Got Lunch?

Working on Wall Street has its advantages...particularly for buy siders who know how to work over their sell side counterparts for a meal in the name of research.

Smith & Wollensky has long been Wall Street’s midtown cafeteria...and it appears that Alan Stillman will retain control of his venerable NYC operations after the sale…

NEW YORK (AP)—Steakhouse chain operator Smith & Wollensky Restaurant Group (SWRG-NASDAQ) Inc. on Monday said it has agreed to be acquired by Patina Restaurant Group LLC for about $79.6 million in cash, or $9.25 per share.The sale price represents a 12.8 percent premium over Smith & Wollensky’s Friday closing price of $8.20 on the Nasdaq Stock Market. The company has about 8.6 million shares outstanding.Smith & Wollensky’s board of directors approved the agreement and is recommending that its stockholders do the same. The deal is expected to close during the second quarter.As part of the transaction, Alan N. Stillman, Smith & Wollensky’s chief executive, will acquire from Patina the restaurants currently operated in New York and other assets, and will assume specified liabilities, according to a company release.Patina’s New York properties include the Ice Rink and Sea Grill in Rockefeller Center, and Nick & Stef’s Steakhouse at Madison Square Garden. AP

Alan Stillman and the Taco Bell rats are not the only foodies making headlines… some people seem to be getting sick over the lack of transparency at the Zagat Survey. Zagat guides are more ubiquitous than buy ratings on Wall Street.  And earning a passing grade from Tim and Nina seems to be easier than scoring top marks at Harvard Business School.

And cracking the veil at Zagat is harder than figuring out how to pronounce it:

za Gat-rhymes with “the cat”

And transparency?

Fuggedaboudit!

Restaurateurs praise Tim and Nina Zagat’s success and impact on the industry, but some question how democratic the ratings are. “The guide isn’t necessarily what your average reader thinks it is,” says one.

The Zagat’s are on the defensive…

...critics wonder about the couple’s perceived coziness with the industry they cover and whether the company’s rapid expansion is affecting its surveying system. Bring these criticisms up with the Zagats, however, and you’ll get a passionate defense of their system. “The integrity of our survey process is our highest priority,” the couple says.

Read all about Zagat Math

By the way, if you are looking for an excuse to eat..its last call for Stillman’s Cite restaurant. They lost their lease and are closing on March 31st.
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The content contained in this blog represents the opinions of underthecounter. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. Underthecounter has not positions in any securities mentioned above

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