Steakhouses in Gorat are the busiest time of the year in Omaha, Nebraska. Not Mother's Day, Father's Day or holiday. It was the first weekend of May, when thousands of Berkshire Hathaway shareholders landed in New York City to attend the group's annual shareholder meeting, often referred to as “the capitalist Woodstock.”
The event provided a huge commercial surge to Warren Buffett's famous Steak House, generating one to two months of revenue in just a few days. Gorat starts booking meetings every February 1 and temporarily attracts friends, family and former employees to handle the influx. “It's basically our Super Bowl service,” Gorat's executive chef Joshua Saligheh told Observer.
Buffett, 94, has long been synonymous with his hometown. He still lives in the same house he bought more than sixty years ago, often dining and driving around Omaha. The so-called “Omaha Oracle” has set up Berkshire Hathaway in the city since 1970 and has made Omaha a lasting place for its annual shareholder meeting. When Buffett announced his retirement at this year’s conference, locals were full of confidence that his legacy and the crowds coming to celebrate would not go anywhere.
Omaha executive director Deborah Ward said last year's shareholder meeting brought more than $21 million in tourism revenue to Omaha, according to Omaha executive director Deborah Ward. Ward said this year's conference also led to a 3% increase in hotel residences over the previous year, with 95% of Omaha hotel rooms sold out on May 2 and May 3.
All of this shows that the attractiveness of Berkshire shareholders is still growing. Local business owners believe that the momentum will continue even after Buffett retires. “I actually think it's going to get bigger because all these guys have to do in town is to follow in his footsteps,” Salig said. For example, most Gorat customers ordered the exact meals Buffett himself prefers – rare T-bone steak, double steak, with Hash Browns on both sides, cherry coke and occasionally a draught beer buoy.
Saligheh noted that the annual surge in local businesses is particularly the interests directly tied to Berkshire Hathaway. Subsidiaries such as Nebraska Furniture Fair and Cow Queen have seen huge spikes in sales. In addition to the main Berkshire conferences, the first weekend of May also drew on other gatherings and sidebar meetings from companies that took advantage of Omaha time, thanks to the city’s economic growth.
Buffett's outspokenness to Omaha has turned the city into a year-round destination for Berkshire fans. According to Saligheh, about two-thirds of the restaurant’s guests are from Gorat’s.
Ernie Goss, an economics professor at Creton University, said travelers swing Omaha, a landmark like Buffett’s childhood residence. Goss noted that Buffett gave his hometown a rare visibility. “This is probably one of the more solid businesses in the U.S. with a community connection and connection,” he told Observer.
The relationship between Omaha and Berkshire is also a two-way street. Goss said that while the city has earned millions of dollars from the annual meeting of the conglomerate, Berkshire has benefited from the city’s low-key, trustworthy and Midwest image. “Omaha's tentacles enter Berkshire Hathaway.”
Locals insist that the company's commitment to Omaha will continue even if Buffett no longer serves as Berkshire's leader. “It's hard to think of the first weekend of May without Berkshire Hathaway, but it's hard to think of the first weekend without Omaha for thousands of Berkshire Hathaway shareholders, it's hard to think of the first weekend without Omaha,” Ward said. “Omaha is home to Berkshire Hathaway – the two go hand in hand.”
