Upon becoming the governor of New York State in 2011, Andrew Cuomo was given a taxpayer-funded office in Albany and another one in Midtown Manhattan. But if you managed to arrange a meeting with Cuomo, there seems to be a good a chance it would take place at Docks Oyster Bar & Seafood Grill, a restaurant just downstairs from the governor’s Manhattan office.
“Docks is pretty much like being in the governor’s office, but with vodka,” former Cuomo adviser Howard Glaser told the Wall Street Journal. Cuomo, who is running for his third term as governor this year, has met at Docks with his political rival, New York City mayor Bill de Blasio, to discuss control of city schools; with union leaders to hammer out a new contract for train workers; and with many other New York power brokers, the Journal reports. Cuomo’s aides and state legislators also meet regularly at the restaurant. The governor’s reelection campaign spent more than $5,000 at Docks in 2017.
Whether it’s a business lunch, a working dinner, or catered sandwiches in a conference room, we’ve all shared a meal with a negotiating counterpart at one point or another. What are the advantages and potential pitfalls of combining food and drink with negotiation?
Location, location, location
“Restaurants are neutral turf,” former New York State assemblyman Jack McEneny told the Journal. “You can talk about sports, the weather, and then say, ‘By the way, what’s happening with such and such bill?’ It’s not as awkward as going to the guy’s office.”
It’s true that a restaurant can be neutral negotiating territory, as in the case of negotiators choosing an unfamiliar lunch spot midway between their offices.
However, that’s clearly not the case for Cuomo’s meetings at Docks. Take Cuomo biographer Michael Shnayerson’s description of the time he met his subject there: “The governor and a top aide seemed to materialize from a side door, and he sort of swaggered more than walked past other tables, shaking outstretched hands.” Others who have met with Cuomo at Docks pointed out to the Journal that although the setting is less formal than either of the governor’s offices, they’re still coming to Cuomo, rather than vice versa.
When you’re in a powerful position, expecting someone to travel to you to metaphorically “kiss the ring” highlights your powerful differential and potentially puts the other party in a one-down position. That might not be a bad idea when you’re going to be tussling over limited resources, but it could hold you back from finding opportunities to collaborate.
Shared plates
Does breaking bread also break down barriers between negotiators?
In one experiment, Babson College professor Lakshmi Balachandra found that pairs of MBA students who engaged in a negotiation simulation created 12% greater joint profit when they ate together at a restaurant and 11% more joint profit when they ate together in a business conference room as compared to pairs who negotiated in a conference room without food.
Balachandra theorizes that biological factors may be at play. When we eat, our glucose levels spike, which enhances brain function: Our self-control improves, and we’re less prejudiced and aggressive as a result after eating. Indeed, other research shows that negotiators who are hungry have a greater sense of entitlement as compared to negotiators who have just eaten, Cornell University professor Emily Zitek and Dartmouth College professor Alexander Jordan found. Entitled negotiators tend to behave selfishly and unethically, and they have trouble taking others’ perspectives. So there’s a biological argument to be made for eating during, or at least before, negotiating.
The way in which food is served may matter as well. When pairs of negotiators were given food to share, such as chips and salsa, they were better at creating value during a negotiation simulation that was framed as a competition as compared to pairs who were given individual portions of food, Stanford Graduate School of Business professor Margaret Neale and University of Virginia professor Peter Belmi found. Sharing food may foster much-needed cooperation among competitors, the results suggest.
Drinks and discretion
When passing plates, it’s natural to think that a round of drinks might further grease the wheels. However, at a time when you’re trying to stay sharp, even mild inebriation can create a host of barriers to creative dealmaking: simplistic thinking, overconfidence, strong emotions, and even aggressive behavior. In addition, whether for personal, religious, or other reasons, some counterparts may be offended by the notion of consuming alcohol while doing business. If you do decide to imbibe during a negotiation, limit the time frame of your talks, and be sure food and water are available.
Finally, when negotiating in a public place, such as a restaurant, privacy can be a concern for high-profile talks. According to New York City Hall aide Chris Coffey, that’s not a problem for Cuomo and his counterparts: “What happens at Docks stays at Docks.” A discreet staff and a private dining room help keep sensitive conversations out of the press. In general, though, if you want your talks to stay under wraps, it’s probably best to meet in private.
The bottom line? The relaxed, social atmosphere of a restaurant is likely to help negotiators build rapport and trust, but there are pitfalls to be aware of. Perhaps the best solution is to get to know one another over a friendly meal, move to an office when it’s time to discuss substance, and share another meal if talks get contentious.