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Four years later, 1937-1938: After expanding her Glendale eatery to include a Beverly Hills luncheonette, Mildred and Lucy, her best friend and junior business partner, eye Laguna Beach as the site for a new oceanfront restaurant, with a seafood-and-steak menu. However, Mildredʼs business success is tempered by a growing rift with Veda, who despairs when her longtime piano teacher dies and a prospective replacement, well-known conductor Carlo Treviso, is less than complimentary. Stung by rejection, Veda ends up in the company of society loafer Sammy Forrester, whose mother surprises Mildred with shocking allegations about their children. When Mildred confronts Veda, an emotional argument ensues and Mildred angrily throws her out of the house. After months with no communication between the two, Bert tells Mildred about Vedaʼs success as a singer on the radio. Listening to Veda sing, Mildred is pained by her daughterʼs estrangement, and is determined to win her back.