1 00:00:00,040 --> 00:00:03,600 Speaker 1: You're listening to Bloomberg Business Week with Carol Masser and 2 00:00:03,680 --> 00:00:22,160 Speaker 1: Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. It's Bloomberg 3 00:00:22,280 --> 00:00:24,959 Speaker 1: Business Week, Tim Stanovik and a Katie Dreifeld in for 4 00:00:25,040 --> 00:00:28,560 Speaker 1: Carol Master this afternoon. Katie, have you tried to make 5 00:00:28,600 --> 00:00:32,360 Speaker 1: a restaurant reservation at your favorite restaurant? I have a 6 00:00:32,400 --> 00:00:34,600 Speaker 1: reservation tomorrow. When did you have to make it? I 7 00:00:34,600 --> 00:00:36,400 Speaker 1: don't know. Joe made it. When do you think you 8 00:00:36,440 --> 00:00:37,839 Speaker 1: mean you had to make it weeks ago? Right? Well, 9 00:00:37,880 --> 00:00:39,920 Speaker 1: I think he made it actually during the weekend. But 10 00:00:40,360 --> 00:00:43,120 Speaker 1: you know, it just wasn't it early. It's earlier than 11 00:00:43,120 --> 00:00:44,879 Speaker 1: we would like to. You're not showing up. Yeah, you're 12 00:00:44,880 --> 00:00:47,240 Speaker 1: not showing up that day and actually getting a reservation. 13 00:00:47,479 --> 00:00:52,880 Speaker 1: It's at like four four pm or it's a you're go, okay, Well, 14 00:00:52,960 --> 00:00:54,480 Speaker 1: if it's at four forty four, you should still be 15 00:00:54,560 --> 00:00:57,720 Speaker 1: at work for sure, definitely, and I will be so 16 00:00:57,800 --> 00:01:00,160 Speaker 1: obviously we took the ten pm. Okay, sare it us. 17 00:01:00,720 --> 00:01:03,319 Speaker 1: Let's get into the health of the restaurant industry. We're 18 00:01:03,320 --> 00:01:05,800 Speaker 1: really pleased to have back with us. Debbie Sue, she's 19 00:01:05,840 --> 00:01:08,560 Speaker 1: CEO of Open Table, she joins us once again via 20 00:01:08,640 --> 00:01:11,120 Speaker 1: zoom from San Francisco, to have you. Good to have 21 00:01:11,160 --> 00:01:13,240 Speaker 1: you back with us. Katie and I got to speak 22 00:01:13,240 --> 00:01:14,680 Speaker 1: with you just a few months ago. How are you. 23 00:01:15,800 --> 00:01:17,920 Speaker 1: I'm doing well and I'm so happy to be here 24 00:01:17,920 --> 00:01:19,520 Speaker 1: with you all again. Well, it's good to have you 25 00:01:19,560 --> 00:01:21,800 Speaker 1: back with us. Last time we spoke, you talked about 26 00:01:21,800 --> 00:01:25,480 Speaker 1: the idea that consumers were returning, diners were returning to 27 00:01:25,480 --> 00:01:28,840 Speaker 1: the platform in droves. UM. What's changed in just a 28 00:01:28,840 --> 00:01:31,800 Speaker 1: few months. Give us a health check of the restaurant industry. 29 00:01:32,360 --> 00:01:35,759 Speaker 1: We are we are continuing to see that that dining 30 00:01:35,800 --> 00:01:39,440 Speaker 1: demand remains really strong. If you look at the year end, 31 00:01:39,640 --> 00:01:43,080 Speaker 1: so for for this entire year, we are approaching on 32 00:01:43,319 --> 00:01:48,880 Speaker 1: nationwide UM pre pandemic levels. We're up versus last year. 33 00:01:49,400 --> 00:01:52,000 Speaker 1: So we can say that dining is back UM or 34 00:01:52,040 --> 00:01:55,560 Speaker 1: that dining has held strong. The holiday season is looking great. 35 00:01:55,600 --> 00:01:58,800 Speaker 1: Thanksgiving UM is usually a good you know, a sign 36 00:01:58,840 --> 00:02:01,680 Speaker 1: of what things are to come during the holiday season, 37 00:02:02,080 --> 00:02:05,160 Speaker 1: and demand was really strong then. So people were just 38 00:02:05,200 --> 00:02:10,240 Speaker 1: seeing that people are continuing to prioritize that dining out 39 00:02:10,280 --> 00:02:14,239 Speaker 1: at at a restaurant experience. Despite all the news we're 40 00:02:14,240 --> 00:02:17,880 Speaker 1: hearing and we're feeling it as well, right about inflation, 41 00:02:18,440 --> 00:02:23,680 Speaker 1: rising costs, um, all that economic turbulence. People are continuing 42 00:02:24,160 --> 00:02:28,480 Speaker 1: to you know, allocate pieces of their household piano to 43 00:02:28,800 --> 00:02:32,400 Speaker 1: the dining out experience. How do you explain that because 44 00:02:32,440 --> 00:02:35,320 Speaker 1: those things are at odds? Yeah, I know, and I 45 00:02:35,360 --> 00:02:39,160 Speaker 1: think you know, um, we're we're still seeing some pent 46 00:02:39,280 --> 00:02:41,960 Speaker 1: up revenge dining. I think as a result of the 47 00:02:42,000 --> 00:02:45,320 Speaker 1: pandemic when many of us were cooped up in our 48 00:02:45,360 --> 00:02:48,920 Speaker 1: houses or apartments for um a long time. So I 49 00:02:48,919 --> 00:02:52,440 Speaker 1: think that is still playing here. Um. I also think 50 00:02:52,440 --> 00:02:55,040 Speaker 1: it's because from many of us, the nature of work 51 00:02:55,400 --> 00:03:00,560 Speaker 1: has changed. Um. Many people work remotely, some people are 52 00:03:00,600 --> 00:03:02,680 Speaker 1: in a hybrid situation where they go into the office 53 00:03:03,080 --> 00:03:05,040 Speaker 1: you know, twice a week as opposed to five times 54 00:03:05,040 --> 00:03:08,120 Speaker 1: a week. And I think people are really craving that 55 00:03:08,360 --> 00:03:12,560 Speaker 1: in person, you know, experience that they're not getting when 56 00:03:12,600 --> 00:03:15,400 Speaker 1: they're just working from home. Um. And so I think, 57 00:03:15,480 --> 00:03:17,160 Speaker 1: you know, dining out at a restaurant is one of 58 00:03:17,200 --> 00:03:19,520 Speaker 1: those ways they can get that. And we're seeing that 59 00:03:19,560 --> 00:03:22,639 Speaker 1: in the data too. We're seeing, for example, uh, pre 60 00:03:22,760 --> 00:03:27,560 Speaker 1: pandemic days, bar seating was the least favorable type of 61 00:03:27,600 --> 00:03:30,120 Speaker 1: the seat that one could book, and right now we're 62 00:03:30,120 --> 00:03:32,960 Speaker 1: seeing people are actually requesting those seats and wanting to 63 00:03:33,000 --> 00:03:35,080 Speaker 1: be in the thick of it all. So I think 64 00:03:35,160 --> 00:03:38,560 Speaker 1: because work is changing for many of us, that that 65 00:03:38,640 --> 00:03:41,960 Speaker 1: has trickled down effects, you know, into dining and our 66 00:03:42,000 --> 00:03:45,280 Speaker 1: behavior as consumers. Um, you know what what it means 67 00:03:45,320 --> 00:03:47,960 Speaker 1: now to to go out to a restaurant, Iffy, let's 68 00:03:48,080 --> 00:03:51,000 Speaker 1: unpack some of those trends. If if the shifting nature 69 00:03:51,000 --> 00:03:53,400 Speaker 1: of work is changing how people are dining out, what 70 00:03:53,440 --> 00:03:56,440 Speaker 1: does that mean in terms of what days that people 71 00:03:56,600 --> 00:04:02,160 Speaker 1: are coming to restaurants, what times, things of those chairs. Yes, 72 00:04:02,240 --> 00:04:06,560 Speaker 1: so we're seeing that Monday's, UM, to your point, are 73 00:04:07,240 --> 00:04:10,760 Speaker 1: so historically Mondays were a very slow time for restaurants 74 00:04:10,800 --> 00:04:13,720 Speaker 1: pre pandemic. Right now, what we're seeing Monday's or the 75 00:04:13,760 --> 00:04:18,400 Speaker 1: weekend after party, it's kind of an extension of the weekend. 76 00:04:18,480 --> 00:04:21,080 Speaker 1: So we're seeing really big increases in dining compared to 77 00:04:21,160 --> 00:04:26,360 Speaker 1: last year up on Monday's. UM. The time is also 78 00:04:26,440 --> 00:04:28,280 Speaker 1: different in terms of the time that people are going 79 00:04:28,320 --> 00:04:32,080 Speaker 1: to reservations. You had said forty five or ten, we're 80 00:04:32,080 --> 00:04:35,920 Speaker 1: actually seeing um, a lot of people dining between four 81 00:04:36,040 --> 00:04:40,360 Speaker 1: and five UM that that time period increased twenty seven, 82 00:04:40,920 --> 00:04:44,839 Speaker 1: a very large increase um compared to pre pandemic time. 83 00:04:44,920 --> 00:04:49,760 Speaker 1: So happy hour is the new dinner. I think it's 84 00:04:49,760 --> 00:04:54,000 Speaker 1: because oftentimes, like if you are working remotely or hybrid um, 85 00:04:54,040 --> 00:04:57,360 Speaker 1: you're commute. You don't have a commute time, right, So 86 00:04:57,720 --> 00:05:00,160 Speaker 1: you could be done with work and you can out 87 00:05:00,200 --> 00:05:02,760 Speaker 1: down you know, your computer and just literally, you know, 88 00:05:03,279 --> 00:05:06,880 Speaker 1: leave your home and go to a restaurant. Debbie, does 89 00:05:06,960 --> 00:05:08,839 Speaker 1: that change? So I've talked about this a bit. I 90 00:05:08,839 --> 00:05:10,400 Speaker 1: don't have any data on this, and I'm hoping you 91 00:05:10,440 --> 00:05:12,320 Speaker 1: can help with this because it's all anecdotal for me. 92 00:05:12,440 --> 00:05:14,880 Speaker 1: But in my neighborhood in Brooklyn, you know, I come 93 00:05:14,920 --> 00:05:17,200 Speaker 1: into work every day because I can't work remotely. But 94 00:05:17,240 --> 00:05:18,960 Speaker 1: if I'm off a day and I'm at at home 95 00:05:19,160 --> 00:05:22,320 Speaker 1: and I'm walking around the neighborhood, it is like packed. 96 00:05:22,560 --> 00:05:24,680 Speaker 1: You know, sandwich shops that are usually packed on a 97 00:05:24,720 --> 00:05:27,279 Speaker 1: week day on a weekend only are packed during the 98 00:05:27,279 --> 00:05:28,920 Speaker 1: week because people are working from home. Do you have 99 00:05:28,920 --> 00:05:32,719 Speaker 1: any data that shows sort of the the epicenter of 100 00:05:32,720 --> 00:05:35,000 Speaker 1: of these areas is kind of shifting a little bit 101 00:05:35,040 --> 00:05:39,479 Speaker 1: because of people's work patterns. Yes, So we in that 102 00:05:39,640 --> 00:05:42,760 Speaker 1: the Brooklyn story or your experience is very similar to 103 00:05:42,800 --> 00:05:46,159 Speaker 1: what we're seeing. UM. You know, during the pandemic, I 104 00:05:46,160 --> 00:05:51,080 Speaker 1: think a lot of people moved out of the city proper. 105 00:05:51,640 --> 00:05:55,279 Speaker 1: Uh and and in areas around a big city, UM, 106 00:05:55,320 --> 00:05:58,240 Speaker 1: Brooklyn here could be an example of that, and UM, 107 00:05:58,279 --> 00:06:00,520 Speaker 1: a lot of so we're seeing a lot of dining 108 00:06:00,560 --> 00:06:04,080 Speaker 1: activity happening, you know in Brooklyn versus you know in 109 00:06:04,120 --> 00:06:07,200 Speaker 1: the middle of midtown or Manhattan. UM. We're seeing that 110 00:06:07,320 --> 00:06:10,760 Speaker 1: in the Bay Area here in San Francisco. UM. So 111 00:06:10,839 --> 00:06:15,200 Speaker 1: we're seeing like emergence of kind of these UM areas 112 00:06:15,200 --> 00:06:18,279 Speaker 1: outside of cities really gained and prominence. And I think 113 00:06:18,279 --> 00:06:21,680 Speaker 1: Brooklyn also, like it's a trends, tends to have a 114 00:06:21,839 --> 00:06:24,680 Speaker 1: younger demographic, if I were to guess, like a very 115 00:06:24,720 --> 00:06:30,960 Speaker 1: cool demographics. I don't know if I'm either of those things. 116 00:06:30,960 --> 00:06:34,320 Speaker 1: But thank you, Debby. But you know, it's not surprising. 117 00:06:34,440 --> 00:06:36,560 Speaker 1: It's not surprising to hear that we have. You know, 118 00:06:36,800 --> 00:06:41,240 Speaker 1: there's a big remote workforce out there that you know, 119 00:06:41,320 --> 00:06:45,120 Speaker 1: during lunchtime can go to the sandwich shop down the street. 120 00:06:45,880 --> 00:06:48,359 Speaker 1: So I've been thinking about what you said about people 121 00:06:48,480 --> 00:06:52,000 Speaker 1: actually in some cases requesting to sit at the bar 122 00:06:52,120 --> 00:06:56,080 Speaker 1: because I've never done that in my life. But I 123 00:06:56,080 --> 00:06:57,400 Speaker 1: don't want to sit at the bar. I don't want 124 00:06:57,400 --> 00:06:59,920 Speaker 1: to sit next to people. Okay, that's what I mean. 125 00:07:00,560 --> 00:07:03,880 Speaker 1: But in any case, are you seeing that in that 126 00:07:04,080 --> 00:07:06,560 Speaker 1: sort of drive to be in the thick of it 127 00:07:06,760 --> 00:07:09,320 Speaker 1: in the action? Are you seeing that in the dining 128 00:07:09,440 --> 00:07:11,520 Speaker 1: choices that people are making in terms of the types 129 00:07:11,560 --> 00:07:16,920 Speaker 1: of restaurants that they're booking. Absolutely, so we're seeing diners 130 00:07:17,000 --> 00:07:24,040 Speaker 1: really crave that connectivity. So cuisines like Korean barbecue, Hibachi grill, 131 00:07:24,200 --> 00:07:28,720 Speaker 1: Brazilian steakhouse, um, those types of food venues are doing 132 00:07:28,800 --> 00:07:31,480 Speaker 1: very very well because again, unlike you, a lot of 133 00:07:31,520 --> 00:07:33,720 Speaker 1: people want to be in the thick of it. They 134 00:07:33,760 --> 00:07:35,840 Speaker 1: want to be sharing a table with folks they don't 135 00:07:35,840 --> 00:07:38,960 Speaker 1: know and and being in that kind of communal environment 136 00:07:39,400 --> 00:07:45,160 Speaker 1: that's so interesting. Does this hold? We're seeing it hold? Um? 137 00:07:45,200 --> 00:07:49,160 Speaker 1: It's it started up last year and it's continued to 138 00:07:49,280 --> 00:07:53,920 Speaker 1: persist um this year. I really think a lot of 139 00:07:53,960 --> 00:07:57,720 Speaker 1: it is related to the pandemic UM and kind of 140 00:07:57,720 --> 00:08:01,080 Speaker 1: a new post pandemic life with again work changing for 141 00:08:01,120 --> 00:08:04,280 Speaker 1: so many of us. Um that right like it, it 142 00:08:06,000 --> 00:08:09,880 Speaker 1: impacts other other facets of our life. And so I 143 00:08:09,920 --> 00:08:13,280 Speaker 1: mean if theoretically we're here a year from now talking 144 00:08:13,280 --> 00:08:16,520 Speaker 1: about the trends that we saw in what do you 145 00:08:16,520 --> 00:08:20,360 Speaker 1: think what what kind of conversation we're gonna be having. Well, 146 00:08:20,360 --> 00:08:22,040 Speaker 1: I hope we're going to have a similar one in 147 00:08:22,120 --> 00:08:25,880 Speaker 1: terms of dining demand remaining very strong. Um. You know, 148 00:08:25,920 --> 00:08:29,400 Speaker 1: and we watched the data very carefully across the board, 149 00:08:30,000 --> 00:08:32,440 Speaker 1: just because there is so much noise regarding the economy, 150 00:08:32,440 --> 00:08:34,640 Speaker 1: and we hear from restaurant partners how hard it is 151 00:08:35,000 --> 00:08:39,760 Speaker 1: to be running m their restaurants. But the hero of 152 00:08:39,800 --> 00:08:44,000 Speaker 1: the day and the story is that consumers continue to 153 00:08:44,120 --> 00:08:49,160 Speaker 1: prioritize going out and dining at restaurants. Yeah, sorry, thirty 154 00:08:49,160 --> 00:08:51,800 Speaker 1: seconds left. Does that change though in a softening economy? 155 00:08:51,800 --> 00:08:56,360 Speaker 1: I mean, everyone we've spoken to today is planning on session. Yes, um, 156 00:08:56,760 --> 00:08:59,719 Speaker 1: And we're we remain bullish about dining. We think that 157 00:08:59,800 --> 00:09:02,920 Speaker 1: may be the check size will change, but we think 158 00:09:02,960 --> 00:09:07,720 Speaker 1: that people will continue to prioritize connecting with others, whether 159 00:09:07,760 --> 00:09:11,000 Speaker 1: that be family or friends at a meal at a restaurant. 160 00:09:11,400 --> 00:09:13,280 Speaker 1: W S. It's always great to check in with you 161 00:09:13,360 --> 00:09:15,959 Speaker 1: and get a real understanding for what's going on when 162 00:09:16,000 --> 00:09:19,280 Speaker 1: it comes to restaurants in this Economy w is CEO 163 00:09:19,480 --> 00:09:22,240 Speaker 1: at Open Table. You know it as a restaurant booking platform. 164 00:09:22,320 --> 00:09:26,280 Speaker 1: She joined us this afternoon via zoom from San Francisco.