Fine dining — in this economy? Dip in customers is leading Charlotte restaurants to try new things
With increased labor costs and inflation, and diners worried about the economy, Charlotte’s fine dining restaurants have seen a dip in business this year.
Restaurant sales also declined nationally in September, with the worst performing segment being fine dining, a GuestXM article posted on LinkedIn said.
Queen City restaurateurs say fine dining isn’t going out of fashion, but they know they’ll have to continue focusing on hospitality to keep customers coming back for more.
Fine dining challenges
Greg Collier, the James Beard recognized chef of Leah and Louise who owns the restaurant with his wife, Subrina, said although 2021 and 2022 were busy, the restaurant saw the slowest summer for 2023 since the COVID pandemic broke out in 2020.
“Labor and food costs have probably gone up 20% or more,” said Collier, whose BayHaven Restaurant Group also owns Uptown Yolk and is opening 3rd & Fernwood. “Across the board, rents are rising and people are generally considering eating out the first casualty of a recession.”
Aimee Larson is president of Conway Restaurant Group, which operates The Pump House in Rock Hill, Drift on Lake Wylie in Belmont, Napa at Kingsley in Fort Mill and Napa on Providence. She said high interest rates, rising housing costs and student loan payments starting again are affecting the buying power of diners.
“Consumer confidence is taking a little bit of a hit right now,” Larson told CharlotteFive.
Since 2019, labor costs have risen 30%, and with tremendous restaurant growth in the Charlotte metro area, restaurants are all competing for a smaller pool of labor. Food costs also remain high, with some items costing up to 70% more.
“Eggs and butter spiked,” Larson said. “They’ve come back down, but they’re still higher. There’s only so much you can afford before you raise prices.”
Staying creative for guests
The restaurants in the Conway Group have gotten creative, planning special events to attract diners, Larson said. Drift recently held its first Dockside Dinner, with a lobster theme. Drift also has a specific menu for Drift & Sip from 4-6:30 p.m. Sunday through Thursday, featuring drink specials and small bites.
Napa, Drift and The Pump House also hold wine tastings with charcuterie and light bites, and offer 10% off if you stay for dinner. The tastings focus on educating guests about wine, so it’s less intimidating and feels more approachable.
“The response to those have been absolutely wonderful,” Larson said.
Based on customer feedback, the Pump House is undergoing a menu revamp, launching in January. Rather than buying a steak and separate sides, for example, the restaurant is returning to more composed plates. But it’s holding on to fan favorites like the shrimp and grits, and fried green tomatoes.
“We’re really listening to the feedback from our guests and not skimping on quality or creativity,” Larson said.
She said the holidays are looking good for fine dining at Napa, Drift and the Pump House, however. Drift is in an advantageous spot, with the Christmas lights at McAdenville and Daniel Stowe Botanical Garden a short drive away.
Meanwhile, Collier is changing things up at his restaurants, with Leah and Louise recently opening for lunch service. At Uptown Yolk, the Colliers have extended its hours beyond breakfast and brunch.
“We are thinking about ways to collaborate with neighboring businesses on days we are closed, targeting specific groups for caterings and buyouts,” Collier said.
Collier predicts a busy holiday season for his restaurants, too.
“We are pretty booked,” he said. “I think navigating having enough labor without overstaffing will be key. Being prepared for events in neighborhoods and around Charlotte is a huge key.”
Hospitality comes first
If fine dining brings to mind a “big box steakhouse,” then fine dining is thriving in Charlotte, Collier said.
“Outside of that, I think the traditional fine dining white tablecloth service has always been dependent on cheap labor, which has shifted for the good,” he said. “What we and other restaurants like Kindred, Goodyear House, Customshop and Restaurant Constance try to do is fine food with more of a casual service so folks see us as an everyday option.”
That approachability is so important, said Katy Kindred, whose restaurants owned with her James Beard-recognized husband Chef Joe Kindred include Kindred, Milkbread, Hello, Sailor and the upscale Albertine, set to open in the Duke Energy Plaza uptown next year.
“Hospitality has to come first,” Kindred said. “It has to be super guest-focused. That’s the magic of fine dining. That’s what people are willing to pay for right now, in my opinion.”
Albertine, named after Queen Charlotte’s mother, will be “beautiful, super hospitable and luxurious,” Kindred said, a place for celebrations and to impress your friends. Its cuisine will be inspired by both Mediterranean flavors and those closer to home — the American South.
“I want everyone to feel comfortable, like ‘this is the place I need to be right now,’” Kindred said of the vibe at all of her restaurants. “We’re always trying to get better and change the menu. I don’t think it has to be fancy or expensive. Making you feel special - we love doing that.”
At Napa, the focus is on a “growth mode,” Larson said.
“We are committed to gracious hospitality,” Larson said. “Guests want to feel welcome, special and taken care of, and as long as we do that, people are going to continue to come back.”
This story was originally published November 8, 2023 at 5:30 AM.
