Luxury dining 'is booming' in cities like Las Vegas and New York, Wolfgang Puck explains

Chef and restaurateur Wolfgang Puck joins Yahoo Finance Live to discuss luxury dining, inflation, TikTok cooking trends, pumpkin spice, and more.

Video Transcript

[AUDIO LOGO]

Food is getting more expensive, and that means you'll probably pay more when you go out to eat the next time. The latest data showing that the cost of dining at a restaurant is up 8 and 1/2% from just a year ago. So here to talk about that and all about the state of the restaurant industry, we wanted to bring in celebrity chef and restaurateur, Wolfgang Puck. It's great to have you, especially here in studio.

WOLFGANG PUCK: Thank you.

SEANA SMITH: Let's first start with the cost of things, because I know you've been facing higher costs from your suppliers. What does it mean for your restaurants and your business?

WOLFGANG PUCK: The average cost now in our restaurants for food is up 15%, which is a lot. And equipment, like I bought the other day cutting boards, for example, for one restaurant. I bought 12 cutting boards, I spent $1,500. And then a week later, it went up to $2,000. I mean, some of this thing has gotten out of control.

And forget about if there's something to repair in a restaurant, just to get somebody out to come and fix your stove or your refrigerator, it costs a fortune. So everything has gotten up. But also, salaries. We are one industry. We employ more people than any other one, except the government. Over 17 million people work in the restaurant business.

And now it's really a buyer's market in a way. The employee said, I want that much money, and I will work that many hours and that many days. So it has gotten more difficult for us. But we have to navigate all these problems and go through them.

DAVE BRIGGS: I do you want to circle back to the employment shortage, but as for those 15% higher costs, are you seeing a reduced appetite for paying that? Are you able to pass along those costs?

WOLFGANG PUCK: You know, it looks like the luxury segment is still there. People still have money to spend. Maybe they go out less maybe, but not that much really. I know in Las Vegas, we have restaurants in Las Vegas, it's booming, it's better than ever. And I'm sure the hotels, the gaming is doing better than ever, because we get the customers if they lose enough money, they have to eat and to drink.

And I think here in New York, CUT in New York is doing really well, too, especially for dinner. For lunch, we have less people maybe, because less people go to the office and so forth. But at dinner, people still go out and want to enjoy and have a nice time.

DAVE BRIGGS: Yeah, how does remote work? I'm sorry, Seana, how does remote work impact your bottom line?

WOLFGANG PUCK: Well, I think the remote work at the beginning was really difficult, because we did a lot of takeout, but not that much really. And to me, it's a boring business really doing takeout, because you put everything in boxes instead of on a nice plate. You don't get the reaction from the customers.

You know, it's like performers like to perform on Broadway or singers in stadium, whatever, they get the energy from the customers. And for me, it's the same. So I really like to be there in the restaurant. Now for sure, lunch time, because people don't work that much in the office, has dropped. But we live. Our main business always has been dinner, thank God.

SEANA SMITH: And when you mentioned the labor shortage there affecting your business, obviously, severe amounts of a shortage in workers, not only in your industry, but really across the board. First, just how has it affected your plans, your initial plans for expansion, and really your ability to keep open the restaurants that you already have?

WOLFGANG PUCK: It is really difficult, but it's a worldwide phenomenon. If we have Spago in Budapest, for example. It's hard to find workers there. [INAUDIBLE] in that part of the world they must have enough people coming to work, but no. It's as difficult in Budapest as it is in New York or in LA to recruit people. And I think, thank God, we have a good name and we pay well, so we still can get people. But it has gotten more expensive.

I know our sommelier, for example, in a restaurant, used to make $100,000 plus their commission. And they came up to me and said, somebody offered me a job for $130,000, can you match it? I said, you know what? I will match it, because I like you and you are good to the customers. But also, for me to train somebody new would cost me more than $30,000.

DAVE BRIGGS: $130 grand, I might be in the wrong business. That is impressive for a sommelier.

WOLFGANG PUCK: Well, put a little wine rack over here, I can test you how much you know.

DAVE BRIGGS: Now, I knew you were a genius.

SEANA SMITH: He might be better on the tequila front. I don't know about the sommelier.

DAVE BRIGGS: Either way, I don't discriminate.

SEANA SMITH: OK, OK.

WOLFGANG PUCK: I like them both.

DAVE BRIGGS: Indeed. We have some fun food trends to ask you about. You're huge on TikTok. Another thing that's huge on TikTok is food and recipes and cooking, and the latest trend is butter boards. More than 300 million views. Do you know what these things on the screen are right here, Wolf? Have you tried a butter board? Do you like the trend of TikTok cooking in general?

WOLFGANG PUCK: Well, I love TikTok in a way, because I think it gives you the news instantly. You see what's going on. But it was interesting, like for me, I did a TikTok and I had one with cheese, for example. I just cut Parmesan into chunks, put olive oil and black pepper on top, and I got like six million people who watched it.

And another thing I did, like was the silliest thing is, I had a big block of butter, a nice baguette, and I used the butter and the baguette and put salt on it and people say, oh my God, that's so delicious. I want something like that. I said, maybe I shouldn't sell steaks anymore.

SEANA SMITH: It can be very, very simple. Now this isn't necessarily a TikTok trend, but certainly a trend in the food industry, the rise and popularity of pumpkin spice. I don't know if you've ever tried it. Have you tried it? People spend, what, $500 million in total is spent on pumpkin spice flavored items in the US each year. What's your reaction?

WOLFGANG PUCK: You know, I think pumpkin spice in a way makes you feel good. When you smell it, it reminds you of holidays, it reminds you of Thanksgiving, or for me, Christmas. I remember as a kid at home, my mother used to bake cookies, and all these spices really I loved. We even put them in wine, hot red wine with sugar and the pumpkin spice in it. It smells up the whole house and it's really delicious. So I can understand that. Everybody likes this warm feeling.

SEANA SMITH: Well, it's great to have you in studio. Now you made me very, very hungry. I'm counting down the minutes--

DAVE BRIGGS: Next time over a bottle of red and a steak, all right?

WOLFGANG PUCK: OK, you know what? We just got some new steaks in, they are amazing, you know. So I'm really--

SEANA SMITH: You don't to have to sell us, we're already there.

WOLFGANG PUCK: OK, good.

SEANA SMITH: Wolfgang Puck, thanks so much for joining us here in studio.

WOLFGANG PUCK: Thank you.