US Investment Immigration focus on Life in the US updates: An article on the US Fortune magazine website on September 6 stated that there are many standards for measuring the economic recovery of New York, and the steakhouse index shows how steakhouse restaurants have regained their splendor since the economic crisis. The article believes that the spirit and profits of traditional steakhouses are recovering, and consumption in these restaurants not only demonstrates the revival of New York but also signals the economic revival of the entire United States.
The steakhouse index was estimated after observing foot traffic and dining atmosphere at three well-known steakhouses in downtown New York last August. The owners of all three establishments admitted that business was far from what it used to be and speculated that it would never return to pre-economic crisis levels. Scott Gould, regional manager of the Del Frisco's Restaurant Group, stated that the company has strictly controlled spending, making it difficult for revenue to return to previous levels.
Even so, the revenue of these companies has been growing since the economic crisis. Even with several new restaurants opening in downtown New York, these steakhouses have recovered to 50% of their pre-crisis revenue. The reasons for this are, first, that large banks, corporations, and law firms have relaxed their entertainment standards again, and second, due to the depreciation of the US dollar, a large number of tourists arrive on weekends or come to dine after leaving Broadway at night.
The article states that in Manhattan, discussing business with clients at a steakhouse is a convention, and visiting tourists also list famous steakhouses as must-visit destinations. Before the economic crisis, extravagance subverted these traditions. Steakhouse managers said that at that time, groups of investment bankers would order five bottles of soda, six appetizers, and $250 worth of Bordeaux wine. Crustaceans, stone crab claws, and large steaks were highly favored. But this revelry finally ended in late 2008. Michael Stillman, manager of the Smith & Wollensky steakhouse, said that revenue dropped by 20% within a few months; the number of consumers did not decrease, but their spending did. Gould also indicated that sales of high-end dishes plummeted, and corporate spending became more cautious.
Porter House was opened in 2006 during the economic boom. Chef and proprietor Michael Lomonaco said that residents of Central Park West used to frequent the restaurant, but foot traffic later decreased significantly. Steakhouses began to rely on selling expensive wines to make a profit and recommended cheap flank steaks and skirt steaks to regular customers to attract business. What Stillman worried about most was people losing interest in the steakhouse experience; some steakhouses had already been hit hard, as economic distress made it impossible for people to enjoy the experience provided by a steakhouse.
The article states that now, this enthusiasm has returned. Porter House is primarily driven by residential consumption rather than business consumption, yet people saw many business giants appearing there at the end of last year. Lomonaco said that revenue in the fourth quarter of 2012 showed a double-digit rebound. Tourists often entered the restaurant without reservations in unprecedented numbers, and the restaurant even removed cheap steaks and replaced them with $53 bone-in steaks. Stillman also stated that Smith & Wollensky hosts parties for many elites, and individual consumption has also risen significantly compared to three years ago. Today's consumers are more savvy, eager to know the age of the cattle and the ingredients of the food, and they favor high-end Spanish wines and Oregon wines.
