A new crisis in French eating establishments

[John Talbott]

Today's Figaro's business section had a full page with the lead-off article by Francois Simon and Mathilde Visseyrias, devoted to the Crisis in Restaurants.

Today at lunch, I was complimenting Eric Jolibois at Clocher Periere for holding down his prices (menu at 30 E, reasonable wines) while serving first rate food such a a full lobe of foie gras, colvert, ombre chevalier, etc. He said it's tough, but with customers (and his are all business folk with suits and ties and he was turning away folks who hadn't reserved) feeling the pinch of buying power, he had to provide good food at a decent value.

Well, Simon and Visseyrias confirm this. The last 6 months, compared to last year, 25% more of restos, 19% of fast food places, 56% of cafes and 45% of traiteurs have gone belly up. Folks are coming in for one dish and skipping coffee for one made from the machine back at the office.

The topper, the famed Bobose at the Quincy near the Gare de Lyon says how can he manage if folks don't order a first course.

Addendum the next day: John Whiting sent me a story from the Guardian essentially repeating the above but whose title links France to the "global recession."

Addendum the second day: the TV stations are picking up the story.

Edited September 24, 2008 by John Talbott (log)

[robyn]

Maybe there are too many restaurants charging too much money for mediocre or worse food? Just look at my last inquiry about La Defense. Thousands - maybe tens of thousands - of people work there every day and people here are hard-pressed to recommend a single decent place where we can eat lunch. Paris wouldn't be unique in this regard. We've been to many cities where most middle-of-the-road restaurants are lousy. That is why we tend to "bar bell" our meals - very high end - or very simple. It's hard to find places in the middle that are worth the price.

Note that after looking at the prices in perhaps hundreds of restaurants in Paris - I think they're high compared to other major cities. And that is even when I view them through my "currency neutral" eyes (I've found that what costs a dollar in the US usually costs a pound in the UK - a euro in Euroland - 100 yen in Japan - etc. - regardless of exchange rates). To me - a restaurant that charges $30 for lunch (without coffee or drinks) is expensive for a middle-of-the-road place that is rather spartan (I looked at the pictures) - off the beaten path and not even listed in Zagat's (which has many more restaurant listings than Michelin). So if it is "holding the line" at 30 euros - I can only imagine what people think about other middle-of-the-road restaurants that are charging a lot more.

And if this is what I think about these restaurants - I can only imagine what average working people who live in Paris think. Just like the depreciation of the dollar hasn't really hurt people in the US who are earning and spending dollars - the appreciation of the euro doesn't help the people who are earning and spending euros in Euroland. What has hurt average people everywhere is the rising cost of living in terms of groceries - gas - rent - etc. No matter what currency they are earning and spending.

As for the cafes - they seem hit the worst. Do you think this has anything to do with the smoking ban? I suspect it does in part. Another part may be that when people are cutting back - it's easy to cut back on the 4 euro coffee before work - or the 6 euro drink after work. Just like most financial advisors here tell people they can save money easily by eliminating their daily dose of Starbucks. Robyn

[John Talbott]

Maybe there are too many restaurants charging too much money for mediocre or worse food?

Perhaps. Recall though that 5 places open a week, really new, or under a new chef or management, or undergo a rehab job, for 10 months of the year. Also, historians correct me, but weren't the second bistrots (ie d'a cote as it were) of great chefs (Robuchon, Rostang, Cagna, Savoy) born because the economy wasn't so great in the mid and late 1980's and their primary places (even Jamin) were undergoing a drop in clients and perhaps dishes ordered.

Just look at my last inquiry about La Defense.  Thousands - maybe tens of thousands - of people work there every day and people here are hard-pressed to recommend a single decent place where we can eat lunch. 

←

Well, I'd say there are several factors at work here. First, as I mentioned in that topic, there are superb restos in the big companies. Second, who's going to open a top place in the midst of a night/weekend desert? Third, there are lots of fast food opportunities for those who have to get back to their desks at mid-day. And fourth, a few tramway or Metro stops away are fine places where people do live and which can support restos for the evening meal.

[Ptipois]

One good (?) side aspect to that crisis is that now the situation is more or less even; you get charged equivalent prices for bad/mediocre food or for good food. The tricky part lies in the selection. Selecting restaurants through their quality/price ratio has become a highly difficult sport.

You can lament on the fact that bad food is now as expensive as good food or realize that, after all, good food isn't comparatively that expensive. It's a case of glass half-empty/half-full.

(This was my "sour grapes" five minutes of the day.)

[roosterchef21]

I think its a global crisis. Quite simply the average punter can't afford to go out to dinner. For the average family with a mortgage of say $250k, 2 kids going to school, petrol prices been so high and the weekly shopping bill increasing seemingly no end, it becomes very hard to make ends meet let alone find the money to have a nice meal.

I think that most of the business at restaurants at least in the past 3 months are likely to have been regulars/Foodies, business people or Dinks (Dual income no kids). Some of my peers in the industry have noticed the same thing. One of the first things that most people will cut back on to save a buck or two is eating out.

[Ptipois]

Well, I'd say there are several factors at work here.  First, as I mentioned in that topic, there are superb restos in the big companies.  Second, who's going to open a top place in the midst of a night/weekend desert?  Third, there are lots of fast food opportunities for those who have to get back to their desks at mid-day.  And fourth, a few tramway or Metro stops away are fine places where people do live and which can support restos for the evening meal.

←

All valid factors, plus the fact that many people in the office order their food for lunch (so pizza, salads, couscous, sandwiches, etc.). La Défense is not a place where good food should be expected because it is devoted to work and lives only at daytime, which means there will be no particular care about food. France hasn't been a good place for cheap, good food for working people for a few generations. It is no longer like Asia or other parts of the world where decent cheap meals can be bought from the street. Workers' restaurants, bouchons, bouillons, troquets and historical bistrots (not modern bistrots) have had their time long ago, now only places like Chartier remain and they're reviewed in Gourmet Magazine.

[robyn]

I wasn't expecting much at La Defense. Hoping for a place like Wagamama at Canary Wharf - which is kind of like the "mom and pop" noodle places one finds in countries like Japan (although it is a corporate venture on a much larger scale). It's a fun - relatively inexpensive place to get a quick tasty lunch.

IMO - the recession in the restaurant industry is probably global - at least in the first world (I am not that familiar with the second and third worlds). Here in the US - it is translating into a fair number of middle of the road chains going bankrupt/out of business.

I do agree - from what I've read - with Ptipois. There seems to be a lot of price compression. If lunch at Clocher Periere is 30 euros - and lunch at the George V is 85 euros - well I would rather have one lunch at the George V than 2 1/2 at Clocher Periere. Not to mention 1 1/2 lunches at middle of the road places where lunch is 50 or 60 euros. Robyn

[John Talbott]

Today's IHT had an article, actually reprinted from yesterday's NYT on the effort by "a half-dozen" French chefs to have French food declared a "world treasure."

While this idea has been bandied about for months here, including by President Sarkosy at the Ag Fair this year, this article in English and in the Times is new. It gives as examples of French treasures that should put it up with Machu Pichu and the Great Wall of China:

andouille sausage from Vire,

smoked garlic from Arleux

calisson from Aix

brioche from St-Genis +

"betise" from Cambrai.

A companion article on the "mediterranian" diet, mentions how Greece, Italy, Spain and Morocco have sought similar status and Italy claims that its food is superior due to 166 food specialties vs 156 in France.

[docsconz]

Clearly this is a global issue not limited to any one country. At the recent International Chefs Congress in NYC, I talked to a number of chefs from a number of countries lamenting the economic downturn. While people are still filling their establishments, they are having a harder time making ends meet as people are scaling back on what they order. In particular, the pinch has been felt with the relatively high profit margin of wine. Most customers have scaled back on the lavishness of their wine purchases as well as the quantity.

As for the Unesco designation proposal, as wonderful as French food is, many countries have their culinary wonders as well. Perhaps the variety of Peruvian potatoes should also receive the designation? The argument can be taken to absurd lengths. I appreciate the intent behind the proposal, but perhaps there are other ways such as the Slow Food Ark of Taste that can achieve the same result?

[PhilD]

Hoping for a place like Wagamama at Canary Wharf - which is kind of like the "mom and pop" noodle places one finds in countries like Japan (although it is a corporate venture on a much larger scale).  It's a fun - relatively inexpensive place to get a quick tasty lunch.

←

Mmmm....have you been recently? IMO - It really isn't very good at all, safe, boring and predictable, I find the food bland and not at all like any place I have visited in Asia. I understand it was far better when Alan Yau first started it all those years ago, but since he sold it it has become a place that provides cheap food for students.

[PhilD]

One good (?) side aspect to that crisis is that now the situation is more or less even; you get charged equivalent prices for bad/mediocre food or for good food. The tricky part lies in the selection. Selecting restaurants through their quality/price ratio has become a highly difficult sport.

You can lament on the fact that bad food is now as expensive as good food or realize that, after all, good food isn't comparatively that expensive. It's a case of glass half-empty/half-full.

(This was my "sour grapes" five minutes of the day.)

←

In the boom times bad restaurants started to charge similar prices to good ones, demand outstripped supply and lots of restauranteurs exploited us poor diners. Good value restaurants (those generally recommended here) will probably stand the test of time and survive with a loyal clientele. Those which fail to provide good value in terms of quality and price will fall by the wayside, or rapidly adjust their price points to reflect the value they deliver - simply supply and demand economics. IMO a much needed correction.

We (personally) are probably eating out less than we have in the past, but that isn't economics it is simply that we are getting pissed off with the rip offs and lack of value. I prefer to be more selective rather than leave a place feeling exploited.

I remember when restaurants in Sydney went through this a few years ago. Prices had risen a lot and price was no longer a reflection of quality. The market did correct with new restaurants pitching at lower price points for simpler, better quality food. I am certain Paris will go through the same process, the good will survive, the complacent will hopefully get a wake-up call and the bad will go.

We can also hope that some of the three stars get a dose of reality. Their priceing is simply a rip off - it says something when it is cheaper to eat in London...!

[docsconz]

One good (?) side aspect to that crisis is that now the situation is more or less even; you get charged equivalent prices for bad/mediocre food or for good food. The tricky part lies in the selection. Selecting restaurants through their quality/price ratio has become a highly difficult sport.

You can lament on the fact that bad food is now as expensive as good food or realize that, after all, good food isn't comparatively that expensive. It's a case of glass half-empty/half-full.

(This was my "sour grapes" five minutes of the day.)

←

In the boom times bad restaurants started to charge similar prices to good ones, demand outstripped supply and lots of restauranteurs exploited us poor diners. Good value restaurants (those generally recommended here) will probably stand the test of time and survive with a loyal clientele. Those which fail to provide good value in terms of quality and price will fall by the wayside, or rapidly adjust their price points to reflect the value they deliver - simply supply and demand economics. IMO a much needed correction.

We (personally) are probably eating out less than we have in the past, but that isn't economics it is simply that we are getting pissed off with the rip offs and lack of value. I prefer to be more selective rather than leave a place feeling exploited.

I remember when restaurants in Sydney went through this a few years ago. Prices had risen a lot and price was no longer a reflection of quality. The market did correct with new restaurants pitching at lower price points for simpler, better quality food. I am certain Paris will go through the same process, the good will survive, the complacent will hopefully get a wake-up call and the bad will go.

We can also hope that some of the three stars get a dose of reality. Their priceing is simply a rip off - it says something when it is cheaper to eat in London...!

←

I think that you are to a large degree correct, however, it is not just the over-priced bad restaurants that are likely to succumb. Plenty of places with good food and reasonable value will also likely succumb, the mitigating factor being the level of business acumen possessed by the restaurant's chef and/or business manager. There will be very little tolerance for not running a tight ship business wise.

[robyn]

I always thought that the purpose of a UNESCO World Heritage designation was to encourage preservation of a particular place or structure. To the extent that it goes beyond that - the designation is meaningless - even if one can preserve a sausage for a very long time . Unlike an area of natural beauty - or a building - where historical designations can help to prevent their destruction - if people want to preserve a dance or a type of food - they will - and if they don't - they will disappear.

Even places with historical landmark status can be destroyed. For example - in war (the current UNESCO sites in Kyoto were saved in WWII not by their history or significance - but by love of the city on the part of - if I recall correctly - an American military person who was in a position to bomb it to rubble). And UNESCO sites can also be harmed by "love" (e.g., too many tourists in the Galapagos).

Anyway - there are many cuisines in the world that are worth preserving. Not in museums - or on the UNESCO website - but by chefs and diners. Use them or lose them (although some should be used sparingly as special treats because they aren't healthy). Robyn

[robyn]

Hoping for a place like Wagamama at Canary Wharf - which is kind of like the "mom and pop" noodle places one finds in countries like Japan (although it is a corporate venture on a much larger scale).  It's a fun - relatively inexpensive place to get a quick tasty lunch.

←

Mmmm....have you been recently? IMO - It really isn't very good at all, safe, boring and predictable, I find the food bland and not at all like any place I have visited in Asia. I understand it was far better when Alan Yau first started it all those years ago, but since he sold it it has become a place that provides cheap food for students.

←

I only went once in 2004. Didn't say I was overwhelmed. But for $5 - we had some simple stuff (like bowls of noodles) that was fine. It was also a fun place - with long tables where lots of unrelated people sat down together. Good place to chat with people. I have only been to Asia once (Japan) and I agree that there is no comparison. Then again - I didn't have too many $5 meals in Japan - and the ones I did have were at cheap noodle places where the food wasn't too different from that at Wagamama. Robyn

[robyn]

I think that you are to a large degree correct, however, it is not just the over-priced bad restaurants that are likely to succumb. Plenty of places with good food and reasonable value will also likely succumb, the mitigating factor being the level of business acumen possessed by the restaurant's chef and/or business manager. There will be very little tolerance for not running a tight ship business wise.

←

I agree 100%. We eat a lot at our golf club. It is a large (77,000 sf) corporate place (part of the TPC) that caters to a lot of tourists and business groups and events - like weddings (as well as us individual members). And - right now - it is tinkering with its price points and its offerings. For example - it has a drinks/snacks menu - most items at $11-12. Now it is offering a 3 item combo (any 3 on the menu) for $30. I think it will sell well. It recently raised the Sunday brunch price from $20 to $25 - but then dropped it back to $20. I suspect the combination of offerings is a bit different (like there is only shrimp or crab on any particular Sunday - instead of both) - but the changes are subtle - and designed to make sure that the number of diners stays the same. To keep one's head above water these days - a restaurant will need someone who knows how to order food and use a spreadsheet. Robyn

[tan319]

Clearly this is a global issue not limited to any one country. At the recent International Chefs Congress in NYC, I talked to a number of chefs from a number of countries lamenting the economic downturn. While people are still filling their establishments, they are having a harder time making ends meet as people are scaling back on what they order. In particular, the pinch has been felt with the relatively high profit margin of wine. Most customers have scaled back on the lavishness of their wine purchases as well as the quantity.

←

It's the economic downturn...

If you're opening a place at the moment and you're not (insert name here) you're really taking your chances.