Crains New York - July 23, 2012 - (Page 1)

CRAIN’S NEW YORK BUSINESS ® VOL. XXVIII, NO. 30 FATHERS & SONS Smith & Wollensky employs 13 sets of dads and lads P. 25 WWW.CRAINSNEWYORK.COM JULY 23-29, 2012 PRICE: $3.00 MAKING DOUGH THIS BLUEBERRYGLAZED DOUGHNUT from Doughnut Plant is five inches in diameter and sells for Wall Street lawyers up for LIBOR litigation Early estimates have rate-rigging cases producing $35 billion in bank settlements BY AARON ELSTEIN For lawyers, accountants and the numerous outfits that assist them, the Wall Street scandals of recent years have provided a gold mine of work.But the fiasco with LIBOR could prove to be the mother lode. Analysts expect that global banks will have to shell out $35 billion in damages to settle legal claims over their role in manipulating LIBOR, also known as the London interbank offered rate, a market benchmark used to calculate interest rates on an estimated $10 trillion worth of loans and $350 trillion worth of derivatives. Those LIBOR settlements would See BANKS on Page 23 $3 LABOR COSTS are relatively low—about 30% of the retail price, experts say. So, in this case, that’s around 90¢ LOCAL BLUEBERRIES from the Union Square Greenmarket make this treat true gourmet fare, but most doughnut ingredients are basic—flour, water, sugar. Average cost of a doughnut’s ingredients: 20%. Here, the estimated cost is about 60¢ Doughnuts:the new cupcakes buck ennis RENT, ELECTRICITY, PAPER, PACKAGING AND SUCH: 25%, or 75¢ 75¢ PRESUMED PROFIT: around 25%, or about Note: Crain’s estimates A biz boom no one can brag about NY clinics see 26%rise in abortions performed on out-of-state women BY GALE SCOTT The 14-year-old was two months pregnant and scared. Despite being insured and having her parents’ permission, the Florida teenager was unable to find a doctor willing to perform an abortion. She heard about Choices, a forprofit women’s health center in Jamaica, Queens, found contacts on its website, and headed north. “Her dad’s a trucker,” said Esther Pregue, the center’s head social worker, who counseled the teenager. “And See ABORTION on Page 22 Extra-sweet profits for bakers, retailers, restaurateurs on front lines of city’s latest gourmet trend BY ADRIANNE PASQUARELLI The latest food craze sweeping the city is hitting the sweet spot. While cupcakes and macarons satisfy after-dinner cravings, bakers are discovering that the doughnut—a treat good from morning till night—can provide the most profit. “I know people think it’s just breakfast, but our business is throughout the whole day,” said Mark Israel, owner of Doughnut Plant, which has a recently expanded headquarters on the Lower East Side, as well as a 17-month-old outpost in Chelsea and, coming soon, a site in the Grand Central Terminal neighborhood. But these doughnuts are more sophisticated concoctions than the garden-variety See DOUGHNUT on Page 23 THE LISTS TOP PROPERTY SALES P. 15 TOP OFFICE LEASES P. 16 NEWSPAPER http://WWW.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - July 23, 2012

Crains New York - July 23, 2012
Contents
In the Boroughs
In the Markets
The Insider
Business People
Small Business
Opinion
From Around the City
Report: Real Estate
Real Estate Deals
For the Record
Classifieds
New York, New York
Source Lunch
Out and About

Crains New York - July 23, 2012