Vin de Set is a rooftop dining restaurant in St. Louis that sees a dramatic drop in business from November through March each year when outdoor dining is less desirable. The owners want to attract more winter business to support staffing levels year-round and reduce seasonal losses. While their other businesses do better in winter, Vin de Set struggles due to its image as primarily an outdoor restaurant. The document discusses Vin de Set's history and operations, and identifies the economic impact of its seasonal downturn as a key concern to address.

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I. Issue Statement:
Despite the fact that we are among the top dining destinations in the St. Louis area, we
face a problem annually. Or lovely rooftop dining atmosphere is front and center in people’s
minds, but the majority of our business is seasonal. It is important to our service members,
management, and ownership that we attract more business during times in which is not optimal
to dine outdoors. The company sees a dramatic drop in business November through March every
year. Except for the holidays, when people tend to celebrate by dining out, Vin de Set faces
yearly losses based on the notion that we are primarily an outdoor dining establishment.
The issue for Vin de Set: Should the company take measures to influence heavier traffic
at the restaurant during the winter?
II. Background
Business History: Paul and Wendy Hamilton first considered opening their own restaurant
when Paul was directing food and hotel operations at Clipper Cruise Lines and Wendy was
heading up the marketing department for South Side National Bank. Paul graduated from Penn
State University with a BS in Hotel and Restaurant Management and had managed several
different independent restaurants, as well as food and beverage operations at Walt Disney World
in Florida. Wendy graduated from Southwest Missouri State University with a Marketing
Degree and worked previously in the service industry.
They decided to open their first restaurant: Eleven Eleven Mississippi. The location for
Eleven Eleven was discovered in early 2003. Once part of a shoe factory, the restaurant portion
was used to produce heels for women’s shoes. The space that existed was unrecognizable,
except as a shell of a building that had once existed. While many of those consulted thought that
the building needed too much work to bring it to the level necessary to run a first class
restaurant, the Hamiltons recognized the potential that the space had to become one of the most
uniquely designed restaurants in St. Louis. The charm of the Lafayette Square neighborhood and
its close proximity to downtown, as well as four major highways made it an ideal location for
their new venture.
Demolition started in August of 2003 with construction beginning shortly thereafter.
Despite several setbacks, construction moved along at a brisk pace. Paul and Wendy, along with
current Wine Director Scott Gaghan and Executive Chef Ivy Magruder, performed many of the
construction tasks each evening as the main crew left for the day. All of the tuckpointing, wall
finishes, painting, wood finishing, and most of the furniture was produced or refurbished by
Hamilton’s crew. The attention to detail conveyed by the team on the opening of the building is
evident in the overall feel of the place as well as the attitudes of the people who work there.
Eleven Eleven officially opened its doors on December 7, 2003 to a warm audience of
friends and family. Since that time, the restaurant has become one of the most recognizable
restaurants in the area and is known for delivering exceptional service and innovative cuisine.

2. It has earned many distinguished awards over the years from local publications and even
national esteem.
Having completed such an undertaking with Eleven Eleven, the Hamiltons were not ones
to rest on their laurels. Just around the block from the restaurant, on Choteau Avenue, sat a large
uninhabited building. The interior was as distressed as the one that they encountered on
Mississippi. Years of decay had left the building in disrepair while rust and mold had settled
throughout the interior. Areas looked dangerous to be in, let alone dine in, but Paul and Wendy
saw a future in the forlorn façade of the old building.
Inspired by a trip to the Provence region of France in 2004, they wanted to bring that
experience back to St, Louis with them. Heavily motivated by the warmth of the people and the
quality of food and wine, they felt that they could recreate the environment in the old building at
2017 Choteau Avenue. The building was built as a grain storage house and mill for the
Schneider Brewing Company which was located across the street in the mid-19th century.
Interestingly it was one of 108 registered breweries in the city of St. Louis at the time. The area
edged industrial sites and the railroad tracks and had not yet been rediscovered by suburbanites.
Much like they had done before, the Hamiltons and company set about tearing out the old
shoddy parts of the building. To their delight, they discovered beautiful brick masonry,
massively thick walls, and high ceilings. While digging through piles of scrap, they found a
replica of the King Louis IX statue that stands at the St. Louis Art Museum. It was a gift to
Schneider during the St. Louis World’s Fair in 1904. Today the statue, cast in plaster, sits atop a
handsome bar.
A lot of the original flooring had to be completely rebuilt and there were gaps throughout
the structure that led directly to the outdoor elements. After heavy demolition and the task of
transforming an urban silo into a French bistro, Vin de Set opened in the summer of 2006. In
keeping with the theme of Eleven Eleven, Vin de Set is the phonetic spelling of the address
2017: “vingt dix-sept”. Just as its sister restaurant, Vin de Set enjoys a fabulous reputation and is
annually named as top restaurants for service, atmosphere, and cuisine.
Since the opening of Eleven Eleven, there has been a demand for private parties and
catered events. Due to the popularity of the Hamilton’s restaurants, it was impossible to fill all
requests for such events. With the purchase of the property at 2017 Choteau, this now became a
good problem to have. There are three levels to the building, and the next step became creating
an event space that could serve as a multi-purpose gathering spot. While Vin de Set occupies the
third floor of the building, the second floor became home to Moulin Events. Moulin is a full
service banquet facility for groups as intimate as 20 to as grand as 750. The space is regularly
rented for corporate meeting, social parties, wedding receptions, rehearsal dinners, and non-profit
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galas.
PW Pizza, which is located on the first floor of the building, followed by opening shortly
thereafter. It gets its name from the combination of Paul and Wendy Hamilton. Using as much
locally sourced produce, meats and cheeses, PW focuses on fresh, seasonal ingredients prepared
and served in a unique and creative atmosphere. The menu consists of pizzas, calzones,

3. appetizers, salads and soups. All of the items are placed at a family- friendly price point and it is
a popular spot for regular diners that live in the neighborhood.
There are two more businesses located in the building. Le Grande Petit Market is
adjacent to PW Pizza. It is a little wine shop where you can buy from an interesting array of
wines that are served at the Hamilton’s restaurants. The shop is replete with all kinds of wine
paraphernalia, kitchen gadgets and some local products. The retail operations work very well
with the takeout pizza; people may buy dinner and their beverage of choice in one stop to take
home. There is also free delivery for corporate offices in the vicinity at lunchtime.
Rounding out the Hamilton’s ventures is 21st Street Brewers Bar, located in the
subterranean level of the building. This bar just opened several months ago and boasts over 50
beers on tap and 80 by the bottle. The bar tries to represent every local brewery along with the
best domestic and international offerings, and it shares PW’s kitchen to provide patrons with
dining options. With the opening of 21st Street, there are now 5 businesses in the building at
2017 Choteau.
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Current Status:
With all of the success in the other businesses associated with Vin de Set, it is clear that
there is not a lack of patrons or a problem with the business acumen. There is the notion that our
outside dining facilities are superior to others in town, and when they are being used, people
enjoy the fare and the service that we offer. We have a lovely bar with full service dining, and
two interior dining rooms, one with a cozy fire place. In addition, we have a wine loft available
for general dining or parties of up to 20 guests. Our service is capable and friendly and our food
reflects our commitment to excellence.
Our seating capacity is more than doubled when the patio is open to almost 360 available
seats. In the winter we can seat approximately 140 at any given time. Unfortunately, except for
certain nights around the holiday season, theses seats are not filled. It is crucial to the extra staff
that are hired for the extra business in the summer, as well as beneficial to the ownership and
management, that we do our utmost to fill these seats in the colder months.
Working in other restaurants and looking at our other operations, dining patterns become
apparent. Eleven Eleven slows in the very months that Vin de Set picks up, but the change is not
nearly as drastic. Even PW Pizza, located on the first floor of the same building, increases its
business in the colder months. Contrary to our experience of increased traffic in the summer,
most restaurants experience an ebb as people do not tend to eat as heavily during the heat.
Heavier meals are associated with colder months, when our business declines. In some resort
communities that are dependent upon seasonal business, they close their doors for several
months each year.

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III. Impact
Economic
Our most serious concern is the economic impact that the change in seasons has on the
business at Vin de Set. Our traffic drops by more than half on the weekends when business is the
heaviest and well below that during the week. We become more dependent upon private parties
and business functions to fill our expenses and we see less of the casual diner. Our kitchen and
service staff are adjusted in the spring for the busy season, and the employment of so many
people is not feasible during slower times. The hourly pay of kitchen staff, bartenders and
servers becomes a net loss in the winter months.
It is costly to keep a restaurant open. Tens of thousands of dollars in product have to be
stocked at all times and much of it is perishable. Heating, gas and electricity remain constant
drains on the bottom line every time that the restaurant is open and there are not enough guests to
meet overhead. This can often be the case in the dead of winter on a slow weeknight. While
there are other businesses in the building to offset the Hamiltons loss, Vin de Set suffers and
loses money.
Productivity:
Without a robust flow of guests, productivity is lowered. There is far less demand for all
of the food that is necessary in the summer months. This leads to lower employment hours of all
of the staff. In the kitchen, there is less need for intensive preparation before any given shift and
the number of cooks needed during service also falls.
The high volume of guests that are apt to dine at Vin de Set when the weather is mild are
not there when it gets cold. We staff 17 servers in the spring to handle the fast pace of the
summer and could easily get by with 8 on a weekend night in the winter. Nonetheless, these
people have depended upon us for employment and their cost of living continues at the same
level regardless of the time of year. The modus operandi has been to keep six full time servers
with at least 30 working hours during the winter, and drastically cut the shifts available for the
rest of the staff.
Everyone employed at Vin de Set does their best to remain productive on the shifts that
are available to them in the off season. The problem lies in the fact that there are not enough
shifts available for the full staff that is retained for the summer rush. Employee morale suffers,
internal politics come into play, and employees are lost to other organizations.
Customer/Guest:
Because of our amazing outdoor dining capacity, we are often overlooked by customers as an
option during the winter. We are thought of as an outdoor business and many guests are

5. completely unaware of the indoor seating as evidenced by many statements from our guests as
they look around the restaurant on their way out of the building.
Customers that do come during the colder times of the year are treated to wonderful food
and service, but the festive atmosphere is not on par with the summer months. Diners may find
themselves in half-filled rooms and the energy level is not as high as it is when they may have
visited and dined outside. Though the food and service are of the same quality, there is a certain
magnetism to a full restaurant and the party atmosphere with which we enjoy operating. The
weekends are always better no matter the time of the year, but people coming for their first visit
or to celebrate a special occasion will not experience the restaurant at its full potential. It is
important that all customer interactions are positive and that all guests are satisfied.
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IV. Strategies
1. Continue the current policy or do nothing.
2. Close the restaurant for a hiatus every year. This is based on the model of resort communities
and restaurants located therein. With closing the restaurant, all costs associated with opening for
12 shifts per week would no longer be incurred. The cost of heating the area would not be
needed, nor the utilities of gas, water and electric in the kitchen.
Salaried management would retain their payment through the given break, but payment
would be cut commensurate with the portion of the year that Vin de Set is not open. All other
workers would have to seek other employment but would be considered a priority at any open
positions in other establishments. The company would not have to pay wages to any hourly
workers from January through March. Food costs would be cut entirely and any waste would not
be of concern. All overhead costs would be frozen, more or less, from the time of closing until
reopening in the spring.
Our proposal would be to run the restaurant through the holiday season and close January
1st. That way, we could reap the benefits of holiday parties and the festive atmosphere of our
guests during the time of year when they spend money more freely. Trying to place the current
staff in other positions with the company would be optimal but not necessary.
We would recommend a hiring phase during April and a reboot of the restaurant to open
May 1st every year. A fresh staff would gain pertinent knowledge and training prior to opening,
and would be paid an hourly wage to perform maintenance tasks necessary to bring the
restaurant into working order. A re-launch every May is sure to attract heavy guest traffic, and
knowing that the operation is limited seasonally, more people would surely visit when they
could.
There are serious considerations in making the decision to close. The loyalty of staff and
guests would be tested. It is not certain that we could retain the caliber of staff that we now
maintain if their work was seasonal. We also face the issue of relevance. Every year, scores of
new restaurants open. Observation of diner’s habits reveals that they have several restaurants

6. that they visit regularly in a sort of “rotation”. Other restaurants work into this rotation,
especially if they are new. Sometimes a new restaurant becomes a part of a diner’s regular
rotation. If Vin de Set ceases operation during the winter months, we risk losing our prominence
in the selection of dining options to our patrons. We also risk losing out to newer or any other
establishments that may become part of their rotation. Saving some money over the winter may
lead to long term revenue loss.
3. Maintain operations at Vin de Set through the winter months with leverage from the other
businesses and through cross marketing to increase customer flow. There are, during business
hours, people dining or drinking at one of the Hamilton establishments. Using the customer base
from Eleven Eleven, PW Pizza, Moulin Events, and 21st Street Brewers Bar, it is possible to
provide incentives for diners to venture to Vin de Set all year long.
There are many possible scenarios for providing information and incentives to our guests
at our other establishments to dine at Vin de Set. For diners at any of the other restaurants, we
can offer an initiative in the form of different ‘coupons’. We may offer free appetizer or dessert
with the purchase of a meal at Vin de Set. We may offer discounts on wines by the glass or
bottle during the winter months, advertise a prixe fix menu or late night dining options at a
reduced cost. All of this could be done with inserts into check presenters at the other restaurants
and by the service staff verbalizing different offerings at Vin de Set to guests before they leave.
Since the proximity is so close, we could offer discounted prices to those who want to have
drinks or dessert at one establishment and dinner at another.
Another possibility is cross marketing with theater and musical venues who see their
crowds increase during the winter. Located downtown, mere minutes from Vin de Set, are The
Fox Theater, The Sheldon Concert Hall, and Powell Symphony Hall. These places are home to
our target market during their respective event seasons. Advertising allotments in theatre
programs or placement in online ticketing formats could achieve our goal of promoting Vin de
Set as a premier dining spot before or after shows. In addition, urban theatres like the Moolah
Shrine Theatre or the Chase Park Plaza Cinemas would be other destinations points from which
we could divert diners. Using all of these venues, we could promote “early bird” dinners for pre-show
patrons as well as late night options after shows let out.
In addition to trumpeting our presence at our other restaurants and building a clientele
from theater/concert goers, we should aim to be part of the local landscape by participation in
events that feature local restaurants. There is the possibility of a mobile presence at sporting
events, featuring some of our more casual fare like the Roquefort Burger, Tarte Flambe, and
Croque Monsieur. If we could find a way to present some more approachable food to the general
public it would be to our advantage. There are also multiple festival-style events where we could
be present as well as cooking competitions and charity fundraisers throughout the winter.
The cross marketing with our other restaurants will be essentially limited in cost to
whatever printing supplies that are necessary and/or product that we give away or discount for a
guest who visits us because of a promotion. There will certainly be costs associated with
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7. placement in theater publications or websites. This will have to be evaluated on a case-by-case
basis, and judgments on the cost to benefit ratio will be considered.
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V. Current Company Policy
Our policy has been to continue service as usual during the winter, albeit with a smaller
crew. Many servers will find employment elsewhere and most will suffer a severe loss in shifts.
The same holds true for our kitchen staff. The employees who hold insurance through the
company must work an average of 30 hours per week. With winter business the rest of the staff
are at a loss of time and income. The restaurant faces opening for shifts where it actually loses
money.
In the end, the workforce is severely depleted, morale is low, and we must hire and train
new employees annually for the summer months. In turn, employees that should be retained
because of their skill will seek more stable opportunities.
VI. Policy Reccomendation
Option three is recommended.
Rationale:
It is our belief that Vin de Set can remain a viable dining option during the season that the
patio is closed. The overriding image of out-door dining is the result of the unique rooftop
setting that people enjoy, but it is not all that we offer. Simply put, we need to let people know
about our fantastic indoor facilities. There are certainly people coming to the city area
throughout the winter season for a host of reasons, and they need to be aware that we are still
offering the same satisfaction in the off-season as we do in the summer.
The decision to become a seasonal restaurant is not recommended because there is the
issue of remaining on our patrons’ radar and staying relevant. If we were to close, there are
business opportunities that would be lost. We would miss birthday and anniversary dinners, as
well as the Valentine’s Day celebrations which are always a good reminder to our visitors of the
quality that we provide. We would also face the process of hiring an almost completely new
labor force every spring with no offer of job security.
Using the leverage available with the Hamiltons’ other establishments is a unique benefit
that many other seasonal restaurants cannot take advantage. We have an audience available to us
who have already opted for one of our products, it is essential that we encourage them to come to
Vin de Set. If we can drive people from our other businesses and cross market with other city
attractions, we may experience a successful winter.

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