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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile app and on your radio.

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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

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Speaker 1: U s socks are lower and it concerns at Central

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Speaker 1: Bank stimulus is failing to boost growth while a week

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Speaker 1: er dollar spur gains and commodity shares. We check the

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Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg

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Speaker 1: s and P five hundred down two tens per cent

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Speaker 1: or about four points to twenty three down. Joannes Industrial

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Speaker 1: Average down a tenth of upper center eighteen points to

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Speaker 1: seventeen thousand, three hundred six, and the NAVS dacks down

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Speaker 1: four ten percent or eighteen points to forty seven forty

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Speaker 1: five ten year Treasury up one thirty second, the yield

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Speaker 1: one point nine zero percent yield on the two year

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Speaker 1: point eight five percent. NIMEX screwed oil up one point

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Speaker 1: nine percent or seventy one cents to thirty nine seventeen

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Speaker 1: of barrel and comics gold is up two point nine

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Speaker 1: percent or thirty five dollars twenty cents to twelve sixty

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Speaker 1: five ten and ounce. The euro and dollar thirteen thirteen

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Speaker 1: the yen one eleven point five eight Caterpillar, the biggest

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Speaker 1: maker of construction and mining machinery, saying first quarter sales

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Speaker 1: and profit. Well Trail Analysts estimates it is moving higher

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Speaker 1: this morning. It's a four tents percent at seventy four

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Speaker 1: dollars sixty four cents of share. Consumer sentiment in the

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Speaker 1: US climbing last week to a one month high as

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Speaker 1: Americans grew more upfeed about their personal finances. The Bloomberg

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Speaker 1: Consumer Comfort Index rose to forty four point three in

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Speaker 1: the period ending March thirteenth, from forty three point eight

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Speaker 1: the prior week. And that's a Bloomberg business flash. Tom

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Speaker 1: and Mike Karen, thanks so much. This could be a

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Speaker 1: lot of fun, but it's unfortunately about a serious topic.

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Speaker 1: Everyone in New York City observes the restaurants, the challenges.

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Speaker 1: Right now, we're gonna dive into this with Peter Elliott

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Speaker 1: with his Bloomberg Reserve. I can't say enough about the

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Speaker 1: straight talk of Bloomberg Reserve really nationwide in the worldwide,

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Speaker 1: about where do you eat? We're not to eat. It

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Speaker 1: is so far away from all the foodie stuff. I

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Speaker 1: can't stand. Peter Elliott talking straight. This guy. First of all,

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Speaker 1: he's made it in America because he's been on The Simpsons,

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Speaker 1: which we know is Tom Clikio. If you've been on

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Speaker 1: the Simpsons, it's downhill from there. He did Grammercy Tavern

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Speaker 1: start by explaining the miracle that was Grammercy Tavern when

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Speaker 1: it opened. Thank good morning, gentlemen, Good morning Mike um um. Yes,

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Speaker 1: Tom Clickia was was in here at Bloomberg this week

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Speaker 1: and we had just one terrific when you get to

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Speaker 1: catch up with old friends too. Yes, I was even

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Speaker 1: alive when Grammercy Tavern open. It's extraordinary to think it's

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Speaker 1: an extraordinary thing. How long ago, and it really was.

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Speaker 1: I hate to use this word, but the word is seminal.

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Speaker 1: It was a seminal New York restaurant, not just for

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Speaker 1: Danny Meyer, who was his partner at the time, but

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Speaker 1: also for Tom in the sense of, you know, what's

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Speaker 1: wrong with cooking really good ingredients, really good vegetables, and

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Speaker 1: not making it all so fussy? You know, it wasn't.

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Speaker 1: The whole point of Tom Calikio back and craft then

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Speaker 1: was and Grammarcy was that it was American style food,

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Speaker 1: meat and potatoes, just done well, could it open today? Absolutely?

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Speaker 1: Fact economics, The reason for the word of the use

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Speaker 1: of the word seminole is is that some would argue

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Speaker 1: that's what has become the American restaurant. The real interesting

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Speaker 1: question is is that that creation of a restaurant that

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Speaker 1: served really well made you know, steak or really well

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Speaker 1: made hamburger or really well made apple pie is ultimately

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Speaker 1: shape chack, you know, because what not everybody wants to

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Speaker 1: have an expensive ingredient driven Union Square market funded meal

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Speaker 1: every single day when I just want a hamburger that's

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Speaker 1: also made from ingredients that are slightly above average or

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Speaker 1: more than above average. And that is definitely the trend

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Speaker 1: of food in this country. As we talk, Um, I

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Speaker 1: suddenly want a hamburger fair enough, will order. But what

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Speaker 1: is Mr Calikio think of the the trend in restaurants

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Speaker 1: these days? Uh, both on the food and business side. Well,

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Speaker 1: I don't want to give it all away, of course,

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Speaker 1: because I want you to get April's reserved Bloomberg Briefs

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Speaker 1: dot Com lash reserve and you'll get the full the

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Speaker 1: full interview um with Tom which was again one of

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Speaker 1: my one of my favorite But to put it in

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Speaker 1: a nutshell. This is what he said, one that folks

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Speaker 1: like us, that is to say, anybody above the age

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Speaker 1: of forty um that the millennials will eventually transform the

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Speaker 1: market nationwide and internationally to a time like uber when

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Speaker 1: you just think it's natural not to tip, but that

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Speaker 1: we are a long long way away from doing it.

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Speaker 1: Tom introduced tipping, uh, non tipping, excuse me at at craft.

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Speaker 1: But that's not where the money is made. So he

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Speaker 1: got into a very strong point about how at dinner time,

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Speaker 1: when when servers do make their money, the way the

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Speaker 1: only way it can really work is for a guy

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Speaker 1: like Tom who runs multiple restaurants across the country to

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Speaker 1: up his the wages of his workers to such a

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Speaker 1: level as to basically make the economics of restaurants stopped

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Speaker 1: making any sense. Now, will it happen in time? Eventually,

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Speaker 1: it will happen in time, But right now the wave

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Speaker 1: across the country is very very different ult to control

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Speaker 1: because state rules are very very different. That is to say,

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Speaker 1: what a wage, what a server makes in wage and

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Speaker 1: is able to take his tax versus in New York

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Speaker 1: versus any other state is just byzantine. Almost at the

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Speaker 1: level of the alcohol business, you know we quickly when

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Speaker 1: open table came out. Did you laugh? Did you go

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Speaker 1: this is preposterous? No? I didn't. But open table has

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Speaker 1: also not done what you know, it's set out to

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Speaker 1: do a very simple thing, which was telephone replacement. Um,

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Speaker 1: it still doesn't an ideal in the world or you

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Speaker 1: and ideal in the world, I should say, of people

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Speaker 1: who want much more than open and there's a flash

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Speaker 1: forward in an uber environment, seamless seems to be getting

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Speaker 1: seamless traction. What does it mean for the restaurants? Do

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Speaker 1: they like those orders when they come in? Um, all

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Speaker 1: of the restaurants, I would say mass generalization, but generally speaking,

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Speaker 1: they all went from distrust to I don't really want

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Speaker 1: to get involved in this to basically now most restaurants,

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Speaker 1: even in the mom and pops, have to take whatever

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Speaker 1: guy or girl walks through their door and sells whatever

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Speaker 1: products that they're selling. Every digital we'll find, We'll do it.

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Speaker 1: Open table, fine table, open fine, We'll do it, other table,

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Speaker 1: up table, downtable, side table, left, right, you name it.

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Speaker 1: I've done, seamless, I've done, but but they don't work

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Speaker 1: for specific markets. That's why Kraft works for some markets.

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Speaker 1: That's why Danielle works for some markets and why shake

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Speaker 1: check works for other markets. You know, nobody wants. Everybody

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Speaker 1: wants what they want when they want it. Speaking of that,

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Speaker 1: I want to go back to the Hamburger thing because

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Speaker 1: you got anything about it now and the whole shake

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Speaker 1: check thing. UH. You know, we we watched with interest

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Speaker 1: as they started expanding and UH issued initial public offering

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Speaker 1: and then things seem to go badly. How are how

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Speaker 1: are they doing? They're doing ups. They they will have

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Speaker 1: their ups and they will have their downs. So, you know,

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Speaker 1: the the great Chippotle scare at the moment has has

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Speaker 1: definitely driven off. But actually same source tails in fast

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Speaker 1: casual restaurants have been up over the past quarters, so

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Speaker 1: that is a good sign. Also, Danny never underestimate the

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Speaker 1: marketing power of Danny Meyer. They've just opened their first

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Speaker 1: West Hollywood branch and you would think it was the

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Speaker 1: second coming um there. So that has certainly helped and

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Speaker 1: bounced his stock up a little bit. I certainly wouldn't

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Speaker 1: be nervous for for shake Shack at this stage. Impact

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Speaker 1: knock on the chain, pay attention, The impact is pay attention.

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Speaker 1: It is you know Jack in the Box probably bounced

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Speaker 1: back a little bit quicker than what's happening here. This

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Speaker 1: has been going on for nine months now, so they've

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Speaker 1: not really been able to recover their market share. Something

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Speaker 1: about you just don't know. For all of the data,

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Speaker 1: for all of the media, for all of the stuff,

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Speaker 1: sometimes something sticks in the consumer's mind. On the other hand,

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Speaker 1: I was in San Francisco last weekend. There were lines

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Speaker 1: out the door Chipotaly, but they're giving burritos away to

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Speaker 1: get customers back, and they're not staying. It affects shake

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Speaker 1: check because it affects shake Scheck, That affects sweet creeny expects.

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Speaker 1: It impacts anybody who makes food because you have to

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Speaker 1: pay attention to an increasingly automated industry where you cannot

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Speaker 1: control when one of those nasty critters comes up through

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Speaker 1: your salad ball. So you have to find ways to

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Speaker 1: make sure that the same thing doesn't happen to you

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Speaker 1: and knock your business. For the beef, we need an update,

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Speaker 1: urgent surveillance update. Julia Moskin five long years ago in

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Speaker 1: The New York Times on corned beef hash. It's that day.

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Speaker 1: It always Tom Tom Keane always winds up with the

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Speaker 1: end curveball questions. But where does Peter Relliot go when

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Speaker 1: the craving is there's there's great gourmet well done. We

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Speaker 1: need we need silence in the room because this is important.

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Speaker 1: There is one of the last few true, remaining, great

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Speaker 1: old fashioned New York restaurants on Lexington Avenue. In the

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Speaker 1: day when you know, actresses lived on Lexington Avenue and

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Speaker 1: that's where they went to get their messages. Um now

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Speaker 1: now sorry, Donna Hughes, black black vinyl booths. There are

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Speaker 1: still people. If you're nice enough. Did you didn't hear

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Speaker 1: this on Bloomberg Radio? If you're an old timer, they'll

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Speaker 1: let you smoke as long as you're like in the

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Speaker 1: back alley. The waitresses are imported right from Ireland. And

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Speaker 1: and the corn beef hash with an egg on top

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Speaker 1: man the kind of white lettuce on the plate, and

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Speaker 1: the it's just it is just a priceless slice of

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Speaker 1: New York. And whenever it's a bright, shiny day in

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Speaker 1: New York, I go to Donna Hues because I want

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Speaker 1: to be They would let boat. They definitely let you

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Speaker 1: in because the light is so you know, it's so

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Speaker 1: dark in there. They wouldn't be able to see you,

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Speaker 1: so they think you were really the handsomest guy in

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Speaker 1: town Lexington, Lexington and sixty one end of surveillance walking.

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Speaker 1: Why Corey Johnson's slaving away at eleven dirties? You guys

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Speaker 1: at the bar still you know start the first that's

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Speaker 1: it's St. Patrick's Day. So the ladies at Donna Hughes,

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Speaker 1: I have loved them all my life and it's their

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Speaker 1: Cornby Peter hell Is where you travel to next? Quickly?

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Speaker 1: Where do I travel to next time? Traveling to London?

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Speaker 1: So London, very that's a good thing. Let's see what rules? Uh,

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Speaker 1: Peter Elliott with us on food and and really folks

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Speaker 1: for all of you nation, My Bloomberg twelve in Boston,

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Speaker 1: nine sixty the Bay Area with Caroline Corey coming up

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Speaker 1: food economics where we live it in New York. I

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Speaker 1: think it's become global. This is a real issue, Mike, Yeah,

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Speaker 1: of how you make business. I'm starting to see fancy

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Speaker 1: restaurants giving me sixty dollar entrees and you've killing me

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Speaker 1: and know you walking the door and they go all right,

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Speaker 1: yeah it only cost me. No, no, we'll take the chicken.

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Speaker 1: Well there we are, Thank you so much. A great day.

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Speaker 1: We got a Friday Tomorrow UH to digest the economics,

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Speaker 1: finance and investment of the week, churning to the markets

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Speaker 1: TODO negative two. We are produced by y U n

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Speaker 1: ken Feliu, our global technical director. It's Bloomberg Surveillance