Can A Restaurant Makeover Make Diners Spend More? «

Dan Pashman: Hey, Sally Helm, reporter for Planet Money.

Sally Helm: Hello, Dan.

Dan Pashman: You’ll recall the scene. It’s a very hot summer day. 

Dan Pashman: I should have worn shorts. 

Dan Pashman: You and I show up in a restaurant in New York City, specifically in Long Island City, Queens. 

Sally Helm: Yeah, It’s a casual Indian place, called Adda, which translates, roughly, to hangout spot, and that is the vibe the owner Roni Mazumdar was going for.

Sally Helm: You’re Roni?

Roni Mazumdar: Yeah. 

Sally Helm: I’m Sally. 

Roni Mazumdar: How are you? Very nice to meet you.

Dan Pashman: Roni knows the restaurant business. At the time we first meet him, he owns three Indian places in New York. In addition to this one, there’s The Masalawala, and a more upscale spot, Rahi. But he’s also run two that have closed, including a taco spot right here in Adda’s current location. And he told us, the whole concept of Adda is a risk. 

Roni Mazumdar: We took a lot of chances in a restaurant like this. Serving goat brains isn’t really a normal protocol here in New York, because you’re scared out of your mind, like maybe it’s way too ethnic.

Dan Pashman: But when the New York Times came to review Adda, those goat brains were considered a highlight. One server compares them to soft scrambled eggs with onions, ginger, and fresh green chiles. Another standout, according to Pete Wells’ review: kaleji masala, chicken livers in a gravy with fresh ginger and garam masala. 

Sally Helm: That wasn’t the only press Adda got. It was named a “Best New Restaurant In America” by Food and Wine, and got nominated for a James Beard Award, which is great in some ways of course, but suddenly the business changed. And Roni found he had a problem. 

Dan Pashman: Now, the problem is not the food. It’s actually the physical space. And how the physical space relates to the money. 

Sally Helm: So to explain this, first you gotta understand that Roni designed his restaurant one…