1 00:00:02,520 --> 00:00:05,920 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:05,960 --> 00:00:09,040 Speaker 1: dot Com, the radio plus Mobile act and on your radio. 3 00:00:09,320 --> 00:00:13,600 Speaker 1: This is a Bloomberg business flash from Bloomberg World Handquarters. 4 00:00:13,640 --> 00:00:16,720 Speaker 1: I'm Charlie Pellett's stocks are higher in the SMP five 5 00:00:16,800 --> 00:00:19,960 Speaker 1: hundred indexes, on track to snap a two day drop 6 00:00:20,000 --> 00:00:22,759 Speaker 1: as a rebound in crude prices spurs a rally and 7 00:00:22,960 --> 00:00:27,560 Speaker 1: energy producers, while corporate earnings help boost financial companies. A 8 00:00:27,840 --> 00:00:31,320 Speaker 1: I G is up now by seven point two percent. 9 00:00:31,840 --> 00:00:35,240 Speaker 1: SMP five hundred index up two points to one fifty nine, 10 00:00:35,240 --> 00:00:38,080 Speaker 1: a gain there of one tenth of one percent. Down 11 00:00:38,159 --> 00:00:41,960 Speaker 1: industrials up six to eighteen thousand, three hundred nineteen, a 12 00:00:42,000 --> 00:00:44,880 Speaker 1: gain of less than point one percent, and has stack 13 00:00:44,960 --> 00:00:47,440 Speaker 1: up two tenths of one percent. The tenure up to 14 00:00:47,600 --> 00:00:50,320 Speaker 1: thirty seconds with the yield of one point five four percent. 15 00:00:50,720 --> 00:00:54,400 Speaker 1: Gold now down ninety thirteen fifty eight to drop there 16 00:00:54,400 --> 00:00:57,840 Speaker 1: of seven tenths of one percent. West Texas Intermediate crued 17 00:00:57,920 --> 00:01:01,480 Speaker 1: up three point four percent to forty dollars and cents. 18 00:01:01,800 --> 00:01:08,160 Speaker 1: I'm Charlie Pallot. That's a Bloomberg business flash. This is 19 00:01:08,200 --> 00:01:12,160 Speaker 1: taking stock with Gadlin Hayes and Gim Fox on Bloomberg Radio. 20 00:01:12,959 --> 00:01:17,039 Speaker 1: We are broadcasting live from Boston's Atlantic Wharf site of 21 00:01:17,280 --> 00:01:19,760 Speaker 1: Smith and will Lensky's, and we're gonna be talking about 22 00:01:19,800 --> 00:01:22,480 Speaker 1: hospitality in the restaurant industry. Do you know that the 23 00:01:22,600 --> 00:01:25,679 Speaker 1: restaurant industry in the United States is worth and estimated 24 00:01:25,720 --> 00:01:29,479 Speaker 1: seven hundred and eighty billion dollars a year and employees 25 00:01:29,720 --> 00:01:32,440 Speaker 1: more than one and a half million people. Here to 26 00:01:32,480 --> 00:01:36,600 Speaker 1: tell us more about the hospitality business is Kim Lapine. 27 00:01:36,920 --> 00:01:39,679 Speaker 1: She is the senior vice president of marketing for Smith 28 00:01:39,680 --> 00:01:41,880 Speaker 1: and Bolensky's. Kim, thank you very much for having us 29 00:01:41,880 --> 00:01:45,479 Speaker 1: here and welcome to the program. Welcome. Tell people about 30 00:01:45,480 --> 00:01:49,480 Speaker 1: a recent transaction having to do with a Bunker Hill Capital, 31 00:01:49,600 --> 00:01:53,440 Speaker 1: which was previously the owner of Smith and Wilensky and 32 00:01:53,760 --> 00:01:57,240 Speaker 1: what is happening to this iconic branch. Sure well, UM, 33 00:01:57,280 --> 00:01:59,960 Speaker 1: as many people know here in Boston, on Bunker Hill Capital, 34 00:02:00,160 --> 00:02:03,480 Speaker 1: private equity firm located here in Boston, they took ownership 35 00:02:03,480 --> 00:02:08,079 Speaker 1: of Smith Lensky back in oh seven, UM, pre recession 36 00:02:08,160 --> 00:02:11,079 Speaker 1: and then of course the recession. UM, their focus really 37 00:02:11,160 --> 00:02:13,520 Speaker 1: was to kind of right the ship and position the 38 00:02:13,520 --> 00:02:18,000 Speaker 1: company and UM very turbulent times. UM very difficult economy. 39 00:02:18,280 --> 00:02:21,040 Speaker 1: UM luxury brands like Smith Lensky of course had to 40 00:02:21,080 --> 00:02:23,520 Speaker 1: take a hard look at themselves and how to survive 41 00:02:23,560 --> 00:02:26,440 Speaker 1: in that atmosphere. And we really just stayed true to 42 00:02:26,480 --> 00:02:29,760 Speaker 1: our our brand, the the integrity, the quality of the 43 00:02:30,040 --> 00:02:33,080 Speaker 1: product in the service hospitality of course was a number 44 00:02:33,080 --> 00:02:37,160 Speaker 1: one focus, and just UM making investments in our procedures 45 00:02:37,200 --> 00:02:40,000 Speaker 1: and our tools to operate the business and kind of 46 00:02:40,080 --> 00:02:42,320 Speaker 1: right the ship and make sure that the equity remained 47 00:02:42,360 --> 00:02:46,200 Speaker 1: and that the company remained solid for future purchase UM 48 00:02:46,200 --> 00:02:49,480 Speaker 1: which of course this past spring, UM dan new partners 49 00:02:49,520 --> 00:02:53,200 Speaker 1: based in Dublin. Longtime fans of the brand, customers of 50 00:02:53,280 --> 00:02:55,880 Speaker 1: the brand UM. They like to get around about how 51 00:02:55,880 --> 00:02:59,320 Speaker 1: they UM cut many deals cutting into Smith Valensky, staying 52 00:02:59,320 --> 00:03:02,360 Speaker 1: over the past cup of decades, so huge admirers of 53 00:03:02,400 --> 00:03:04,960 Speaker 1: the brand UM. They had known some of the key 54 00:03:05,000 --> 00:03:08,000 Speaker 1: players both at Bunker Hill and in our operations and 55 00:03:08,120 --> 00:03:11,240 Speaker 1: even in New York City, and UM really approached us 56 00:03:11,720 --> 00:03:15,920 Speaker 1: to UM franchise the brand over in the UK and 57 00:03:16,040 --> 00:03:18,720 Speaker 1: open the first international location, which they did back in 58 00:03:18,760 --> 00:03:22,600 Speaker 1: two thousand fifteen. So what does this portend? More international expansion, 59 00:03:22,720 --> 00:03:25,919 Speaker 1: more US expansion. What's the business model like now for 60 00:03:26,000 --> 00:03:28,519 Speaker 1: Smith and Olinsky, well, clearly they saw some value in 61 00:03:28,560 --> 00:03:31,720 Speaker 1: the brand, enough so that they invested quite a bit 62 00:03:31,720 --> 00:03:34,760 Speaker 1: of money to open in the UK with the intent 63 00:03:34,840 --> 00:03:38,040 Speaker 1: of eventually buying the company outright. UM. If that went 64 00:03:38,080 --> 00:03:41,240 Speaker 1: well and if the relationship remained and and everything um 65 00:03:41,560 --> 00:03:45,200 Speaker 1: UM remained as positive as it was, they purchased the 66 00:03:45,200 --> 00:03:48,160 Speaker 1: brand back UM this this past spring. So now they 67 00:03:48,160 --> 00:03:50,080 Speaker 1: own all the locations here in the US except New 68 00:03:50,160 --> 00:03:53,280 Speaker 1: York City UM and then of course the London location, 69 00:03:53,840 --> 00:03:57,560 Speaker 1: with the intent of first investing UM new capital and 70 00:03:57,720 --> 00:04:00,200 Speaker 1: much needed funding and the locations that we have here 71 00:04:00,240 --> 00:04:04,080 Speaker 1: in the US UM, then maybe exploring some new domestic 72 00:04:04,080 --> 00:04:06,680 Speaker 1: opportunities in some major cities like we were talking about 73 00:04:06,720 --> 00:04:09,840 Speaker 1: earlier here in the US, and then of course looking internationally, 74 00:04:10,280 --> 00:04:13,080 Speaker 1: and just to look at the US footprint right now, 75 00:04:13,080 --> 00:04:17,120 Speaker 1: you've got Miami Beach, Chicago, Las Vegas, Columbus, Houston, and 76 00:04:17,240 --> 00:04:22,599 Speaker 1: two in Boston. Is any of the funds. Are any 77 00:04:22,600 --> 00:04:24,680 Speaker 1: of the funds going to be used to do renovation 78 00:04:24,839 --> 00:04:27,480 Speaker 1: or build outs of existing location? Yes, as a matter 79 00:04:27,480 --> 00:04:31,240 Speaker 1: of fact, we're beginning renovation plans for Miami Beach as 80 00:04:31,240 --> 00:04:34,920 Speaker 1: we speak. UM. Construction should begin sometime very soon as 81 00:04:34,920 --> 00:04:37,920 Speaker 1: well as Columbus is next on the docket. We've also 82 00:04:38,240 --> 00:04:40,599 Speaker 1: UM recently invested a great deal of funds in the 83 00:04:40,680 --> 00:04:44,359 Speaker 1: Chicago location, both in renovations of the Smith Wilensky brand 84 00:04:44,360 --> 00:04:47,640 Speaker 1: proper and then downstairs the launch of a new sort 85 00:04:47,680 --> 00:04:51,880 Speaker 1: of FETO concept. We call it Lensky's Grow. So, you know, 86 00:04:51,960 --> 00:04:53,600 Speaker 1: it seems to be one of things Smith and Wolensky 87 00:04:53,800 --> 00:04:57,160 Speaker 1: has that you know, you established the nineteen seventy and 88 00:04:57,240 --> 00:05:01,200 Speaker 1: I think that's almost what forty years the whole Uh, 89 00:05:01,440 --> 00:05:04,040 Speaker 1: the foodies in this country, so many people, so much 90 00:05:04,080 --> 00:05:05,880 Speaker 1: more fine dying around the whole country, not just in 91 00:05:05,880 --> 00:05:08,880 Speaker 1: a few major cities. So you have, it seems more demand, 92 00:05:08,880 --> 00:05:11,640 Speaker 1: a bigger market potentially, but there's also so much competition. 93 00:05:11,720 --> 00:05:14,039 Speaker 1: How do you stay on top? How do you keep 94 00:05:14,080 --> 00:05:18,279 Speaker 1: a brand premier and a brand that a company in 95 00:05:18,320 --> 00:05:20,919 Speaker 1: Ireland would want to buy exactly exactly? And you know, 96 00:05:20,960 --> 00:05:23,840 Speaker 1: and that's what we really faced during the post recession. 97 00:05:23,880 --> 00:05:25,680 Speaker 1: You know, how how are we going to remain competitive? 98 00:05:25,960 --> 00:05:28,160 Speaker 1: There's so many new players in the marketplace, especially in 99 00:05:28,160 --> 00:05:30,480 Speaker 1: the cities that we were in UM, and we took 100 00:05:30,480 --> 00:05:32,080 Speaker 1: a hard look at ourselves and said, you know, what 101 00:05:32,160 --> 00:05:34,280 Speaker 1: do we learn over that recessionary period, what do we 102 00:05:34,360 --> 00:05:37,800 Speaker 1: learn about Smith and Lensky that remained a constant, remained 103 00:05:37,839 --> 00:05:40,520 Speaker 1: a driver for the core customers that we were able 104 00:05:40,560 --> 00:05:43,320 Speaker 1: to maintain. And it, you know, came down to a 105 00:05:43,360 --> 00:05:46,080 Speaker 1: few UM what I call brand pillars. It's about the 106 00:05:46,160 --> 00:05:48,920 Speaker 1: quality of the product, the commitment to U s D 107 00:05:49,000 --> 00:05:52,360 Speaker 1: A dry aging, hand butchering and dry aging on site, 108 00:05:52,400 --> 00:05:55,719 Speaker 1: which a lot of steakhouse brands don't do. UM. We 109 00:05:55,760 --> 00:06:00,200 Speaker 1: have a strategic partnership with a facility and i AA 110 00:06:00,600 --> 00:06:04,200 Speaker 1: where we secure and procure the only the very best 111 00:06:04,520 --> 00:06:08,800 Speaker 1: USDA Prime beef, m Black Angus beef. These folks are 112 00:06:08,800 --> 00:06:12,760 Speaker 1: committed to family farm feeder UM relationships, so a network 113 00:06:12,839 --> 00:06:16,560 Speaker 1: of family farms located right outside of Iowa. So again 114 00:06:16,680 --> 00:06:20,320 Speaker 1: committing to the product, the sustainability of it, the the 115 00:06:20,400 --> 00:06:24,240 Speaker 1: quality of it, the hospitality itself, and then the integrity 116 00:06:24,240 --> 00:06:27,000 Speaker 1: of the brand and and just committing you know, all 117 00:06:27,040 --> 00:06:30,120 Speaker 1: of our resources and our attention around those brand pillars 118 00:06:30,240 --> 00:06:33,080 Speaker 1: and not trying to be something that we're not UM 119 00:06:33,160 --> 00:06:35,480 Speaker 1: and remaining true to our heritage and our brand that 120 00:06:35,480 --> 00:06:38,240 Speaker 1: that's really sustained us and it's I think what Dan 121 00:06:38,320 --> 00:06:42,120 Speaker 1: new saw in in our brand and the um growth 122 00:06:42,160 --> 00:06:45,000 Speaker 1: and potential in the future. Just quickly, just want to know. 123 00:06:45,440 --> 00:06:47,680 Speaker 1: One of the other things that's changed in nineteen seventy 124 00:06:47,720 --> 00:06:50,960 Speaker 1: seven are the prices. What does a what does a 125 00:06:51,040 --> 00:06:54,560 Speaker 1: Smith of Olansky top tier state go for now? Um 126 00:06:54,600 --> 00:06:56,600 Speaker 1: depends on the stake that you're talking about, but you 127 00:06:56,640 --> 00:07:00,680 Speaker 1: know we're somewhere in their forty two range depending on 128 00:07:00,720 --> 00:07:04,240 Speaker 1: the steak um. And again we are again still one 129 00:07:04,279 --> 00:07:07,039 Speaker 1: of the only steakhouse friends that dry ages and hand 130 00:07:07,040 --> 00:07:10,920 Speaker 1: butcher's on site. There's obviously an added expense to that process. 131 00:07:11,360 --> 00:07:14,080 Speaker 1: We believe it's something that differentiate to product and it's 132 00:07:14,080 --> 00:07:17,040 Speaker 1: it's something that our customer appreciates. So it's something that 133 00:07:17,040 --> 00:07:19,600 Speaker 1: we're willing to continue to invest in. Gets outside, stay 134 00:07:19,640 --> 00:07:21,520 Speaker 1: on top and brow. You hold onto all the great 135 00:07:21,600 --> 00:07:24,760 Speaker 1: traditions of the past. You upgrade the facilities more modern. 136 00:07:24,800 --> 00:07:27,360 Speaker 1: Were beautiful. Chimlippine, thank you so much for joining you. Okay, 137 00:07:27,520 --> 00:07:30,480 Speaker 1: thanks for joining us. Kicking off our live broadcast here 138 00:07:30,640 --> 00:07:34,000 Speaker 1: Smith and Malensky, where she is senior vice president of marketing. 139 00:07:34,120 --> 00:07:36,520 Speaker 1: We're in Boston, down Atlantic work. Could you hear the 140 00:07:36,640 --> 00:07:38,840 Speaker 1: seagulls in the background for a minute. Boy, oh boy, 141 00:07:38,840 --> 00:07:41,440 Speaker 1: what a beautiful spot. I'm Kathleen Hayes along with pim Fox. 142 00:07:41,600 --> 00:07:48,640 Speaker 1: This is Bloomberg coming up on taking Stock. Our conversation 143 00:07:48,680 --> 00:07:54,240 Speaker 1: about behavioral finance, also new technology and the spending patterns 144 00:07:54,440 --> 00:07:56,760 Speaker 1: of millennials. Can we look at the future of the 145 00:07:56,800 --> 00:07:58,920 Speaker 1: financial services industry that's next