Yahoo Finance The world’s biggest luxury company LVMH just added a quirky 3-star Parisian bistro that makes $100 roast chicken to its empire
LVMH operates in a world of opulence, high-end fashion, and star-studded partnerships. The French company is the world’s biggest luxury company, and its patriarch, Bernard Arnault, is among the world’s richest men.
That’s why the latest addition to Arnault’s sprawling business empire might seem unlikely—an unassuming Parisian bistro that sells $100 roast chicken and has a 3.5-star rating on Trip Advisor.
LVMH announced its purchase of Chez l’Ami Louis, a 100-year-old bistro, which the company called an “authentic Parisian gem.” It’s unclear how big LVMH’s majority stake in the restaurant is, although the bistro’s deep French roots and the culture it represents are why the conglomerate bought it.
“LVMH will work to preserve the unique character and family identity of the restaurant and continue to support its French savoir-faire and expertise,” the luxury company said in a press release last week.
Chez l’Ami Louis might not be as flashy as LVMH’s other businesses—think Dior and Tag Heuer—but it’s famous in its own right. Located in the central district of Le Marais, the bistro has hosted Bill Clinton and Martin Scorsese in the past.
"'Chez L'Ami Louis' has acquired an unprecedented atmosphere and popularity among Parisians, becoming a go-to destination for those seeking an authentic culinary experience in the capital," LVMH said.
Serving foie gras, french fries and fresh fruit platters, the restaurant gets its produce from small breeders and market gardeners, LVMH said in its release.
As a bellwether in the luxury industry and one of Europe’s largest companies, LVMH has more sway than the average company.
The purchase of Chez l’Ami Louis reflects the Arnault-owned conglomerate’s broader push to diversify its operations outside of retail. LVMH announced plans to invest in the Orient Express, known for its luxurious train journeys originating from Paris, which Arnault said represents “adventure and elegance.”
The company also owns high-end hotel groups Belmond and Cheval Blanc in addition to its well-known luxury retail houses. LVMH has been hit by a slowdown in luxury demand in recent months, bringing a renewed focus to its other business areas that offer experiences.
Given the Paris-based company’s prominent role as a sponsor of the upcoming Paris Olympics, the Arnaults also made it their mission to use the event to raise LVMH’s profile. For instance, Chaumet, a jeweler it owns, is designing the gold, silver and bronze medals for the Olympics this time.
The company is betting on Paris’s image as a global business capital, and Chez l’Ami Louis could help achieve that.
An unnamed source told CNN that Arnault has been to the bistro before, and the purchase suggests that the LVMH CEO is keen to preserve Paris’s “identity and expression.”
This story was originally featured on Fortune.com
