the left bank brasseries-the evolution of a french-inspired restaurant

The Left Bank Brasseries 1

MBA 5280 Capstone Project By

John A. Sansone

Submitted as partial fulfillment of the requirements for the degree of Master of Business Administration – (Global Management)

in the Barowsky School of Business Dominican University of California

San Rafael, California

Spring 2015

IRBPHP Application #10362

The Left Bank Brasseries: The Evolution of a French-‐Inspired Restaurant


Table of Contents

Executive Summary………………………………………………………………………………....................................5 Introduction…………………………………………………………………………………………………………………...5 Methodology…………………………………………………………………………………………………………………..6 The Fine Dining Segment of the Restaurant Industry………..………………………………………………6 Owners’ Profiles………………………………………...……………………………………...........................................8 Growth of The Left Bank Brasseries………………..……………………………………………………………..10 Concept: “Fun and French Everyday”.…………………………………………………………………………….12 External & Internal Environment Analysis………………………………………….…..................................13 Organizational Foundation: Blending Concepts and Operations……………...………………………17 The Strategy: Serving Marin County for Over 20 years……………………..…………………………….18 Strategies to Create Customer Loyalty, Satisfaction, and Retention…………………………………21 Restaurant Cost Structure: Occupancy, Labor, Food, and Supply………………….………………….23

Analysis of Customer Survey Results……………………………………………………………………………..25 Elements of Restaurant Success & Failure……………………………………………………………………...27 Limitations of Study……………………………………………………………….……………………………………..29

References……………………………….....................................................................................................................30 Appendix 1: Exhibits….....………………………………………………………………………………………...…….33 Appendix 2: Institutional Review Board Application…………………………………...………………….56


List of Exhibits Exhibit 1: Vine Dining Organizational Chart………......……………………………………………………….33 Exhibit 2: Vine Dining Individual Restaurant Organizational Chart………………………………….34 Exhibit 3: Average Weekly Guests 2012-‐2014……...………………………………………………………...35 Exhibit 4: Average Weekly Sales 2012-‐2014………………………..…………………………………………36 Exhibit 5: Customer Survey………………………………………………...…………………………………………37 Exhibit 6: Customer Satisfaction Ratings: Food Quality………….........................................................38 Exhibit 7: Customer Satisfaction Ratings: Restaurant Cleanliness………………….………………..39 Exhibit 8: Customer Satisfaction Ratings: Menu Offering/Pricing…………………………..………..40 Exhibit 9: Customer Satisfaction Ratings: Promptness of Service…………………..........................41 Exhibit 10: Customer Satisfaction Ratings: Professionalism/Friendliness of Staff…….……...42 Exhibit 11: Customer Satisfaction Ratings: Server’s Knowledge of Menu…………………………43 Exhibit 12: Customer Satisfaction Ratings: Décor/Ambience……………………………………….….44 Exhibit 13: Customer Satisfaction Ratings: Restaurant Location……………………………………..45 Exhibit 14: Customer Satisfaction Ratings: Overall Experience…………………………..…………...46 Exhibit 15: Left Bank Larkspur’s Core Competencies…………………………………………………...…47 Exhibit 16: Survey Participants’ Age………………………….........................................................................48 Exhibit 17: Survey Participants’ Gender…………………………………………..……………………...……..49 Exhibit 18: Survey Participants’ Customer Type: Repeat or New…………………………................50 Exhibit 19: Left Bank Brasseries: Larkspur, Food & Beverage Purchases, 2014………………..51 Exhibit 20: Left Bank Brasseries: Larkspur, Top-‐Selling Items, 2014…………………………….....52 Exhibit 21: Impact of Various Factors on Restaurant Viability……………...…………......................53 Exhibit 22: Impact of Restaurant Image and Quality on Customer Retention & Attraction..54 Exhibit 23: Restaurant Viability Proposed Model…………………………………………………………...55


Acknowledgments I wish to express my utmost appreciation to everyone involved with the Left Bank Brasseries from the top management to hourly employees. This Capstone would not be accomplished without all of your support, patience, and understanding. I want to thank my faculty advisor, Dr. Rajeev Sooreea for his professional knowledge of research methodology. I want to thank Chef Fabrice Marcon and Jennifer Courtney for all their teachings, guidance, and encouragements. Special thanks to Mario Vega and Chef Joel Guillon for taking time out of their busy schedules to come down to Larkspur to be interview participants. I want to thank my family because without their love I would not be the individual I am today. I am grateful for my mom and dad because they are my inspiration. To my sister who motivates me to be the better than best and keeps my competitive fire burning strong. My biggest and most genuine thank you to Mr. Ed Levine. You are a role model, mentor, and friend. Throughout all of the many things you manage and lead you still found time to talk and meet with me about my project. Also, thank you for welcoming me into the P&L meetings with the management team. Today, I hope that you are able to enjoy this new chapter and journey that you are embarking on. Cancer has impacted so many families just like yours and mine. Nothing happens by chance, everything happens for a reason. Just like it did for my father I know cancer will allow you to see life through a more appreciative, grateful, and positive perspective. Lastly, I want to thank my college roommate, best friend, and brother, Austin Franks. Words cannot even come close to help me describe how much you mean to me. You had such a positive influence and impact on my life. You helped me evolve and progress as an individual. You taught me to look beyond the surface, to not judge others because we do not know what battles they may be fighting. I will do my best to carry on without you. I will do all I can to embody and share your passion, creativity, and unwavering kindness.


The Left Bank Brasseries: The Evolution of a French-‐Inspired Restaurant

Executive Summary

Due to the high failure rates of restaurants in the United States, many studies have come up with various reasons to explain the underlying causes of such a phenomenon. One key study by Parsa (2005) suggests, “Restaurant failures have been attributed to economic and social factors […]” and “Restaurant failures can be studied from economic, marketing, and managerial perspectives.” In particular, lack of capital is a major contributing factor for restaurants failure and researchers agree that a restaurant without a sufficient amount of capital will not survive because of three major expenses: overhead, labor, and food cost. Today’s service industry is indeed categorized by financial distress and this is very visible among owners and operators everyday. However, accurate and consistent internal management decisions may allow a restaurant to maintain financial stability. Managing and developing strong customer relationships overtime can help create a loyal following and that can translate into healthy and sustainable growth for the business. What roles do internal management practices and external market factors play in achieving sustainable success in the fine-‐dining restaurant industry? This research study will attempt to unveil how the Left Bank Brasseries, a well-‐respected restaurant in Marin County, Northern California, have sustained its success for over twenty years. Using primary data collected from the management team in the form of interviews, this paper will identify the core competencies of the company and how it has navigated this highly competitive landscape over the years. Particular attention will be paid to its financial performance, management practices, and levels of customer satisfaction and how these are related to the restaurant’s brand, which is modeled around French cuisine but is managed through an American perspective. Introduction In 1992, Edward Levine’s entrepreneurial spirit led to the acquisition of a leasehold interest in the Blue Rock Inn, located in Larkspur, California. This was the second step after the idea for the Left Bank Brasseries, otherwise known simply as “the Left Bank” an authentic Parisian-‐style brasserie, was developed. The restaurant embodies aesthetic appeal, atmospheric elegance and culinary brilliance of the famed French district south of the Seine River that lends the restaurant its name. Co-‐owned by renowned master chef Roland Passot, the Left Bank is one of the many fine restaurants to be found in San Francisco’s North Bay. The Left Bank is an ideal spot for everyone and patrons can enjoy anything from a casual snack on the street-‐side terrace, to a glass of fine wine or a cocktail at the lively bar, to an elegant sit-‐down dining experience. The restaurant hosts a simple, seasonally changing French brasserie menu with a diverse selection of meats, fresh vegetables, seafood, hearty salads and exceptional desserts. "We create food that is appealing to families, and this is a place where people can pop in whenever they like and come back often," says the Lyonnais Chef Passot. The restaurant features a full bar with a wonderful selection of after dinner drinks and an impressive list of premium and affordable French and California wines. The restaurant is located inside the Blue Rock Inn, which was the first hotel built in Marin County, Northern California. The building was


originally constructed in 1895 and achieved distinction as a popular resort for San Francisco residents. The building was remodeled and renamed the Blue Rock Inn in 1910. The Left Bank's inviting ambience, blended with Passot's unparalleled cuisine and Levine’s savvy detailed oriented management style, together has resulted in a refreshingly unique and utterly pleasurable dining experience. Today, in the year 2015, the Left Bank Brasseries has grown into a successful multi-‐unit family collection of restaurants across California’s Bay Area (See Exhibit 1). The Left Bank brand is located in Menlo Park, San Jose, and its original location of Larkspur. Each restaurant location boasts its own unique individual qualities, however they all share the same concept; “Fun and French Everyday.” The month of July 2014 marked the twenty-‐year anniversary of the Left Bank’s grand opening in Larkspur, California. Since the birth of the original the Left Bank Brasserie in Larkspur, owners Levine and Passot developed and have introduced a standardized organizational structure for each Left Bank location to adopt and practice (See Exhibit 2). Thus, the company has enjoyed a profitable, sustainable, and financially stable history as a restaurant in the fine dining segment of the restaurant industry. The rise of the Left Bank Brasseries brand can be attributed to the timely well thought out executive decisions by majority owner Levine. As the economic and industry landscape continuously changes, Levine has consistently delivered and overcome the external factors, which force so many restaurants to close their doors. Perhaps, the company’s greatest competitive advantages include the consistent internal best management practices and the first-‐rate financial support the restaurant receives from Vine Solutions, Inc., an accounting firm that assists over 150 restaurants across the United States with management consulting, where Levine is the founder and CEO. Methodology The objective of this study was to determine the core competencies of the Left Bank Brasseries, a well-‐respected restaurant in Marin County, Northern California, which has sustained its success for over twenty years. Using primary data, this study examines the restaurant’s best management practices and customer satisfaction levels to determine the fundamental proficiencies of the company. The research conducted takes an in-‐depth look into the company’s evolution as a French-‐inspired restaurant, which has modernized and adapted to the changing tastes of Marin County, while staying seasonally authentic and organic, not trendy. For the analysis of the Left Bank Brasseries, this study uses primary data collected from the management team in the form of interviews and from a self-‐administrated survey (See Exhibit 5), which was distributed to 130 participants who dined at the Left Bank in Larkspur, California. After the data was collected and evaluated it was used to determine the role of internal management practices and external market factors, which have allowed the company to be successful from 1994 to present. The Fine Dining Segment of the Restaurant Industry The 2011 Restaurant, Food & Beverage Market Research Handbook states, “Fine dining restaurants are full-‐service restaurants with an upscale menu and extensive beverage offerings. The restaurants generally have a more sophisticated décor and ambience, the


wait staff is usually highly trained and often wears more formal attire, and there is often a dress code for patrons” (Washington and Tiapa, 2011, p. 102). Opening a restaurant inside any segment of the restaurant industry requires capital and expertise, however being a start-‐up in the fine dining segment is perhaps the most challenging. This segment of the industry requires careful attention to detail to execute top service and quality, while striving to create an overall exceptional dining experience for guests. Restaurants operating in the fine dining segment must posses a set of core values, which differentiates their concept from its competitors. A successful fine dining restaurant upholds modesty, integrity, respect, responsibility, consistency, initiative, trust, collaboration, impact, and success. A restaurant that understands the importance of working together everyday to achieve greatness, while maintaining humility will be successful. Integrity is a quality every business should pride themselves on, in the fine dining segment this requires chefs, managers, and owners to use their best judgment to work hard in silence, selflessly, honestly and caringly. A restaurant’s success in this segment deals with earning respect from its peers, supervisors, industry and most importantly their customers. If a fine dining restaurant can recognize and embrace the responsibility it has to uphold and deliver consistency it will successfully maintain a high set of standards for quality moment to moment, day to day and year after year. Never settling and always keeping an open mind, allows fine dining restaurants to recognize innovation and realize inspiration, which will result in continuous evolution and growth for the better. In order to be successful not only in the fine dining segment, restaurants must have the courage to take initiative and the conviction to follow through on the risks they take. Restaurants must be explorers always searching for new ideas and means of improvement. A restaurant staff that has trust and confidence in one another is one that will be successful long-‐term because there is a sense of collaboration and a desire to work together to achieve goals that are greater than those each individual can achieve alone (West and Olsen, 1990). A fine dining concept that has the opportunity to make a positive difference in the experience of its customers will translate into the creation of fond memories. Fine dining restaurants will remain popular as long as they continue to offer individuality, food quality and more casual setting” (Washington and Tiapa, 2011, p. 102). Due to this growing trend there has been the emergence of two different concepts within one establishment: casual bar area with small-‐plate offerings and formal dining space for a complete experience. Furthermore, a restaurant within the fine dining segment must be on top of the most current trends and have the ability to adapt to the waves of change. Fine dining restaurants that understand how to deal with economical factors, changes in customer preferences, and strong competition illustrates their viability and overall success. Owners, managers, and chefs must be confident and able to utilize their respective restaurant’s competitive capabilities in order to uphold the traditions, culture, vision, and mission of the restaurant, while increasing sales and retaining profits. The 2011 Restaurant, Food & Beverage Market Research Handbook highlighted the most important factors that customers expect from an upscale dining establishment: food quality, service, and VIP treatment. Furthermore, décor/ambience, presentation, food and beverage selection, and quality service are major drivers, which differentiate the fine dining segment. As human beings we judge things first based off of esthetics with our eyes and then look to seek out factual evidence. For this reason, fine dining restaurants place a big emphasis on


creating a décor/ambience that is tastefully and meticulously well thought out, which coincides with the restaurant’s theme and concept. Typically this will involve lightening that is used to soften the mood, music that does not overpower the guests' conversations, and a décor, which provides a unique perspective where the guests feel warm and indulged. Food that is visually stimulating is an important part of fine dining, combining food and art together. A fine dining restaurant places an increased emphasis and focus on creating excellent food, which displays superb visual presentation. This segment hosts exclusive menus that boast superior quality produce, meat, fish, and grains. Inside a fine dining restaurant there is a chef who is highly qualified with years of industry experience and is sought out for his or her special culinary skills. These chefs are highly acclaimed for engineering menus that are concise and interesting, offering unique items that patrons will not find at any other restaurant. Due to the high quality of ingredients, level of precision, expertise, and creativity used in each dish fine dining restaurants will demand a higher premium. Many fine dining restaurants offer prix fixe menus or limited menus that change seasonally and are custom made per celebration/holiday. Along with a having a skilled chef with years of industry experience managing the kitchen, the dining room will must obtain a beverage expert such as a sommelier. These individuals will offer their special expertise to help customers navigate the restaurant’s extensive and select wine and beverage collection including top shelf liquors, cognacs, brandies, whiskeys, and other after-‐dinner drinks. Perhaps, the most important element which completes a customer’s fine dining experience is top-‐notch service, which makes every guest feel VIP. Fine dining service goes far beyond taking an order and delivering food. Instead, it involves escorting patrons to the table, holding the chair for women and elders, accompanying patrons to the restrooms, crumbing the table in between courses, and explaining menu items without notes (Ahuvia and Goodwin, 1994). Serving a guest at fine dining restaurants includes managing and monitoring the pacing of their meal. The goal is to have the customer’s meal be leisure, yet timely and consistent. To obtain a position as a member of a fine dining wait staff servers are required to pass strict training and examinations. These examinations stress the importance of servers’ within a fine dining restaurant. The impact servers can have on customer satisfaction inside a restaurant is noteworthy. For example a waiter or waitresses’ nonverbal behavior is associated with a positive evaluation from the customers as well as positive customer behavior (Jacob, Guéguen, and Boulbry, 2014). It is key for the wait staff of a fine dining restaurant to understand that customer satisfaction is directly correlated to the attention to minor details from the serving staff. The cost of asking customers a few questions about the quality of food and service can lead to higher check totals and more generous tipping (Jacob, Guéguen, and Boulbry, 2014). As a server inside a fine dining restaurant it is essential to be ready to make recommendations and answer any and all questions customers may have about a menu or beverage item. Owners’ Profiles Edward Levine conceived the idea and initiated the Left Bank Brasseries project in 1992, and with his partner Roland Passot, they created the Left Bank, which opened in July 1994. Levine is responsible for ensuring that Left Bank provides guests with excellent country-‐


style French cuisine and impeccable service. In addition, Levine ensures that the business is well controlled and profitable. Levine is the Chief Executive Officer of Vine Dining Enterprises, Inc. (Vine Dining Enterprises is a restaurant management group that founded, owns, and operates three Left Bank Brasseries and two LB Steak restaurants). Levine is also the president and primary shareholder of Vine Solutions, Inc., a management consulting practice that provides services to the Left Bank Brasseries as well as the entire U.S. restaurant industry. Levine served as interim CEO for Gordon Biersch Brewing Company between 1993 and 1995, growing that company from $8 million to $20 million in annual sales. Previously, for four years he was chief financial officer of Il Fornaio (America) Corporation, a multiple unit Italian restaurant and Bakery Company. In addition to managing all financial and administrative functions, he reorganized and directed the production of the bakery division. Prior to Il Fornaio, Levine was the planning director of Collins Foods International a $700 million, publicly traded; Los Angeles-‐based multiple concepts and multiple unit restaurant and food service company. Levine earned his MBA from the Stanford Business School and an undergraduate business degree from the University of British Columbia. Prior to attending college, he apprenticed formally in food service at a preeminent Canadian resort hotel. Concurrent with his attendance at the University, he worked as a French service waiter and captain for five years at a French restaurant in Vancouver called La Cote d'Azur. As Executive Chef and co-‐proprietor of the Left Bank Brasseries, Roland Passot is responsible for overseeing the culinary operations. Internationally acclaimed for his exceptional French cooking, Chef Passot has designed a simple, seasonally changing French brasserie-‐style menu. Passot has had an extensive and highly regarded culinary career. A native of Lyon, France, Roland commenced his restaurant career as an apprentice of Pierre Orsi at Leon de Lyon. At the age of twenty, Jean Banchet, owner-‐chef of Le Français in Wheeling, Illinois, recruited him. During this period, Le Français was regarded as the finest French restaurant in North America. In 1980, Passot relocated to San Francisco as the opening chef of Le Castel. Later he was recruited to open the French Room of the Adolphus Hotel in Dallas. In 1988, Passot returned to San Francisco and opened La Folie with his brother George and his wife Jamie. Since that time, La Folie has achieved tremendous critical acclaim. Zagat Restaurant Survey, Gault Millau and San Francisco Focus have rated La Folie as one of the three best restaurants in San Francisco. Gourmet Magazine awarded La Folie "Best Food in San Francisco" in 1996. In 1990, Passot was awarded the coveted James Beard Rising Star Chef award. As a result of Passot’s culinary prowess and his contributions to French cuisine, he was inducted as a Maitre Cuisiner of France in 1991. This is the most envied title that chefs aspire to have because their job is to preserve and spread the French culinary arts, encourage training in cuisine, and assist professional development. In 1998, La Folie was inducted into the Nation's Restaurant News Fine Dining Hall of Fame. Passot is well respected in the industry for his passion and culinary expertise. He is one of the most popular instructors at nationally acclaimed state-‐of-‐the-‐art Draeger's Culinary Center in both Menlo Park and San Mateo, California. Passot frequently donates his efforts and energies to numerous charities and is a regular participant in Meals on Wheels and The James Beard Foundation. As the New York Times says, "Left Bank represents Roland's longtime passion for a simple, friendly place where people can drop in and have just oysters and a glass of wine, or a full meal."


Growth of The Left Bank Brasseries The Left Bank is known for a simple, seasonally changing French brasserie-‐style menu featuring a diverse selection of fresh vegetables, fish, seafood, meats, hearty salads and exceptional desserts. Throughout the year, the brasseries’ boasts signature dishes, that are offered daily featuring specials inspired by the chefs' weekly expeditions to the local farmer's markets. In July 1994, the partnership of Edward Levine and Roland Passot opened the first Left Bank in Larkspur, California to much anticipation. Four years later in 1998, the second Left Bank opened in Menlo Park, and most recently in San Jose on Santana Row opened in 2003. The Left Bank Brasseries are positioned in the upscale segment of the restaurant industry, which competes on food quality, price, customer service, brand reputation, and location. The company has been able to achieve profitable growth for over twenty years because they have competed and excelled as being a best-‐cost provider of customers’ perceived values and expectations for a fine dining restaurant. The company has stayed true to their Parisian style brasserie roots and has managed to keep costs low, while delivering elevated, high quality, classic French dishes with a California twist at an affordable price. From the start at the original location in Larkspur, Passot and Levine wanted to create a restaurant that was fine dining, however without a fine dining or high price point. The restaurant gained popularity quickly in 1994 because it was a family-‐owned restaurant that was easily accessible and where all patrons alike were valued. The restaurant’s ability to be accessible to everyone was correlated with Passot’s idea of serving food that has no secrets. Instead, using Passot’s refined classic French techniques, creativity, innovation, quality, and execution made the restaurant unique and appealing to a wide audience. Despite all the constant changes in customer tastes and preferences, many of the original menu items from 1994 that Passot created are still appealing to patrons at the Left Bank in Larkspur today. (See Exhibit 20, which illustrates the top-‐selling items in 2014 at the Left Bank in Larkspur). This balance of attributes, which made the Left Bank in Larkspur popular, gave birth to the idea of expanding and opening more locations under the Left Bank Brasseries original concept. Thus, in an effort to grow revenue the company began opening new units. This meant that there was going to be a continued focus on sales and profitability through marketing, monitoring of financial statements, and quality and cost control. This focus, which has made the Left Bank in Larkspur so successful is still a cornerstone of the business with a steady stream of profitable sales numbers each month, for example in the past three years (See Exhibit 4). Due to Levine’s expertise in best management practices and financial support from his accounting firm Vine Solutions, Inc., the Left Bank Brasseries has been able to successfully expand into a multi-‐unit, family collection of restaurants. On the other side of the business Passot has been able to drive quality and consistency in the form of the highest quality ingredients in partnership with local farmers. Beyond food and management practices restaurants are always trying to improve customer service, which is critical for the overall experience of fine dining and is a differentiating point in this segment of the restaurant industry. Again, due to the wide range of experience that Levine has gained throughout the years, his relentless attention to detail and


commitment to the highest form of service excellence has given the Left Bank Brasseries a great platform to grow from. Another key driving force of the upscale segment is marketing of the product as well as the way of differentiating the product from other competitors. The Left Bank has prospered through creating long lasting relationships with all of their customers, which intern has led to positive word of mouth marketing (Peppers and Rogers, 2004). Passot’s commitment to serving only the best products to the Left Bank Brasseries’ customers requires a detailed ability to control stock on hand and utilize cost control methods, which can help improve profits. The Left Bank Brasseries compete not just on price but also differentiation such as upholding continuous quality improvement through streamlined preparation and presentation, creating and adding new services like private dining events, and increasing the intensity of marketing and sales activities through websites and social media. The Left Bank Brasseries is a restaurant with a strong brand name and rich traditions, dedicated management team and competitive capabilities. The company’s single concept around the Left Bank is focused and perfected, which has resulted in faster growth than trying to realize multiple new concepts that are unproven. For this reason co-‐owners Levine and Passot realized that if their original concept behind the Left Bank has worked thus far, they should stick with it. The Left Bank Brasseries have current value and future value. The existing units have a current value and the future value would be the current unit's cash flow plus that of the planned unit. In short, by creating a concept that can be applied to multiple units has enabled Levine and Passot to receive value not only for the existing units but also for the ones that can be created in the future. The company’s mission since 1994 has been “Fun and French Every Day.” To execute this mission the company has acquired a staff of caring individuals that believe in delivering the core values of the company: “Drive Quality, Have Fun, Make it Happen.” In doing so employees must fulfill the expectations of the company through training, respect, communication, care and concern for each other as well as the customers of the Left Bank. A contributor to the sustained success of the company and a factor, which has helped the Left Bank expand into a multi-‐unit family collection of restaurants, is the acquisition of talented individuals. These individuals have been able to bring their knowledge, skills, ideas, and willingness to learn, to share and to work together. Their attention to detail, commitment to quality and ability to work together is what makes the Left Bank a great fine dining experience: excellent food, great service, and entertainment. The Left Bank has been named throughout many listings as one of the best restaurants in the Bay Area and Marin County. Due to its operational and financial performance it is one of the leading restaurants in the upscale segment of the restaurant industry in the Bay Area. Despite being strong financially the Left Bank Brasseries were affected by the economic downturn in 2008 and 2009. The skill and knowledge of the management team was demonstrated through adequate reaction and action by developing pre fixe menus, focusing on the sustainability of the business and attracting new customer demographics. Since the economic recession there has been resurgence in customer spending habits and a renewed interest in the upscale segment by younger crowds and business people. Operating a successful restaurant requires a lot of attention to detail, effort and knowledge to maintain a leading position especially in the upscale segment of the industry (West and Olsen, 1990). The Left Bank Brasseries in Larkspur, California is a great example of consistency and success. Despite all the power


and position the restaurant has in the market there is still big room for improvement for the company to expand and be mentioned alongside other long-‐time successful restaurants in the Bay Area. Concept: “Fun and French Everyday” A truly unique selling point is not having great food or service; instead it's an emotion a restaurant can offer to people, whether it is nostalgia or accommodation. Restaurant concept success comes from great internal and external factor clusters, “internal (menu, financial support and staff) and external (location, market segment, competitor and economic status)” (Jalis, Abu Kassim, and Mohamad, 2012). These factors are believed to be an essential guide for any business operator in planning and developing their restaurant. Restaurants require a specific direction and identity because without one staff and customers will have difficulties relating. There are two challenges that every hopeful restaurateur must tackle and that is choosing a strategic location to expand their businesses and the right concept/idea for the restaurant. “The Left Bank’s idea is for customers to feel as if they are in Paris, France,” says Levine. People remember emotions long after they remember a food and service. If a restaurant can make a real emotional connection with their customers, they will remember the feelings they felt for years to come, long after they forget what they ate and who waited on them. Food and service can only support a unique selling point. Thus, the Left Bank’s concept of being “Fun and French Everyday,” coincides with the company’s values to be an affordable and high quality fine dining restaurant experience. The concept of a restaurant can be extremely important in acquiring customers and earning revenue. The concept and market are the major factors in the restaurant, however the menu, price, atmosphere, management, location, food, service and quality are also to be considered carefully. The Left Bank Brasseries are fun because the company provides entertainment through various mediums. “The Left Bank is fun because they offer happy hour with cocktails, monthly wine flights, lunch favorites such as the Salade Nicoise, weekend brunch with a Croque Madame, private dining events, dessert classics such as Profiteroles or Tart Tatin, and French cheese plates to share,” says Mario Vega, Chief Operating Officer. Why is the Left Bank French? The chefs handle and prepare their ingredients with classic French techniques. The concept to be a French restaurant was just an inspiration for Levine and Passot in 1992, however being French is apart of everyday life at the Left Bank. Chef de Cuisine, Fabrice Marcon states, “chefs at the Left Bank are continuously being trained and taught how to be/use artisanal, seasonal, natural, sustainable, and organic products to create dishes that are high quality at a great value.” The restaurant which has done a great job over the years as differentiating itself from other French spots in part because its motto to stay fun and to never take themselves to serious. Thus, the restaurant’s logo is a pig. First, signs with pigs are frequently seen throughout France signifying Charcuterie. Second, pigs are considered a French symbol of good luck and plenty. Finally, pigs are considered whimsical, implying that the Left Bank maintain their sense of humor as a fine dining restaurant. The pig successfully conveys the mood the Left Bank wants to create: “Fun and French Everyday.”


When Levine along with the help of Passot conceived the concept the two men wanted to change the stigma of what the word “French” meant to so many people back in 1992. At the time French cuisine was considered expensive, overrated, and pretentious. In the early 1990s, Marin County did not have a French restaurant, which had a passion for quality ingredients and gracious service. Levine’s intuition and business savvy mind were able to see this as an opportunity to satisfy an unmet need. Specifically, he looked at Larkspur, California where the restaurant’s current location is in fact on the Left Bank of the canal sailed by early settlers and visitors to Fort Ross and Larkspur. Levine states, “the concept for the Left Bank was to be accessible and affordable to everyone.” Owners Levine and Passot, wanted customers to feel as if the Left Bank was perfect for any type of occasion big or small. Customers should feel comfortable stopping by alone for a quick bite during their busy workday or come ready to have a long enjoyable dinner that one might experience in France. Despite getting much of its inspiration and being modeled after Parisian style brasseries, the Left Bank’s culinary visionary Roland Passot is from Lyon, the gastronomy capital of France. Thus, many of the dishes featured on the Left Bank’s menu have Lyonnais influences. In the end, both Levine and Passot wanted customers to have more than a great meal but an emotional experience. They tried to make it an extraordinary one by establishing a beautiful place, one filled with a staff that cares about it as they do about their own home, where we can care for you as the most important guest in it. “Passot’s vision has led him to seek out chefs that are meticulous about culinary details and fundamental techniques all in a kitchen that delivers the very best organic, fresh, and sustainable products to the table,” explains Culinary Director, Guillon. A relentless attention to detail must be used and no element can be less important or more important than another. The biggest major determinants of long-‐term consumer behavior are consumption emotion and satisfaction (Han, Back, and Barrett, 2009). The concept for the Left Bank meant customers could have a great meal that is a journey, which returns them to sources of pleasure they may have forgotten and takes them to places they have not been before. A proper restaurant concept has an internal and external feature. “The first one is internal feature: menu, financial support and staff are fall into this category. Second, external feature: including location, market segment, competitor and economic status need to be taken into consideration in choosing the concept of the restaurant” (Jalis, Abu Kassim, and Mohamad, 2012). Levine and Passot, both seasoned with food service industry, realized in 1992 that the work only begins after the right concept is chosen with the proper method of execution, delivering excellent service and production quality, and maintaining high levels of customer satisfaction. External & Internal Environment Analysis Quality and environment management practices are two of the key drivers for achieving market success and financial performance in service industries (Llach et al, 2013). Restaurant failures have been attributed to economic and social factors, to competition, legal restrictions, and even to government intervention. (See Exhibit 21 for a complete list of the various factors, which can affect the viability of a restaurant). Analyzing a restaurant failure can be done through examining their economic and managerial perspectives. An economic perspective means restaurant failures are due to economic reasons such as decreased profits from diminished revenues, poor controls, and voluntary/involuntary


bankruptcies, involving foreclosures, takeover by creditors, receiverships, or frozen assets for nonpayment of receipts. One of the Left Bank’s core competencies is the strong financial support they receive from Vine Solutions, Inc., which can be seen as a competitive advantage for the company. Due to the financial consulting expertise that Levine and his associates at Vine Solutions, Inc. possess the Left Bank Brasseries have been under professional supervision monitoring the company’s economical status. Due to the resources given to the company, the Left Bank is blessed with financial knowledge that not all restaurants have access to. This helps eliminate one of the biggest contributing factors to restaurant failure: lack of knowledge about company financial statements. While, a managerial perspective consists of restaurant failures that are the result of managerial limitations and incompetence. Examples of this include loss of motivation by owners; management or owner burnout as a result of stress arising from operational problems; issues and concerns of human resources; changes in the personal life of the manager or owner; changes in the stages of the manager’s or owner’s personal life cycle; and legal, technological, and environmental changes that demand operational modifications (Lee, Koh, and Kong, 2011). The rigorous education and training the Left Bank’s managers go through is an ingredient to their recipe for success. Managers are encouraged to be apart of the team for a minimum of two years in order for them to maximize their experience with the company. Levine and Passot encourage managers to take pride in the restaurant, the company culture, and “Fun and French Everyday.” During training for each individual, the restaurant hopes candidates take on an entrepreneurial sense of ownership. Ideally managers are striving to be creative engineers who use their talents to best position each Left Bank in their respective local market. One reason for early failure in restaurants is that new businesses typically have limited resources that would allow them to be flexible or adapt to changing conditions. Perhaps, one reason the Left Bank has been so successful is because both Levine and Passot had established their professional careers before they launched the restaurant in 1994. This was important because it gave both individuals a chance to gain capital and credibility in the food and service industry. This helped the Left Bank attract a distinguished board of investors and devote a portion of their large personal incomes. The longer a company is in business, the less likely it is to fail. Thus, from 1994 through 1998, the Left Bank in Larkspur was able to surpass the vulnerability stage of a new restaurant opening. Furthermore, in August 1998, the Left Bank in Menlo Park, California opened, followed by in San Jose on Santana Row in March of 2003. Management capabilities are of primary concern in preventing restaurant failure. Managerial inadequacy, incompetence, inefficiency, and inexperience can be considered to be a consistent theme in restaurant failures. A manager’s inability to manage rapid growth and change can lead to business failure. The root cause of many business problems and failures lie in the executives’ own personality traits. Poor management can be connected to poor financial conditions, inadequate accounting records, limited access to necessary information, and lack of good managerial advice. Other internal factors affecting failure rates of restaurants include poor product, internal relationships, financial volatility, organizational culture, internal and external marketing, and the physical structure and organization of the business. A manager has the job of monitoring all controls and


functions as if he or she were the owner of the restaurant. In fact, certain executives lack instincts and intuition sometimes to qualify overutilization or underutilization of new technology, poor judgment in risk taking, overextending resources and capabilities, being overly optimistic, ignoring or underestimating competition, being preoccupied with the short-‐term, believing in quick fixes, relying on barriers to entry, and overreacting to problems. Perhaps, the most important criteria for a restaurant to achieve success are through a strong management team. The Left Bank believes that managers have a role in directing marketing efforts, overseeing product quality and standardization, and determining when the time is for the restaurant to adapt to the newest customer trends and preferences. Being a restaurant manager is not for anybody because of the frenetic pace and constant pressure. The job can be overwhelming for many people. For this reason a fine dining restaurant such as the Left Bank takes great pride in searching for effective restaurant managers that can balance the needs of staff, customers and the business while dealing with the unforeseen problems that pop-‐up on a daily basis. The management practices which the Left Bank managers follow and act upon includes: proactive planning, consistency, communication, timing, multi-‐tasking, and customer service. Effective restaurant management requires managers to be proactive and plan according to every single shift at the beginning of each day. For example being apart of a fine dining restaurant means dealing with high quality products, therefore managers must keep a watchful eye on inventory. The Left Bank stresses to managers that they take a detailed inventory of every product before their day begins. In order to stay consistent and organized the Left Bank insists managers to take inventory at night so that they are ready to place orders and collect invoices in the morning. This includes food, take-‐out containers, cleaning supplies, and anything else that are essential to daily operations. People managers at the Left Bank are responsible with scheduling, these individuals post schedules well in advance for employees to receive notice, which enables them to be prepared for the week and get shifts covered if necessary. Lastly, a manager’s productive planning skills at the Left Bank include doing walk-‐throughs of the front and back of the house and taking note of any special tasks that can be completed during slow hours. This can include cleaning out the cleaning stocking areas, organizing the wait staff common workstations, or clearing exterior landscaping of cigarette butts and trash. Consistency is an important attribute to obtain, as any associate must have working in a restaurant, however it is incredibly important when talking about a manager. At the Left Bank, managers are involved with every aspect of the restaurant. The company believes that the more consistent managers are with their individual approach to each duty, the better response they will get from their staff and customers. Apart of the Left Bank’s vision was to be affordable and accessible to everyone, thus it is important to educate managers that they should never play favorites. The staff at the Left Bank is aware that their manager’s approach to each situation is handled with the same level of fairness for each and every one of them. Managers should never lean on favoritism because this undermines the trust of your staff and marks yourself as unreliable. “Drive Quality,” one of the Left Bank’s principles perfectly relates to the goal for customers to experience a great meal every single time they visit as a reward for their repeat business


and as fulfillment of a perceived value or reputation a new customer should feel. As a Left Bank restaurant manager it’s apart of the job to ensure that food and service are always consistent. A big part of being an effective leader and manager deals with effective communication amongst staff and other managers. This is absolutely necessary in the high-‐pressure world not only of the restaurant industry but in the fine dining segment. Communication at the Left Bank is done through holding regular staff meetings or “line-‐ups,” which are held at the beginning of each shift to review expectations, inform employees of any changes in policy and go over lunch and dinner specials. Due to the tight knit family that is encouraged to form inside each Left Bank restaurant, managers should encourage staff by giving their staff positive feedback and letting them know when they’re doing a great job. The most difficult part about being an effective leader and manager involves being a good listener. Thus, managers give their staff the opportunity to be apart of discussions during policy changes and decision-‐making. This makes staff members feel more valued and invested in the restaurant. Timing as a restaurant manager involves setting the tempo for the rest of the staff. Imparting a sense of urgency into the staff. Leading by example is encouraged at the Left Bank and managers are urged to be the first one in the restaurant and the last ones to leave. This involves setting the standard for the staff to follow including managers to stay until the last employee has completed all of their side work and is checked out with cash and receipts for the day. Having good timing requires managers at the Left Bank to show hustle, thus having a good understanding of every position in the restaurant is important so that they can jump in wherever and whenever they are needed. Impart the pace of the working environment by setting it by example. The Left Bank’s managers must be able to react to and resolve problems immediately. If an employee is concerned about a customer complaint or another pressing issue, managers should drop what they were doing and give it the attention it deserves. Working to resolve customer complaints or employee concerns can give everyone a better perspective going forward. By maintaining a high-‐energy and enthusiastic approach to work will set the standard for everyone else to follow. Multi-‐tasking as a manager for the Left Bank can feel like you are needed everywhere at once when managing the restaurant. Managers should be able to reach a comfortable balance, where they feel as if they are not stretching themself too thin because this is paramount to their success and sanity. Managers must be able to trust, which leads to healthy delegation of tasks to staff members. An important education point for managers at the Left Bank involves recognizing what tasks can be completed alone and which cannot. When managers delegate tasks this shows staff members that they have the utmost confidence in them, helping to build their self-‐esteem and also make the operation more effective overall. Managers need to understand that they are the face of the restaurant. They need to greet and interact with at least fifty percent of the customers that come in. Managers need to be swift and never get stuck on one task for too long. Successful managers need to keep on the move, floating from one station to the next. Perhaps, the most important trait a restaurant manager must have is great customer service. At the Left Bank there is a clear succinct menu, a critically acclaimed chef, and a great location but if the staff and managers do not treat the customers right nothing else will matter and the restaurant will fail. Getting to know the repeat customers of your restaurant is important and at the Left Bank, where regulars are king, managers must do everything they can to


acknowledge these people each visit. For example managers should remember their names, favorite dishes and drinks. Occasionally give them a free drink or appetizer and let them know you appreciate their loyalty. Managers should be receptive to the needs of their customers. Managers need to wear many hats during any given day of work because in order to be successful managers must plan ahead, communicate expectations to staff, care for customers and do it all in a consistent and up-‐beat manner. Once candidates are able to embody these traits they will be able to handle anything that is thrown at them as a Left Bank manager. External forces do not necessarily predict success or failure for a restaurant. However, it appears that external factors may not automatically lead to failure if they are properly managed. Thus, the best management practices observed at the Left Bank Brasseries in Larkspur confirm this. Analyzing internal and external factors of a restaurant failure can determine its viability for success; indicators include: the business’s physical location, its speed of growth, and how it differentiates itself from other restaurants in the market. The opening of the Left Bank in 1994 was methodically calculated and satisfied an unmet need that the customers’ preferences were craving. The Left Bank experienced fairly stable growth within the first four years of operation and in August 1998, the company expanded to its second location in Menlo Park, California. “Fun and French Everyday,” Left Bank’s mission to be the best-‐cost provider delivering value to customers in the form of organic, sustainable, high quality French-‐inspired dishes. Furthermore, Levine and Passot were not new to the fine dining segment of the restaurant industry, which gave them experience, wisdom, and expertise, that allowed them to manage growth or changes, adapt to environmental turbulence, and display timely adequate planning. External forces generally affect all restaurants similarly, however an owner/operator’s preparation or lack thereof will makes the difference in the severity of the impact. The internal environment strength to deal with externalities is considered to be the most critical factor contributing to restaurant viability, with the owner’s characteristics and goals serving as the guiding force. Organizational Foundation: Blending Concepts and Operations A successful restaurant requires focus on a clear concept that drives all activities. Concept is distinct from strategy. The main difference between a failed restaurant and one that succeeds is the clarity of concept. Levine and Passot conceived the idea for the Left Bank Brasseries in 1992 and did not open the first location until 1994. This allowed both individuals to focus on their idea and really make sure that it was conceivable, clear, and with the opportunity to expand into multiple units. Fortunately, for the Left Bank’s concept it was well defined and clear, thus there has been no need for the owners to adapt and change along the way. Many times the worst strategic plans are overly complicated and are not easily comprehendible and lead to failure. Beyond muddled concepts, failure in restaurants seems to stem in large part from an inability or unwillingness to give the business sufficient attention, whether due to a lack of time, passion, or knowledge. Successful restaurateurs have an unrelenting ability to concurrently manage their family life cycle and the business cycle. Both Levine and Passot have many different functions outside of Left Bank. Levine is the CEO of Vine Solutions, Inc. and he sits on various executive boards in the Bay Area, while Passot is the head chef/owner/operator of his


restaurant in San Francisco, La Folie. Furthermore, highlighted their great talents and abilities to multi-‐task, manage, and executive across various functions. Unfortunately, many restaurateurs fail largely due to family demands (e.g., divorce, ill health, retirement). Owning a restaurant looks easier than it seems like many things in life, however the harsh reality is that it takes an incredible toll on the owners and operators. For this reason family time is sacrificed as apart of owning a restaurant, however successful owners such as Levine and Passot of the Left Bank Brasseries have done and continue to do a great job at balancing their family and work lives. The most successful restaurant owners are successful because they are marketing savvy in relation to their competitors’ intensive marketing activities. Levine and Passot have embodied a clear knowledge of marketing functions, which has proven to be essential for the success of the Left Bank brand. A successful restaurant owner has an incredible amount of passion for the business and high energy levels. Levine and Passot have been able to carry these qualities and have been able to continuously motivate themselves and their employees. Critical factors contributing to a fine dining restaurant’s success are food quality and the characteristics of the owner-‐manager, including knowledge, drive, skills, determination, and passion. However, a restaurant concept cannot be executed or delivered without a staff. Furthermore, staff members must receive and obtain extensive employee training, charming personality, and differentiating qualities. While, capital and financial management are important, as are location and a well-‐defined concept these factors mostly stem from Levine’s and Passot’s own personality traits, relationships with customers and staff, and dedication to providing a quality product. Contributing factors to the Left Bank’s success as a restaurant have been in relation to the owner-‐manager characteristics, including attitudes, expectations, control, knowledge, skills, and ambition. The Left Bank’s concept is centered on driving quality to the customer. Levine and Passot have been dedicated to executing the highest food-‐quality controls, creating a high perceived value in the minds’ of customers, being well funded, possessing strong financial management, and attracting quality employees who deliver excellent service. Thus, a successful restaurant such as the Left Bank has a well defined concept that not only provides a premium food product but also includes an operating philosophy, which encompasses business operations as well as employee and customer relations. Perhaps, what differentiates the Left Bank and Levine’s concept is the ability for him to relay it to so many people with ease. Furthermore, the Left Bank is not only about delivering classic French cooking with a California twist, however the company is committed to bringing “Fun and French Everyday” to all restaurant locations. Both Levine and Passot realized in 1992 that superior food quality alone does not guarantee success; instead both individuals knew that the concept must be defined beyond the type of food served in their restaurant. The Strategy: Serving Marin County for Over 20 years A restaurant image can be defined as the overall attitude toward the restaurant, based upon the customer perceptions of relevant restaurant attributes. A restaurant’s image is recognized as an essential component of customer satisfaction and therefore it is a cornerstone of success for fine dining restaurants (Cadotte and Turgeon, 1998). Being apart of Marin County has led the Left Bank to serve an affluent customer base, which has


experience and knowledge about fine dining expectations. Thus, being a fine dining restaurant that is competing on value has centered their focus on its image using increased upgrades and improvements in décor, ambience and interior design to attract customers and to differentiate itself from its competitors. When conceiving the concept for the Left Bank, Levine and Passot carefully analyzed location and ambience. Both attributes rank closely in importance, which suggests that customers are willing to travel extra distances to patronize full-‐service restaurants if excellent food and service are offered at a reasonable price. As a part of the Left Bank differentiation point, the concept involved creating a clear, succinct, unique, and seasonally changing menu that is paired with an inimitable fine dining ambience. Levine and Passot considered the importance that the Left Bank’s architecture; decor, landscaping and site location could have in Marin County. Thus, after careful and successful utilization the Left Bank was able to attract customers away from the saturated and competition heavy market of San Francisco. After all was considered Levine and Passot realized they had the potential to attract customers of the fine dining segment with higher incomes, who could afford to be repeat patrons in familiar restaurants despite the higher price point. Marin County’s Larkspur is home to customers whom value businesses that treat them the way they like to be treated. Once Marin County customers had made a decision about a restaurant they often become loyal to that particular restaurant for the long-‐term. Intern, Marin County customers will continue to dine at successful restaurants in the near future and will even pay more for the service. Levine and Passot wanted to create an experience, where customers could feel as if they were escaping to France when they came into the Left Bank. For this reason it was important for the image of a restaurant to serve as a guide for customers and help them to differentiate the Left Bank from specifically other French restaurants in Marin County. Due to Larkspur being an affluent, higher income community, this signified that civic members had no switching barriers and did not get affected by price easily. Thus, the Left Bank made sure to meet the continuously varying demands of repeat and prospective target customers. The Left Bank’s goal is to uphold a restaurant that grasps a positive image with a unique concept because this is one of the most valuable marketing assets. The image of the Left Bank consists of both tangible and intangible attributes. Food presentation, food taste, seating arrangement, interior design, music, reliable services and employee competency are some of the key determinants of customer satisfaction (Ponnam and Balaji, 2014). For example, tangible attributes such as restaurant location, restaurant layout, price ranges, and attractiveness of décor/ambience. While, intangible attributes include friendliness of restaurant personnel and atmosphere. Finally, image of the Left Bank is important because favorable customers’ evaluations of the restaurant's image will lead them to become repeat customers; unfavorable evaluations would likely yield a no repeat response (See Exhibit 22). Customer experience has been identified as a key source of competitive advantage in fine dining segment of the restaurant industry. Thus, managing a restaurant experience is positively related to customer satisfaction, loyalty, and positive word-‐of-‐mouth (Ponnam and Balaji, 2014). Thus, as an indicator, the restaurant’s image directly relates to consumer behaviors such as customer loyalty. Fine dining restaurants want strong customer loyalty because this leads to a higher customer retention rate. The Left Bank’s operations focus not


only on attracting first-‐time customers but also on developing long-‐term relationships with customers. The importance of the customer attraction is key, however retention is crucial to survival in the fine dining segment as well. Consequently, the Left Bank has made strides since 1994 to execute excellent customer service, which intern has led to high customer loyalty rates. Loyal customers means there is a better chance for continuous profit, a reduction of marketing costs, an increase in per-‐customer revenue growth, and free positive word of mouth marketing. The moment a restaurant is able to create loyal customers these individuals are less likely to switch away to a discount or a low-‐cost provider. For this reason, the Left Bank has made a commitment for over twenty years to provide Marin County with value at an affordable price serving elevated French-‐inspired cuisine. This has allowed the company to enjoy high levels of customer loyalty; intern the Left Bank is able to increase their price premium. This is due to the number of loyal customers who perceive some unique service and value in the brand that no other alternative can provide, thus giving the restaurant a distinct competitive advantage. Due to the loyal customers that the Left Bank has created over the past twenty plus years it has allowed the company to see increases in profits and cover the losses incurred in dealing with less loyal customers. For every less loyal customer that visits the Left Bank occasionally, they have three loyal customers that visit regularly. Consequently, the company has noticed the interaction between customer satisfaction, customer loyalty, and customer retention. For example, due to the commitment to elevated service delivered through a highly trained staff to each and every customer on a consistent basis makes the Left Bank special. This core competency of the Left Bank Brasseries has set a high standard for them to maintain, furthermore customers perceive each restaurant as a great overall dining experience. Every type of restaurant needs to determine their specific competency or competencies, which will allow it to achieve sustained financial performance. Once these capabilities are identified it is important for that restaurant to do all they can to enhance them and turn these things into a sustained competitive advantage (Hua and Lee, 2014). Due to the managers’ drives to delivery this consistent guarantee that customers are going to tell at least seven people they know to come and experience the Left Bank in Larkspur, California. This type of free marketing helps greatly because attracting customers is more difficult today due to the challenges of competition and the need to maintain steady volumes of business. The positive reviews within Marin County have extended across California and have helped bring in more customers each year, for example throughout the past three years (See Exhibit 3). One reason attracting and retaining customers today is harder than ever is because there are more specific demands customers want such as: a wider menu offering, greater value for their money, and enhanced levels of customer service. Creating repeat customers can be a challenge, however with the right product consumers will always comeback for more (Han, Back, and Barrett, 2009). Therefore, understanding what customers want and what makes them come back has been important for the Left Bank’s managers, in order for them to continuously evolve and improve the operation of the restaurant. Levine and Passot were able to determine that the customers of Larkspur and Marin County were returning to the restaurant because they experienced quality, value and a desirable ambience. The evolution of the Left Bank has been about adaptation. The company is relentlessly changing to the customers’ tastes in


food and service quality, which has translated into sustainable success. Consequently, offering great food and service is not enough to attract and retain consumers. To gain a competitive advantage in today’s market, restaurants need to offer a unique image or experience. The Left Bank has been providing Marin County value and quality, while executing their mission of “Fun and French Everyday,” for over twenty years. Strategies to Create Customer Loyalty, Satisfaction, and Retention What is a loyal customer? In simple terms, this is a customer who dines at or visits the same restaurant whenever possible, and who continues to recommend or maintains a positive attitude towards the restaurant (Kandampully and Suhartanto, 2000). When a restaurant better understands their guests’ needs and desires this becomes invaluable when trying determining ways to improve. Thus, it is very advisable to do several years of market research before opening a restaurant. Levine and Passot’s industry experience gave them both an advantage when determining the Left Bank’s concept and market. This research and quest to find the perfect location and market allowed both owners to gain an early idea of what the market desired. Restaurants that do not have a clear understanding of what their customers’ preferences are will lead to problems in both product and service design. The most successful restaurants are fully aware of customer preferences and develop their services in line with the targeted market needs. Thus, a focused and detailed approach towards customer loyalty is a necessary prerequisite for the success of a restaurant in the fine dining segment. The Left Bank Brasseries have been able to execute and deliver upon the four drivers, which categorize food service quality. Intern helping the company create loyalty, satisfy, and retain customers. The four dimensions as follows: quality of food, quality of service, cost/value, and place (See Exhibit 22). Quality of food regards to menu offering, innovation, presentation, fresh ingredients, and consistency. Quality of service relates to equipment, appearance of employees, professionalism and friendliness of staff, waiting-‐time before being seated, waiting-‐time before food arriving, and waiting-‐ time before paying the bill. Cost/value defines how competitively priced the food and beverages are in relation to the market. Place refers to the restaurant’s physical location, décor/ambience, bathroom, and parking. Satisfying customers is a cornerstone to many industries, however it is most synonymous with the restaurant industry and perhaps especially in the fine dining segment. In fact, customer satisfaction can be looked at through the customers’ dining experiences, which may be determined on four factors: environment, meal, service, and cost (Cadotte and Turgeon, 1998). The exact factors, which lead directly to satisfying customers, may be considered subjective because depending on the geographic location, cultural norms, customer behaviors, and importance to the customer. However, awareness, reputation, image, promotion, perceived quality, and innovation rank highly as factors that may help a fine dining restaurant determine what satisfies their customers’ tastes (See Exhibit 22). Awareness deals with a restaurant’s need to expose their service to more customers to create and increase loyal customers. A customer’s loyalty begins with their awareness for the product/service being offered. At the awareness stage, a potential customer knows that the restaurant exists. The Left Bank keeps Marin County aware of their offerings through continuously driving quality and delivering consistency. Due to the Left Bank having a good reputation it is imperative


that they try to increase the restaurant’s sales and attract more customers because of positive word-‐of-‐mouth activity. In addition, because the restaurant has developed a reputation for high quality this allows them to command premium prices. In order to build upon and maintain this reputation, the Left Bank Brasseries must consistently deliver quality of services. Customers thrive off of esthetics and image, therefore building and sustaining a positive image is an important step in maintaining customer satisfaction. For example the Left Bank has a great restaurant image because they have possessed excellent service, atmosphere, colors, symbols, and words that convey a consistent message and not merely a name, but an experience: “Fun and French Everyday,” since 1994. Fine dining restaurants must use promotion because this is one way to tell a customer about the reasons they should visit the establishment. Promotions can be used to develop differentiation, and can be used to create loyalty. (Cheng et al, 2012) Typically a customer will choose a familiar fine dining restaurant name because it carries a higher perceived quality. One of the Left Bank’s core competencies has been their ability to deliver the same quality each time. Thus, once customers believe that a restaurant offers what they expect of good service, they develop loyalty to that specific restaurant. As customers but more importantly as human beings, when individuals feel comfortable with a familiar experience versus an unfamiliar one, this causes customers to not be price sensitive. Lastly, a fine dining restaurant that is not constantly embodying a spirit of innovation will fall behind because its important to stay in touch with the market around them. Moreover, innovation allows a restaurant to stay up-‐to-‐date and demonstrates attentiveness to the changes in customer style with the consideration of the customers’ perceptions and attitudes. To keep pace with the changes going on in the marketplace restaurants should meet and exceed customer needs. For this exact reason, the Left Bank Brasseries have been evolving since 1994 and delivering a seasonally changing menu. While, keeping a set of core items to keep customers, however creating innovations that serve as an educational tool for the Left Bank clientele. One of the most important competitive survival tools for fine dining restaurants is retaining loyal customers because they provide repeat business, higher profit margins, positive word of mouth marketing, and competitive advantages. Professionalism of a fine dining restaurant’s staff is imperative in creating customer loyalty, satisfaction, and retention. Eating at a fine dining restaurant such as the Left Bank is a experience, “Lets French,” therefore customers do not want to feel rushed or hurried through their dining experience. For this reason, there is an appropriate pace that ensures customer satisfaction. In order to ensure customer satisfaction, managers at the Left Bank must view the dining experience in three stages pre-‐process, during-‐process, and post-‐process. Pre-‐process is when guests are ordering drinks and reading the menu. The during-‐process is when customers are dining and the post-‐process is when customers are receiving and paying the check. While customers are encouraged to take their time in order to fully enjoy the experience at a fine dining restaurant, the owners’ will not make any profit unless the staff turns tables and gets as many customers into the dining room as possible. Managers at the Left Bank can practice restaurant revenue management by selling the right seat to the right customer at the right price and for the right duration. The determination of “right” entails achieving both the most revenue possible for the


restaurant and also delivering the greatest value or utility to the customer (Kimes, Barrash, and Alexander, 1999). At the Left Bank, managers are trained to help teach servers and wait staff assistants how to reduce dining times. Furthermore, dining times can be reduced through improved reservation policies, easier-‐to-‐read menus, and a streamlined service-‐delivery process. Implementing and executing a successful restaurant revenue management system will help create optimal dining flows, table mixes, and pricing to satisfy customer needs (Kimes, Barrash, and Alexander, 1999). In order to outcompete or stay ahead of the industry norms, a fine dining restaurant must creatively develop its service on a continuous base. At the Left Bank, this is where managers’ entrepreneurial spirits must be used to implement innovations, which are not only desired by customers but also are economically beneficial to the restaurant. One way for restaurants to improve their customer service and retention rates is by keeping in touch with patrons and reinforcing the restaurant’s gratitude to their current and past customers between visits. Taking time to appreciate the customer is beneficial and regular communications with them through emails, birthday/anniversary cards can give the customers a reason to celebrate with the restaurant (Peppers and Rogers, 2004). However, a simple strategy that the Left Bank employs is consistently providing high quality service, which is the ultimate way to show appreciation to repeat customers. This is what will make them want to come back and enjoy the same great experience. The biggest contributors to overall customer loyalty, satisfaction, and retention within the Left Bank Brasseries, a fine dining restaurant includes: professionalism and friendliness of staff, servers’ knowledge of the menu, and location. Fine dining restaurants are characterized by intangibility. Creating and maintaining a consistent image with overall satisfaction of a prime target market is crucial. In the fine dining market segment, customers purchase not only the service but also the symbol of luxury, pride, entertainment, and social status. (Cheng et al, 2012) Restaurant Cost Structure: Occupancy, Labor, Food, and Supply A great way for a today’s restaurant owner to understand his or her cost structure is by understanding the industry benchmarks, which are critically important to know. Below is a small representation of which benchmarks restaurant owners need to aware of and need to monitor with attention (Laube, 2010):

Prime Cost Full-‐service -‐ 65% or less of total sales Table-‐service -‐ 60% or less of total sales Food Cost 28% to 32% of total food sales Alcoholic Beverage Costs Liquor -‐ 18% to 20% of liquor sales Bar consumables -‐ 4% to 5% of liquor sales Bottled beer -‐ 24% to 28% of bottled beer sales Draft beer -‐ 15% to 18% of draft beer sales Wine -‐ 35% to 45% of wine sales Nonalcoholic Beverage Costs Soft drinks -‐ 10% to 15% of soft drink sales


Regular coffee -‐ 15% to 20% of regular coffee sales Specialty coffee -‐ 12% to 18% of specialty coffee sales Iced tea -‐ 5% to 10% of iced tea sales Payroll Cost Full-‐service -‐ 30% to 35% of total sales Limited-‐service -‐ 25% to 30% of total sales Management Salaries 10% or less of total sales Hourly Employee Gross Payroll Full-‐service -‐ 18% to 20% of total sales Limited-‐service -‐ 15% to 18% of total sales Employee Benefits 5% to 6% of total sales 20% to 23% of gross payroll Rent and Occupancy Rent -‐ 6% or less of total sales Occupancy -‐ 10% or less of total sales

Perhaps, the most telling numbers on any restaurant’s profit and-‐loss statement is its prime cost. Levine, a financial expert, uses prime costs to gauge the economic stability of the Left Bank Brasseries. To calculate a restaurant must do: “Prime Costs = Direct Materials Costs + Direct Labor Costs,” illustrates Levine. When looking at a restaurant’s overall cost structure, prime cost can be very helpful particularly in cost of sales and payroll cost. In 2014, the Left Bank Brasseries in Larkspur had their total prime costs amount to 61.9%, when they forecasted 62.2% and when the industry average for a full-‐service restaurant was 65% (LB1 P12.14 Final Report, 2014). While, prime costs are important restaurant owners operating full-‐service restaurants need to carefully control their payroll and salary costs. Unfortunately, for restaurant owners labor is one of the most difficult expenses to cover and monitor each year. Payroll is a cost as a percentage of sales, which includes the cost of both salaried and hourly employees. A big reason many restaurants go into financial turmoil when trying to cover the expenses is because many owner/operators are not knowledgeable with the numbers side of the business (Woods, 1989). One of the Left Bank’s core competencies is their consistently strong financial performance. In large part due to the distinct competitive advantage the company enjoys from being under the extremely watchful eye of Vine Solutions, Inc., who makes sure that all managers of the Left Bank have access to the most accurate real-‐time data. Thus, the Left Bank unlike other businesses does not make amateur mistakes such as not adding employee benefits, when calculating labor/payroll expenses deducted from total revenue. Levine and Passot state, “For this reason the company employs a “4x” costing method.” Meaning that when calculating each menu item’s price for the customer, Levine multiplies all the ingredients used to make the dish by labor, food cost, overhead, and unforeseen expenses. Using this costing method has enabled the company to enjoy larger profit margins because they are accounting for any costs that might get overlooked such as employee benefits, which includes payroll taxes, group, life and disability insurance premiums, workers’ compensation insurance premiums, education expenses, employee meals, parties, transportation, and other such benefits. The Chef de Cuisine of the Left Bank in Larkspur,


Fabrice Marcon, is required to stay within a 30% food cost for his kitchen. While, Jennifer Courtney, General Manager of the Left Bank in Larkspur is required to have all restaurant beverages (alcoholic and non-‐alcoholic) not exceed 28% for total cost of sales. (See Exhibit 19 to see all food and beverage purchases made in 2014). Total payroll cost should not exceed 30% to 35% of total revenue for a full-‐service. In 2014, the Left Bank in Larkspur had payroll expenses of 33.9% of total revenue (LB1 P12.14 Final Report, 2014). In order to run a profitable full-‐service restaurant it is ideal for owners/operators to limit their rent expense to 6% of sales or less. In 2014, the Left Bank Brasseries in Larkspur obtained a minimum rent expense of 4.9%, exceeding budget by 0.1% (LB1 P12.14 Final Report, 2014). One of the most important determining factors to consider before opening a restaurant is securing a real estate deal that makes sense over the long-‐term. Thus, for this reason Levine opened the Left Bank in Larkspur with Passot after signing a twenty plus year lease on the property. Whether buying or leasing restaurant space, the monthly payment is one of many restaurateurs’ major fixed outlays. Related fixed costs include local and state real estate taxes, as well as insurance. Known as occupancy costs, rent or mortgage, property taxes, water and sewer taxes, gas and electric, insurance, and repairs all fall under the restaurant owner's responsibility. These are typically known as fixed expenses since restaurant owners usually have to pay a steady amount on these costs every month. Therefore, occupancy costs should not exceed 10%, many operators desire their occupancy cost at or below 8% of sales (Laube, 2010). However, 10% is generally viewed to be the point at which occupancy costs start to become excessive and begins to seriously impair a restaurant’s ability to generate an adequate profit. In 2014, the Left Bank in Larkspur recorded 6.9% for total occupancy and the company budgeted for 6.6% (LB1 P12.14 Final Report, 2014). A successful restaurant has the opportunity to make up to 35% gross margin (Laube, 2010). The industry is categorized by operating on razor-‐thin margins, with profitability a direct function (Woods, 1989. Due to the Left Bank being able to create a healthy profit margin for them has allowed the restaurant to generate high traffic, execute consistently, and control costs. Traffic, which explains the amount of people that come through a restaurant over a specified time frame. This is a function of the brand’s appeal, marketing effectiveness, real estate location, and restaurant experience. Through the Left Bank’s careful analysis of the market landscape and their target population, Levine and Passot were able to develop a strong brand image. The Left Bank brand has been in operation for over twenty years and has successfully expanded, while appealing to a wide audience with an easily conveyable concept for the market to understand. The Left Bank’s philosophy revolves around delighting the customer and creating a menu that adapts to the local tastes. Furthermore, despite the Left Bank’s strong restaurant cost structure, they need to keep their brand fresh in the eyes of the customer. For this reason, the Left Bank has been committed to evolving their menu offerings, typically by featuring seasonal, organic, sustainable, and high quality products. Analysis of Customer Survey Results The researchers produced and conducted a survey because it is an excellent way to gather a lot of information. Utilizing survey research for this study had several benefits including:


being cost-‐effective, accessible to a large sample size, reliable, and versatile. The purpose of the survey used in this study was to determine the core competencies of the Left Bank Brasseries, which has made the company successful for over twenty years. The researchers were able to gather 130 participants to voluntarily complete the survey. There are nine attributes customers are looking for restaurants in the fine dining segment of the industry to execute: food quality, restaurant cleanliness, menu offering and pricing, promptness of service, professionalism and friendliness of staff, server’s knowledge of menu, décor and ambience, restaurant location, and overall experience. This set of criteria was established after a thorough literature review of previous studies regarding customer satisfaction in the fine dining segment was conducted. Survey participants were able to judge these attributes based upon a five-‐point Likert scale. When ranking each attribute of the restaurant participants had the option to choose between very dissatisfied, dissatisfied, neutral, satisfied, and very satisfied. The survey also addressed two general demographic questions including: age and gender. Furthermore, another objective of the survey was to determine if the participants were either repeat or new customers. Lastly, participants were asked if they would recommend the Left Bank to a friend and how likely it was that they would visit the restaurant again. The first attribute participants were asked to grade was food quality. 60% of the customers surveyed reported that they were “Very Satisfied” with the food quality served at the Left Bank in Larkspur (See Exhibit 6). The second attribute was restaurant cleanliness, where 67.69% of the customers surveyed reported that they were “Very Satisfied” with the Left Bank in Larkspur’s restaurant cleanliness (See Exhibit 7). The third attribute was the menu offering and pricing, where 46.92% of the customers surveyed reported that they were “Very Satisfied” with the Left Bank in Larkspur’s menu offering and pricing (See Exhibit 8). The fourth attribute was promptness of service; here 52.31% of the customers surveyed reported that they were “Very Satisfied” with the promptness of service at the Left Bank in Larkspur (See Exhibit 9). The fifth attribute was professionalism and friendliness of staff, where 77.69% of the customers surveyed reported that they were “Very Satisfied” with the professionalism and friendliness of the staff at the Left Bank in Larkspur (See Exhibit 10). The sixth attribute was the server’s knowledge of the menu; here 76.92% of the customers surveyed reported that they were “Very Satisfied” with their server’s knowledge of the menu at the Left Bank in Larkspur (See Exhibit 11). The seventh attribute was related to décor and ambience, where 58.46% of the customers surveyed reported that they were “Very Satisfied” with the décor and ambience of the Left Bank in Larkspur (See Exhibit 12). The eighth attribute was the restaurant’s location; here 71.54% of the customers surveyed reported that they were “Very Satisfied” with the location of the Left Bank in Larkspur (See Exhibit 13). The ninth attribute was the overall experience, where 70% of the customers surveyed reported that they were “Very Satisfied” with their overall experience at the Left Bank in Larkspur (See Exhibit 14). Therefore, using the set of criteria with nine distinct attributes that help define what customer value and look for in the fine dining segment of the restaurant industry, three core competencies were determined for the Left Bank in Larkspur (See Exhibit 15). Customer survey participants reported their highest satisfaction with the Left Bank in Larkspur’s in order, professionalism and friendliness of staff (77.69%), the server’s knowledge of the menu (76.92%), and the restaurant’s location (71.54%)(See Exhibit 15).


From the 130 customers who participated in the voluntarily survey 25% classified themselves between the age of 45 to 54 years old, 21% between 65 to 74, 17% between 65 to 74, 15% between 75 and older, 14% between 35 to 44, and 8% between 35 to 44 years old (See Exhibit 16). From the 130 customers who participated in the voluntarily survey 59% classified themselves as female, while 41% identified as male (See Exhibit 17). From the 130 customers who participated in the voluntarily survey, 81.54% identified themselves as “Repeat” customers, while only 18.46% were “New” customers to the Left Bank in Larkspur (See Exhibit 18). Elements of Restaurant Success & Failure There are a lot of restaurant failures every year and throughout all of the research that has been conducted one thing has been distinguished as a critical factor that will lead to failure if not executed: a well-‐researched and distinctive concept. Levine and Passot took several years studying the market in Marin County and brasseries in Paris to get an idea of how they could create a unique concept. While, this may seem logical, unfortunately many aspiring restaurant owners do not take this precautionary step. A business mind has the ability to differentiate the value of a short-‐term versus a long-‐term investment and in the restaurant industry this can be crucial to survival. Thus, Levine and Passot made contractual agreements to ensure the Left Bank had the foundation to be relevant economically for the long-‐term. One way this was executed was through the agreement of a long-‐term real estate lease contract of over twenty years. In regards to internal decisions the company adopted a two-‐year rule for any candidate interested in an administrative or managerial role with the restaurant. This was to help reduce employee turnover rate and gain a bigger return on investment in relation to time, effort, and training practices used. Today’s industry is about constant change and for this reason owners/operators must be ready to adopt technologies that help simplify and increase productivity towards record keeping and tracking customers (Woods, 1989). The Left Bank has found success with their investments in human capital because the company has emphasized education and a work environment that fosters professional growth. As restaurateurs, Levine and Passot have created positive emotions and feelings toward their employees and customers, which has contributed immensely to the Left Bank’s viability and financial performance. Through Left Bank’s commitment in training and education, the company has been able to create and build a positive organizational culture through consistent management practices. Upholding consistency as a defining principle of the company has allowed the Left Bank to continue their focus on its original concentrated theme and to relentlessly evolve in order to maintain sustainability. As two successful restaurateurs, Levine and Passot have adopted the application of differentiation strategies; good customer relations; and honest, dedicated, and determined leadership into the Left Bank Brasseries. (Parsa et al, 2005) Perhaps, the second most important quality of a successful restaurant, which Levine and Passot learned is the value of location and the careful research done before making a final selection. Unfortunately due to a variety of factors the dreams of many aspiring restaurateurs die because these individuals fail to conduct thorough research and educational training. Strategy is something that can be acquired through education. Apart of a restaurant’s strategy must be a concise mission and vision for the company. Within the


context of these statements a restaurant must be able to establish and formalize operational standards around the values they perceive as critical factors to their success or failure. While, financial distress, including insufficient levels of cash flow and capital are critical factors towards restaurant failure they were overshadowed by emotional factors such as depression and restlessness. Additional key factors that can lead to a restaurant’s failure include lack of education, limited industry experience, and lack of organization and focus (See Exhibit 23, for characteristics of a failing restaurant). Fortunately the Left Bank’s founders, Levine and Passot, both received formal education along with influential apprenticeship programs, which instilled wisdom and invaluable restaurant acumen into them. Early on in their professional careers, both individuals learned important lessons about the restaurant industry, which allowed them to pass this knowledge onto their staffs. Nonetheless, the importance of a proper business and marketing plan, which can lead to enhanced performance, was instilled into them as young professionals. Levine, a restaurant financial consultant, has witnessed many business failures for restaurateurs. In fact, Levine believes that restaurateurs who felt overwhelmed and exhausted had an inability to think clearly. Due to exhaustion and feelings of anxiety, operators lose creativity and self-‐esteem as business problems arise. These destructive emotions are signs of failure, whereas creative emotions are an important determinant of a successful restaurant operation. A failing restaurateur will most likely possess detrimental traits such as a big ego, lack of formulated plan with a proven concept, and no investment in human capital. (Smith, 1996) While formal education, industry experience, and a unique concept are important an owner/operator needs to balance their family, personal lifestyle, and work, otherwise they ultimately fail. Both Levine and Passot are family oriented individuals, who have an unparalleled passion for the Left Bank Brasseries and the concept they conceived in over twenty years ago. Finding a balance between making a living and a life with family has allowed the Left Bank to become sustainable. This long-‐term success of the company can also be attributed to the owners’ abilities to handle external factors including city infrastructure, political influence, changes in demographics, and development plans. The owner’s skills and knowledge are critical factors to find success as a fine dining restaurant. Furthermore, owners should not rely on others, but should be knowledgeable in all areas of the business. This is something that Levine and Passot have prided themselves upon since the grand opening of the Left Bank in 1994. It is important as a leader to be versatile carrying a mentality that allows them to adapt, improvise, and overcome any possible challenge that will arise as an owner/operator of a restaurant. Consequently, a restaurateur must plan carefully in growing their business; being ready at any time to alter plans in response to changes in external factors. In regards to the Left Bank, Levine and Passot created a concept that is a foundation, rather than a trend or fad. Furthermore, the Left Bank’s concept is sound because it is versatile enough to adapt to the changing external environment. If need be the Left Bank could transition easily into a casual restaurant with less emphasis on quality or they could jump to the ultra fine dining segment by charging a higher premium and selling more exclusive products. The flexibility of the Left Bank concept is something that can be replicated by young aspiring restaurateurs. In doing so these individuals can follow in the footsteps of Levine and


Passot, who can find success by creating and articulating a clear, well crafted, and well-‐researched vision and business plan. (Hua and Lee, 2014) New entrants of the restaurant industry must be focused and allocate their resources appropriately and consistently to execute their vision and plan. The restaurant industry presents a challenging and complex business environment with many underlying variables for this reason it has one of the highest failure rates. Consequently, securing a suitable location, managing finances, controlling labor costs, reducing food and beverage costs, designing and developing menus, maintaining consistent service levels, food quality, enforcing safety practices, attracting/retaining skilled labor, minimizing employee turnover, implementing rigid internal controls, and developing a loyal following are all essential to a restaurant’s success (See Exhibit 23). Good restaurant performance is measured in terms of two aspects: company’s market success factors (e.g., their image, their levels of customer and employee satisfaction), and their financial performance (Llach et al, 2013). Another way to reduce the risk of failure for new restaurant concepts is to become viable and distinct in the market, strategically be located in areas with sufficient demand generators, and contract experienced employees and management. When a young restaurateur is able to find, create, and achieve these ingredients for success he or she has a high chance to expand from a single unit into multiple units. This is only possible when a restaurateur possesses strategic vision, strong business acumen, competitive drive, and an ability to effectively manage both front-‐of-‐the-‐house and back-‐of-‐the-‐house operations. In the end in order to find success restaurateurs must find a harmonious equilibrium between food and labor costs, drive consistency on food and service quality, while simultaneously upholding strong management practices. Limitations of the Study This study is limited in several areas that may provide opportunities for future research. The results may not be generalized to other segments of the restaurant industry. Data from this study was collected from customers in an upper middle-‐class town. The research was targeted only on customers who had their lunch or dinner at a fine dining restaurant, in Larkspur, California. Differences may exist due to the fact the customers are majority affluent, high-‐income, and predominately Caucasian individuals. Thus, they may have a different satisfaction level than other customers segments. Due to the researchers’ short time frame for the project’s deadline, limited the time available to conduct thorough field research. More contact between the researchers and the target sample may have increased participation. A larger sample with more diversity may have benefited the survey results. Organizing focus groups would have allowed the researchers to evaluate the participants’ attitudes and recommendations for the services provided to them. The researchers were unable to begin collecting primary data as soon as they wished because of the limitations imposed by the institutional review board at Dominican University of California. This delay led to a smaller sample size than what was originally desired. Perhaps, another limitation was the student researcher’s inability to meet his advisor on a consistent basis regarding the research study. This inhabited his ability to gain the most professional support and knowledge possible throughout the duration of the study.


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Appendix 1: Exhibits

Exhibit 1: Vine Dining Organizational Chart Vine Dining Enterprises, Inc., is a restaurant management group that founded, owns, and operates three Left Bank Brasseries and two LB Steak restaurants.


Exhibit 2: Vine Dining Individual Restaurant Organizational Chart Vine Dining Enterprises, Inc., is a restaurant management group that founded, owns, and operates three Left Bank Brasseries and two LB Steak restaurants.


Exhibit 3: Average Weekly Guests 2012-‐2014

Source: LB1 P12.14 Final Report. Larkspur: Vine Solutions, 2014.


Exhibit 4: Average Weekly Sales 2012-‐2014

Source: LB1 P12.14 Final Report. Larkspur: Vine Solutions, 2014.


Exhibit 5: Customer Survey

Please Circle Answer: Age 18-24 25-34 35-44 45-54 55-64 65-74 75 or older Gender Male Female Are you a repeat or new customer? Repeat New How likely are you to recommend the Left Bank Brasseries to a friend? Not Likely Maybe Very Likely How likely are you to dine again at the Left Bank Brasseries? Not Likely Maybe Very Likely

Please Circle Answer:

Very dissatisfied Dissatisfied Unsure Satisfied Very Satisfied

Food quality 1 2 3 4 5

Restaurant cleanliness 1 2 3 4 5

Menu offering/pricing 1 2 3 4 5

Promptness of service 1 2 3 4 5

Professionalism/friendliness of staff 1 2 3 4 5

Server’s knowledge of menu 1 2 3 4 5

Décor/Ambience 1 2 3 4 5

Restaurant location 1 2 3 4 5

Overall experience 1 2 3 4 5 Comments:


Exhibit 6: Customer Satisfaction Ratings: Food Quality


Exhibit 7: Customer Satisfaction Ratings: Restaurant Cleanliness


Exhibit 8: Customer Satisfaction Ratings: Menu Offering/Pricing


Exhibit 9: Customer Satisfaction Ratings: Promptness of Service


Exhibit 10: Customer Satisfaction Ratings: Professionalism/Friendliness of Staff


Exhibit 11: Customer Satisfaction Ratings: Server’s Knowledge of Menu


Exhibit 12: Customer Satisfaction Ratings: Décor/Ambience


Exhibit 13: Customer Satisfaction Ratings: Restaurant Location


Exhibit 14: Customer Satisfaction Ratings: Overall Experience


Exhibit 15: Left Bank Larkspur’s Core Competencies


Exhibit 16: Survey Participants’ Age


Exhibit 17: Survey Participants’ Gender


Exhibit 18: Survey Participants’ Customer Type: Repeat or New


Exhibit 19: Left Bank Brasseries: Larkspur, Food & Beverage Purchases, 2014 Left Bank Brasseries: Larkspur, California General Manager: Jennifer Courtney Chef de Cuisine: Fabrice Marcon Food & Beverage Purchases 2014 Item $ Amount Wine $245,313 Beer $25,815 Liquor $6,282 Sidebar $9,668 Coffee/Tea $11,296 Coffee Condiments $6,315 Meat $167,437 Seafood $196,143 Produce $154,189 Bakery $75,811 Source: LB1 P12.14 Final Report. Larkspur: Vine Solutions, 2014.


Exhibit 20: Left Bank Brasseries: Larkspur, Top-‐Selling Items, 2014 Left Bank Brasseries: Larkspur, California General Manager: Jennifer Courtney Chef de Cuisine: Fabrice Marcon Top Selling Items 2014 Item # Sold in 2014 Salad Nicoise 11,578 Hamburger 10,513 Steak Frites 9,449 Sparkling Water 2,652 Diet Pepsi 3,072 Coffee 6,570 Iced Tea 5,334 Well Vodka 3,015 Ketel One 2,621 Grey Goose 1,817 Glass Gregory Graham Chardonnay 4,520 Glass Sean Minor Pinot Noir 3,619 Glass Sancerre 3,245 Bottle Sonoma Cutrer 141 Bottle Frank Family Chardonnay 125 Bottle Rafanelli Zinfandel 80 Source: LB1 P12.14 Final Report. Larkspur: Vine Solutions, 2014.


Exhibit 21: Impact of Various Factors on Restaurant Viability

Source: (Parsa et al, 2005), “Why Restaurants Fail,” Cornell Hotel and Restaurant Administration Quarterly.


Exhibit 22: Impact of Restaurant Image and Quality on Customer Retention & Attraction

Source: (Han, Back, and Barrett, 2009), Influencing factors on restaurant customers’ revisit intention: The roles of emotions and switching barriers, International Journal of Hospitality Management.


Exhibit 23: Restaurant Viability Proposed Model

Source: (Camillo, Connolly, and Kim, 2008), Success and Failure in Northern California:

Critical Success Factors for Independent Restaurants, Cornell Hospitality Quarterly.


Appendix 2: Institutional Review Board Application

April 21, 2015 John Sansone 50 Acacia Ave. San Rafael, CA 94901 Dear John: I have reviewed your proposal entitled Left Bank Brasseries: The Evolution of a French-Inspired Restaurant submitted to the Dominican University Institutional Review Board for the Protection of Human Participants (IRBPHP Application, #10362). I am approving it as having met the requirements for minimizing risk and protecting the rights of the participants in your research. In your final report or paper please indicate that your project was approved by the IRBPHP and indicate the identification number. I wish you well in your very interesting research effort. Sincerely, Martha Nelson, Ph.D. Chair, IRBPHP cc: Rajeev Sooreea

Institutional Review Board for the Protection of Human Subjects Office of the Associate Vice President for Academic Affairs • 50 Acacia Avenue, San Rafael, California 95901-2298 • 415-257-1310

www.dominican.edu

the left bank brasseries-the evolution of a french-inspired restaurant

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