Is Ozempic hurting restaurants?

Purse strings are tightening as diners brace for a possible recession, not to mention it’s just flat-out more expensive to dine out these days. But one fine-dining restaurateur, who is also dealing with one of the country’s highest minimum wages, has some tips to deal with tough financial times. Pull up a chair.

In today's edition:

🔹Is Ozempic killing restaurant appetites?
🔹Gen Z's top three restaurant brands
🔹Executive chef gives butter praise
🔹Restaurants vs. the winter slump

In Seattle, many restaurateurs are feeling the double whammy of a recent minimum wage hike and the rising cost of dining out. But chef Aaron Tekulve has been here before. His fine-dining restaurant, Surrell, was supposed to open on the same day the COVID-19 lockdown was announced. He not only survived the multi-year disruption and financial hit to his restaurant, he is thriving.

Here, he has some advice for those who are dealing with difficult financial times, regardless of their restaurant’s price point. -Julien Perry

Seattle is certainly feeling the financial strain. How is this affecting your business?
We have seen rising prices on all goods and many services. For decades, our industry has not been diligent about raising prices along with annual inflation. I think part of this is because we want to focus on taking care of our guests, and raising prices doesn’t feel like we’re meeting that goal. But we have to remember that we also need to take care of ourselves and our staff. So, price increases slowly throughout the year are very necessary to run a financially healthy business.

What are you doing to ensure you not just stay open but flourish during these challenging times?
Having a strong private dining and catering arm is one of the most powerful attributes that you can have. Not enough restaurants build a form of catering and private dining into their business model. It’s the only way to truly give your business exponential growth, and you don’t have to sign another lease. Even in tough times, guests and clients are still interested in birthday parties, anniversary celebrations, corporate dinners and lunch drop-offs.

As a diner, what do you see restaurants doing wrong during tough times?
You can’t be everything to everyone. You have to accept that if you want to have a strong business, you need a strong POV in your cuisine, ambiance and service. It’s better to filter out potential guests who won’t enjoy the experience before they come into your restaurant so neither of you is disappointed. Decide what you can do well that’s sustainable, and focus on that.

This interview has been edited for clarity and brevity. 

What’s the buzz? Magnetic restaurant brands are winning over Gen Z. A new report shows McDonald’s, Wingstop and Starbucks as the top three brands most appealing to the 12- to 27-year-old demographic.

On alert. Restaurant workers across the country are rightfully on edge over looming threats of ICE deportations. One multi-city restaurateur, on condition of anonymity, says he was able to calm his staff by implementing protocols and letting them hear from lawyers about their rights.

Wish-foul thinking. The U.S. is desperately trying to import as many as 100 million eggs within the next month or two to fill the gap left by a devastating bird flu outbreak. But the hurdles involved are proving to be monstrous. 

Pioneering women. International Women’s Day may be over (it was March 8), but it’s never too late to read about the women who inspired and helped shape the careers of professional chefs.

Hot mess. Martha Stewart and Jose Andres are hosting a new cooking competition called Yes, Chef!, which sees 12 chefs with varying "personality problems," says Stewart, compete against each other for $250,000. 

Ozempic is changing the way people dine

Restaurants are finding ways to stomach the effects of weight-loss drugs, such as Ozempic, as more diners struggle with the question, “What would you like to order?”

A Morgan Stanley survey found that 63% of Ozempic users are spending less when they dine out because they just aren’t as hungry, which usually means alcohol takes a back seat, too.   

Nima Safaei, a restaurateur in London, tells The Independent that “more customers are coming in just for drinks or ordering a couple of starters to share, and we’re seeing fewer three-course meals.” 

Some New York and L.A. restaurants are adapting to weakened appetites by introducing smaller portions, smaller plates and “luxury bites” that cater to diners who still want fancy food, just in fun-sized amounts.

Why it Matters: One in eight adults say they’ve used GLP-1 drugs (such as Ozempic and Wegovy), and more weight-loss drugs are being tested. It’s now up to restaurants to learn to adapt. Survival of the fittest. (The Independent)

Is there a market for cultivated pork fat? 

A San Francisco alternative meat startup has received FDA approval for its cultivated pork fat. And you can already find their products (meatballs, sausage and bacon) in a few restaurants and grocery stores.

How is cultivated pork fat made? The short answer: in a bioreactor using fat cells from a pig. Though no animals are harmed in the making of cultivated pork, some vegetarians and vegans refuse to eat lab-grown animal products.

The company says it can make just as many pork products as “millions of farm animals,” but in this case, cruelty-free. That should be good news for all non-meat eaters.

“We have the sustainability benefits, the [lower] water and land use, the lack of antibiotic use, and the deliciousness people expect from bacon or meatballs. We think there’s a very large untapped market here,” says founder Eitan Fischer.

Why it Matters: Mission Barns says they are talking to many like-minded companies who see the potential for cultivated meat products that appeal to plant-based consumers who are looking for something tastier than what’s currently available. (SF Chronicle)

Restaurants are winning the war on winter

The January-February curse was broken this year, as diners came out in full force to support their local restaurants. The beginning of the year is usually a slow time for the restaurant industry, so much so that some bars and restaurants use that time to go on a brief hiatus.

But January data shows that restaurant and bar tabs were up $2 billion higher than they were in 2024, topping out at nearly $99 billion. And the number of diners in the first two months of this year were about 5% higher than 2024, says OpenTable.  

So, what gives? Restaurateurs offered up several theories to The New York Times, including low unemployment rates, the desire to destress from the recent election and the need for comfort from the current news cycle. 

Why it Matters: “When people were worried about a recession, about supply chain shortages, they still made room in their household budget for the meal they have at a restaurant,” OpenTable CEO Debby Soo tells The New York Times. “That trend is continuing.” (The New York Times) 

30%

The amount of high-income consumers that are dining at table service restaurants (TSRs) more frequently than before the pandemic. (Modern Restaurant Management)

💠 Anthony Bourdain loved Waffle House
💠 11 historic facts about Irish food 
💠 Restaurant math isn't mathing
💠 Cell phones in restaurants are problematic
💠 Stiffing your server won't fix tipping culture

"One of the best butters I’ve had that I don’t think is obtainable… [is] the butter that comes with the pancakes at McDonald’s."

– Chef Sean Gray of Sergeantsville Inn on his current favorite butter

 (🎧 Cooking Issues with Dave Arnold)

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