By: Liz Farmer
Rewards cards or frequent diner cards are pretty old news when it comes to walk-up establishments like coffee shops or delis.
And you might find them at chain restaurants like Applebees or T.G.I. Friday’s.
But you just don’t see them at white table cloth establishments … or at least you didn’t. But Baltimore’s relatively new upscale eatery, the B&O American Brasserie located in the Hotel Monaco, is bucking the establishment. The restaurant is offering a lunch rewards card that diners can get stamped once for every lunch they have there. Four stamps earns you a free lunch valued up to $14 (excluding tax and tip of course.)
Now, you might be rolling your eyes — I did. After all, $14 isn’t as exciting as a totally free lunch. But after thinking it through, I have to give the restaurant credit — its lunch menu, while limited, is affordable compared with its downtown competition. Salads and entrees range from $9 to $17 so depending on what you order you’d still throw in a few dollars for a drink and tip but it’s still a decent deal.
And of course, it encourages returning customers — something all restaurants in B&O’s category are trying to figure out how to do.
But I have to wonder about the notion of a frequent diner’s card … given its usage with cheaper establishments and chains, does this hurt B&O’s brand image at all?
By: Liz Farmer
Just in case eight downtown steakhouses wasn’t enough, one more is opening Friday.
OK, just to be fair, Prime Steakhouse is located a little more off the beaten path than the others. Sullivan’s Steakhouse, the two Ruth’s Chris Steak Houses, Flemings Prime Steak House & Wine Bar, Morton’s the Steakhouse and Shula’s Steak House are all within a half-mile of the Inner Harbor. Prime is set in Fells Point, a bit to the East of the bunch.
But my point is still the same — we must really love our steak in this town for someone to come in, look at the market and think, “You know what’s going to fill a need here? A steakhouse!”
The economy’s doing a little better. But it’s not doing THAT much better. And for an owner to try and open a high-end restaurant in direct competition with eight others (most of them chains) it’ll be a major uphill battle.
One thing going for Prime is while its menu is pretty standard (steaks, chops and a few seafood options), none of the entrees exceed $30.
(On a side note, the ownership of the new restaurant is in its own little battle, as The Sun’s Dining@Large blog pointed out Thursday.)
Do you think Prime Steakhouse stands a chance?
By: Liz Farmer
Last week I wrote a blog post wondering if the proposed menu labeling bill in Maryland is going too far in that it takes away consumers’ accountability for their own health.
Today I got an e-mail in response to the blog from a PR rep for Starbucks Coffee. She included the results of a recent study Starbucks had commissioned on menu labeling, which requires restaurants and chains to post nutritional information next to each menu item.
Much to my surprise, the study conducted by Stanford University found that calorie-posting at Starbucks led to a 6 percent reduction in calories (from 247 to 232) per transaction. AND (this is what really surprised me) the amount spent per transaction was not significantly affected, and in some cases proved to be effective marketing.
“There is no impact on Starbucks profit on average, and for the subset of stores located close to their competitor Dunkin’ Donuts, the effect of calorie posting is actually to increase Starbucks revenue,” the study said.
The study’s authors analyzed transactions at Starbucks company stores in New York City from Jan. 1, 2008, to Feb. 28, 2009, with mandatory calorie posting in that city taking effect on April 1. For controls, they authors also looked at every transaction at Starbucks company stores in Boston and Philadelphia, where there is no menu labeling.
The study also looked at individual behaviors by analyzing Starbucks card holders’ purchases in New York and conducted surveys after calorie posting became mandatory in Seattle last January.
The results are interesting in that it seems to show if lower-calorie food or snack alternatives are offered (such as Starbucks’ 120-calorie mini-donut), customers will likely substitute their usual order and not necessarily spend less. But where menu labeling CAN hurt is if you don’t have that option, like at Dunkin’ Donuts. Sorry, but a bagel (even though it has more calories — but also less fat) is nowhere near close to being a substitute for a donut.
Does this change anyone’s opinion about menu labeling? Or does it reinforce it?
By: Liz Farmer
Just like last year, an alcohol tax is being proposed as part of health legislation in this year’s legislative session.
The bill, which has not been scheduled for a hearing, is emotional for both sides — higher taxes on the one side and health care on the other can elicit some pretty strong arguments.
Today I got an e-mail that the legislation is being renamed (maybe for an extra tug on those heart strings?) to the Lorraine Sheehan Health and Community Services Act of 2010 in honor of former Del. Sheehan who died last year. Sheehan was elected to the House of Delegates in 1974, 1978 and 1982. She also served as Maryland Secretary of State from 1983 to 1987 and was inducted into the Maryland Women’s Hall of Fame in 2002.
Emotions aside, let’s look at the breakdown. Essentially the bill would raise taxes to pay for health programs.
- Distilled spirits would go from $1.50 to $10.03 per gallon,
- Wine would go from 40 cents to $2.96 per gallon
- Beer would go from 9 cents to $1.16 per gallon
Con: Opponents of the act say restaurateurs and other distributors can’t afford another tax when the recession has made survival hard for many business owners. From the Restaurant Association of Maryland:
While tax increase supporters will argue that it has been far too long since such taxes were increased, they forget that sales tax on alcohol increased by 20 percent along with all other taxable goods and services during the most recent sales tax increase in January 2008. It would be unfair to our industry to target alcohol for another increase.
Pro: Supporters say the tax would only raise the cost by about 10 cents per drink while raising roughly $214 million in new revenue. Here’s how the revenue would be divided:
- 15 percent: Development Disability Support Fund
- 15 percent: Addiction Treatment and Prevention Fund
- 15 percent: Mental Health Care Fund
- 42.25 percent: Maryland Medicaid Trust Fund to fund health care coverage for childless adults
Like so many battles it’s business owners pitted against public programs — what side do you fall on?
By: Liz Farmer
Rule No. 1 for business owners: don’t insult your customers.
A Maryland native who operates a piano bar in Indianapolis might have done well to heed that advice. But, alas, reading this article posted on an Indianapolis news station’s Web site only got more painful by the line.
According to the story, Mike Augustinos, general manager of Howl At The Moon, posted an online invitation for visiting Ravens fans to come tailgate at his place on Saturday.
OK, harmless. But not the part that came next:
“It sucks living in Colts country but I AM A DIEHARD RAVENS fan,” Augustinos wrote. “The good thing is I am the boss! For anyone that has never been to Indianapolis, their tailgating is horrible. There are no big parking lots anywhere. Everyone always goes out to the bars.”
Oh no, he didn’t!
Howl At the Moon posted an apology the next day but the damage has already been done. A Facebook group formed to boycott Howl At the Moon Indy has more than 3,100 members as of Friday morning. According to an Indy radio station, Augustinos is now getting threats and police were stationed at his restaurant yesterday.
I guess it doesn’t matter how purple your blood runs, when in Rome…sit down and shut up. Hopefully, lesson learned for Augustinos.
By: Liz Farmer
I never thought I’d see the day a high-end steak house would have menu items (other than soda) for less than $5. But a recession can make restaurants pull out all the stops.
In a promotion it’s calling $5 Prime Time, Baltimore-area Ruth’s Chris Steak Houses are launching a new menu this week and having a free public sampling Wednesday (today). The new menu features “small-plate” food items and drinks.
Food includes crab cakes, jumbo shrimp cocktail and mini kobe burgers. Drink options include select martinis, wines and domestic and imported brews.
Just goes to show that the recession is forcing some major creativity with restaurants — especially high-end ones that have the perception of being unaffordable when times are tough. Last year, Ruth’s Chris also launched a $39.95 three-course meal to combat that stigma.
Big Steaks Management, which operates the locations in Annapolis, Baltimore and Pikesville (which is not participating in the promotion), is not a public company, but Ruth’s Hospitality Group owns and operates most of the locations across the country as well as other high-end seafood and steak houses. That company struggled mightily in 2008, posting a loss of $53.9 million for the year compared with a profit of $18.1 million and $23.8 million in 2007 and 2006, respectively.
This summer, Big Steaks announced it was closing two of its other restaurants in Baltimore to focus on its steak houses and its other restaurant, Havana Club.
The Prime Time menu’s slogan is “Come for a drink, Stay for a bite,” so by no means will Big Steaks’ $5 menu items suffice for a dinner (unless you order a few for each person). But it does provide competition for appetizers and drinks at other bars and restaurants. For a couple dollars more, people can conduct some social business over drinks and an appetizer in a luxury setting. Your stomachs may not be as filled but you’ll look better doing it.
I only wonder — if you give a mouse a cookie, he’ll want a glass of milk. What happens when the economy starts improving for restaurants? Will all the deals go away at some point and if they do, will that anger customers?
By: Liz Farmer
I had lunch yesterday at the B&O American Brasserie, the restaurant in the Hotel Monaco, which opened late last month. As the 1 p.m. hour rolled around, my fellow diners and I watched as the white tablecloth establishment filled up with people in suits and ties, demonstrating a need that was being filled: North Charles Street was wanting for a place with standard but upscale fare for a nice business lunch.
The Brasserie’s location at Baltimore and Charles streets next to dozens of law firms (the Law Offices of Peter G. Angelos among them) makes it primed to scoop up the crowd that before was likely walking the three or so blocks to the Inner Harbor to places like Sullivan’s Steakhouse, the Capital Grille or M&S Grille. Now before you start telling me me about places like the Sheraton Baltimore City Center Hotel (on Lafayette) or Tugs Bar & Grille (on East Saratoga) — yes, I know those are close to the Brasserie too.
But I’m talking about a section of North Charles Street between the harbor and Saratoga that’s primarily populated by casual dining places like the Charles Street Deli & Gourmet or Pizzeria Speranza. Nice for a quick bite with colleagues, but I wouldn’t close a deal there.
The Brasserie stands out from its Inner Harbor brethren by putting little twists on basically standard menu items. Instead of a straight steak salad, the romaine lettuce is grilled. The turkey club sandwich comes with an avocado and lemon peel relish. I had a crab cake sandwich that tasted pretty standard — but the side of fries really out-shined the main dish as they were lightly fried and the most potato-ey tasting fries I can ever remember having (that’s a good thing in my book).
I could write a whole other blog about the desserts, but suffice it to say they are well worth checking out (especially the strawberry rhubarb pie) if you are looking for a late-night bite.
The prices are about comparable to other white tablecloth restaurants downtown and all three meals are served: breakfast ($8-$16), lunch ($5-$19) and dinner ($18-$34). The atmosphere, inspired by the B&O Building in which the restaurant is located, is also nicely done with a muted blue/brown/cream color scheme, leather and cloth textures and booth seats styled to look like old-fashioned train seats.
All in all, it’s nice to have another option downtown serving American gourmet food with enough variety between breakfast, lunch and dinner it’ll take you more than a few trips to try everything. Now if only the economy would pick up…
