So we're not talking about the world cup or even world basketball games. Instead, the topic of the day is the business model and pricing for Chinese dim sum versus a Brazilian churrascurria.
I've grown up going to dim sum houses and have been to some around the world. About a month ago, I visited my first Brazilian churrascuria, located in San Francisco. My mom's comment about half way through the meal was that the churrascuria experience seemed quite similar to that of a dim sum restaurant. Servers walk around bringing you food, but the pricing and business model of the two seem to vary greatly.
How It Works
So let's start with a little background. Dim sum houses continue to evolve, but the original dim sum concept was to serve small dishes of dumplings, breads, and the like, in small bamboo or metal steaming vessels. These vessels are transported on a cart that contains some sort of heating element or hot water bath, helping the food to remain hot. The carts are then pushed around the dining area by staff members, and each table selects which dish they would like to eat. Originally, the concept was to count the number of vessels or plates that were at the table at the end of the meal to determine the total cost of the check. However, as with any system, there is always someone whom wants to cheat the system, and restaurants started finding dishes hidden under the table or being taken home. To address the problem, when each dish was selected and served, the staff would mark the bill with either a stamp or pen mark (nobody is going to mark their check excessively because it would mean additional charges for food). Each dish is categorized as small, medium, large, or special category with a single charge for each item as determined by category, and that's how you determine the total price of the meal.
At a churrascuria (at least at this one that I visited), you pay a fixed price per person. A buffet contains a variety of salads and side dishes where you help yourself. Multiple options of rotisserie meat (filet mignon, chicken hearts, parmesan pork, and more) still on their large skewer are then brought to the table by servers whom cut a slice of meat for you to take. An indicator on the table allows you to let the servers know whether or not they should continue to stop by the table.
Pricing
Dim sum options typically range anywhere from $1.25 to $8 depending on the category with larger sizes or more premium ingredients (e.g. shrimp and other seafood) commanding a higher cost. Specialty items like roasted suckling pig can run as high as $15. An average meal for two, without significant specialty items, usually runs about $30, sometimes more or less depending on the ambiance of the restaurant. Tea is charged per person and ranges anywhere from free to $2 a head.
At the churrascuria I visited, the cost was $50 for dinner per person for endless trips to the buffet and for meat. Beverages and dessert were extra.
Business Model
Dim sum servers loudly say the name of the dish as they wander around. It helps you to know what is being served. These days, dim sum often comes on trays, with a smaller quantity of vessels per tray, to allow for more tables to be placed together, thereby eliminating the need to push a cart and keep large quantities of food warm. With the tray, servers are also able to come closer to your table and share the name of the food as well as uncover the lid to show you each item in a quieter voice. Another version of dim sum service offers a menu for you to choose from and indicate the quantity of individual dishes you would like to order.
At the churrascuria, men dressed in black costume/uniforms complete with special boots and belt sashes come to each table with knives and skewers, state the name of the food being served, and cut the meat right in front of you.
Analysis
It's clear that churrascurias could convert to the dim sum model, but that would really not help them with their revenue. Right now, headcount represents $50 per person, and for those whom don't eat a lot of meat, the churrascuria makes a killing on profit. Many people can't eat even a few pounds of meat, and the buffet items are relatively low cost compared to the filet mignon.
However, could the dim sum restaurants change their business model into that of a churrascuria? It's too bad that the culture is so imbedded in finding a good value. Even if you served the highest quality of dim sum, I'm not sure you could get people to pay $20 per person for all you can eat dim sum. Perhaps it could work as a buffet, but the culture also demands freshness - that's part of the appeal of dim sum. While it's much more labor intensive to cook multiple dumplings both steamed, fried, and pan fried versus roasting meat, charging a premium for dim sum through a per person charge would be a challenge.
Conclusion
Alas, kudos to the Brazilians for finding a way to create a dim sum like experience and gain so much profit. Dim sum houses will probably continue to remain similar in their styles with better service and better quality ingredients being the primary source of charging higher prices. In the end, I know that dim sum will stay a regular part of my dining options, while a churrascuria will continue to be a rarity.
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