housing crisis and Wall Street gloom, even the bargain of a three-course dinner for $40 at a top-tier San Diego restaurant may be a luxury some consumers may feel they can’t afford. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
For operators, participation in restaurant week programs is becoming more expensive, with promotional fees ranging from $1,000 to $2,500. However, many say the increase in traffic during the typically one- or two-week-long programs makes up for the costs. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
“It makes sure you’re busy at a time when you otherwise might not be,” said Tracy Nieporent, a partner and director of marketing in New York-based Myriad Restaurant Group, whose concepts include Nobuand Tribeca Grill. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Nieporent, an organizer of the event, said New York City pioneered the restaurant week in 1992, when a three-course meal was offered for $19.92. This year the offer was $24.07 for lunch and $35 for dinner. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
A record 223 restaurants participated in New York’s event, which ran Jan. 21-25 and Jan. 28-Feb. 1. Another two-week “restaurant week” is held in the summer, and operators pay a $2,500 fee to cover the cost of a promotional website and other marketing. For example, participating chefs this year did cooking demonstrations at a “popup” store in Manhattan hosted by sponsor Delta Air Lines. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Overall, restaurant week routinely boosts traffic, Nieporent said. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
“Restaurants just don’t pay to participate in things like this year after year unless it works,” he said. “For us, we know those four weeks each year are going to be great.” —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Last winter at Tribeca Grill, for example, the restaurant did 768 dinner covers the week before the event, and 1,761 in the event’s second week. Surveys have shown that many restaurant week diners are first-timers who, Nieporent hopes, come back later in the year. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Because the specially priced dinner is seen as such a bargain, diners also tend to spend a little more on wine and other add-ons, which raises profit margins, he added. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
However, critics of restaurant week programs—including blogs like
Operators “are stupid to do that,” said Nieporent, conceding that organizers sometimes have to address such complaints. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Nobu’s restaurant week menu at lunch this year included such signatures as the sashimi salad with Matsuhisa dressing, broiled black cod with miso and a dessert. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
“There are some people who are snobs and say restaurant week is when the masses dine out,” Nieporent said.“But it allows you to reach an audience you otherwise might not be able to reach.” —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Restaurant week has become a huge opportunity in San Diego, said Tracy Borkum, owner of Urban Kitchen Group. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
San Diegans are offered a three-course meal for $30 or $40, with about 130 restaurants participating. A second restaurant week is scheduled for June 22-27, and participants—who must be members of the California Restaurant Association—pay a fee of $2,000 for both or $1,500 for one. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Two of Borkum’s restaurants, Laurel and Kensington Grill, were booked solid throughout the initial week, Jan. 27 through Feb. 1. Borkum, however, was disappointed with bookings at her restaurant Chive and blamed increasing competition in its downtown neighborhood. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
While business tends to boom during restaurant week, Borkum expects to see slower traffic this year during the weeks before and after the event, largely because of the gloomy economic outlook. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
“Our numbers were off a bit the week before, but not as much as we expected,” she said. Borkum plans to extend the offer for a second week into February at Laurel and Chive, but not Kensington Grill because that restaurant tends to be busier. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
In Los Angeles, more than 100 restaurants from Santa Monica to downtown are participating in dineLA, which was organized by LA Inc., the city’s convention and visitors bureau, in partnership with American Express. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
During the two weeks, Jan. 27-Feb. 1 and Feb. 3-8, dining deals were available in two categories: $15 for lunch and $25 for dinner; or $22 for lunch and $34 for dinner, depending on the restaurant’s usual price point. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Carrie Kommers, director of dineLA, said she hopes to make it an annual event with another week added in the summer. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Because the event was the first of its kind in Los Angeles, organizers faced difficulties in getting restaurateurs to sign on, said Neal Fraser, chef-owner of Grace and BLD and a member of dineLA’s advisory committee. Some operators said the $1,000 participation fee was too high, while others said they weren’t convinced such programs benefit business. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
Fraser, however, said his two restaurants were fully booked for the two weeks. Because the bookings were made through the
That’s good news, he said, given that his lunch business was down 20 percent to 25 percent in the weeks just before the event. —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
“Is it the time of year? Is it the [Writer’s Guild] strike? Is it recession or foreclosures? I don’t know,” Fraser said.“But for me, restaurant week is about bettering the L.A. restaurant community overall.” —Post-holiday doldrums combined with fears of a possible recession have co-op groups of upscale-restaurant operators nationwide holding their collective breath in hopes that new rounds of set-price “restaurant week” promotions will propel customer traffic.
