We went to cuba to try to understand more about the rum war, and found out its complicated, and you need to pull up a seat and make yourself comfortable to try and figure it out. Thousands of people line up every day at shake shack, the burger chain danny meyer created. When we were at one of them, the wait was almost an hour. Is it worth it . Its very good. Really . Yes. Its burgers, its fries and its shakes; you havent reinvented the wheel here. We are as, sometimes as mystified as anybody as to what the magic of shake shack is. Mostly, danny meyer is an innovator. Welcome here. And the newest changes hes pushing may radically alter the way restaurants do business. Get your win on with the cricket unlimited 2 plan. Get 4 lines of unlimited data for 100 a month. Plus, switch now and get up to four free lg fortune phones. All on a network that covers over 99 of americans. Cricket wireless. Something to smile about. Do you like freshly steamed lobster . Do you like the word and . Then youll love outbacks steak and lobster. Back by popular demand, only 15. 99. So hurry in now. Outback steakhouse. Aussie rules. So hurry in now. You were borne to rock. Borne to piggyback. And you dont want anything stopping you. Airborne plus betaimmune booster™ is the only immune support with vitamins and minerals, plus an added ingredient proven to boost your natural defenses. Airborne. My lineage was the vecchios and zuccolis. Through ancestry, through dna i found out that i was only 16 italian. He was 34 eastern european. So i went onto ancestry, soon learned that one of our ancestors we thought was italian was eastern european. This is my ancestor who i didnt know about. He looks a little bit like me, yes. Ancestry has many paths to discovering your story. Get started for free at ancestry. Com alfonsi good evening. Im sharyn alfonsi. Welcome to 60 minutes presents. Tonight, we have three flavorful stories on the 60 minutes menu. We begin with a yogurt entrepreneur. At a time when americans are debating whether immigration and refugees are a good thing or a bad thing for the country, it is sometimes noted that tesla, google, ebay, and pepsicola are all either founded by or currently being run by immigrants, and in one case, a refugee. Its a reminder that foreigners dont always take jobs from americans sometimes, they create them. And of all the success stories, none seems more relevant to the current debate than the tale of hamdi ulakaya, who came here from turkey 24 years ago on a student visa with almost no money. As steve kroft first reported in april, ulakaya is now a billionaire who has changed american tastes with his chobani yogurt, resurrected the economy in two communities, and drawn praise, and some hostile fire, for the way hes done it. Kroft he is a familiar, paternal presence on the factory floor, where everyone calls him hamdi. Hamdi ulukaya hey, brother, how you doing . Kroft he oversees every detail of a product line that barely existed a dozen years ago greekstyle yogurt, a thicker, tangier version of the dairy product that ulakaya popularized here and named chobani. Its now the bestselling brand in america. What does the word chobani mean . Ulukaya it means shepherd. Kroft shepherd . Ulukaya shepherd. Its a very beautiful word. It represents peace. And it meant a lot to me, because, you know, i come from a life with shepherds and mountains and all that stuff. Kroft his family raised goats and sheep and made cheese and yogurt in a small kurdish village in eastern turkey. During the summer months, they would move to the mountains and graze their flock under the stars. He says he was born on one of those trips, but he doesnt know the date, or the year. So how did you come not to know your birthday . Ulukaya yeah, in the old days, you know the nomads, you know, they didnt deliver babies in the hospitals. Kroft midwives . Ulukaya midwives, yeah. They would register when they come back. The registration officer would put everybody in january. Says its easy for math. Like, 70 of our town at that time, born in somehow in january. Im january 20th. This reminds me of home. Kroft he came to the u. S. At 22, a passionate, idealistic student who had gotten in trouble with turkish authorities for writing articles sympathetic to the kurdish rights movement. He was hauled in for questioning, and decided it might be a good idea to leave. Did you speak any english when you came . Ulukaya no. Kroft none . Ulukaya zero. Kroft no family, no ulukaya nothing. Nothing. Kroft no friends . Ulukaya nobody. No. Kroft it took him a year to find his footing in upstate new york, where he spent the next decade finishing his studies, working on a dairy farm and starting a modest feta cheese business. Where one day, he spotted an ad. Ulukaya it said, fully equipped yogurt plant for sale. And it has a picture in front, it said 1920 on the back. There was small, small pictures of various per parts of the plant. And i called the number. Kroft the Real Estate Agent said the 85yearold factory was owned by kraft foods, which had decided to get out of the yogurt business. Ulukaya and i asked for the price, and he says 700,000. I mean, you cannot even get a tank with 700,000. How could this be . So i didnt ask the second time, because i didnt want him to think that i kroft didnt believe him . laughs ulukaya yeah. Kroft or get him to reevaluate the price . Ulukaya yeah, he says, oh, maybe were asking too little. Kroft sensing an opportunity, hamdi set off to the small village of new berlin, new york to have a look. There he found the last employees of the last plant in the area, closing it down. Ulukaya i remember like yesterday. Its like, this sadness in this whole place. Like as if somebody died, like, somebody important died. Kroft 200 jobs . Ulukaya 200 jobs, was gone. Kroft former employees frank price, maria wilcox and rich lake were among the mourners that day. Rich lake your whole livelihoods gone. You dont really know what youre going to do or where youre going to go. Kroft so in comes this guy. Did you think he was for real . Lake honestly, it was a little farfetchedsoundin at first. laughter there was a little bit of doubt. At least for me, there was. You know, i mean ulukaya its okay. I doubted myself, too. laughter kroft he didnt have any money, but he managed to get a Regional Bank and the Small Business administration to split the risk of a Million Dollar loan. That put chobani in business, and allowed hamdi to hire his first five employees four of whom had been let go by kraft. Ulukaya and we had no other ideas what we were going to do next. Kroft it would take them two years to come up with a product and figure out how to produce it. Hamdi spent most of his time in the plant, except to grab two meals a day at the local pizzeria owned by another immigrant, frank baio, and his wife betsey. Ulukaya this is the only place in my, you know, in my early days of coming here, this is the only place you can come and connect to life again, and society and go back to whatever you do. Frank baio and i want to say something, scuse me if i interrupt you. Before hamdi showed up in this town, i was the king. laughter kroft what did you think of his plans . Frank baio well sighs lets put it to you this way i kind of felt sorry because i dont think he knew what he was getting into. I mean, i you figure for kraft to shut it down, who the hell is this guy, that hes going to open up and make it right, make it going . Kroft almost all of the early chobani meetings took place here, along with some small celebrations. Betsey remembers one where hamdi offered this toast. Betsy baio he said, heres to wishing we could ever make 100,000 cases of yogurt in a week and not worry about the light bill anymore. I said to my husband, im going to feel so bad when he loses his shirt, cause hes never going to sell 100,000 cases in a week. Kroft actually, it would take only a year. The first order of chobani yogurt, 150 cases, was delivered to a Kosher Grocery store on long island in october of 2007. No one knew if there would be another. Ulukaya the store manager called me and said, i dont know what youre putting into these cups. I cannot keep it on shelf. Dont tell me what youre putting in there. At that moment, i knew this was, like, three months in, this was not going to be about if i could sell it. It was going to be about, can i make enough . Kroft more milk . Ulukaya yeah. Kroft it would require more machines, bigger facilities, more milk from the surrounding dairy farms, and a lot more people. Between 2008 and 2012, production of chobani yogurt grew to as much as two million cases a week, revenues reached a billion dollars a year, and the number of employees shot up to 600. Its now roughly 1,000. Ulukaya anybody in the community who wanted to work for those years would find a job at chobani. Anybody. We were hiring. And if they were not working for us, they were working for the contractors that were doing job for us. Because the my my number one thing is, i was going to hire everyone local before i go outside. Kroft hamdis recruiting effort included a stop at a Refugee Resettlement center in the city of utica, 40 miles away, where he heard they were having trouble finding people work. Ulukaya they said, well, the language is a barrier. And transportation. I said, okay, lets try some. I will hire translators, and well provide transportation. Let them come and make yogurt with us. Kroft and they worked out . Ulukaya oh, perfectly. And they are the most loyal, hardworking people, along with everyone else here. Right now in our plant in here, we have 19 different nationalities, 16 different translators. Kroft by 2012, the capacity of the plant in new berlin had maxed out. They were running out of people, running out of milk and running out of room. So, hamdi decided to build a second facility the largest yogurt plant in the world, in the town of twin falls, idaho, all based on a sketch hed roughed out on a napkin at franks pizzaria. Ulukaya and if you look at the plant and the and the napkin, its basically the similar similar design. The piping in this plant is if you put it together from here to chicago, and we built them, less than a year. Kroft there were some initial growing pains a shipment had to be recalled because of mold contamination, and early production delays necessitated an emergency loan. But the business survived and has thrived in large part because of hamdis competitive nature. Ulukaya i love innovation, i love competing. I hate my competitors. Kroft you hate your competitors . Ulukaya of course i do. I want to beat them up. Kroft you want to make dannon yogurt and yoplait suffer . Ulukaya back to france. laughter just kidding aside. What i mean is, you cannot be in the world of business when you dont have this consciousness of winning. But in a right way. Kroft today, the twin falls plant has 1,000 employees, with aboveaverage wages and generous benefits. It pumps more than 2 billion a year into the regional economy, which is now running at close to full employment. Its allowed hamdi to hire fellow immigrants and refugees, not instead of american workers, but alongside them. We met two of them in twin falls, sisters, and agreed not to use their names or disclose the middle eastern country they fled, because they fear reprisals from the human traffickers that separated them from their family, then abandoned them as young girls on a Street Corner in eastern europe. How did you manage to get out . Sister 1 took us a long time. I prefer really not to talk about it because it is really painful sister 2 its painful, yeah. Kroft would you have survived if you had stayed there . Sister 1 no. Kroft youre sure of that . Sister 1 yeah, definitely. I was not sitting here alive if i was not leaving. Ulukaya they got here legally. Theyve gone through a most dangerous journey. They lost their family members. They lost everything they have. And here they are. They are either going to be a part of society or they are going to lose it again. The number one thing that you can do is provide them jobs. The minute they get a job, thats the minute they stop being a refugee. Kroft Hamdi Ulukaya insists hes not an activist, just a businessman. But the fact that he comes from a muslim country, supports Legal Immigration and helps refugees has not been universally popular in idaho, one of the most conservative states in the country. During the 2016 president ial election, chobani was attacked by far right media, including breitbart, claiming it had brought refugees, crime and tuberculosis to twin falls none of which is true, but both hamdi and the mayor of twin falls received death threats. One publication had a headline that said, american yogurt tycoon vows to choke u. S. With muslims. Ulukaya yeah. Kroft people targeted you . Ulukaya yeah, it was an emotional emotional time. People, you know, hate you for doing something right. I mean, what can you do about that . Theres not much you can do. Kroft the situation has cooled somewhat, and hamdi enjoys the full support of idahos very popular and very conservative governor, butch otter. Governor butch otter i think his care about his employees, whether they be refugees, or they be folks that were born ten miles from where theyre working. I believe his advocacy for that person is no different. And theres nothing wrong with that. Kroft we traveled with ulukaya to europe, where he has made the International Refugee crisis the focal point of his personal philanthropy. Hes donated millions to help survivors, like these in italy ulukaya whats your name . Kroft . Who risked everything fleeing iraq, syria and africa in hopes of finding a better life. Hes also enlisted the support of major u. S. Corporations in the cause and pledged to give most of his fortune to charity. Ulukaya she died . Refugee yes. Ulukaya and the kids died too . Kroft hamdi says he had no idea that things would turn out the way they have, when he came to america 24 years ago and bought that shuttered yogurt plant in upstate new york. He is now showing his gratitude. In 2016, he gave 10 of all of his equity in chobani to his employees. Ulukaya its not a gift. Its not a, oh, look how nice i am. Its a recognition. Its the right thing to do. It is something that belongs to them that i recognize. Thats how i see it. Alfonsi two days after our story first aired last year, the far right radio host alex jones posted a fresh round of accusations that chobani was importing migrant rapists. This time, the Yogurt Company sued. Last may, jones settled the case and expressed regret for the way he characterized the employees of chobani. Preponderance cbs money watch sponsored by lincoln financial, helping you protect those you love most. Benny layne good evening. Jerome powell will be sworn in tomorrow at the news chairman of the federal reserve. Congress is expected to passes another shortterm spending bill this week to avoid a government shutdown. And disney, tesla, and twitter are among the Major Companies reporting earnings this week. 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President obama started the thaw in the relationship, reestablishing economic ties and easing restrictions on travel. Now, President Trump has announced plans to undo many of those moves. And fidel castro, who spent 50 years poking his thumb in the eye of every american president , has died. Whatever happens, theres already a war under way that has the u. S. And cuba on the rocks. As we first reported last year, its a war over rum specifically, over two different versions of Havana Club Rum and its as bitter as the cold war ever was. Its a tuesday afternoon at el floridita in old havana, and we and lots of other visitors to cuba are filing in and filling up at the bar that calls itself the cradle of the daiquiri. Head bartender alejandro boliivar needs to double up on rum bottles just to keep up with demand. How many bottles do you go through a day . Any idea . Bolivar so, its at. Its between 60 and 80, 80 bottles per day. Alfonsi thats a lot of daiquiris. Bolivar yeah. Plenty of empty bottles. Alfonsi oh, my gosh. Is this just from today . Bolivar yeah. Today, yeah. Alfonsi all those bottles were filled with Havana Club Rum, produced by a 5050 joint venture between the cuban government and the french beverage giant, Pernod Ricard, which sent jerome cottinbizonne to cuba to run the business. We met him in a place thats rarely open to outsiders a warehouse stacked to the ceiling with oak barrels full of rum. Jerome cottinbizonne we built a very Great Success with havana club, when we started the partnership in 1993, and we sold five million bottles a year. Today, we sell 50 million bottles a year. Alfonsi 50 million bottles, 11 million of them sold here in cuba. The tourists drinking havana club are obvious, but we went looking down the side streets and found locals drinking it, too, at domino games, dance halls and discos; and sipping it along havanas seafront promenade, the malecon. To distill and age all that rum, the cuban government and Pernod Ricard rely on Asbel Morales, havana clubs master rummaker. He loves talking about rum, but he says to really understand it, you have to drink it. Es muy bueno. Asbel morales muy bueno. Alfonsi the first sip will impact you the most, he said, and make you anxious for a second. I am anxious to continue the second sip. laughter and the third, and the fourth. We dont have anything else to do today, do we . And the cohiba cigar that he says pairs perfectly with this havana club. As we drank and smoked, morales told me, cubans are born with a rum gene. and to be real Havana Club Rum, he said, it must be made from cuban sugar cane and aged in the hot and sticky cuban climate. Heres where it gets confusing. This is another bottle of Havana Club Rum. Exact same name, but you can see right here, this one is made in puerto rico, and its made by bacardi. How in the world can you say havana club when youre making it in puerto rico . Rick wilson i. Just the way that you say, im calling it arizona iced tea, and im not making it in arizona. Alfonsi rick wilson is an executive at bacardi, originally a cuban company, and now the largest privatelyheld liquor business in the world. Wilson the true havana club, made with the recipe of the original founders, is the havana club that bacardi is making and selling here in the United States. Alfonsi bacardi bought that original recipe from the family of this woman, amparo arachabala. And it was one of the wealthiest families in cuba before the revolution . Ampala arechabala yes. Definitely. Definitely. Alfonsi the arechabala fortune was built on sugar and shipping and rum Havana Club Rum. Like hundreds of other cuban companies, theirs was confiscated shortly after Fidel Castros revolution in 1959. Arechabala they took over the company on december 31, 1959. Alfonsi and do you remember that day . Arechabala i remember that day vividly. My husband came home. He went to work early, and then he came home, and he says, theyve thrown us out. Its over. Alfonsi its over, he said. Arechabala he said, its over. Alfonsi all of their assets gone, amparo and her husband ramon were ordered to leave cuba with only the clothes on their backs. And how much money did you have in your pockets . Arechabala absolutely nothing. Nothing, nothing, nothing. Alfonsi what was it like when you got on the plane . Arechabala everybody in the entire plane was crying. And i remember i look out the window as we were taking off, and i say to my husband, take a good look because youre not going to see it again. Alfonsi in cuba, the arechabalas and bacardi had been competitors, each making and selling popular brands of rum. But when the revolution came, rick wilson says bacardi had an advantage. Wilson bacardi, unlike most other cuban families and companies, had assets outside of cuba. Alfonsi is that the reason they were able to survive . Wilson yes, because we could continue to produce and sell our product, unlike the arechabalas. The arechabalas, everything they had was in cuba. Everything. Alfonsi everything except the recipe for Havana Club Rum. The arechabalas eventually sold it to their old rival bacardi, which makes this version at its distillery in puerto rico. They did it to compete with this version, made by the cuban government and their partner, Pernod Ricard. That set off the longest bar fight ever. It has been fought both in the courts, where the latest lawsuit is pending, and the marketplace, between two of the Worlds Largest liquor companies. Pernod ricard produces absolut vodka, chivas regal scotch, and beefeater gin. Bacardi makes grey goose vodka, dewars scotch and Bombay Sapphire gin. And now, they both make Havana Club Rum, and they both try to claim the moral high ground. And it wasnt that Pernod Ricard had just stepped up and they looked to be competitors to you. Wilson no. I mean, we dont mind competition from Pernod Ricard or anyone else. Pernod ricard, though, did and is partnering with the cuban government, who has confiscated the assets of a family. No compensation paid. Alfonsi its hard to believe that a company like bacardi is just making a moral argument. That its just about. Wilson were. Were not. Were making a moral and a legal argument. And the legal argument is . Wilson theft. I mean, it comes down. Its stolen property. Thats what it comes down to. Alfonsi the bacardi family will say that this havana club is stolen property. Cottinbizonne well, you see the place. We are here in our distillery. It was built in 2007. Alfonsi and none of these facilities were used before the revolution . Cottinbizonne none of these facilities were used before the revolution, no. Alfonsi and Asbel Morales dismisses the argument that the Havana Club Rum he produces for Pernod Ricard in cuba is not the real thing, because its not made from the original arechabala family recipe. The recipe remains in this land, he said. It is here in this climate, the culture. Cottinbizonne its very simple. To make a cuban rum, you need to make it in cuba. You know, it doesnt take more than that. You cannot make cuban rum in puerto rico. Alfonsi and the arechabalas cannot, he insists, claim to own the havana club brand, decades after abandoning it. Alfonsi how do you feel that they used that word about the family, saying they abandoned the brand . Arechabala they can say whatever they want. They can say that we abandoned. We didnt abandon anything. They threw us out. Alfonsi the castro government did that. The French Company pernod recard came along much later and turned the Cuban Havana Club into a global brand and an icon of cuban culture. Havana club. We found the logo everywhere we went in cuba; on every glass in every bar, on taxi drivers and parking attendants; on the chairs we did our interviews in; and at the tourist market, on artwork and tote bags and tshirts, right alongside other symbols of cuba. Do you sell more che tshirts or more havana club tshirts . Same. Alfonsi about the same. Cottinbizonne when we sell a bottle of havana club in france, in england or in chile, we not only sell the liquid, we sell the soul of the country. Alfonsi the one place in the world they cant sell their havana club at the moment is the United States, because of the trade embargo on cuban products that has been in place since 1962. But there is a way for americans to have the cuban version; in 2016, thenpresident obama lifted limits on how much rum and cigars tourists could bring home from cuba. Will you be bringing rum home with you . Yes. Lots of rum. We stocked up. Now, we just need another case to bring it back in. Alfonsi the makers of Cuban Havana Club arent satisfied with just sending suitcases full of rum home with tourists. They want to ship containers full, when the trade embargo is lifted. Cottinbizonne in cuba, we know how to be patient. Look, all the rum sitting around us, all these barrels. Its years and years of aging. Years and year of work, of dedication. We know that one day well be able to sell our rum, havana club the true cuban rum, made in cuba and that the u. S. Consumer will have the chance, the opportunity to enjoy it. Alfonsi consumers in the u. S. Drink 40 of the worlds rum, which explains why theyre stacking barrels skyhigh in cuba in preparation. This is all ready to go . Cottinbizonne this is all ready to go. Alfonsi for now, though, the trade embargo continues, and so does the court fight over who has the right to use the havana club name. On the streets of havana, theres no disagreement on that point. Hola we took a few bottles of bacardis version there to sample reaction. Do you drink rum . Si alfonsi have you ever seen this before . These men we found playing dominos on an old havana side street were more than happy to try it. Similar. Alfonsi similar. Its good, he said, but the cuban is better quality. Ernesto iznaga color is different, the stamp is different. This is the real havana club, the symbol. Alfonsi in a bar called sloppy joes, manager Ernesto Iznaga wanted no part of bacardis havana club. You dont even want to try it. Iznaga no. Alfonsi you can just have a sip. You dont have to drink the whole bottle. Iznaga no. Alfonsi no . Iznaga sorry. Alfonsi these are the front lines two bottling lines in two countries; each one producing Havana Club Rum; each claiming that its version is the only real and authentic one. Not so far apart in miles, but worlds apart in the rum war. This cbs sports update is brought to you by the lincoln motor company. At the phoenix open, Gary Woodland shot 64 in the final round for his third career tour victory. In college basketball, villanova won its ninth consecutive game and ohio state reached 20 wins on the season with its victory. For more sports news and information, go to cbssports. Com. Jim nantz reporting from scottsdale, arizona. With 33 ine and 640 muscles in the human body, no two of us are alike. Life made more effortless through adaptability. The perfect position seat in the lincoln continental. how clean do you feel after going to the bathroom . In the lincoln continental. laughter laughter then we asked the experts i feel as clean as a little, white tiny kitten. A ah ooh, a twinkling iceberg thats because only cottonelle® has cleanripple® texture. Designed to clean better. As clean as a shimmering mermaid. Cottonelle® wants everyone to feel as clean as a shimmering mermaid. How cottonelle® do you feel . In your head can you see my skin, my age, my beliefs . Address you imagine this place does where im from change how you see me . When you get to my experience, will you see how qualified i am . My skills . Dont imagine what i might be, see what i can do. Search for greatness. Search indeed. The worlds number 1 job site. Its not just something we say when you arrive. The warmth of an irish welcome stays with you long after you leave. So come on over. Well give you the inside track. And let you into some Little Secrets that will take you back through history, bring our landscapes to life, and make your evenings last longer. Welcome to ireland. Alfonsi if youve eaten out in the past couple of decades, chances are a restaurateur named danny meyer has had a big impact on how your meal went. Since meyer opened his first restaurant in 1985, the innovations in food, service and hospitality hes pioneered have been so widely copied, theyve changed the way america dines out. He now runs 15 restaurants. And shake shack, the burger joint he opened in 2004, has become a global, billiondollar chain. But, as Anderson Cooper first reported last fall in danny meyers most daring innovation to date, he is eliminating tipping in his restaurants. A move which, if successful, may radically alter the way restaurants do business. Cooper thousands of people line up every day to eat danny meyers food. Here at citi field, the home of the new york mets, some fans come early just to get a taste of shake shack. When we were there, the wait was almost an hour long. Have you been to your seat yet . Or you just came straight here no, no, no. We came straight in. Cooper just to beat the line . You have to. Its the only way you get a burger. Cooper is it worth it . Its very good. Cooper really . Yeah. Would you like one . Cooper danny meyer says shake shack burgers taste so good because he makes them with the same highquality ingredients he uses in his expensive restaurants, but that still doesnt explain why people are willing to stand in those long lines. Its burgers and its fries. And its shakes. You havent reinvented the wheel here. Danny meyer we are as, sometimes as mystified as anybody, as to what the magic of shake shack is. I think we know that this is finecausal. This is a new way of dining cooper finecausal. Meyer finecausal, which is marrying together the ethos and taste level of fine dining with the fast food experience. Cooper so you dont call it fast food. Meyer when did you ever go to shake shack and find the experience to be fast . This was such a historic, beautiful park. Cooper we went with danny meyer to new york citys Madison Square park, where he created the first shake shack in 2004. The reason i havent had a burger before from shake shack is because of the line. Meyer instead of simply asking yourself, is the burger so good that you would choose to wait in line, i think the question is, what else are they getting out of the experience . And i think what fast food hijacked was the notion that people actually want to be with people. Their whole promise was basically, were going to get you out of here so quickly, youll never have to see a person. In fact, were even going to give you drivethrough lines, so you never have to get out of your car. And were kind of doing the opposite of that. Cooper im going to get a cheeseburger, a shack burger . Cashier shack burger. Meyer shack burger. Cooper shack burger, sorry. And a coffee milkshake and fries. Theres something about the combination of the bun and the burger. Meyer so if you think about it, a hamburger is basically two things. Its the bun and the meat. And whats great about this bun is that it doesnt fight you as youre eating it. It absorbs juices. Cooper it doesnt fight you . Meyer it doesnt fight your teeth. I think its a mistake if the bun is too big and too hard. Cooper his attention to detail has made meyer a leader in fast casual dining, or what he calls finecasual. Although not the largest, it is the Fastest Growing sector of the Restaurant Business. Meyer believes many Consumers Want good food delivered in less time and at less cost than at a fullservice restaurant. Meyer and i think what fine casual is doing is, if youre willing to give up waiters and waitresses and bartenders and reservations and table cloths and flowers, were going to s were going to give you about 80 of the quality that you would have gotten in a fine dining restaurant. Were going to save you about 80 of the money youd spend in a fine dining restaurant. And were going to save you about 60 of the time. Cooper fine dining is how meyer started in the Restaurant Business more than 30 years ago. He opened his first restaurant, union square cafe, in 1985, in what was then a seedy neighborhood in lower manhattan. Back then, people dined out less frequently, and expensive restaurants were often formal, and intimidating. Danny meyer had a different vision. Meyer i said, lets create a restaurant where you can feel great if youre dining alone. So we created a bar for dining, at a time when you never got threestar food at a bar in new york city. That was the domain of coffee shops. I wanted to go to a restaurant where i could drink great wines by the glass. So i was just looking to break as many rules as i possibly could, but ultimately, to create a restaurant that, at the age of 27, would have been my favorite restaurant, if only it it had existed. Cooper meyer has been fascinated with food since he was a child. He grew up in st. Louis, the son of an entrepreneur and an art gallery owner who loved entertaining and cooking. Do you think about food all the time . Meyer constantly. Cooper have you always . Meyer i think i have, for whatever reason, since i was a little kid. Id go to the st. Louis cardinal baseball games and i was the guy that would get the whole hot dog, like everybody did. But id go to the relish station and id put a little ketchup on this bite, a little mustard on this bite, a little onion here, a Little Pickle relish here, to see which i liked better. Cooper i, i dont know how to ask this, but, i mean, were you a chubby kid, if you were eating all the time . Meyer i actually was a chubby kid. By the time i got to be 12 years old, 12, 13, 14, and thats kind of how i always felt, thereafter. And so it, it gives me great pleasure that today i can kind of eat as much as i want, because i know how to exercise, and i know how to balance it out, but it also probably put me in a position where i love seeing other people eat. Welcome here, i hope youve enjoyed your lunch. Cooper today, meyers company, Union Square Hospitality group. Cheers. Cooper . Oversees 15 different restaurants, all in new york. They operate upscale eateries, casual bistros, a cocktail lounge, and a neighborhood bakery. Meyer how old is your baby . Cooper what they all have in common is danny meyers philosophy of hospitality, which he pioneered, but has since become a standard for the industry. Meyer tell me if thats the best Chocolate Chip Cookie youve ever had. Hospitality basically says that the most important business principle at work, way beyond that the food taste great and by the way, if the food doesnt taste great, youre never coming back here. But if the food tastes great, that alone does not assure that you will come back here. So what hospitality does, is it adds the way we made you feel, to how good the food tasted. Cooper so the experience of dining out for you is the most important thing . Meyer i think the experience of how you are made to feel is the most important thing. Server good morning. Welcome. Cooper the key, he says, is to hire people who are intuitive and empathetic. He has more than 2,000 employees, and he trains them to pick up on the customers cues. Meyer everyone on earth is Walking Around life wearing an invisible sign that says, make me feel important. And your job is to understand the size of the font of this invisible sign and how brightly its lit. So, make me feel important by leaving me alone. Make me feel important by letting me tell you everything i know about food. So its our job to read that sign and to deliver the experience that that person needs. Cooper this is the reservation system. Scott reinhardt yes. Meyer are there any folks here that im supposed to be saying hello to today . Reinhardt we have a regular right here. Cooper in the Restaurant Business, Profit Margins are razorthin, and repeat customers are critical. Meyer thanks for being here today. Customer nice to see you. Cooper meyer has made an art of making his customers feel welcome, tracking their likes and dislikes. I ive also heard you say that you always identify the boss at the table. I didnt realize there was a boss at each table. But how do you do that . Meyer well, there theres no question in my mind that at every single table, theres somebody whos got the biggest agenda. If its two people doing business, theres someone whos trying to sell something to somebody else. And i think that if you can figure that out early on in the meal, and understand what is it going to take for the boss to leave happy it could be, make sure that someone else gets to pick the wine. Youve just got to pick up on those cues. Cooper meyers most controversial innovation is also his riskiest. He is trying to eliminate tipping, to combat pay inequities between servers, whose tips have gone up as menu prices have increased, and those who work in the kitchen, who under most state laws, cant share in gratuities. So the cooks, dishwashers, they dont get any part of the tip . Meyer they dont get any of it. And what i noticed, after being a restaurateur for 30 years, is that the growing disparity between what you can make in the dining room where tipping exists, and what you can make in the kitchen had the disparity had grown by 300 . Cooper meyer has so far eliminated tipping in ten of his restaurants. Hes increased the base pay of both servers and kitchen staff, and in some restaurants, gives waiters a share of the weekly revenue. He has raised menu prices significantly, on average, nearly 25 . But when the bill comes, theres no line for leaving a tip. You call it hospitality included. You dont say, no tipping. Meyer so by saying, hospitality included, its basically saying, you see that price that it costs to get the chicken . That includes everything. That includes, not only the guy that bought the chicken and the guy that cooked the chicken, but it also includes the person who served it to you, and how they made you feel. Cooper so for the customer, in the end, is the bill the same . Meyer the bill, by the time you get your bill, whatever shock you did or didnt feel when you saw the menu prices should completely dissipate, because you should say, thats exactly what it would have been if they hadnt had this new system. Cooper plus, at the end of the meal, you dont have to deal with the hassle of figuring out what to tip. Meyer thats absolutely true. And lets face it, the end of the meal tends to be when people have had more wine than the beginning of the meal, and sometimes people make honest mistakes. Cooper theres not a lot of restaurants though, who are following your lead. Meyer thats absolutely true, and it kind of reminds me of in 1990, when i decided to eliminate smoking at union square cafe. Cooper that was long before the law actually ended it. Meyer it was 12 years before it became law. And so for me, its almost immaterial whos doing it, besides us. What matters is that that were doing it. It could be that were slightly ahead of our time. But were in it to win this thing. Hi. Audrey Heffernan Meyer how are you . Nice to see you. Cooper meyer reopened his first restaurant, union square cafe, in a new location in late 2016. Its another notipping restaurant. Meyer this pinch point here is the issue. Cooper minutes before the first customers arrived, meyer was still making final adjustments. Meyer one more fourtop, and then a sixtop there. Cooper . Determined to deliver a Dining Experience that would keep them coming back for more. Meyer yay. My mind doesnt shut up, and im constantly thinking about, how could we do this better . How could we make this better . I dont want to ever open a restaurant that, if it closed, people just wouldnt care. Cooper i will say, i mean, its been now 24 hours since i had my first burger at shake shack, and a coffee milkshake. I have been thinking about it more than i have thought about food in a long time. Meyer so, all you need to know about me, after all these questions, is that nothing in the last 24 hours makes me happier than hearing what you just said. laughs for a look at how 60 minutes reports its stories. As well as interviews with correspondents and producers, go to 60minutesovertime. Com. Sponsored by prevnar 13. You may be at increased risk for pneumococcal pneumonia, that can take you out of the game for weeks, even if youre healthy. Pneumococcal pneumonia is a potentially serious bacterial lung disease that in severe cases can lead to hospitalization. It may hit quickly, without warning, causing you to miss out on the things you enjoy most. Prevnar 13® is not a treatment for pneumococcal pneumonia. Its a vaccine you can get to help protect against it. 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