The restaurateur at New York’s Famous Carbon said there has been a major shift in consumer behavior, with younger customers spending less on alcohol and more on fine dining experiences.
“They’re definitely more health conscious. There’s certainly a trend toward drinking less,” Mario Carbone, CEO of Major Food Group, said Friday on “Mad Money.” “But what they’re also saying is that we’re going to spend a disproportionate amount of money on experiences like travel and dining.”
Alcohol inventories have been under pressure in recent years as major brewers and spirits makers grapple with slowing volume growth, declining demand among younger consumers and widespread trends toward less alcohol. modelo brewer constellation brand and johnnie walker distillery diageo Compared to last year, they decreased by 16.8% and 28.9%, respectively.
“It’s a pendulum. It’s going to swing back and forth,” he said, explaining how consumer attitudes toward alcohol tend to change over time.
But now that change is having a direct impact on Major Food Group’s strategy. The company, known for restaurants like Carbone, Torrisi and Parm, has built its brand around what Carbone describes as “theatrical, experiential fine dining,” a model that treats restaurants more like performances than meals.
“Theatre is the biggest comparison,” he said. “The curtain goes up at the same time every night…We put on this show, this performance every night.” At Carbon, the flagship restaurant in New York City’s West Village, servers prepare Caesar salads tableside, while other locations serve flambéed desserts right in front of customers.
Carbone explained that Major Food Group’s focus on experiences rather than just food and drink is helping offset the industry-wide soft alcohol consumption trend. While a decline in drinks can typically squeeze restaurant margins, customers compensate by spending more overall on memorable outings, Carbone said.
“If you give me an experience, give me something intangible…I’ll be free with cash,” he said.
The strategy seems to be working. Major Food Group is rapidly expanding, opening new stores in cities such as Mexico City, São Paulo and Tokyo, while also growing its consumer products business to reach customers beyond its limited restaurant footprint.
