Oconomowoc restaurant shifts to farm-to-table concept in response to economic hardships, food inspired by family recipes

OCONOMOWOC, Wis. (CBS 58) – Across Wisconsin, the restaurant industry is facing a lot of challenges as the cost of goods, a labor shortage and low profit margins cause business owners to reconsider their strategies.

John Levine, the owner of 72 Waverly in Oconomowoc, has decided to take a creative approach to the struggles of the industry by trying something new.

Levine previously served as the General Manager at Coco’s Steakhouse in Oconomowoc, which opened right before the COVID-19 pandemic drastically shifted the restaurant industry’s operations. Levine says in the years after the pandemic, his business has tried to figure out the most effective way to be sustainable.

“A lot of the chefs before me went through that struggle of trying to balance high prices, people still wearing masks and not wanting to spend that kind of money,” Lavine said. “People are not going out to eat as much as they have been in the past.”

Kristine Hillmer, the President & CEO of the Wisconsin Restaurant Association, says the issues Coco’s Steakhouse faced are similar to many other restaurants with similar dining experiences.

“Inflation has been pretty brutal on restaurants as well as the cost of their staff and wanting to make sure they’re given great hospitality and finding them,” Hillmer said. “Going out to eat, for many families, is a disposable income expense.”

According to the National Restaurant Association, in the last 4 years, food costs for the average restaurant have gone up 29%, while at the same time labor costs have gone up 31%. The other expenses for running a restaurant – the building, supplies, credit card processing fees – are also going up quickly.

Restaurant owners generally try to keep menu prices as low as possible – making an average of 3-5% pre-tax margin. Overall, customer traffic at restaurants is still down from pre-pandemic levels.

To respond to these trends, Levine decided to re-brand Coco’s Steakhouse into 72 Waverly.

The business will now have a farm-to-table inspired menu and will focus on recipes inspired by family dishes.

“In order to make this a profitable business, we needed to try to look at our consumers and our guests and see what they were really asking for,” Levine said. “I’m trying to put out more shareables and more friendly options that guests can share.”

“Anytime you have locally sourced food, it’s going to be less expensive than anything you ship across the country,” Hillmer said. “The nice thing about farm to table is that you are not only getting that locally sourced fresh food, but you are supporting that local economy.”

Levine’s wife, Crystal Jones, says she hopes the new experience doesn’t change the feeling people get when they come to dine together at their business.

“Whether it is for a birthday, a reunion, or a little dinner date, whatever, I just want people to feel like they can come here and be happy, feel comfy and warm here,” Jones said.

“Overall, we want the experience to be a memory,” Levine said. “Something that you are going to say, “I remember 72 Waverly; I want to go back.”

Levine says he plans to open 72 Waverly in the same location as Coco’s Steakhouse in January.