In 2013, the Lexington House debuted in downtown Los Gatos as a fresh and modern alternative to the status quo. The status quo, however, has change a lot in the 10 years since.
“During the pandemic, when real estate was hot as heck, many locals cashed out and moved out,” says co-founder Stephen Shelton. “We lost 50% to 60% of our original clientele.”
In their place, he says, is a wealthier customer. “Los Gatos is not as approachable for the middle class. There are a lot of people here with lots of money, but they are too busy to go out.”
The pandemic also dramatically changed dining habits. Delivery services made it easier for people to stay home.
“While a large percentage of people like really good food, others have three kids and are busy with startups, and it’s not a priority for them,” Shelton says.
He also points to the pervasively online nature of life. Going out for retail therapy and to have lunch or drinks and dinner with friends and colleagues is nowhere near as common as it was in the 1980s and ’90s or the early 2000s.
“Remember Happy Hour?” says Shelton. “Every bar would be packed. All those high-tech companies would let out, and people would gravitate toward their favorite spot to see who was hanging out at the bar. Now it seems that retail shops and restaurants have become special occasion outings rather than the weekday routine.”
While the pandemic year proved difficult for his sit-down restaurant, 2022 was a banner year. Nobody was traveling yet, and outdoor dining was the rage. “Business was just bonkers,” he recalls. “But that wore off, and people started traveling in 2023.”
He says business was down for much of the year but began to come back strong for the holidays.
Through it all, Shelton says staying true to his restaurant’s style of service while keeping up with the times is what keeps him grounded. “What’s important is to stay true to your ethos. We are staying loyal to our culture, and we try to consistently hit the marks for great food, great vibe, great atmosphere, great drinks and wine.”
Shelton credits Chef Ethan Carreon, who started as a line cook during the pandemic, for maintaining Lexington House’s culinary standards. “He was going to photography school when he came here with his dad for dinner,” says Shelton. “He loved the food and wrote us an email thanking us and saying he wanted a job. He went to culinary school for a while at Cabrillo and worked his way up. As a Filipino, he’s very proud of his culture and he really embraces global influences.”
Shelton points to CharShiu chicken and Massaman curry as dishes authentic to their roots, along with Hamachi crudo, in the traditional Japanese style. The seasonal menu currently features persimmon salad with burrata. You’ll also find Flannery steaks and wagyu fat fries with horseradish aioli, plus caviar with a banana black butter waffle. Tuesday is burger night, and then it’s whiskey and dogs on Wednesday. Inventive house-made cocktails and mocktails are the talk of the town. A bottle of house-made Irish Cream sells for $25.
Regulars say they love coming here because it’s like going to a friend’s house. Staff members are natural and personable, with no canned delivery. Shelton says the atmosphere is more like, “Welcome to our house, and here are the specials, if you want to know. Stuffy service does not feel natural to me. I want The Lex to be the authentic go-to restaurant.”
Does he envision another 10 years? “As long as I am good at it and I am enjoying it, then yes. I love the regulars, and that feeds the soul. This place kept me going during the pandemic. We all valued, inspired and validated each other, and we made it through to the other side.”
He’ll continue to tweak the model to meet the needs of the clientele, but never so much as to lose the restaurant’s identity. “We started off doing modern California food, then went to more comfort food, and now we’ve gone back to our roots. I value being proud of what I am doing rather than pinching another nickel.”
The real lesson for restaurants, he says, is learning how to manage and empower your employees. “It’s not the old days of the chef yelling at everybody. Instead, we use food and cocktails to create a great experience for the customer.”
The Lexington House is located at 40 N Santa Cruz Ave. For menus, hours and reservations, visit https://www.thelexlg.com.
