Green Rectangle

For Restaurants

A Masterclass in Hospitality for the Business Crowd — with John McDonald, founder of Mercer Street Hospitality

Early 2025 has brought no shortage of challenges for restaurants, from economic uncertainty to shifting consumer habits. But amid the turbulence, one segment continues to offer stability: business dining.

Recent data in Dinova’s State of Business Dining Report shows business dining spend gravitating to smaller, independent restaurants, especially those that can offer tailored, memorable experiences and understand the specific needs of business guests.

That’s where Mercer Street Hospitality (MSH) shines. The group behind New York City fine dining staples Lure Fishbar, Cha Cha Tang, Bowery Meat Company, Smyth Tavern, Bar Mercer, and Galerie Bar has carved out a niche by delivering polished, personalized hospitality that inspires strong loyalty and the kind of word-of-mouth that keeps tables full.

At the helm is founder John McDonald, who has spent more than three decades in hospitality. His philosophy? Stay grounded and focus on the fundamentals.

Where Locals Lead, Business Diners Follow

Take Lure Fishbar, a SoHo icon for over two decades. Beyond its polished interior and seafood-focused fare, what keeps people coming back is an increasingly rare level of hospitality. 

“If you can become that street or neighborhood’s go-to restaurant, that’s pretty unique,” McDonald says. “You’re fulfilling every use case—personal, business, family, celebrations.”

This idea of a restaurant serving multiple purposes is core to MSH’s ethos. Lure has built a remarkably loyal following, with high-profile regulars and business guests rallying around this beloved part of SoHo’s “soul.” This type of loyalty can’t be manufactured. It’s earned, plate by plate.

High Expectations, High Returns

Business diners may come with high expectations—and that’s exactly why McDonald values them.

“When you know it’s business, people have higher-level expectations,” he says. “They can’t afford to take clients to have a botched experience. It’s a reflection on them.”

For MSH, the key is recognizing and rising to those expectations. That might mean anticipating a guest’s preferred seat, knowing when they need to dine quickly, or even preparing for a favorite order ahead of time. One client, McDonald recalls, walks in and hands the server a pre-printed card with his usual order.

“People think that kind of customer is difficult, but I think they’re the greatest. They tell you what they want. Then you just make sure it’s perfect.”

“When you know it’s business, people have higher-level expectations…They can’t afford to take clients to have a botched experience. It’s a reflection on them.”

– John McDonald, founder of Mercer Street Hospitality

Smart Planners Make the Best Guests

For corporate gatherings or VIP business meals, precision is everything. McDonald’s advice for corporate event planners? Don’t leave anything to chance.

“The second your guests arrive, there needs to be a tray of champagne and one signature cocktail immediately,” he says. “If not, you’re going to have 20 people, and it’s 15 minutes before anyone has a drink.”

Successful private dining events require what McDonald describes as the “quarterback”—someone guiding the flow of the night so that guests can relax and connect. That includes timing the meal, setting the tone, and curating a tailored menu and guest list.

‘Our Job Is To Create Memories’

At Mercer Street Hospitality, the experience doesn’t end with the food. From curated sake tastings and tequila pairings to unexpected side dishes sent out on slower nights, MSH intentionally creates moments that leave an impression.

“Our job is to create memories,” says McDonald. “If they just wanted to eat, they’d stay home. They’re here to be entertained.”

That mindset reflects a broader trend in business dining. Experiential dining is in high demand as companies seek more meaningful ways to connect, whether through networking, team building, or client entertainment.

Staying Grounded in an Unpredictable Time

As the broader industry navigates slower traffic and tighter margins, McDonald’s philosophy is refreshingly simple: Know what you are, and focus relentlessly on execution. 

“The goal is not to be a successful restaurant,” he recently told The Committed Innovator. “That’s way too big of a goal. The initial goal should be: how do I make that customer come back?”

That grounded perspective—paired with an unwavering commitment to old-fashioned hospitality—makes Mercer Street Hospitality not just a fixture of New York dining, but a blueprint for success in today’s business dining landscape.

It’s also why MSH isn’t slowing down even in a challenging climate. Up next: Seahorse, a seafood-driven, subtly French raw bar opening inside the W Hotel at Union Square—a flagship destination for business travelers. The concept brings MSH’s signature hospitality to a new audience, combining polished service, Greenmarket-fresh ingredients, and a stylish setting with discerning patrons in mind.

The Business of Repeat Business

Dinova’s preferred dining program helps restaurant partners like Mercer Street Hospitality bring new faces through the door by getting in front of business travelers and diners at the right moments—when they’re booking trips, planning team dinners, or looking for reliable places to network, celebrate, or close deals. 

From there, it’s the experience that keeps them coming back. At MSH restaurants, that means being recognized, remembered, and treated with the kind of hospitality that feels personal—even in a fast-paced business setting. It’s not just a meal; it’s an opportunity to build relationships and company culture in spaces designed to make a lasting impression.

“If you don’t get someone to come back—whether it’s a person or a company—then it really doesn’t mean anything,” McDonald says.

Want to turn business diners into loyal guests? Explore insights, trends, and practical strategies in our latest State of Business Dining Report.