Oh, the horror! The business lunch, in all its glory, is slowly dying a painful death. What was once an essential part of doing business has now become a leisurely activity for diners. The upscale restaurants in big business centers are suffering and need a miracle to survive. Corporate cafeterias, on the other hand, have upped their game as employers try to make offices more attractive. Looks like it’s time to say goodbye to that fancy three-course meal and hello to cafeteria food, folks.
Kip Eideberg, who used to enjoy a fancy lunch two or three times a week before the pandemic, can now only treat himself once or twice a week, and even then, he can’t even count on his old favorites. The Prime Rib, a steakhouse with tuxedoed waiters, where he used to go regularly for lunch, reduced its lunch service to Fridays only and then ditched it altogether. Mark Twain once said, “The rumors of my death have been greatly exaggerated,” and Eideberg can’t help but agree. The business lunch may not be dead, but it sure is on life support.
It’s not just the fancy restaurants that are suffering; downtown areas are struggling to recover their vitality. Office occupancy rates have plateaued at half of pre-pandemic levels, despite numerous attempts to bring workers back. It’s not easy being a restaurant owner when your survival is under threat from inflation. And now they have to revise their operations, raise prices and cut back on staff. Amazon CEO Andy Jassy believes that bringing workers back three days a week starting in May will provide a boost for thousands of businesses located around their urban headquarter locations. Well, we’ll be the judge of that, Andy.
When workers do go into the office, or are working from home, they’re opting for takeout rather than fancy sit-down meals. Currently, three-quarters of restaurant traffic is consumed off-premises, up from 61 percent before the pandemic. Restaurant owners have been forced to adapt, even if it’s much less lucrative for them. To-go alcohol sales and quick-service ordering technology have become vital for restaurants that once relied primarily on in-person dining. Honestly, who needs fancy waiters and table cloths when you can indulge in your meal, Netflix, and comfy sweatpants?
Traci Martinez from Ohio used to go out for lunch two or three times a week before the pandemic, but now she can only fit in one meal a week. People are kind of pounding through lunch and taking fewer breaks from work. So, breakfast and dinner meals for work have risen. Even in Texas, the home of big business and big meetings, lunch and happy hour traffic is down significantly. Business meals from conventions and tourism have become a boon for restaurant operators, who are trying to supplement their income.
The drop-off in traffic has coincided with a period of hefty cost increases in labor and wholesale food prices. Many restaurateurs have had to raise prices or cut back on hours and services to keep their margins under control. Establishments have become unpredictable, and even ticketed events and green margaritas on St. Patrick’s day won’t guarantee diners.
And the cherry on the cake? Employers are now investing more in corporate cafeterias, tempting workers to stay on-site with high-end food options. And why not? Gone are the days of prepackaged sandwiches and simple salad bars. Now employers want margherita pizzas from wood-fired ovens and black angus burgers with special cheese from Vermont. These employers are asking more questions, even requesting that the produce be local, organic, sustainable, and grown by minority farmers. Looks like food is the new currency to entice employees back to the office.
Serious News: washingtonpost
