Prof: The dog ate my
homework; you guys will understand what
that means. We’re going to have to postpone
the Rapaczynski case. I got back from Washington late
last night and got to the office this morning and the SOM server
was down. I actually did some of the
filming and visited their offices in Warsaw three years
ago, and I would like to divert us a little bit today.
I want to talk briefly about
what I’ve been doing in Washington and how it relates to
what we’ve been doing here. Then you’ll remember,
some weeks ago before the midterm,
we had a soft schedule to do the Mory’s Business Plan,
and I brought with me today two distinguished colleagues who are
going to help us to understand the Mory’s business plan as a
challenge. Chris Getman,
immediately to my right is the president of the Mory’s Board of
Governors and an iconic figure at Yale.
He has been the owner of how
many Dapper Dan’s? Chris Getman:
Handsome Dan’s. Prof: Handsome Dan’s,
pardon me. Four, including the incumbent.
Including the incumbent. Prof: Jonathan Ingham,
now immediately to my right, is a former president of the
Yale Club of New York, Yale College Class of 1964–
Jonathan Ingham: 1965. Prof: 1965,
and has been one of the instrumental players in the
Mory’s business plan. Before I get to that I want to
talk a little about Washington. I’ve been down there working
for a company, but it has brought me into
contact with staff in the Senate and the House,
and I thought I’d share a little of the texture of that
with you because it relates to capitalism in–
or at least to American capitalism,
in an interesting way. As you know Saturday night at
quarter to midnight the House of Representatives passed a version
of the Healthcare Reform Bill by the margin of 220 yea,
215 nay. The first thing remarkable
about that number is it adds up to 435;
very few bills add up to 435. This one was one where being
absent would be the sort of offense which could cost you
your seat in Congress because the intensity is that high.
The other feature of it,
and I read– I can’t claim to have read more
than about 20% of the bill, but the stunning feature of it
is that the fingerprints of lobbyists are all over it in a
degree that is just– it was to me pretty disturbing.
I’m reasonably cynical about
how the world works but the number of cases where the bill
will be going along talking about one thing,
and then there will be a paragraph,
labeled Section 1753, and it will require the
services of licensed podiatrists,
or it will require a funding grant to a certain category of
health providers in a region of several western states.
It’s just pockmarked with very
intense lobbying. Then when you talk to the
staffs of the two parties, you get two very different
kinds of talk. Let’s leave my politics out of
this. Which side do you think would
sound more coherent right now, the Republicans or the
Democrats, talking about the healthcare bill?
Have I got a microphone I can
hand somebody? Who wants to take a shot at
that one? Student: I would guess
the Republicans since they haven’t had to have made
concessions to numerous special interests to get the bill
passed. Prof: Terrific,
you nailed it. Are you a political science
major? Student: Yes.
Prof: Good for you.
In Washington this year $2.9
billion dollars–repeat that number: $2.9 billion
dollars–was spent on lobbying the federal government.
While compared to the cost of
the healthcare bill, that doesn’t sound like much,
it’s an awful lot of lobbying, and the majority party on a
bill like this is– well how many–let’s suppose
they did it as follows: Obama brings in fifty wise men
and women from Harvard, Yale, Berkeley,
Michigan, Texas, and so on and they spend thirty
days working on the best possible bill,
to get the most bang for the buck for the general public in a
new healthcare plan, and then he puts it in an
envelope and sends it up to the cap–
sends it over to Capitol Hill. About how many votes,
if it were really well done, do you suppose it would get?
Anyone want to take a guess at
that? We have historical experience.
This is what the Clintons did,
right? Nearly two decades ago,
and it got shot full of holes immediately, right?
There was just–there was
virtually no support for it because all the defensive
interest groups staked out their ground,
no concessions, or very few concessions were
made, and it just sank.
Does anybody remember how the
Obama people handled this piece of legislation?
What did they say to the
Speaker of the House, Nancy Pelosi?
Anybody–do you guys read
newspapers? Tom, do you have any memory of
this? Student: I mean he more
or less gave some broad outlines of principles for the bill and
then said, “You do it,”
and handed the whole thing over to the legislature.
so he handed the thing to The House of Representatives,
and the lobbying process became very intense,
and it is an incredibly intricate set of,
not–most of it–an awful lot of it is like the earmarks for a
bridge in Alaska, but it’s usually not a bridge
in Alaska, it is a podiatrist in an office
spread all the way across the country.
And I really do believe in
markets, and there is so much in this bill that would not meet
market tests, right?
If you said we’re going to
require the service of podiatrists in a certain aspect
of it, and you ask yourself,
well would people sign up for that if it were not required by
law? In an awful lot of cases the
answer is yes of course, some would sign up for it,
but the amount spent would be billions less than if you do it
this way. Now you all can–I voted for
President Obama and I’m deeply supportive of his and other
people’s goals for the country, but this bill,
I can’t–I really can’t stand up for it.
Does anybody want to take the
affirmative about why it is we’ve just got to get this done?
I promise to be polite.
Okay, well we’ll go from
something easy to something more difficult.
Mory’s is–okay let’s first
find out how many of you have ever set foot in Mory’s?
Wow, so we have a whole room
full of experts. Would somebody like to recap
what they think the last year or two of Mory’s existence looked
like? This could be fun, go for it.
Student: There was like
a struggle to be much more inclusive,
so there were all these promotions so you could get a
Mory’s membership for $10, you could come in and get $10
off your, like, meal and my friends and I
totally made use of that because we like eating everywhere at
Yale, around Yale.
So we did go a few times,
but we never got a– I don’t think we ever really
got a Mory’s membership, things fell through,
and then we never really heard about it again.
Prof: It closed on the
19^(th) of December. Do you want your money back?
Student: No, I’m fine.
Anybody want to say anything
about what they think the place was like from a member or
customer point of view over the last couple of years?
We have complaints–did I see a
hand here? Here’s one back here.
Student: The food.
Prof: The food.
How was the service?
Prof: Mes-a-mes? Student: Yeah.
Prof: Mory’s lost a lot
of money in the last two and a half years it operated;
roughly speaking $1,000 a day. Chris Getman here became its
president after the disaster was revealed, and has been working
with a group of us to bring it back.
I thought I would start with
Chris and just get him to reflect for a minute on what the
task looks like, and what we hope to accomplish,
and then we’ll talk to Jonathan,
and then I’ll come back with a summary of the business plan.
Well, let me start by saying that the–how does this
Prof: It works just like
that. Chris Getman: Okay.
The first thing I–like a
Whiffping. I’ll just–can you all hear me
if I talk like this? The first thing I did before I
became president was to get Doug Rae to agree to join our board.
The second thing I did after I
was president was to close the place,
terminate everybody in management but one person who’s
still with us, her name is Robin Soltas (sp?)
and she’s a terrific employee,
and then we had to lay off all the staff.
We were going to run out of
money the middle of January, we closed on the 19^(th) of
December, and actually this is a good
thing because as you said, Mory’s was doomed given the
quality of the food and the service basically.
That’s what makes restaurants
succeed or fail and we were not succeeding in that regard at
all. I think that when we reopen
it’s going to be a place where you guys are really going to
want to go. We are reaching out to the
students, if you want your $10 your back, when we’re
profitable, we’ll get it to you. The second thing I did after
that was to get Jonathan to agree to work with us.
In addition to being a great
guy he’s also a form of Whiff, and as I think most of you
know, the Whiff’s are a very important constituency of
Mory’s, along with a lot of others,
the athletic teams, political affiliations,
and faculty, etc., but the Whiffs were a big
part of Mory’s and the reason a lot of people go there on Monday
nights. We have formed a committee to
raise money to not only make capital improvements to the
club, it was pretty run down for
structural improvements, goes from the wiring all the
way to getting working fireplaces in a couple of the
rooms, and the cost to do what we hope
to do is going to be something in the neighborhood of $2.9
million dollars. We’re well along the way to do
that and I hope to have good news about the fact that we’ve
reached our goal and can open– and we’re not going to sign any
long term contracts with electricians,
or plumbers, or contractors until we know
we’ll be able to see the job all the way through.
It’s been fun.
There’s an awful lot of–Mory’s
is the largest private club in the world because in the old
days there were– you were a lifetime member and
it would cost $15 to join for life,
and so we have 14,000–or probably 13,000 members now;
many of them we don’t hear from but there’s an awful lot of
loyalty and a positive sentiment about the club,
and we’re very confident that this is going to happen.
Why Mory’s and why Mory’s as an association as opposed to
an adjunct or some form of open house being run by Yale.
Let me back up a little bit.
Ten minutes ago,
Doug asked me to come in and share some of my thoughts about
Mory’s with you, and so this is–I’m talking as
I’m thinking and I’m going to try and relate it to the purpose
of this class, which is capitalism.
First of all, why Mory’s?
I came back to the Yale Bowl
about five or so years ago and I was watching the Harvard game,
and I was sitting with some of my Harvard friends,
and about halfway through the game I wasn’t having any fun,
and so I said I’m going to go back to New Haven and just hang
out and see what’s going on. I couldn’t find a door that was
unlocked in the entire town of New Haven,
and I’m thinking to myself, where do people like me go on a
Harvard weekend, or any other kind of weekend,
or when I want to show up in town there’s no place.
I wasn’t a member of Mory’s
before I got involved with this, because back when I was your
age, plus two or three years, I didn’t have the $25 to–or at
least I didn’t think it was a good expenditure $25 for a
lifetime membership, so I kind of ignored it.
Then I started going back with
a Whiff alumni group, and we would sing on occasion
at Mory’s, on Monday’s when the Whiffs
were somewhere else, and it occurred to me that this
was a place that deserves to be alive.
But as I looked around and saw
this place, it clearly didn’t reflect the needs of the
marketplace. It was basically a place where
old guys go and have meals occasionally.
I didn’t see any students
there, there was no vibrancy, no relevance to the place,
and so then I got involved because of these guys,
and the whole concept of what Mory’s should be became
crystallized in my thinking. It belongs because it
represents 150 years of experience, all the pictures up
there, all the traditions and cups.
Everybody has their own
particular memories about it, but collectively,
it is an important part of, I think, the Yale experience.
And, I think,
sadly, it hasn’t been an important part of your
collective experience. I think if you do a survey
among the graduate students, 85% to 90% of them won’t
even–or never thought that they were eligible for membership to
Mory’s. I think what we’re trying to do
here is to preserve the memorable aspects of Mory’s,
the iconic nature of the place, but also to open it up and make
it a welcoming institution for the student body,
both graduates and undergraduates.
And by that I mean
having–expanding things like singing group nights,
doing things which we found to be successful at the Yale Club
in New York, which was to have poetry
readings, discussions of novels, and any kind of thought.
We want to be open to the
student body to be able to say come on and let’s discuss this
here. Then of course we hope that
that sort of activity will spill over and include some selling of
drinks and food. Prof: Terrific.
But basically–let me just finish one thing.
It belongs–run by market
forces, not by Yale. The alumni–the Rose Alumni
House is useless as far as most graduates go,
and a Mory’s which would be run by Yale,
I think would similarly not be relevant.
I believe an active,
well-run restaurant, bar and lounge,
which is responsive to the needs of the student body,
is the way to go, and that’s where I think we’re
trying to come out on this deal. Prof: Okay.
Now let’s talk business.
Mory’s, in its last year of
operation, did about $900,000 of bar and restaurant business.
When I say bar and restaurant
you may be confused by the first word.
Where’s the bar at Mory’s?
There is none.
It’s founded on drinking songs
and it has no bar; kind of odd.
It is all about Yale,
and only 7% of Yale’s enrolled students belong to it.
It is a business with an
absolutely natural market all its own.
who’s a junior in the college, was in this course a year ago
when I got started on this, and he said,
“Why don’t we do a survey?”
So he did a survey monkey
instrument, and got 600 student answers,
and the most interesting thing about it was that something over
200 of the 600 thought that they were ineligible to join Mory’s.
They thought it was
somehow–for all different reasons,
but a third of our market just thought,
“Can’t go there,” so that’s kind of an issue.
Well the–also in the
background the university has done some focus groups over the
last five years looking for what students and a larger Yale
community want in the Broadway walk part of town.
What do you think comes up
number one? Student: Bar.
and a specific kind of bar; a sports bar.
What we’re going to do is in
the back of the building, facing away from York Street
toward Morrison Styles, toward the retail block,
we’re going to put a bar that we’ll have a walkway,
an indoor walkway into the main building,
and it will be a kind of–it’ll have characteristic Mory’s
memorabilia and a Yale atmosphere to it,
but there will be plasmas and you can watch even such
below-the-salt institutions as Michigan and The University of
Southern California on a plasma screen.
The–and that slots into the
basic bottom line goal. Mory’s did $900,000 in
business, it had roughly $1.5 million in expenses last year,
and you do the math. The average labor cost embodied
in each meal served was $31.50; cogitate that for a second.
I didn’t say anything about the
cost of the food, heat, electricity.
Student: I remember you
mentioned in a class earlier this year that it was because of
the labor unions, and so is that still a problem?
Prof: One of the reasons
we didn’t do this a few weeks ago is that I can’t give a
completely straight answer to every question,
and that’s one of the questions which is very much up in the
air. If I said it was because of the
union, I misspoke. The union is–my assessment is
that the problems with the union were about a quarter to a third
of what was wrong, and Chris–you know mostly when
people say, “We’ve got a terrible
labor problem,” the first question you have to
ask is, “Don’t you maybe have a
terrible management problem?”
And Mory’s had both.
Often the trouble–the contract
was onerous, there’s no question.
The tight work rules,
benefits comparable to General Motors;
it was a bad contract. But we have a very cooperative
relationship with Unite here and Local 217,
and we’re working on a constructive agreement that will
include all kinds of things you don’t usually see in labor
contracts. This is me speaking,
not an official statement, but it is my hope that it will
include an individual incentive story where if people work hard
and help us produce profits, they’ll share in it beyond
their wages, and I actually think we might
get to that, though nothing to announce but
just an aspiration. Okay so we eventually come up
with a business plan, and Mory’s has to go from
$900,000 in business to a $1.9 million,
and much under a $1.9 million it isn’t going to work.
Then you ask yourself how many
restaurants in New Haven make a $1.9 million a year in gross
revenue? Anybody got a guess?
There are MBA’s in the room;
you guys are good at guessing. Igor what do you have?
Student: How many
restaurants? Prof: How many
restaurants make a $1.9 million a year gross in New Haven?
you’re not too far off. Richard, what do you have?
Student: A handful.
Prof: A handful.
You nailed it,
two is the answer. There are exactly two such
restaurants, and they’re both on the edge of the campus,
and therefore potentially competitors to Mory’s.
Can you name them?
Student: Union League.
Prof: Union League.
>Prof: Say again.
I think I heard the right
answer. Student: Zinc.
and those are guesses on my part.
They’re rather well educated
guesses. It’s not as if these
restaurants gave me their books, but they’re my guesses.
That’s the competitive
standpoint. Mory’s–what drives the
business? What’s the first driver you
have to think about? Well the–we all know it has to
do with food, drink, service,
quality of experience in every way but why don’t more people
walk through the door? Well partly because all those
things are not very good, but partly because they don’t
think they’re invited. Because they don’t think
they’re invited, it never occurs to them to
come. Now what–if you were going
to–let’s name a demographic by how old they are,
how much money they make, and where they live.
Who should we think of as the
people who can make Mory’s into a $1.9 million dollar business?
Yale alumni living in
California? Okay, hands up for that;
okay so that’s not–so the fact that Yale has 160,000 living
alumni, and that the vast majority of
them have handsome incomes, does that solve our problem or
is there a subset that might help solve our problem?
those within driving distance. Prof: Okay,
good, it’s a thirty mile radius, and there are about
7,800. Yale alumni in a thirty mile
radius, and we’re not getting–almost nothing.
Can you think of another market
segment that you might want to pay attention to?
It’s already been mentioned.
students? Prof: Yeah,
I’m holding up a mirror, it’s you.
Now let’s start–may I presume
to start with you? This is a sales call;
I’d like you to join the restaurant.
Student: What does that
entail–or how much do I have to pay?
Prof: How much do I have
to pay? You have to pay $15–what year
are you? Student: I’m a senior.
Prof: You’re a senior.
Well you’re not going to get
the best deal, because the price is for the
duration of your years at Yale as a student.
The price is $15,
and we’re going to give you a $10 food and drink credit.
Are you 21?
so a $10 drink and food credit, so the net cost to if you like
to either drink or eat, and we have good stuff is $5.
Student: Do I pay $5
dollars flat? Prof: Yeah you’re going
to have to write a check for $15 for the rebate.
Are you going to do it or not?
Student: I’d have
to–it depends on if other people I know are going to do it
also. Prof: That’s a really
good answer. It depends on if other people I
know are going to do it. I think you’re exactly right,
but tell me how you got–what are you thinking?
Student: Well I’ve
never been to Mory’s before, and I don’t want to just go in
and sit by myself if none– no one else I know is going to
be there. Prof: That’s absolutely
the right answer, right, because restaurants and
clubs are a so-called network good,
and the value of going by yourself and sitting in the
corner is not very high. It’s meant to be friendly,
so there’s a huge insight there.
Let me try a couple more people.
Jennifer how about you?
This is a sales call.
You already know the price.
Student: All right,
well I would want to know what kind of food they serve,
because if I have–if I’m a picky eater,
maybe I wouldn’t even enjoy going there because I’m not
twenty-one. Prof: Okay,
you’re not twenty-one, and are you a picky eater?
Student: For these
purposes yes, today I am.
what are you–what are your criteria?
Student: Let’s say I’m
a vegan, would I even want to join?
Prof: You’re a vegan?
The 3/4 pound hamburger that we
plan to serve, that’s not good.
Prof: Okay so you’re
going to want to have–you don’t insist I–you insist that we
serve only vegan food? Student: No,
but I want to know that if I go there I will enjoy my
experience, so if you have options that I would eat that
would be great. Prof: So vegan options
and we’re going to be open a lot.
It used to be we were open
thirty-nine hours a week, we’re going to be open 65.5
hours a week, and a lot of that extra time is
pub time, where the restaurant will be
closed but the pub will be open, and the idea is to come in and
meet your friends for a drink and have a vegan burger.
Student: That sounds
great. Prof: Am I getting
anywhere with you on that? The vegan burger or that
doesn’t– Student: Yeah,
and you know most things served at a bar are vegan,
so I think I would. Prof: So your–did you
sign up or not? Student: I haven’t.
Prof: Still in doubt,
okay, all right. Let’s go right here,
so $15 minus $10? Student: Yeah,
I mean, I actually– I thoroughly enjoyed going even
before the– before it shut down but I
never–see I never went to eat, was the thing, though.
We always went for cups with a
group of friends or something along those lines,
so I’m definitely attracted by the bar.
Prof: Do you actually
like cups? Student: It was more
just sort of the experience, which was what was being
discussed. Prof: I actually think
there’s this peculiar thing about cups.
I know lots of people who do
cups and don’t like them, and it’s–what they’re doing,
and it’s your point, it’s the social thing,
it’s with your friends. Chris, do you claim to like
cups? Chris Getman:
If you put a cup on the menu as a drink,
and served it by the glass, probably not.
It’s the experience,
quite frankly. Prof: Yeah,
it is the experience. Jonathan, I think I remember
that you don’t much care for them.
And I like to drink. Prof: We have that in
common; all three of us have that in
common. It’s a pretty diverse student
market, but it turns out that the students are the drivers,
the biggest driver for the whole thing.
The reason is that the ambience
of the place is geriatric, and geriatric is boring.
I got my mother to move into an assisted living home a year ago,
and she said, “Promise me you’ll get me
out of here after a year if I hate it,”
and after a year she said, “I hate being around these
old people, get me out of here,”
and she’s out. So we’ve got to get you
involved to get other people involved.
Now the faculty are also–it
turns out the faculty are the biggest spenders on a per capita
basis at Mory’s but we’re still way short of enough–
what I’ve talked about now so far is about enough to do a
million, $1.1 or $1.2 million.
Where else are we going to go
looking for customers? Anybody got a thought?
In the back–
Student: Tourists and visitors to New Haven.
tourists and visitors, what do you think guys?
Jon do you think that’ll work
or not? Chris Getman:
Tough in the club model. Prof: Yeah,
the trouble with that is that we’re a club.
Now it can be the people who
have reciprocal agreements with the Mory’s club,
and there are how many clubs like that?
Right now there’s only one but there are going to be several
when we reopen.. Prof: Okay.
That’s one of the things we’re going to focus on.
Prof: Okay we,
our–our business plans counts on no business from tourists.
Anybody else got a thought?
Student: Making members
or new members annually, so even if they’re not actually
coming into the restaurant they still pay the membership fee.
turns out that the membership dues are–
they’re a nice little add on, but they’re in the neighborhood
of the last couple of hundred thousand dollars,
and that’s not chicken feed for us,
but it’s not foundational. In the back–
Student: One of the previous barriers for Mory’s was
the perception of exclusivity, and if you opened up membership
to the larger Yale community, broadly defined,
that would open new revenue streams,
so not just the students but faculty and staff as well.
Prof: Okay that’s huge.
First of all,
the entire staff of the university becomes eligible for
membership, whatever the rank or job description.
That’s already been voted on.
the subway alumni are a very important part of any
university. Like Notre Dame has about six
million subway alumni, people who identify with the
school and do all the stuff and never set foot on it in the role
of student, and Yale has some of that too,
quite a lot of it. Where do we go looking for
people who obviously love the institution but don’t show up on
our record of alumni and such like?
associations. Prof: Say again.
Student: Like the
parents of the students. Prof: Parents?
Yes, student parents are one
segment of subway alumni, and we think we probably get
400 or 500 of them to join annually,
and so that’s not inconsequential.
Student: Donors to Yale
University. Prof: Okay anybody who
has ever given $100 to Yale, alumni or not,
is clearly eligible. Anybody else you might think of?
Student: Yale sporting
events. Prof: Yale sporting
events, very good. How would we go about finding
the right list there? Student: A club.
Prof: It’s–first of a
club–we’re not Joe’s Bar & Grill,
so we can’t sort of walk around at halftime at a football game
with a sign come to Mory’s. Student: Doesn’t it
come down to the way you enter a sporting event?
If you’re affiliated with the
university either just kind of take it or get it for free using
your student card or whatever it us,
you want to have a list of the people that are paying.
Prof: Okay so we want
actual paying customers, and the people we would aim at
are season ticket holders. Season ticket holders for Yale
athletics–are there any other groups like that you might think
of? Let’s talk about your parents
and not about them being members of Mory’s,
but what would trigger them to be members of Mory’s if they
lived near Yale, and were not Yale alums?
Want to take a shot at that?
Not really, okay that’s fine.
These MBA’s know it all.
Student: Well I guess
as parents coming to visit your student–
or your son or daughter as a student,
you may not necessarily be able to spend all the time that
you’re on campus with them, and you want somewhere you can
go and just kind of kill some time while you’re waiting.
so that’s the parent niche again.
How about people who have
already shown a propensity to spend money in things like
Mory’s? How about the membership roster
of the New Haven Lawn Club? How about the membership roster
of the Quinnipiac Club or The Graduate’s Club,
or The New Haven Country Club, or any one of twenty other
comparable clubs in the thirty mile circle?
What do you think?
Who’s got an intuition one way
or the other about that? Let me give you another hint
about that. The dues at most of those clubs
is measured in the low thousands per year.
The dues at Mory’s,
no one will pay more than $100 a year for Mory’s,
and if you are a member of the Lawn Club–
the Lawn Club has food that is better than Mory’s but a hell of
lot worse than Union League, and if I came to you and said,
$100/$2,000 I might get you to switch clubs but more likely
what I’d get you to do is to add Mory’s.
Aren’t you leaving out the all-important potential drinking
business of the grad and professional students?
Prof: We are,
and I should point out to you that Jim Alexander,
whom you all know well, not just from his Enron days,
is, in eight days from now, assuming office as president of
the Lawn Club, and I was talking about
stealing his members sort of just to have fun with him.
Do you think he can keep that
membership list secret from me? I was president two years ago,
plus there’s a membership directory that is published.
Now would I want to harm the
Lawn Club? Not at all, but would I like to
get in on a little of the action?
Student: I have a question about your–
Prof: Does it follow this line of–
Student: Yeah, it’s on this line of talking.
Just a criticism,
I guess, are you a bit concerned that if you open the
net too broadly to Quinnipiac institutions,
Yale Lawn Club, etc., that you may be diluting
what was the value of the institution in the first place,
which is what we mentioned before, which was the history of
being a Yale institution. Prof: Okay,
that’s a good question. Let me–let’s turn–let’s go
back to Jonathan and Chris about that.
If we let too many non-blues in
the door, does the value of it for the blues begin to erode?
I don’t think so. I don’t think you can tell a
Yale graduate from a non-Yale graduate quite frankly out in
the general marketplace. I believe that the nature of
Mory’s is going to be self selecting and people who are
interested in joining will naturally go there.
Those who might not fit what
you consider the mold, or even the diluted aspect
probably would say, “Who needs it?”
I actually think there is a little bit of a dilution
problem, and there’s a little bit of the
kind of Groucho Marx thing, where you say,
“I don’t want to be a member of a club that’ll take
me.” The–but the segment of
students that we think we’re going to get quite a great
change from that is starting from zero are graduate and
professional students. Leslie’s a Ph.D candidate in
the political science department, what are our
prospects with you? Student: I’d say
they’re fairly good, but you’ve already pitched it
to me as an upscale version of GPSCY.
Is she writing a dissertation?
The–one of the things–well
how about MBA’s? I’m hoping we’re going to get
about an 80% response rate from MBA’s, what do you think guys?
Prof: What is it–and
other than trying to please me at the moment,
what are you going to get out of it?
Student: I think that
for an MBA, there’s also a lot of benefit
in the connections with other alumni that are willing to pay
and come back, as far as networking and future
job opportunities, and just getting to know people
in specific areas. Prof: Yeah,
and one more to the back. Student: Also I don’t
know of another place aside from GPSCY that has a patio where we
can just share a pitcher, and I think there’s real value
in just being able to have an anchor institution that’s close
to the center of the university campus.
so Chris, we’ve got five minutes left,
and I’ll actually circle back to this later in the course,
but let’s hear your pitch. Chris is a born salesman;
he is the best fundraiser I’ve ever been close to.
We’ve raised–what was the
number determined this morning? Chris Getman: $1.7.
Prof: $1.7 million
dollars so far and Chris pitch this thing.
Well I think–pitch it to the students or to–
Prof: Pitch it to everyone.
Well what–first of all as Doug said right now the food at
Mory’s is worse than the Lawn Club.
I happen to be a longtime
member of the Lawn Club, and I ate there yesterday,
only because I couldn’t go to Mory’s,
but I think that in the future the food at Mory’s is going to–
this is our hope anyway, the food and the service is
going to be something that people will want to go back too.
We had a lot of people who
would go there for the first time and say,
oh this is so cool, because it was a unique place.
But their dining experience,
both food wise and service wise was mediocre,
so they didn’t become regular customers.
So our first hope is that
all–everybody– the bar in the back we think
with the pub is going to be ideal for students and grownups
for that matter and I just wanted to add to what Doug was
saying. A couple of other groups that
we’re going to target are subscribers to The Yale Rep,
subscribers to The New Haven Symphony Orchestra,
subscribers to Longworth, The Schubert,
who are people we feel won’t really dilute the character of
the place, and we’re very optimistic that
people are going to think that Mory’s is a good value,
it’s fun, and they’re going to want to go back there,
and we’re very optimistic about this $1.9 million in revenue.
I just–I think that’s a slam
dunk. Prof: We’ll be
recruiting a marketing team in the spring term to help us hit
the numbers we have to, with new student enrollments,
and I hope one or two of you will take an interest in that
task. It’s actually a really
interesting set of business problems.
First let’s thank my colleagues.
On Monday next please read the
Goldman Sachs IPO, which we’ll take apart,
and we’ll have the help of a Goldman partner.