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‘Millionaire Factory’ bankers banned from dining at beachside hotspot as $180 per person lunch limit bites: ‘Things are going to be different this year’
- Macquarie Finance Group bankers banned by top brass from Sydney headquarters
- Macquarie and banks around the world are trying to cut costs ahead of an uncertain 2023
- Coogee-based Merivale restaurant, Mimi’s, is a favorite for attracting customers.
- Dishes at Mimi’s beachside restaurant can cost as much as $249
His company has reportedly banned some of Australia’s highest-earning bankers from winning and dining with potential investment clients at a fancy Sydney restaurant due to the cost of living and rising interest rates.
Macquarie Finance Group recently issued a directive to its investment bankers to avoid taking clients to Mimi’s, in the eastern Sydney suburb of Coogee, due to expensive meals and its distance from the city.
Mimi’s, found on Coogee Beach inside Justin Hemmes’ Coogee Pavilion, is one of the most expensive and upmarket spots in the pub magnate’s ‘Merivale Group’, with a menu offering many dishes at three-figure prices.
Macquarie is reportedly looking to limit his entertainment bill, according to the Australian Financial Reviewand align the spending habits of its bankers with those of other financial institutions.
The bank has repeatedly been dubbed the ‘millionaire’s factory’ due to its high-end clients and the wages it pays its workers.
Macquarie is one of many banks around the world cutting discretionary costs heading into the new year, with growing uncertainty in the global economy and several financial institutions considering a $180 limit on lunches.
The Macquarie Finance Group (pictured) has reportedly banned certain divisions of investment bankers from entertaining clients at one of Sydney’s leading beachside restaurants.
Mimi’s recently received its second GoodFood hat, a title held by only 38 Australian restaurants, joining other Merivale venues like Fred’s and Mr. Wong’s on the coveted list.
Their menu features numerous fine-dining dishes, such as a $50 caviar ‘hit’ served with a shot of vodka, a $120 grilled Murray Cod, and their traditional wagyu ribeye with lemon and olive oil that it costs $298.
The dining experience overlooking Coogee Beach and Wedding Cake Island has made the place an attractive destination for investment bankers trying to impress clients into doing business with them or celebrating closing a deal.
Many Australian bankers celebrated salary increases from thousands to tens of thousands at the end of 2021 while entering into record-large deals.
This locked banks into higher wage bills in a year that is expected to see a significant drop in deals, now having to manage the books more strictly.
“Usually it’s just downsizing, but now you have even bigger teams with higher base salaries, and that’s not something that can be easily reduced,” a banker from a rival firm told AFR.
Investment bankers have been banned from entertaining clients at Merivale’s Coogee restaurant, Mimi’s (pictured), as banks look to cut spending across the board until 2023
A Macquarie executive said “there is a feeling that things are slowing down revenue-wise and this is just the start of tougher rules on spending.”
‘You just have to look at how much profits have fallen in some [local arms of investment banks] know that things are going to be very different next year,’ they added.
Another anonymous Macquarie banker said: “We’re all being pragmatic about compensation this year, so it wasn’t a huge surprise.”
Mimi’s became a favorite among investment bankers for client lunches because of the dining experience overlooking Coogee Beach and Wedding Cake Island ($50 caviar ‘hit’ pictured) Mimi’s with oysters $7.50)
Executives at other investment banks have reported that a strict limit of $180 per head on client lunches will be enforced through increased oversight by management.
Some bankers have warned that current cost-cutting methods could shift from less fancy lunches to lower bonus pools and potentially layoffs.
A little over a decade ago, Sydney bankers at Swiss investment bank UBS were banned from dining at Neil Perry’s Rockpool after an audit of the company’s expenses revealed they were spending $7,000 a week in subsequent years. to the GFC.
Macquarie’s decision over Mimi’s has not been made as company policy.