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At this year’s Restaurant Trade Program at the Food & Wine Classic in Aspen, seminar participants were candid about the paths they have taken to get their businesses to the next level. Some major themes:
UNDERSTAND THE IMPORTANCE OF PASSION. Bobby Flay, chef/owner, Bold Restaurants and Food Network host, said 10 years ago he opened a restaurant just because the space was great, not because he was passionate about the concept. “If you’re doing something only for business, it’s never going to be as good as it can be. I lost interest and closed it after two years,” he said. Marcus Samuelsson, co-founder/chief creative director, Townhouse Restaurant Group, explained that when considering a new concept, “I like to start slow and small, with dinners or events to help find out if I have the passion for it.”
SHARE YOUR VISION. Tom Colicchio, chef/owner, Craft Restaurants, warned, “It’s not enough to have the passion; you have to infuse it throughout your organization.” Bobby agreed, “You can’t do it on your own – your staff has to be inspired. I’ve learned the only way I can inspire is through food – if I don’t put on my whites and get in the kitchen, I can’t do it.” Roy Yamaguchi, founding chef, Roy’s Restaurants, said that about 10 years go he hired an industrial psychologist to help articulate their core principles. “It took about a year to write out ‘Roy’s Way’ – our ‘live and die by’ beliefs. It’s important to have everyone in the same mode, with the same focus. The reason our brand is so strong is our great culture.”
MAKE SURE YOUR BUSINESS STRUCTURE WORKS FOR YOU. Barbara Lynch, exec. chef/owner, No. 9 Group, said she made a big mistake with her first restaurant. “I didn’t believe in myself, so I made some of my opening team members partners. I learned from giving too much of the business away that I want it to be my business and my vision,” she said. This doesn’t mean that Barbara is going it alone. She recently hired a ceo to run the business side, allowing her to focus on what she loves to do most – cook and be in the kitchen, develop menus, talk to farmers, etc. Bobby said, “My business partner, Laurence Kretchmer, handles everything to do with the business, which also allows me to be where I want to be – in the kitchen. Marcus added that it’s been important for him to understand what he’s good at and leave the things he’s not to his partner. “My partner is very organized, which leaves me to research crazy ideas,” he said. Roy opened with partners and eventually bought out 95% of the shares. Seven or eight years ago he sought a partner on a large scale through joint venture companies. “I realized we lacked management, which is one of the reasons I teamed up with Outback Steakhouse. We’re now 50/50 owners with them,” said Roy.
IF NECESSARY, RESTRUCTURE AS YOU GROW. Danny Meyer, ceo, Union Square Hospitality Group, said, “Because we have grown into 12 distinct businesses it has become more challenging to focus on any one of them, so we’ve created three divisions with a partner heading each – one for the core restaurants, one for businesses we want to grow, and one for dreaming up new stuff.” Tom said that he recently combined his concepts (Craft, Craftsteak, and ‘wichcraft) into one company. “I had partners when I opened Craft, and when other opportunities came along, with my partners’ permission, I did them on my own,” he explained. “But, then I realized that if you’re a majority shareholder, you need to pass along opportunites.” Both Bobby and Tom said they like making deals in places like Las Vegas, the Bahamas, and Atlantic City with big resorts that take care of the infrastructure for them. “It gives us the opportunity to create the food, the service, and the environment,” said Bobby, “while they take care of the little things that drive us crazy on a daily basis.” David Chang, co-owner/chef, Momofuku said he existed for awhile without an infrastructure but that, “Eventually you have to start delegating, you have to trust. Sometimes it pays off; sometimes it bites you – but you’ve got to take some risks.”
