Catch Hospitality's Remm on the Future of Dining as He Opens New Concept "The Eighty Six"

Key Concepts

• Supply and Demand in Restaurants: The strategy of shrinking supply (fewer tables, intimate spaces) to increase demand (exclusivity, high desirability).
• Intimate Dining Experience: Creating a personalized and exclusive atmosphere, akin to dining in a private home, through small-scale venues and attentive service.
• Iconic Locations: Selecting historically significant or aesthetically pleasing sites for restaurants to enhance their appeal and narrative.
• Prohibition Era Influence: Drawing inspiration from the 1920s, particularly speakeasies, for design, decor, and cocktail menus.
• Cocktail Culture: The significant role of well-crafted and innovative cocktails in the modern dining experience, with a focus on scratch-made ingredients and unique preparations.
• Shifting Beverage Consumption: Acknowledging the trend of reduced alcohol consumption and the need for restaurants to adapt their beverage programs and offer alternatives.
• Dynamic Pricing Models: Exploring potential future pricing strategies for restaurants, similar to airline ticketing, where prices vary based on demand and time.
• Restaurant Business Model Evolution: The transition from nightlife-focused establishments to restaurant groups with nightlife DNA, and the ongoing expansion and diversification of concepts.
• Clustering Strategy: The practice of opening multiple establishments in successful or strategically advantageous locations to leverage existing brand recognition and operational efficiencies.
• Post-Pandemic Restaurant Challenges: Navigating increased labor costs, inflated food prices, disrupted supply chains, and a potential decrease in consumer spending.
• Core Restaurant Success Ideology: The three pillars of a successful restaurant: feeling good upon entry, excellent food, and a captivating vibe (design, lighting, music).

The 86: A New Intimate Steakhouse in the West Village

The 86, a new restaurant located in the West Village on historic Bedford Street, is the latest venture by Eugene Ram, owner of Catch NYC, and his partner Tilman Fertitta, owner of the Landry's chain. This establishment marks a significant departure from their previous large-scale projects, focusing on an intimate steakhouse experience with only ten tables. The strategy behind this small-scale approach is rooted in the principle of supply and demand, aiming to shrink supply to increase demand and create an exclusive, high-desirability dining environment.

Strategic Location and Intimate Design

The restaurant is situated in an iconic location, a key element in Ram's strategy for where New York's market is heading. The entire space spans 1800 square feet across two floors, with the customer-facing area being a more intimate 900 square feet. This design choice aims to replicate the feeling of dining in a well-appointed home, emphasizing a personal and exclusive experience. The kitchen is positioned just 15 feet from the dining area, further enhancing this sense of closeness and connection.

Historical Significance and Thematic Inspiration

The building at 86 Bedford Street itself is steeped in history, having served as a prohibition-era speakeasy and later a literary hub frequented by notable figures like Hemingway, Fitzgerald, and Steinbeck. The name "86" is derived from a Prohibition-era code word used for the back entrance at that address, signaling an escape route. This historical context heavily influences the restaurant's aesthetic and thematic elements. The design is a 1920s Art Deco style, paying homage to the building's past while establishing its own unique identity. The inspiration for the decor was drawn from the Orient Express, contributing to a luxurious and evocative ambiance.

Prohibition-Inspired Menu and Cocktail Culture

The prohibition theme extends to the menu, particularly the beverage program. The 86 features precise martinis and inventive cocktails that draw cues from 1920s libations. Ram highlights the resurgence of cocktail culture in New York City, with patrons willing to pay a premium for well-crafted drinks. The Corner Store, another of Ram's successful ventures, is cited for its exceptional martini program, emphasizing scratch-made ingredients and a dedicated team that prepares components from early morning. This commitment to quality and uniqueness in cocktails is a cornerstone of the 86's offering, ensuring that patrons receive more than just a traditional drink.

Navigating Shifting Beverage Consumption Trends

The restaurant industry faces challenges in sustaining beverage programs due to a general decline in alcohol consumption. Data from the U.N. Food and Agriculture Organization suggests a potential permanent decline in alcohol use, with beer consumption peaking in 2016 and wine consumption steadily decreasing since the 1970s. This trend necessitates a shift in approach, where patrons may opt for a single glass instead of a bottle, or choose non-alcoholic beverages. Ram acknowledges this by stating, "People are drinking less, so people used to drink a bottle. Now they may have a glass. They maybe used to have a glass. Now they'll have an a a non alcoholic beverage." To counter this, the 86 focuses on providing the "theater" that accompanies wine consumption to drive sales.

Adapting Business Models to New Realities

The decline in drinking, coupled with the rise of GLP-1 weight loss drugs, is forcing restaurateurs to re-evaluate traditional business models. Ram expresses interest in exploring dynamic pricing models, similar to those used in the airline industry, where prices fluctuate based on demand and time of day. He notes, "I have not come up with like the flat seating model yet or the, you know, dynamic pricing model where if you want a table at 5:00, it's going to be $300. If you want the table at 730, just like when you go on a flight." This suggests a future where restaurants might adopt more flexible pricing structures to optimize revenue and manage demand.

Ram's Career Trajectory and Expansion Strategy

Ram's extensive career in the restaurant business has seen him adapt to evolving market landscapes. Catch, launched in 2011, initially blended nightlife with dining. By 2014-2015, the focus shifted to a restaurant group with a nightlife DNA. This led to the expansion of Catch across New York, Los Angeles, and Las Vegas, followed by Catch Steak, which opened during the pandemic. The current expansion spree includes ventures like the 86 and further development with groups like MGM in Las Vegas, and successful markets like Dallas and Scottsdale.

Post-Pandemic Challenges and Resilience

The restaurant industry has faced significant hurdles since the COVID-19 pandemic. According to the National Restaurant Association, nearly one in six eateries experienced long-term or permanent closures in the six months following the shutdown. The recovery has been challenging, with restaurants contending with higher labor costs, inflated food prices, and ongoing supply chain disruptions. CPI data indicates a 3.7% increase in eating out costs over the past year. Ram reflects on the period, noting the initial influx of "free money" followed by a "hangover" in 2023 as reality set in. He observes a trend of people spending less and going out less, projecting this to continue in the coming years.

Ram's Core Ideology for Restaurant Success

Despite these challenges, Ram's thoughtfulness has been key to his perseverance. He attributes restaurant success to a core ideology built on three pillars:

1. Employee Experience: "Number one, you have to feel good when you walk in and ask the people who work here. So they set the tone and the standard of what we do."
2. Food Quality: "that we have to back it up with amazing food."
3. Vibe: "And the vibe in this scenario is some of the design, the lighting, the music and everything else."

The critical element, according to Ram, is the ability to execute all three of these aspects equally well and simultaneously.