Michelin’s mishaps in Texas: Can the stars be trusted?

Just in time for Thanksgiving: we're talking convenience, connection, and challenges. But first, a reminder: You can't fly with gravy in your carry on. Pull up a chair for the latest edition of The Prep. 

On the menu:

💠 Michelin’s Texas awards mistakes
💠 Expanded overtime pay shot down
💠 Diners are sick of the sommelier upsell
💠 What Trump's tariffs could mean for wine

What’s on our radar: The Michelin’s Texas awards mishaps. Michelin awarded a Bib Gourmand to Kâu Ba, a closed Houston restaurant. But this was not the first Texas Michelin mishap, Eater reported. Michelin invited, rescinded, and invited again at least two Texas barbecue restaurants to its awards ceremony. And Michelin initially mixed up the name of one of their "recommended" restaurants in its guide. Mister Charles, not The Charles received the distinction. Both restaurants have the same owners, but it was still a bummer for the team.

“My guys [at The Charles] have been celebrating all night and all day and patting each other on the back,” says Chas Martin, an owner of both restaurants. “The Charles has been around for six years, it’s a successful business, I’m blessed to be involved with it. And I have to go tell 30 people, hey, you didn’t win, actually.”

What we’re following: The latest in overtime pay. A federal judge in Texas struck down the DOL’s recently expanded overtime pay rule that changed the threshold at which workers qualified for overtime from $35,568 to $43,888 effective July 1 and would have raised it to $58,656 on Jan. 1, 2025.

A trend we’re tired of: The hard sell from the sommelier. It "flies in the face of great hospitality," writes Mike DeSimone and Jeff Jenssen in Robb Report. "Sommeliers, like doctors, have an unfair advantage when dealing with the public: They possess a specialized body of knowledge that may render even the most confident person mute when presented with an unfamiliar series of options." 

What we’re reading (and gifting): Ina Garten’s memoir Be Ready When the Luck Happens is sure to delight and inspire industry folks who know how much luck plays into many restaurant’s success.

Plus: Do you agree with these tactics for assessing online restaurant reviews from Darron Cardosa – AKA the “Bitchy Waiter?”

The sweet spot between convenience and connection

Are we finally seeing some backlash against digital-only or digital-forward concepts? Maybe. The timing does make sense. About half of American adults report experiencing loneliness, and 70% of consumers aged 15 to 24 have less social interaction with their friends versus two decades ago, according to a report from the U.S. Surgeon General. You know were consumers can get some social interaction? Restaurants. 

Nick Stone, the founder of Bluestone Lane Coffee, believes "restaurants are the antidote to the loneliness epidemic." And CAVA CEO Brett Schulman is embracing the trend, too, "We believe technology should enhance, not replace, the human experience and we're leveraging it to create warm, personal moments across our physical and digital channels and to support our team members in engaging and connecting with our guests." Of course, creating connections doesn't require a big budget or a new initiative; it's something many independent restaurants naturally do. (Nation's Restaurant News)

Above: A pop-up Bluestone Lane Coffee kiosk serves NYC customers near Barney's department store, via @bluestonelane on Instagram.

Inflation cools for restaurants, but other challenges remain 

Since the pandemic, full-service restaurants have been hit harder with inflation compared to quick-service restaurants. But there’s been relief for both segments of the industry recently. Restaurant-related inflation has declined significantly since its peak in April 2022, according to a recent restaurant report released by Square. Still, many of the problems that have plagued restaurants since the pandemic continue, including wage increases, which have hit full-service restaurants particularly hard. Wages for full-service workers have grown 73.9%, compared to 60.2% for quick-service restaurants since 2017, according to data from Square. 

“Despite inflation easing, restaurants are continuing to face a number of challenges in their operations, whether it’s fluctuating food prices, employee retention, or ballooning payroll costs,” said Ming-Tai Huh, head of Food and Beverage at Square. “Many restaurants are grappling with how to balance these increased expenses while still offering affordability to customers. We’ve seen some restaurants lean on automation and other time-saving technology to keep margins under control.” (Square)

4.3%

Year-over-year inflation at full-service restaurants as of September 2024. (Square)

"How do you pay for all this technology? There’s tons of subscriptions, tons of utility fees, commissions. All of these different things. Much of the technology promises some kind of payback….it’s still really expensive."

- Meredith Sandland, author, podcast host and CEO of Empower Delivery
(🎧The Digital Restaurant)

💠 How to embrace the “little treat” trend 

💠 The wine world is bracing for Trump’s tariffs

💠 Can this Australian chain save the sad desk salad? 

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