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Perfect food (and overhearing conversations) at Lorenz Adler Esszimmer

Lorenz Adler EsszimmerLast week I spent some time in Germany’s capital Berlin. I like the city, it has both great old architectural gems such as the Brandenburger Tor, the Reichstag and the Gedächtniskirche, but also brand new buildings such as the ones around Potsdamer Platz or the new German parliament. Lorenz Adler Esszimmer

The city has undergone a complete transformation since the fall of the Berlin Wall in 1989, and it’s now often hard to know whether you are in the former East Berlin or in West Berlin. Of course there are still a lot of former communist buildings, for example along the Karl Marx Allee, but even most apartment buildings in the East have been completely renovated by now. The city feels like one city again.

Lorenz Adler EsszimmerI am a fan of very high end cuisine, the kind of restaurants that you don’t find in Vancouver. Berlin has a couple of “over-the-top” restaurants and so one night we decided to try out Lorenz Adlon Esszimmer at Unter den Linden. The restaurant has 2 Michelin stars, which guarantees you the very best food and service. Problem was that you normally can’t book a table on the day of your dinner, but with a bit of luck and some phone calls I managed the get a table at the window, looking out over the Brandenburger Tor! Lorenz Adler Esszimmer

Grace and I arrived at exactly 7 pm and it turned out we were the first guests. The Esszimmer (which is German for dining room) is a relatively small restaurant. There are just 7 tables, set in a beautiful classical setting with a fireplace and windows with great views.

We were welcomed by the head waiter and the sommelier and were given the choice of several Champagnes. To start we opted for a glass of rose Champagne. They then gave us the menu, which had the choice of either a 6-course or an 8-course tasting menu. Because we had no important plans for the next morning we decided to go for the 8-course one with 8 paired glasses of wine (at least for me, Grace stayed with Champagne).

Lorenz Adler EsszimmerBefore the 8 courses we first had 3 rounds of amuses, which gave us an indication of what was to come. Beautifully designed small dishes with amazing combinations of ingredients and aromas. Lorenz Adler Esszimmer

While we were having our amuses the restaurant slowly filled up. Most tables were just 2 people, but one table was set for 4 persons. There was also one table for a single person. Most of the guests were in their 50s and 60s, and all were well very well dressed. That’s what I like about this kind of restaurants, having dinner here is a special occasion, even for people who eat more in restaurants than at home.

Lorenz Adler EsszimmerThe 4-person table turned out to be 2 older gentlemen and 2 young good looking Thai women. A bit of a strange combination of course, but who am I to judge. They spoke English and some German among themselves, and I didn’t think much of it until I realized that the accent of the men was Dutch. I took a closer look at them and then realized that I actually knew one of the men. He was a well-known former CEO of a large public company and I actually had had a business meeting with him once. (Given that the Thai girl was not his wife I won’t mention his name here.)Lorenz Adler Esszimmer

He looked at me as well, but I think he could not place me. He certainly did not realize I was Dutch, because after a few glasses of wine the 2 businessmen switched to Dutch. They talked quite loud and I could understand everything they said. Unfortunately the topics they discussed in Dutch mainly involved their accomplishments with young women. I am not easily embarrassed, but some of the things they said I really did not want to hear. I am sure they would have never discussed these topics in either German or English in this setting. For a moment I considered walking by their table and making a remark in Dutch to show them they were not the only ones speaking that language, but in the end I just let it go. The details sure make for a nice story over beers with friends in the future (most Dutch people know his company).

Lorenz Adler EsszimmerThe dinner itself was fantastic and the wine pairings were excellent. The creations were like art on dinner plates and they tasted even better. Top chefs are really highly skilled artists! Some of the dishes reminded me a bit of Ultraviolet in Shanghai (which is still my #1 restaurant in the world). The wines were mainly European ones and there were some real gems in there. What I like is that they give you decent sized glasses and every now and then refill your glass if you really like the wine. Not every top restaurant does that, but in this price range (about EUR 700,- for 2 people) I like it if they are not stingy. Lorenz Adler Esszimmer
The only downside was that it was almost too much for me, and Grace stopped eating her full portions after 4 courses already. You actually should not eat more than a soup and a salad at lunch when you know you’ll be having a meal like this.

Lorenz Adler EsszimmerI had a fantastic evening at Lorenz Adler’s Esszimmer. The combination of the food, the wines, and the view was just perfect. Observing the Dutch business people actually added to the fun, although it was difficult to ignore their loud talking sometimes. If I would live in Berlin I would probably go here at least once a year on a special occasion. I highly recommend this restaurant if you’re a foodie and don’t mind spending a lot of money for an amazing meal in a great setting. Just make your reservations well in advance! Lorenz Adler Esszimmer

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Traditional industries don’t see disruption coming

There are many well-know tech predictions that turned out to be completely wrong, and over the past week I came across a couple of new ones that (I think) totally miss their mark.

First a few of the old ones to have a good laugh:
– “I think there is a world market for maybe five computers.” Thomas Watson, chairman of IBM, 1943
– “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication.” Western Union internal memo, 1876.
– “There is practically no chance communications space satellites will be used to provide better telephone, telegraph, television or radio service inside the United States.” T.A.M. Craven, Federal Communications Commission commissioner, 1961

What they have in common is that these statements were made by people that work in the industries they make predictions about. They all fail to see that industries constantly change and that these changes also apply to their own industry. They are probably surrounded by people who don’t see these changes either, or who don’t want to see them because they can cost them their jobs.

My job consists of spotting trends and disruptive change before others and by placing bets (=making investments) based on that. I am certainly not always right and I am often too early, but I feel I have a better helicopter view of certain industries than some of the CEOs running the leading companies in those industries. Often when I read their interviews I wonder if they really live in the same world as I do. This week I read 3 articles that I totally disagreed with and that may eventually be added to the list of disastrous tech predictions.

Hilton
First one article about the hotel industry: Hilton CEO Christopher Nassetta said “I strongly do not believe that they (AirBnB) are a major threat to the core value proposition we have.” He is confident that AirBnB is not stealing his hotel guests. Right, maybe not many yet, but given that AirBnB has far more rooms than Hilton, that will likely change soon.

I have stayed in AirBnB’s over the past years instead of staying in luxury hotels. And given that AirBnB is now focusing on the business market as well, Hilton could be in for a surprise. Mr. Nassetta stated that Airbnb cannot match the amenities that Hilton hotel rooms come with, so business travelers won’t stay there. If that’s really the main differentiator (it’s not, AirBnB has better choice, is often much cheaper, and has better facilities such as kitchens and laundry) that’s easy to solve. In China the first AirBnB clones with personal concierges and chefs have launched already, I am sure the US will see this soon as well. The hotel industry won’t change overnight, but it’s a process that is unstoppable. Good luck competing Hilton!

MoneyGram
Second, the remittance industry. MoneyGram, a huge global remittance company, doesn’t see Bitcoin as a threat. Peter Ohser, the executive vice president of business development feels digital currency doesn’t pose any threat or solve pressing problems. What? Does he not talk to his customers? Does he not follow what’s happening in the real world outside of MoneyGram and Western Union?

He believes existing payment behaviors are too entrenched, and that bitcoin is unlikely to offer enough utility, because people trust paper more than data and that behavior is not going to change (my emphasis). Especially that last sentence makes clear that he is out of sync with the real world. It reminds me of Kodak, that did not believe 15 years ago that people would stop using photo cameras with film. Well, I don’t think my kids even know what paper photos look like. Disruption happens fast Mr. Ohser. Good luck competing MoneyGram!

General Motors
Third, the car industry. I started my career at Daimler-Benz (now just called Daimler). I loved the company and did not believe it would ever lose its place as one of the top companies in the world. So far they haven’t and I still like the brand, but given how slow they are with implementing new technologies I wonder if they won’t lose their place to Google, Apple or companies like Tesla. I was in a Mercedes showroom last month, and although I loved the models I would not consider buying one of their cars anymore until they would have a pure electric car with a range like Tesla’s.

Bob Lutz, former vice chairman of GM, wrote a column for Road and Track with the title ‘Is Tesla Doomed‘? It is clear that he does not see what differentiates Tesla from the traditional car companies and he gives Elon Musk some fatherly advice: Cut costs and build a small car with a hybrid drivetrain. I had to laugh at that. Because of its current investments in the Gigafactory and in the Model 3, Tesla will eventually print money. But if they would cut back costs now they would never be able to get there. The idea for a hybrid drivetrain is ridiculous, Tesla sets itself apart with its electric-only engines with a great driving range.

Next to that, Mr. Lutz compares Tesla’s showroom strategy to that of BMW in the 1970s, but totally misses that you can’t buy Tesla cars in a showroom and drive away (you order them and wait 2-3 months, or longer, so there are no inventories).

In a few hours Tesla will publish its Q3 results and they will likely show bigger losses. Not sure how the stock price will react (I believe investors expect it and it’s reflected in the current price), but I believe these losses are necessary for huge profits a few years from now. My biggest concern is that they can’t scale up production, but maybe that is something where the traditional players can help Tesla: as their future car parts suppliers! Then Tesla can focus on its software, R&D and design, just like Apple does (they don’t produce their own products either). I am long Tesla and fully believe in Elon Musk. Good luck competing General Motors!