High-End Eateries Feel Economic Strain

For companies looking to make cuts in the grips of recession, the appetizer, entree, and dessert may be the first things to go.

The company holiday party, once an obligatory, lavish celebration, has become “gauche” in a time of pink slips and downsized bonuses, said desserterie Finale co-Founder and President Paul D. Consorti. And Cambridge’s high-end eateries are feeling the pinch.

“We had a company, that will remain nameless, cancel their annual holiday party because the week before they had laid off a bunch of employees,” Consorti said.

Though Harvard Square restaurants report that business has not fallen dramatically, one definite casualty of the economy has been corporate meals, dealing a big blow to high-end restaurants that host such events and traditionally see many customers dining on expense accounts.

The downturn has prompted fewer companies to pick up the check for recruiting events and celebrations. And instead of entertaining clients with dinner, some firms are opting for a lighter-on-the-expense-account lunch.

“We see a little more business at lunch,” said Executive Chef Peter W. Davis of Henrietta’s Table. “[We’re seeing] more entertaining business at lunch and companies shifting entertaining to lunch more.”

Om Restaurant and Lounge has noticed corporate budget cutbacks, with companies opting for cocktail parties over fancy dinners to celebrate the holidays.

“A lot of companies scaled back on their holiday parties,” Event Coordinator Leah E. Horgan said. “For a lot of the bigger companies, they didn’t cancel altogether. As opposed to doing a dinner, they’d do a cocktail hour.”

Harvest, an upscale eatery on Brattle Street, has lost much of its corporate business because of the recession, according to Ivan T. Law, the restaurant’s general manager.

“We used to do a lot of private dining with financial firms,” Law said, adding that one firm in particular has been on a leave of absence. “We don’t see as much of Lehman Brothers.”

At Chez Henri, it’s been business as usual. “Our recruiting has been okay,” said dining room manager Christy Leveroni. The restaurant still hosts a few recruiting events, including some for Harvard Law School students.

But for establishments that rely more heavily on corporate dollars, she said, “I can understand they would be suffering a little bit more.”

Matthew C. Lishanky from Upstairs on the Square said that recruiting isn’t the only thing that has changed—so have the part-time career aspirations of former Wall Street bigwigs.

“It’s amazing to see the influx of resumes of lawyers and financial analysts applying for positions as servers and bussers,” said Lishanky, the restaurant’s director of operations.

This phenomenon did not hold to be true at other restaurants interviewed, who said that the pool of applicants is broader and more talented, but not necessarily of the ex-banker persuasion.

But as Lishanky pointed out, “People will always have to eat. People will not always need a 401k.”

—Staff writer Lingbo Li can be reached at lingboli@fas.harvard.edu.