The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-20
BROADWAY WILL
KEEP UPITS HIGH
PRICES OF FOOD
Hotel and Restaurant Men
Declare There Is No Chance
of Cut Now.
DENY MAKING PROFITS
Society of Restaurateurs
Tries to Figure How to
Remain in Business.
PROHIBITION IS BLAMED
No Restaurant Man Can Pay
Rent and Survive, Says
August Jansen.
PROHIBITION IS BLAMED


Broadway hotels and restaurants are
not going to reduce their prices-at
least not until food, rent, wages, china.
linen and other items come down.
With the Government conducting a
price slashing campaign and the pub
lie clamoring against the high cost of
dining out, the Society of Restaurateurs
Z met yesterday to try to figure out how
they can stay in business at all with
out raising their prices still higher.
All the big hotels are losing money
on their restaurants, according tc an
official of the Boomer organization,
which controls the Waldorf, McAlpin,
Claridge and others No restaurant
man can pay rent and survive, said
August Jansen, proprietor Of the Hof-
brau Haus.
Our bill of fare prices are carefully
considered at all times" said the Of
fetal of the Boomer organizatio
Since prohibition there has been no
money in our restaurant department.
If it were not necessary to keep the
dining rooms open for the convenience
of our guests it would pay us to close
them altogether. l cannot see any
chance of cut at this time.
NO Very Large Hotel Included.
Frank A. X Boland. counsel for the
Hotel Association, has an appointment
to-day with Arnim w. Riley. head of
the flying squadron" of the Depart
ment Of Justice Five hotels that have
agreed to cut prices have not been
named, but it was learned yesterday
that none of the very large hotels is
included.
The other places that have announced
reductions are mostly small dairy lunch
rooms, confectionery shops, &C. Mr..
Riley said Schrafts candy stores are
considering a new lunch counter list.
and that he has received assurance of
lower prices from TWO u and n res
taurants. eight &C and l." lunch rooms,
the Lafayette restaurant, the Apollo
restaurant and the Peerless restau-
rant.
4 Mr.. Jansen, president of the Society
Of Restaurateurs, said after the meet
ing that under present conditions 1t will
be a case OF survival OF the fittest for
restaurant owners.
a RrOnlDltlOn mas every lillilB " uO Win
st." Mr. Jansen said. Formerly the
revenue on wine and liquor more than
made up for any losses on food On
bottle of wine there is no overhead to
speak of and no waste. I cannot see
how we can reduce our prices. There Is
practically no profit in the business
to-day.
Consideration Invited.
Look at the price Of meat. the big
item on the bill Of fare. Look at
Chickens broiler we sell for $3.50
costs US $3.50 without the overhead
Look at butter and eggs. Gas which we
use for cooking has gone up. Walters
are getting about 100 per cent. more
than before the war and all of our help
are paid so to 100 per cent. more.
1Linen costs almost four times as
much as it did. Coal is sky high. Adj
vertisng is more expensive. rents arg
higher: everything has gone up a
restaurant man has got his nose to the
grindstone and il looks as II some of US
would go to the WALL
Prohibition has ruined the hotel res
taurant business, as well as the unat-
tached restaurant. and-but for the fact
that hotels do not pay rent for their
dining room space none of them would
make money. This was the opinion ex-
pressed by one of the managers of the
Boomer group.
He mentioned one item at the waldorf
to illustrate the growing cost OF opera
ton. Before the war $4,000 napkins
were purchased annually for about
$4,000. The same quantity and quality
this year cost $4,000.
An official OF the Bowman group
Blltmore, Commodore, Belmont. Murray
Hill and Ansonia-saw no sign OF cu'
In restaurant prices. Hotels relied 81
heavily on their bar receipts In the pas
that prohibition has Obliged Some Of
them to go out OF business. The Knick
erbocker can earn more money as ar
office building The Manhattan is an
other that has been forced TO suspend.
Hotel men deny there IL any under
standing among themselves to fix
scale OF prices for food In reality. the,
say. there Is close competition and th'
prices OF rival hostelries are studied
carefully.
Referring 10 the recent cut rcporte,
IN Chicago, n representative New Yorl
hotel manager said II applied mainly e
fruits. vegetables and cereals. The i'm
portant item meat, is higher now thar
ever before and Il ls doubtful whethe
the peak has been reached. he said
For their protection the restaurant
owners have recently incorporated as thu
Standard Purveyors. NJ Jansen said
The purpose Is 20 keep food prices as low
as possible. Transportation dlfficulte
also share the blame for the presen
conditions. he believes
Mr.. Jansen said he would be glad e
appear before Assistant Attorney-Gen.
eral Riley at any time and he thinks h,
can convince the Department OF Justic,
"a. a..