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Why should no-tipping work in NYC when it didn’t in SF?



New York restaurateur Danny Meyer certainly made headlines yesterday when he announced that he’s eliminating tipping at all 13 of his Union Square Hospitality Group restaurants.

The move caught the restaurant world by storm. Eater said it “would forever change how diners dine.” Slate blogger Jordan Weissman cracked that it “could be a tipping point.” Tim Zagat, of the Guide, quoted in the Daily News, said, “It means a lot…Danny Meyer knows what he’s doing [and] you better take him seriously.”

Well, of course, if someone in New York does something, it must be groundbreaking, right? New York is after all The Big Apple and as the Big Apple goes, so goes the nation.

Except…California did it first. Chez Panisse and The French Laundry have long included the tip in the price of the meal, but you could argue that those are exceptions because they’re not normal “restaurants,” they’re dining Disneylands. But earlier this year a flurry of other Bay Area restaurants followed suit: Trou Normand (love their charcuterie), Toast and Camino (both here in Oakland), the celebrated Atelier Crenn, Homestead and Bar Agricole, in the red-hot Mission District, and others.

But guess what? As I write these words, Michael Bauer, the San Francisco Chronicle’s restaurant critic, broke the news that Thad Vogler, owner of both Bar Agricole and Trou Normand, “is ending his experiment and returning to the conventional model” of tipping.

Vogler’s reasons? “Staff retention.” He had assumed that other restaurants in San Francisco would follow his lead, but they didn’t. That meant his servers could make more money working elsewhere, so they quit. “[O]ur staff wasn’t happy,” Vogler said, adding, “[I]t felt like we were forcing an ideological decision” down their throats.

(I asked a friend of mine who works at Bar Agricole along with her husband, neither of whom is currently wait staff, how they felt about it, and she said they’re both in favor of ending the no-tipping policy.)

How do I feel about it? Well, last February, when the no-tipping trend really started getting reported about in the Bay Area, I blogged that “I’m in favor.” I had been getting most of my 9-1-1 on the topic from Bauer’s writings, and Bauer had eagerly embraced no tipping: Increasingly, it’s becoming apparent that it’s time for tips to make a graceful exit,” he wrote. But in retrospect, I didn’t really think things through carefully enough. And neither, apparently, did Bauer: in his post today, Bauer seems to be moving slightly away from his earlier embrace, remarking that “Not everybody is ready” to go to a no-tipping policy: restaurateurs, employees or consumers.

I can see that the move away from tipping is an attempt at modernizing a very old, and perhaps anachronistic, tradition that dates to at least the early 18th century. But I do wonder why the no-tipping policy should work for Danny Meyer in New York when it didn’t for Thad Vogler in San Francisco. Good servers, of the sort who work at Bar Agricole or Meyer’s Union Square Café, are at least as hard to find, and retain, in New York as they are in San Francisco. I wonder if, a year from now or less, we’ll hear Danny Meyer confess that, like Thad Vogler, he’s ending his noble experiment, and for the same reason.

On Taco Bell selling wine



If more proof were needed that wine has become as mainstream in America as fast food, it was just supplied with Taco Bell’s announcement that the chain will begin serving wine at its stores, beginning in Chicago and San Francisco.

The Irvine CA-based company put out a press release on Sept. 15 stating its intention “to create a new experience as the brand expands into urban markets,” and part of that “new experience” is the creation of a concept they’re calling Taco Bell Cantina (TBC). The press release explains the reason: “Today’s consumers are living in more urban settings and our new restaurants cater to their lifestyle in adapting our traditional restaurant concept to fit their modern needs.”

Well, that sounds like Millennials, doesn’t it? They’re moving to cities like San Francisco in droves, and they are different from their parents and from their more rural cousins. Their “modern needs” include a desire to “live, work and play” in urban settings, where they don’t have to drive a zillion miles to get to and from work. Taco Bell Cantina also will feature “the local architecture of the neighborhoods each restaurant serves,” although so far, there’s no mention of sourcing locally-provisioned ingredients. Maybe that’s the next step.

Here in San Francisco, the new restaurant will be close to AT&T Park, arguably the city’s hottest neighborhood, and will “cater to [that] quick pace, tech savvy and vibrant community.” It also will be as green as fast food gets: “LED lighting, use of reclaimed elements where possible and recycling.”

Will coders cotton to Taco Bell Cantina? I’m sure they will. I never get the impression that the hoards of young developers you see all over San Francisco these days are particularly informed when it comes to food. They like big flavors, some hint of authenticity and inexpensive prices, which is what they’ll find at TBC. I haven’t been able to find a menu for TBC, but the San Francisco Chronicle reports the new foods will be free “of all artificial colors and flavors…by year’s end…Artificial dye Yellow No. 6 will be removed from the nacho cheese and Blue No. 1 will no longer be used in the avocado dip.” The press release says the foods will be “tapas-style…shared appetizers.” That’s very Millennial, too.

Sounds good to me!

I don’t know what the wines will be at the San Francisco location, or the beers, for that matter. It’s not open yet. The Chicago restaurant apparently had a soft opening recently that USA Today reported on. They said the menu included new appetizer items [such as] chicken tenders, rolled chicken tacos [and] mini quesadillas.” That also sounds good to me. I’m often running around looking for something healthful, tasty, fast and cheap. As for booze, USA Today reported that the Chicago location is selling something called Cantina Punch and Cantina Margarita, as well as Dos Equis and New Belgium beers and wines from two California brands I never heard of, Steelhead Vineyards and Stack Wines. Thanks to the miracle of the Google machine, I found out that Steelhead is a project “dedicated to creating a better world”




by supporting Trout Unlimited; the winemaker is an old pal, Hugh Chappelle, who was at Flowers and Lynmar and now works at Quivira. So I bet the wines are pretty good. As for Stack Wines, it seems to be easy-breezy, California-appellated wines-in-a-can made of glass-like plastic.

This is a nice step for Taco Bell to take. There’s a place for fast food in this country, and it’s cool that Taco Bell is lifting the experience up a little. I could see myself grabbing a quick bite next time I’m at a Giants game, which I will be for their final one of the year against the Dodgers, on Oct. 1.

Thoughts on those sommelier lunches

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Today I am speaker, or host, at a buyer’s lunch for Jackson Family Wines. The venue is Farmshop, a restaurant in the tony Marin County town of Larkspur. I’ve never eaten there, but if you’re a wine-and-food geek in the Bay Area, you’ve certainly heard of it. Farmshop earned a coveted spot on the 2015 Top 100 restaurant list compiled annually by the San Francisco Chronicle’s restaurant critic, Michael Bauer. Our lunch menu was specially created by Chef Jason Purcell to pair with seven JFW wines. Our guests—22 and counting—are important wine buyers in the Bay Area.

But that’s not what I want to talk about. Instead, I want to expand the conversation to the topic of these buyer lunches and dinners. These are important ways for wineries to connect with people who might buy their wines, and not just any people: high-end on- and off-premise accounts that will showcase the winery’s wines the way they hope to be be portrayed.

Being present on the shelf of a good wine shop and, even more, on the wine list of a top restaurant is more vital than ever. The Holy Grail for wineries, of course, is direct-to-consumer, but that’s a long, hard road, and the thinking among the smart set is that being on a wine list represents a shortcut, or perhaps stimulant is a better word, to DTC. I’m not sure exactly if that’s true, the assumption, I suppose, being that if a customer buys your off the wine list and falls in love with you, he’ll seek you out in the future by joining your wine club or ordering your wine from your website. That is hopeful, but not proven. But if your production is small enough—and many of the wines I’ll be showing tomorrow are–you can afford to forgo DTC if enough retail accounts buy you.

Wineries have different personnel they can choose to represent them at such venues, which combine entertainment and serious eating with the educational analyses of the wines. Obviously, there’s the winery owner and/or winemaker, who often but not always is the same person. This is a winery’s best bet for putting forth a personality who can talk about the wines being presented, as well as using herself as a selling point; having a “face of the winery” is very important for branding, although not all winemakers and/or owners like being put in that position, and some refuse to do it. But it’s necessary these days, and not a bad place to be, since your audience arrives excited and expecting to like you. All you have to do is live up to their expectations. And who doesn’t like to be liked?

The winemaker or owner isn’t always available, of course. So who else does the winery send to represent them? Well, it’s often someone from sales, marketing or P.R. who is affiliated with the winery in some way, and can speak credibly about the wines. You need a credible presence, because buyers don’t want to feel jerked around by someone who doesn’t have credibility and is only trying to sell stuff–timeshares or Tupperware or whatever.

The hope on every winery’s part, at every trade or consumer event, is to have someone of unimpeachable credibility represent them. This isn’t exactly a new development—winetasting events at restaurants are as old as the hills. But it’s become more polished in recent years, especially with the advent of the “new sommeliers,” people with advanced knowledge of, not only wine, but culinary affairs. They don’t want to go to a lunch just anywhere, and indeed, if the restaurant doesn’t spark their interest, they’ll pass on by the event. Somms have become more pampered than they were in the past—not passing judgment on that, just saying—and so it takes more than it used to to coax them out and make them happy.

Moving away from “the wine list”

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Lucy Shaw’s interview with Christopher Cooper, reported in the drinks business, contains some wise and useful insights, especially Cooper’s contention that sommeliers “need to work harder, take more risks and open their eyes to the bigger world of drinks, taking in beer, cider, cocktails and spirits.” Declaring the traditional wine list “dead—boring…wine bibles [that] are crap,” he even charges that customers “are being forced into buying wine rather than other drinks in restaurants as it’s profitable.”

Wow, lots to break down here. It’s true that restaurants make a lot of money selling wine, although I don’t know if wine is more profitable than beer and cocktails—perhaps someone can enlighten me.

Since I’m a wine guy, representing wineries, I do wonder if this suggestion—that restaurants open their wine lists more or less equally to beer and spirits—will cut down on wine sales. This would be a serious impediment to wineries, especially in this day and age when on-premise is so important to them. But I don’t think so. Here’s why.

To begin with, the gigantic wine list—the size of the Manhattan telephone directory—has clearly had its fifteen minutes of fame. It won’t disappear overnight, but I assume and hope than eventually it will be seen for what it is: a bloated appeal to snobbery. Diners don’t even want such mammoth wine lists anymore; they want something with, maybe, 30 wines and an attractive by the glass selection, creatively chosen, moderately priced and—this is key—curated by someone who knows and loves wine, and doesn’t just throw the Big Names on there for the hell of it.

So restaurants shouldn’t just add beer and spirits to already-overweight wine lists, they should shorten their wine lists. Who gets to stay on such coveted real estate? Ahh, glad you asked. It’s the wineries that offer the most bang for the buck.

The real action these days isn’t in the critical scores or the latest magazine cover stories, it’s on the sales turf. Everybody—Bill Harlan to Fred Frenzia—is out there thinking of how to stay relevant. Nobody really understands the rules because frankly, my dears, there aren’t any, or very many, and such rules as there are tend to get broken quickly as the landscape undergoes constant mega-change. There’s a lot of bull out there that masquerades as expertise when in reality it’s just another service being pitched. The details differ at each price scale, but basically, the question for vintners is: Am I still going to be able to sell this stuff five, ten, twenty, a hundred years from now?

This is a worthy question for a vintner to ask—indeed, the only worthy one. I have a feeling that wineries that can prove to the world that they are in this for the long haul, will find themselves a leg up, because having a real long-range plan means they’re performing at the top of their game. Nobody wants overnight successes, built on some phony formula, that won’t exist tomorrow. We want to support wineries that have been doing a good job for a long time and haven’t gotten complacent.

And that gets us back to wine lists, which, according to the Cooper theory of reality, should actually be called “wine, beer and spirits lists.” It’s a good idea that will upset the wine industry temporarily, but in the long run will be good for consumers, and that’s what it’s all about.

Connectedness: the Holy Grail of winery marketing



Last week, while Americans were watching developments concerning the Comcast-Time Warner Cable merger, which eventually (and thankfully) collapsed, another more successful merger went almost unnoticed. That was the marriage between Blue Bottle Coffee and Tartine Bakery, a far happier union that consumers could celebrate, instead of worrying about.

Blue Bottle was founded in my hometown of Oakland and now has cafés throughout the Bay Area, L.A., New York City and Japan. It’s become what Starbucks used to be: the hippest java joint around, one of the high-end coffee industry’s most respected roasters,” according to Fast Company, an appraisal shared by Bloomberg Business, which described Blue Bottle as “the next wave of artisanal coffee shops” and reported on enthusiastic investments in the company by Silicon Valley tech giants such as Google, WordPress and Twitter.

Tartine Bakery sprang from the famous San Francisco restaurant, Bar Tartine, a Mission District hotspot that helped make the Valencia Corridor one of the city’s most visited dining destinations. Tartine’s bread makers earned the prestigious James Beard Award for Outstanding Pastry Chef. As wildly popular as the bakery is, Tartine has not been able to figure out how to expand to other locations. Blue Bottle has. The San Francisco Chronicle predicts the merger will “provide mutual benefits to both,” as consumers continue to seek out “well-crafted quality, locally sourced and planet-sensitive foods.”

There are lessons for the wine industry, particularly for family-owned wineries that want a more personal connection with consumers. Consumers do want “planet-friendly” things to buy. They do want quality that’s apparent, and preferably locally-sourced. But, maybe more than anything, they want a connection with the people who sell them products and services. Never in the history of American industry has that personal connection been more important. People—in their loneliness, idealism and confusion—desire to feel something human. Not the appearance of something human. Not something crafted in some P.R. shop that seems human. Something that is human.

Tartine and Blue Bottle (I’ve been to both) provide that connection to human-ness. It’s hard to pinpoint exactly how, or to describe it, unless you’ve been there; the blogger Kevin Lindsay has called it a “visceral reaction” that can create lifelong connections with the shoppers who can and will become compelling brand evangelists.” This is, of course, the Holy Grail for all companies, including wineries: to “create lifelong connections.” A lifelong consumer does not have to be marketed to with the same ferocity (and costs) as a new, unaffiliated consumer. This is the magic of branding: it’s why I met so many fans of Kendall-Jackson Vintner’s Reserve wines on my trip last week. It’s why the About Money website says branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.”

What a concept! So doable, and yet so rarely done. This is precisely the challenge wineries must confront, and solve, in the coming years, if they are to remain viable, in the face not only of domestic competition but international, as trade agreements erode traditional national boundaries and the entire planet becomes a single marketplace.

How is this to be done? Now that the clamorous exaggerations for social media have begun to calm, we can see that merely having a robust online presence isn’t nearly enough. Social media is simply a tool: put a chisel in the hands of Michaelangelo and you end up with David. In the hands of a child, a chisel is merely something to thump and bang with, and possibly do damage. To really connect with the consumer, you have to think like the consumer. You have to have empathy. You have to get out of your box and into the mind and heart of the consumer you hope to reach. That may sound New Agey, but, as Mark Benioff explains in this interview about his late friend and mentor, Steve Jobs, Jobs’ spirituality (inspired by yogic meditation practices and The Beatles) made the Apple co-founder “a prophet” who knew what consumers wanted even before they themselves did. Steve Jobs not only gave them what they sought, which was a way to increase their connectedness to the world, he made them—and the world—a better place.

Capitaltruism: Merging idealism with making money

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There’s a movement afoot in corporate America that doesn’t get enough attention but is gaining traction and could be a game changer. This movement is about inculcating social, environmental and health concerns into the sale of goods and services: call it Capitaltruism, where traditional capitalism meets idealistic altruism. And nowhere is it being embraced more heartily than by Millennials, who may feel that—since neither the government nor corporate America by itself is tackling important issues—it’s up to them.

Two recent developments illustrate this movement. The first is reflected by the rise of the “B Corporation.” The “B” stands for “beneficial.” A B Corporation is “a for-profit company committed to social or environmental goals in addition to its financial obligations.” That’s according to this article in the San Francisco Chronicle that describes how such corporations try “to benefit not [just their] shareholders, but also society.”

Millennials in particular are “drawn to firms that do good.” B Corps are certified by a third party, B Corporation, that claims to have registered 1,247 companies in 38 countries, across 121 industries, including wine. A Brookings Institution study found that the “desire on the part of Millennials for their daily work to reflect and be a part of their social concerns” is a chief factor in their choice of careers—and in their purchasing decisions.

The second development, reported courtesy of the Wall Street Journal, is of two California restaurateurs, Daniel Patterson (of Michelon-starred Coi in San Francisco but also of Plum Bar in Oakland) and Roy Choi, who got his start with L.A. food trucks. The pair have started up a company, Loco’l, whose aim is to replace the dismal diet of unhealthy fast food that now dominates less affluent neighborhoods with what Patterson calls a “natural, cooked-with-integrity alternative.” The first two Loco’ls will open in San Francisco’s Tenderloin and in Los Angeles’ Watts district. The foods will cost between 99 cents and $6 and will include things like a “Burg”: a beef-grain-garum [fish sauce] patty with Awesome Sauce, Jack cheese, grilled scallion and lime relish, on a Tartine Bakery bun. Sounds good, doesn’t it?

What do these two initiatives have in common? For one thing, both the Loco’l people and the B Corp people want to make money. But they want to do so in a way that addresses serious social concerns that, frankly, are not yet being addressed adequately. Both ventures are fueled by idealism and creativity, and both fill an important niche in a consumer market that’s been waiting for somebody to give them something worth spending their money on. What a fabulous idea!

Have a great weekend!

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