Phil Lehr strives to rebuild his business

Nation's Restaurant News, August 27, 1990 by Alan Liddle

Phil Lehr strives to rebuild his business

SAN FRANCISCO -- A landlord-initiated remodeling project that took longer than expected and litigation surrounding the delay led to a near four-year interruption in the 40-year run of master showman and meat purveyor Phil Lehr.

Finally able to reopen his 240-seat Phil Lehr's Steakery in September, Lehr soon saw his campaign to win back business stymied by the Loma Prieta Earthquake. The quake cast a temporary pall over the city's tourism industry, which effected traffic in the Hilton Hotel where his restaurant is located, and discouraged visits by regulars in nearby cities by damaging roadways and causing congestion.

Now, said Lehr, it appears "we have a recession coming" and the situation in the Middle East will only further muddle things.

If the white-haired and bearded septuagenarian is daunted by any of the recent setbacks, he certainly doesn't show it. Instead, he displays the confidence of a man who has for four decades successfully operated pay-by-the-ounce steak restaurants at three sites in one of the most competitive restaurant cities in the world.

"Provide top quality in the food you serve, quality service and ambience and even if you are in the boondocks [customers] will come to you," he said, outlining his business philosophy.

Of his first restaurant at the Olympic Hotel on Eddy Street, which opened in 1950, Lehr recalled, "It was a nothing place, with seating for 46 people and two waitresses, but we did as many as 400 dinners a night -- they would line up out the door in the heart of the Tenderloin."

Lehr's confidence also stems from the $1.7 million remodel and his time-proven concept.

At a Phil Lehr's Steakery, the customer selects his or her own piece and portion of three-to-five-week aged top choice grade Midwest beef. The meat is then either broiled by using gas -- Lehr gets indignant at the thought of wood-fire smoke mingling with the flavors of fine beef -- or sauteed at one of the magical "magnetic-induction" cooking carts in the dining room.

Magnetic induction is a process Lehr has invested in and had development rights to for more than 15 years. It uses electricity to create intense magnetic fields, which, when combined with pans made of special materials, cooks food without radiating heat in a manner that brings microwaving to mind.

"It's safer, cooks faster and it's cleaner," beamed magnetic-induction booster Lehr, who said that operators in a nearby city have used some of his carts to get around a fire-department ban on open-flame cooking at table side. A large equipment manufacturer is working to develop magnetic-induction systems with wider application, he added.

Besides the larger entree-preparation carts, Lehr's wait staff has access to smaller magnetic-induction carts, which they roll right up to the table to create an assortment of flambe desserts. The liquored-up and flame-kissed specialties are served in goblets doctored with dry ice to create cool-smoke belching "San Francisco Fog Desserts."

"All the waiters show off," Lehr said of the theatrics associated with the carts. "You can imagine what that means in tips."

The restaurant's new decor combines sculpted walls, subtle archways, vaulted ceilings, dramatic cove and tract lighting and some lighter hued surfaces with traditional touches, such as high-back leather booths, rich wood trim and a lower overall lighting level. The space that results has a contemporarily elegant feel, but its steak house heritage is obvious.

Prior to the restaurant's 1986 closure, Lehr said, it was generating $2 million in annual sales serving only dinner. He said he is currently doing 30 percent to 50 percent less business, but has taken a number of steps to rebuild traffic.

* He continues to be active on the

state's tourism commission, which

not only results in more visitors for

the state, but also a fair number of

personal contacts that can create

valuable word-of-mouth

advertising. * He has begun advertising in

newspapers up and down the San

Francisco Peninsula. He said a list of

phone numbers he collected from

people who called for reservations

during the closure indicated that a

lot more of his regulars than he

realized were from other

communities. * He has linked up with a

promotional company that creates video-advertising

for hotel television

systems.

The per-person average at the Steakery is about $36, Lehr said, and the top seller is the New York cut, followed by the filet mignon, porterhouse and T-bone. Among the most popular non-steak entrees, he said, are pastry-wrapped and baked Wellington-style dishes, including beef, lobster and rack of lamb.

All dinners at a Lehr-run restaurant come with a relish tray, stuffed baked potato, onion rings and sour-dough bread.

Singing servers are new at the Steakery since its rebirth, and while they have added a new depth to the entertainment, Lehr indicated they have also added a new twist to personnel management.

"I lost three servers last week to a musical production in Los Angeles," he reported.