June 2008: Top News Stories

Here is some of the top industry news for June 2008:

Multi-million Dollar Lunch with Warren Buffet

Zhao Danyang, an Investment fund manager of Hong Kong-based Pureheart China Growth Investment Fund, outbid his competition to win a chance to have lunch with Warren Buffet.  Zhao paid $2,110,100 for the charity event which was significantly greater than last year winning bid of $650,100. It was the most expensive charity auction ever held on eBay.  All proceeds are dedicated to the Glide Foundation which provides social services to the poor and homeless in San Francisco.  Zhao and seven friends will have lunch with Mr. Buffet at the Smith & Wollensky steakhouse in New York City.

High Volume NYC Restaurants Sued Over Tips

Asia Five Eight LLC, the operators of the popular Tao Asian Bistro in New York City has been sued by two former servers for allegedly misappropriating tips and for unpaid overtime working hours.  The restaurant joins a list of upscale independent New York restaurants.  Tao Asian Bistro is estimated to generate $26 million in annual sales.  The plaintiffs, Prasker and Larusso, launched the lawsuit on behalf of hundreds of Tao employees and are suing for all of the tips owing and all unpaid overtime hours.  There are also claims that the restaurant misappropriated service charges and mandatory gratuities paid by customers who held parties or functions at the restaurant.  The amount of damages being sought has not been specified.

Other New York restaurant operators who have been sued for alleged violating state and federal wage and hour regulations include Daniel Boulud, Drew Nieporent and Keith Mcnally who was the former operator of Smith & Wollensky.   Currently, the Fireman Restaurant Group is in the process of settling two lawsuits, one for $588,000 and another for $3 million which is expected to be paid out in the next few weeks.

Re-launch of Domino’s Pizza

Michael Schlater who was the fist Canadian franchisee of Domino’s Pizza is now President of the newly restructured company.  Schlater who originally comes from Ohio opened a unit in Winnipeg in 1983.  Acting as the Canadian master franchisor, Schlater has plans to open at least 75 stores in the next five years.  Currently, there are 140 franchise owners operating 280 stores across Canada.  Globally, the US-based chain has more than 8500 units in 55 countries.

Fine Wines from China

Can China be the next big wine producing country?  That’s what the wine experts from Berry Bros. & Rudd believe. The British company who has been selling wine for 310 years predicts China will be a major producer of fine wine and has the resources to make wines equal to the best of Bordeaux.  China has 400 wineries which are expected to multiply ten fold by 2058.  There are areas in China that have the right environmental conditions to produce fine wines but the   problem is a lack of experts to grow and produce it.  Alun Griffiths, an executive of Berry Bros. & Rudd believes once other wine producing countries realize the opportunities in China then they will go and invest there.

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