Glassware Synergy

Dan and I often go back and forth with awesome (or awesomely awful, such as a great beer in a Coors Light cup) glassware synergy. Recently I was in Brooklyn, New York and found two great examples.

This glass is from a “Kolsch” beer. The guy next to me at the bar started telling a story that in Germany, Kolsch is barely even considered beer, and you have to put your coaster atop your glass else they will just keep filling it indefinitely. Funny I was able to “authenticate” that story on the ol’ intertubes here. I really like that Kolsch beer and would be glad to find somewhere around Chicago that has it on tap; I also really dig getting Kronenbourg 1664 on tap, as well (a French beer).

The second is from Ommegang Abbey Ale. I took the photo from my mobile so it isn’t perfect on the logo but you can definitely make out the dancing monks.

Cross posted at LITGM

Bohemian Hall in Queens

Over the years I’ve traveled to New York City many times but never the borough of Queens. In your head you have a mental picture of the NYC map as if Queens has a “hard” border but really it is just attached to Long Island which goes out to the East.

We met a friend in Queens and went to Bohemian Hall which is one of the best beer gardens in New York City. It is over 100 years old and was built by immigrants from Eastern Europe. We went straight outside since it was a beautiful day in 70 degree weather (one of the first nice days of the year in mid April) so I didn’t see the interior of the building.

It opened at noon and soon was full of young and trendy new York types – not the downtown all-in-black types, but the borough crowd that was forced out by incredibly high costs and also those with young children. We saw a lot of strollers and kids running around, it sort of reminded me of Wicker Park over the last few years.

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On the Internet

Recently a few loose threads have come together on the Internet and some “old school” high tech companies.

Yahoo! – Yahoo! (I guess I need the exclamation mark) has a value that is less than the sum of its component parts. The market capitalization of Yahoo! comes in the fact that it owns a significant portion of two Asian internet companies. Per this pithily titled article “How Is Yahoo So Worthless“:

Yahoo is huge. It is the fourth-biggest Internet domain in the United States. It is the fourth-biggest seller of online ads in the country. It is the most popular destination for fantasy sports, controls one the most-trafficked home pages in news, and owns the eighth-most popular email client. In the last three months, it collected more than $1 billion in revenue. It’s very rich.

It’s also totally worthless.

Technically, it’s worse than worthless. Worthless means without worth. Worthless means $0.00. But Yahoo’s core business—mostly search and display advertising—is worth more like negative-$10 billion, according to Bloomberg View’s Matthew C. Klein.

The math: Yahoo’s total market cap is $37 billion. Its 24 percent stake in Alibaba, the eBay of China, is worth an estimated $37 billion (Alibaba hasn’t IPO’d yet, so this figure will vary), and its 35 percent stake in Yahoo Japan is worth about $10 billion. That means its core business is valued around negative-$10 billion.

This isn’t just a random business article; there is some actual financial science behind this analysis. At my trust fund site Yahoo! is one of the stocks I selected since I believe that their new CEO Marissa Meyer is a badass but according to the math she is still losing the battle.

At one point in my career I worked for a public company that had $300M in cash on hand and a market value of $200M. Your business plan could be to fire everyone and drink in a bar all day and you’d be much closer to $300M than $200M (after all, how much can you drink). The market is anticipating that bad things are going to happen or that Yahoo! won’t be able to successfully sell and repatriate the cash for these investments. It is like that famous postcard my relatives in Montana had that said “If I won a million dollars I’d just keep ranching until it was all gone.” That is what the market today thinks of Yahoo! – even if they successfully extracted the cash from these investments, they’d invest it into something of less value (by $10B or so, apparently).

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The “Grand Budapest Hotel” and History

Today I watched the movie “The Grand Budapest Hotel” by Wes Anderson. While the movie was not intended to be an historical record, in some ways a fictionalized representation of life in the 1930’s and early 1940’s is a better way to humanize the elements of the conflict that can be lost broader sweep of the cataclysmic events known to all. The movie also works to include the postwar elements and even the post-communist years into a long a complicated narrative.

After the movie was done I started explaining how I saw the movie to fellow movie-goers and, to them, I almost seemed like the narrator that the movie didn’t include. I just overlaid my own understanding of the participants in that era and, since it is fiction, my own interpretation is likely as sound as anyone else’s.

I will try to limit the “spoilers” in this post and recommend that anyone interested in Zweig (to whom the movie was dedicated) and / or that era in history go to see the movie. You have to be a fan of the Wes Anderson style of movies and his set pieces are clearly not supposed to be realistic but they are tools for great visual cues and inspired situations.

The protagonist in the movie, Ray Fiennes, plays a concierge for a major hotel in the capital city of a declining empire in the 1930’s as war time approaches. He mainly seduces older women but also is open to other sorts of encounters with men. Ray is plainly an intellectual and stickler for protocol and process in an era where that is reaching the end of the line. He and his fellow concierges represent the type of society that Zweig would fondly recognize (as does the process-following attorney who runs into serious trouble later).

The country could be an Austria or Czech type republic that is about to be swallowed by Germany. The borders are in the process of being closed to adjacent countries due to political challenges and incipient war. In an early scene, soldiers in grey accost and check the papers of the concierge and his “lobby boy” (who is non-white and obviously from one of the provinces) on a train and start to beat them up when they are stopped by Edward Norton, who plays an aristocratic officer who recognizes the concierge. To me this officer clearly represented the orderly and (relatively) law abiding German army. He even wrote a note giving safe passage to the lobby boy.

In the early scenes the soldiers are in Grey and when they stop the train their have early model armored cars. They are not intended to be realistic per se but they seem like vintage 1930 era inspired vehicles.

During the contesting of the will, a lawyer who also represents the old era brings a process and fairness to the executor’s role (along with a Kafka-esque level of bureaucratic documents) until he meets up with a thug in a black trench coat who clearly represents the evolving SS. That individual, played by Willem Defoe, engages in more and more grotesque crimes throughout the movie and is not impeded by morals or the rule of law. At one point the Edward Norton character orders the civilian Dafoe away from an investigation that Norton is running, but it is clear that Dafoe is not intimidated and is part of the (hyper violent and aggressive) new order.

Later the protagonist against the concierge is seen to be in a long leather coat and is obviously a civilian leader of the Nazis. They have 2 letter flags and armbands in the SS “style” but the movie does abstract them so as to not be completely blatant. The hotel becomes a barracks for the military regime, and the standards of the staff decline as the hotel is militarized.

When the train is stopped again later in the film the “death squads” are taunted by the concierge with results that are far less pleasant than the early encounter with Norton. The soldiers in black and the more sinister looking hulking vehicles (which seem to be gun mounted half tracks) are also in black and this clearly represents the SS militarized and not the old nobility-led military.

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Your English Major Kids May End Up Serving Tables In Chicago

I live in the River North area of Chicago, which is full of restaurants of every type and description. There is also intense competition among many of the smaller restaurant groups, since apparently some level of scale (5+ or more restaurants) is helpful and these restaurants tend to have very high levels of food quality and service, based on my experience.

When you interact with the bar staff, hostess, and server you can usually tell if you are working with someone who is “going through the motions” or someone “who is good at their job”. There are many subtle details that are much larger than “getting your order right” – they include knowledge about the food and presentation, recommendations based upon your input, and generally anticipating needs and solving problems without having to be prompted many times.

Recently I’ve come to the preliminary conclusion that many of the waitresses and servers in these higher end restaurant groups must have gone to college and are well educated. When you talk with them they are very sharp and quick and they seem to have the type of drive or energy that could make them successful in a variety of careers. I would never ask them directly because that’s none of my business and it could embarrass them.

This article form Bloomberg titled “College Graduates Taking Low Wage Jobs Displace Less Educated” confirms at least my anecdotal impressions here in Chicago.

She got a job as a hostess at Blackbird, a One Off restaurant, while pursuing a bachelor’s degree in Germanic studies and communications at the University of Illinois at Chicago in 1999. “The formality of classes, papers and grades did lend a hand in where I am today because I had a broader sense of cultures, interactions and interpersonal skills,” said Galban, who is now also a partner at the restaurant Nico Osteria, one of seven Chicago restaurants managed by One Off. Of the company’s more than 700 employees, more than 60 percent hold college degrees or higher, yet fewer than 10 positions require a degree, Galban said.

The willingness of college educated adults to take on these jobs will likely cause at least three side effects, one of which was the “main” topic of the Bloomberg article I linked to above:

1. These restaurants will be more competitive than typical restaurants, because the higher educated and higher skilled workers will drive customer satisfaction and drive efficiencies within the food and drink serving processes. As these workers move “up the chain” at the restaurants, they will also offer career paths for other college degree holders as well
2. Less-skilled workers will have less opportunities because they won’t be able to compete with these individuals. It would be a simple “screen” to give preference to individuals with a degree who apply for jobs, even if it isn’t a requirement of the job. In the past the assumption was that if someone “over-qualified” would work at your restaurant or business, they would leave immediately when a new opportunity arises, but in today’s stagnant economy (especially in Illinois) there don’t seem to be a lot of opportunities for them to “jump to”.
3. Since the cost of higher education is so high today, parents need to think of how they will feel when their liberal arts (or lackadaisical business) degree holding children are potentially serving them in a restaurant, and if this is worth the vast expense and financial impact of the degree that they are seeking

Another side effect to consider is that these restaurants are not just randomly seeking out applicants from the pool. Their employees are not only young, they are disproportionally above-average looking. Perhaps if you aren’t college educated you can make up for it in attractiveness.

Cross posted at LITGM