How the restaurant group behind NYC’s Carbone is overcoming young people shunning alcohol
The restaurateur behind New York’s famous Carbone restaurant said there was a major shift in consumer behavior with younger customers spending less on alcohol and more on luxury dining experiences.
“They’re definitely health-conscious. There’s definitely a trend to drink less,” Mario Carbone, CEO of Major Food Group, said Friday on “Mad Money.” “But they also say we’re willing to spend a disproportionate amount of money on experiences, on travel, on food.”
Alcohol stocks have remained under pressure over the past few years as major brewers and spirits producers grapple with slowing volume growth, weak demand among younger consumers and a broader shift towards moderation. model beer maker Constellation Brands and Johnnie Walker distillery Diageo decreased by 16.8% and 28.9%, respectively, compared to last year.
“It’s a pendulum. It’s going to swing back and forth,” he said, explaining how consumers’ attitudes toward alcohol tend to change over time.
However, now this change directly affects Major Food Group’s strategy. Known for restaurants such as Carbone, Torrisi and Parm, the company has built its brand around a model of what Carbone describes as “theatrical, experimental fine dining,” treating restaurants more like performances than meals.
“Theater is the biggest comparison,” he said. “The curtain rises at the same time every night…every night we put on this show, this performance.” At the flagship Carbone in New York City’s West Village, servers prepare Caesar salads tableside, while other locations serve flame-grilled desserts in front of diners.
Carbone explained that Major Food Group’s focus on experience rather than just food or beverage helps offset trends in lighter alcohol consumption in the industry. While fewer drinks often pressure restaurant margins, Carbone said customers compensate by spending more overall on memorable outings.
“Give me an experience, give me an intangible… I’ll be free with my cash,” he said.
The strategy seems to be working. Major Food Group has expanded rapidly, with new locations opening 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.
