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Michaels founder Michael McCarthy on trends making restaurants rethink menu options and prices.
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-- -- a bond segment -- portion sizes are shrinking.
At restaurants but not necessarily menu prices it's a new trend that's part health and part -- and joining us -- to discuss that we got -- Michael and Michael's.
Michael a -- founder of world famous Michael's restaurant in Manhattan as well said the market -- who cares about that.
Thanks for being with us -- used to have eighteen kind of bigger -- -- on your right higher menu right before.
Now I am 42.
Many plates he got to pick one what's the biggest reason you're doing this because the calories and health thing.
Well because it's -- it's what some some hotshot places are doing it's it's all part of the revolution it's hip it's hip it's gotta be there you know there's been a paradigm shift people eat differently than they used to eat.
They would rather have six bytes is six that would things at six bytes of one thing.
Yet you know a restaurant and my favorite front and Brooklyn grocery they've just made this which they totally a -- would feel this is how we eat today now.
Might we end up eating more because we have all these little dishes and we think they're harmless.
You know in terms of quantity there's a possibility get close to that but the point is you're gonna have more fun and that's the bottom line here you know people want to have all kinds of different taste sensations.
They don't want to just stick to one thing anymore you know with the advent of the Smart -- The power of choice is huge people want it all all the time.
Bright idea what this mini dish thing it's almost kind of an ADD of dining right -- I get bored I have an entire that Iraq strip steak I want a little bite here.
Now I want you to envision your total menu in the old Michael's tour and -- -- all the calories right and now the new 42 item menu -- -- all the calories which would have more.
Well I think that.
I think we'll probably be almost the same in a funny way you see them saying began because of the quantity sizes right you're really you're really eating roughly perhaps the same amount quantity wise it's -- -- for the dollar to be -- -- good.
Now total up.
The total revenue prices -- you can of the old and you vs new which was a higher dollar total -- the old one at a higher dollar total and -- you build yourself into this format and people get used to it in this sector experiment.
You basically get back to where you were before right now to the extent did you take an old dish you cut in half right what your price goes down only a quarter yeah there's a higher profit margin.
Yet don't you run higher cost base when you have to have a kitchen -- preparing 42 different -- absolutely correct you knew we we've gone from six stations in the -- to nine stations have gone almost -- -- -- 40% increase in staff exactly but the wave it.
The way that this all works out.
Is is that you increase the amount of people to come -- So you're basically doing it on the increase in volume of your cover count your guests that are coming well that's where is that -- that you actually increase in average guest coming -- your -- so -- well I did this three months ago in California yeah.
And I tripled the amount of people -- by -- by doing exactly the same thing with this for and you might raise it to this change is that right no exactly that's what it is -- that in that restaurant in California -- are your average ticket.
Per party is it up or down in terms of dollar total it is less than it was before it hits yes of course but you lot foot traffic -- -- -- more often rather than come once a week or once a month or once a year now to come to three times a week OK and that -- same here okay now how much of an increase in difficulty is there.
For quality control because.
I'll let you really literally eighteen dishes -- you can't be really really good at all 42 separate issue will actually that's the nature of the style dining that we've done here these are very simplified dishes it's really always been you know farm to table shaft driven.
Ingredients to best equality to possibly get and we keep it as simple as we possibly can so therefore yes with the proper training.
You -- to be not only the -- but the marathon runner and what's the bytes per dish.
All you probably get 45 by such a lot yeah more than small -- what you share.
It would be sharing of batter pitcher restaurants are all want a better table next -- -- -- -- put healing garden I'll.
Pay all the -- be believed in the garden there -- -- -- I feel better thanks for being with us Michael thank -- Michael's good -- I appreciate OK thank you.
