M
Ms.Wetback
Guest
July 31 (Bloomberg) -- Dennis Turcinovic, managing partner of Delmonico's
steakhouse, said he knew things were looking up when a table of Wall
Streeters ordered a $4,000 bottle of Far Niente Cabernet Sauvignon last
month. It was the first he had sold since January.
"We're seeing the old times coming back," said Turcinovic. "People are
starting to spend a little money again." The restaurant, which used to sell
about 10 four-figure bottles a week before last September, has sold that
many since June, he said.
With investment banks reporting profits again -- and record earnings at
Goldman Sachs Group Inc. -- there are signs of recovery among the businesses
their executives patronize. Revenue at the restaurants, car services and
headhunting firms that cater to Wall Street slumped as much as 60 percent
after the collapse of Lehman Brothers Holdings Inc. in September. According
to the New York State Department of Labor, about 37,500 jobs in the
financial industry were lost between last August and May 2009.
Delmonico's, a 172-year-old Manhattan steak house which gets 60 percent of
its business from Wall Street firms, said revenue has increased about 5
percent since June.
Passenger traffic at US Helicopter, which carries executives between
Manhattan and John F. Kennedy International Airport and New Jersey's Newark
International Airport, has increased since May, according to Donal
McSullivan, chief marketing officer.
'It's Real'
The company, which had cut the number of trips it offered by 10 percent to
15 percent starting last September, has started adding flights to its
schedule to keep up with demand, said McSullivan. It now runs 44 trips a day
from two heliports along the East River, one downtown near Broad Street and
the other near East 34th Street. Price of a one-way 8-minute flight: $159.
"It's gradual, but it's real," McSullivan said in a telephone interview.
"We're seeing a trending in the direction that pleases us."
The New York State Comptroller's Office estimates that every
securities-industry job created tends to create three additional jobs, two
in the city and one in the suburbs, according to spokesman Robert Whalen.
"We're seeing some things that are positive and encouraging," Whalen said in
a telephone interview. "If you see the business owners and restaurants
telling you they are starting to see more business, maybe that's a sign of
confidence coming back."
'Slowly Trickling Back'
Headhunter John Warren, president of New York's A-List Associates Inc., said
his business has improved by about 30 percent in the last two months, based
on the number of job openings his customers are looking to fill. That's the
first improvement since March 2008. About 90 percent of his customers are
from the financial sector, Warren said.
"I see a lift," Warren said in a telephone interview. "The light at the end
of this tunnel is slowly trickling back, but it's slow."
Cipriani Wall Street, a catering and events company that gets about 15
percent of its business from banks, is seeing an increase in bookings for
holiday parties compared with last year, said Rachel Adler, a company
spokeswoman.
The dining room at SHO Shaun Hergatt, a seven-week-old Asian-French
restaurant on Broad Street in the financial district, has gotten busier over
the last two weeks and the eatery is taking reservations for private
catering and events later in the year, according to Shaun Hergatt, the chef
and owner.
Complimentary Cookies
Fresco on the Go, a restaurant and catering company with a location on Pearl
Street about a three-minute walk from Goldman's offices, this month had its
best two weeks since it opened last summer, according to Elaina Scotto, one
of the owners. Fresco on the Go's catering business has picked up, including
a recent dinner for 50 people at Goldman.
Goldman's record earnings in the second quarter came as revenue from trading
and stock underwriting reached all-time highs less than a year after the
firm took $10 billion in U.S. rescue funds.
"People are very cautious," Scotto said in a telephone interview. "Even if
they are ordering the catering, we will do it in a way that works in their
favor. We work with budgets, we'll do a complimentary cookie or dessert
tray."
Alex Chertakovsky, owner of Summit Express Car & Limousine Service Inc.,
said his New Providence, New Jersey-based business is down about 15 percent
compared with a year ago. While 40 percent of his revenue is from firms
including Goldman, Barclays Plc, Deutsche Bank AG and Citigroup Inc. -- that
used to be more like 60 percent -- he said he is getting an increase in
patronage from smaller financial companies.
"They're traveling, they're entertaining, they're going out," Chertakovsky
said in a telephone interview. "They're actually doing more business with us
than big firms. They've been doing very well."
steakhouse, said he knew things were looking up when a table of Wall
Streeters ordered a $4,000 bottle of Far Niente Cabernet Sauvignon last
month. It was the first he had sold since January.
"We're seeing the old times coming back," said Turcinovic. "People are
starting to spend a little money again." The restaurant, which used to sell
about 10 four-figure bottles a week before last September, has sold that
many since June, he said.
With investment banks reporting profits again -- and record earnings at
Goldman Sachs Group Inc. -- there are signs of recovery among the businesses
their executives patronize. Revenue at the restaurants, car services and
headhunting firms that cater to Wall Street slumped as much as 60 percent
after the collapse of Lehman Brothers Holdings Inc. in September. According
to the New York State Department of Labor, about 37,500 jobs in the
financial industry were lost between last August and May 2009.
Delmonico's, a 172-year-old Manhattan steak house which gets 60 percent of
its business from Wall Street firms, said revenue has increased about 5
percent since June.
Passenger traffic at US Helicopter, which carries executives between
Manhattan and John F. Kennedy International Airport and New Jersey's Newark
International Airport, has increased since May, according to Donal
McSullivan, chief marketing officer.
'It's Real'
The company, which had cut the number of trips it offered by 10 percent to
15 percent starting last September, has started adding flights to its
schedule to keep up with demand, said McSullivan. It now runs 44 trips a day
from two heliports along the East River, one downtown near Broad Street and
the other near East 34th Street. Price of a one-way 8-minute flight: $159.
"It's gradual, but it's real," McSullivan said in a telephone interview.
"We're seeing a trending in the direction that pleases us."
The New York State Comptroller's Office estimates that every
securities-industry job created tends to create three additional jobs, two
in the city and one in the suburbs, according to spokesman Robert Whalen.
"We're seeing some things that are positive and encouraging," Whalen said in
a telephone interview. "If you see the business owners and restaurants
telling you they are starting to see more business, maybe that's a sign of
confidence coming back."
'Slowly Trickling Back'
Headhunter John Warren, president of New York's A-List Associates Inc., said
his business has improved by about 30 percent in the last two months, based
on the number of job openings his customers are looking to fill. That's the
first improvement since March 2008. About 90 percent of his customers are
from the financial sector, Warren said.
"I see a lift," Warren said in a telephone interview. "The light at the end
of this tunnel is slowly trickling back, but it's slow."
Cipriani Wall Street, a catering and events company that gets about 15
percent of its business from banks, is seeing an increase in bookings for
holiday parties compared with last year, said Rachel Adler, a company
spokeswoman.
The dining room at SHO Shaun Hergatt, a seven-week-old Asian-French
restaurant on Broad Street in the financial district, has gotten busier over
the last two weeks and the eatery is taking reservations for private
catering and events later in the year, according to Shaun Hergatt, the chef
and owner.
Complimentary Cookies
Fresco on the Go, a restaurant and catering company with a location on Pearl
Street about a three-minute walk from Goldman's offices, this month had its
best two weeks since it opened last summer, according to Elaina Scotto, one
of the owners. Fresco on the Go's catering business has picked up, including
a recent dinner for 50 people at Goldman.
Goldman's record earnings in the second quarter came as revenue from trading
and stock underwriting reached all-time highs less than a year after the
firm took $10 billion in U.S. rescue funds.
"People are very cautious," Scotto said in a telephone interview. "Even if
they are ordering the catering, we will do it in a way that works in their
favor. We work with budgets, we'll do a complimentary cookie or dessert
tray."
Alex Chertakovsky, owner of Summit Express Car & Limousine Service Inc.,
said his New Providence, New Jersey-based business is down about 15 percent
compared with a year ago. While 40 percent of his revenue is from firms
including Goldman, Barclays Plc, Deutsche Bank AG and Citigroup Inc. -- that
used to be more like 60 percent -- he said he is getting an increase in
patronage from smaller financial companies.
"They're traveling, they're entertaining, they're going out," Chertakovsky
said in a telephone interview. "They're actually doing more business with us
than big firms. They've been doing very well."
