The pandemic didn’t just change how New Yorkers work. It’s also completely up-ended how they dine and drink — and put a serious dent in the idea of happy hour.
“People used to work from 9 to 5. And you were happy at 5:01 because your workday ended,” Eugene Remm, co-founder of Catch Hospitality Group, told The Post. “But now there is no beginning of work and there is no end to work.
“So I think if you said ‘happy hour’ to 95% of [20 somethings] that used to do that on a regular basis, they would look at you and say, ‘Hey, Boomer, I don’t know what happy hour is.’”
While Remm’s Manhattan hot spots, including Catch Steak and The Corner Store, are generally booked solid, he acknowledges that he and other restaurateurs in the city are challenged by changing rituals.
Not only are New Yorkers working around the clock, but tee-totaling has gotten a lot more popular. And news of Gen Z eschewing alcohol just as they get spending power isn’t an encouraging sign for those in the hospitality business.
In fact, the decrease in the popularity of drinks — coupled with the rising cost of doing business in NYC — means restaurants have to raise food prices.
“You used to have a formula where it would be food percentage, beverage percentage. That would be your entire sell. And the profits on beverage are 10X. The profits on food is 2X,” Remm said.
“But costs for restaurants — like food, labor, and rent— are getting even more expensive, which means restaurants have to figure out a new way to make the numbers work. So when people stop drinking, that’s when the model has to change … Everyone has pivoted their habits, so the business still needs to sustain… the only thing that you can do is to raise prices.”
And while he loves New York City — telling The Post that just being here energizes him to work even harder and go 11 hours a day — the new landscape has forced him to explore new opportunities in more affordable locations like Dallas and Miami.
Not that Remm is giving up on NYC any time soon.
“But look, you have to learn how to do more with less … ,” he said. “As long as the guest doesn’t know that they’re experiencing anything different, no one cares how the engine is run …
“So in our scenario, we are just very thoughtful on how we manage our labor, how we manage our food cost, and how we execute to make sure that the margins work.”
He’s finding ways to be innovative, as well, explaining that “we have a really cool nonalcoholic — we call zero proof — category at the at The Corner Store. And we’re focused on creating unique drinks because people still want to taste something really great and have a great experience. And if they choose to do it without alcohol, we’ll come up with other ways to make sure they have a fun experience.”
He also has been in this business for two decades, which is long enough to know that the latest challenges are just part of a never-ending cycle in which trends come and go. Remm fully expects that happy hours, and imbibing more generally, will be on the upswing again soon enough.
“Everything is a cycle. And alcohol is something that’s been with us for 5,000 years. I think it’s going to be with us for 5,000 more,” he said. “When people are happy, they drink. When people are sad, people drink and it honestly just makes you feel better … I think it all comes back into vogue.”
One thing that he doesn’t think is a trend: New York City’s power position:
“If you want to be the best at anything, this is where you need to be.”
This story is part of NYNext, a new editorial series that highlights New York City innovation across industries, as well as the personalities leading the way.
