VANCOUVER -- Luxe Vancouver restaurants Lumiere and db Bistro Moderne will close in two weeks, Lumiere general manager Chris Gonzalez confirmed Sunday afternoon.
Staff at both West Broadway establishments, owned by superstar chef Daniel Boulud, received their notice this weekend.
I would say HST is part of the reasons for many high end restaurant closure, not the only reason though.
These restaurants are NOT only for rich people, guys.
Rich people might eat these restaurants daily, but the mid class people do visit them once a month or so, and the low class people may visit them once a year.
The mid class people are the main revenue generator here.
1. The 7% increase = 7% less meal budget, simple.
It may force the mid class people to eat at the next lower grade of restaurants.
Overall, immediate effect is more than -10% (guessing).
2. The 7% increase = eat out less, because of psychological factor.
Another some percentage of effect.
3. Alcohol law is making it illegal for a couple diners to open a bottle of wine for a dinner.
Immediate effect is 20% (guessing), because some of them don't care about the law, and some might drink 1 bottle instead of 2 bottles as before. Wine is average 40% of the bill of the meal.
4. Cost has been increased like crazy for the last 3 years. Many cost have been doubled for the last 3 years. Given the slow economy, no restaurants have the guts to increase the price to cover the high cost, but instead lower the price. Rent keeps going up as well.
So, we have these fcuked up situation where: Cost and Rent goes up, and Price goes down. Where is the profit?
When you add up 1,2, and 3 together, you immediately easily see big decrease in revenue, which in turn, tremendously increase the fixed cost. That just further put more pressure on the #4. Again, where is the profit? The profit of a well run high end restaurant was around 10% during normal times. You can guess what's the result of 1,2,3, and 4 together.
So, you see how the government killed the high end restaurant industry?
What did the government do to help this sector?
I would say their closure has nothing to do with HST. They are in the middle of nothing. The resta ...
blue20ae 發表於 2011-2-28 13:09
All foodies don't care about view.
The restaurants with view is usually for the people who pretends to know things about food and are willing to pay the view instead of food quality. Yeah, it's sad that's the majority of the people.
I would say their closure has nothing to do with HST. They are in the middle of nothing. The resta ...
blue20ae 發表於 2011-2-28 01:09 PM
It's sad to know that those are the main factors of majority diners choosing their restaurants...
I care none of those. (especially dislike restaurants with view)
I would say their closure has nothing to do with HST. They are in the middle of nothing. The restaurant has no view; there is no covered parking, the interior decor is okay but not great.
There are many good restaurants with better location.
Same as Chinese food too! High end and those really need alcohol and wine restaurant are struggling finance problems because lack of ALCOHOL "lump sump"support and HST problems!! 2 things to backing up my words: Look around those middle to lower end restaurants or Wonton Noodle shops not affecting as much as high ends (looks at all the Chinese Malls food courts after HST their business are much better than before) Also, if u don't believe, u try to having late dinner or Drink over Alexandra Rd, Both corners exits Cops are waiting and standing to check your alcohol over limit or not! Whenever u came out from those couples drinking place even Japanese Fusion..... they use radio to read your license plate for both ends to stop your vehicle! U want to take that risk and get 3 months license suspension??
The problem with some of these so-called fine dine restaurants is that they think they are high-cla ...
peter236 發表於 2011-2-28 12:00 AM
I really don't think DB is over priced... with their food.
there is a reason why I never go to places like Earls, Cactus club and Milestone...
cos they charge the same as places like DB and other casual dining place but with "chain style food"...
But I guess it's marketing and ... ppl getting out of their comfort zone...a lot of ppl choose these chain over small local restaurants.
發表於 2011-2-27 15:32
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