Becoming a Restaurant Owner
I was honored to join this year's Chef Conference and sit on a panel with John Fraser, Missy Robbins, and Rafiq Salim to talk about the mannnnny challenges of owning a restaurant, and in particular, what it's like from working for a restaurant, to owning one. To prepare some answers, I thought I'd write down my thoughts, and turn them into a blog piece!
1. The Jump from Employee to Owner
What made you realize you were ready to make the leap from chef/wine director to owner? Like most–it usually starts with thinking you can do something better or being frustrated with your current situation. I wasn’t seeing eye to eye with my manager and growth opportunities in the company seemed suspect; so I traveled for a year and figured out what I wanted to do. Did I want to consult? The money was good and the hours were flexible; but it lacked the team dynamic. All roads led back to doing my own thing and it seemed like a natural progression. I always had an entrepreneurial spirit– whether it selling “bomb bags” & stink bombs in grammar school to starting my own DJ business in high school. College entrepreneurship took a slightly different direction; but we got back on track & recognized slinging hospitality was my future.
What surprised you most about the ownership side of the business? I’m constantly surprised how good owning the restaurant feels. There’s a lot of shitty things too; but being able to make someones day better is powerful and i’m in charge of that. I’m also surprised by how great the restaurant community is. I felt it before covid; but the willingness to help & support really just blows me away. Its so hard to run a restaurant–i thought it would be more cut-throat; but its the opposite.
What’s one thing you wish you had known before becoming a partner or owner? Perhaps this is a lame answer; because there’s so much I wish I knew; but I appreciate the struggle and the lessons I’ve learned. I think it builds character and helps personal development.
2. Skillset Shift
How did you have to change your mindset or daily habits once you were no longer behind the line or on the floor? The mindset changed to being responsible for everyone and everything & having the ability to create a good culture. In former jobs–I might be the best I could be; but now its my job to bring the best out of everyone I’m working with.
Were there any business skills you had to quickly learn on the fly—like managing payroll, negotiating leases, or reading a P&L? Working with USHG was amazing and I learned a ton; but with larger groups–they don’t always let you see the numbers. Learning about the finances was a big part of becoming an owner; but also all the other jobs like plumber, electrician, porter, etc. I didn’t grow up handy–the idea of putting together IKEA furniture would give me anxiety; but learning how to fix little things in your restaurant could save thousands of dollars over a year. Its funny because i’m always down to try to fix something at the restaurant; but if something happens at home–I always hire someone lol.
How do you balance creativity with business decisions now? I try to let the people around me be the creatives while I focus on the business side of things. We collaborate so we stay creative while also being responsible to the bank account.
3. Finding the Right Partner / Ownership Structure
Did you go solo, or take on partners? How did you structure the deal? When Popina opened–it was Chris and I at 35% ownership each & the rest of our investors had 30% of the company. Now I have 70% while my investors have 30%.
What did you look for—or avoid—in a business partner? At a very basic level–I was looking for a chef because I didn’t know how to cook or manage a kitchen. It wasn’t really about cooking or being a good chef–it was more about finding someone who would work as hard as I do. Chris worked with alot of talented chefs; but that dude’s work ethic was unquestionable.
If you had to do the partnership piece again, what would you change? I love partnership and collaboration. I think you just have to be as specific as possible on roles/responsibilities and hold each other accountable. Everyone is at a different point in their live/career & wants different things, so being as transparent as possible is key. Getting good lawyers and making sure you understand all contracts.
4. . Money & Motivation
How did you fund your first ownership stake? Savings, investors, sweat equity? Chris and I put in some money, got some money from friends & family, and raised some money from people who would eventually become family.
Has ownership been financially rewarding—or just more stress? Yes– but my idea of financially rewarding could be different than someone else's. I don’t think i’m ever going to sell enough hot chicken to have a private jet; but I don’t think I need one: i’ll just ride in yours 🙂
It was a struggle in the early days–winter on Columbia Street was brutal; but now we’re building and trying to make Popina a year-round spot.
Do you feel like you have more control or more responsibility? Or both? In my current role–I feel like I have complete ownership whereas it hasn’t always been like that. If i want to change something–I can. I can take trips and not feel guilty, I could buy a regular dinner, or donate to an organization I believe in. More control and responsibility go hand in hand.
5. Culture & Leadership
How do you lead differently now that you’re the owner? You got to take on problems head on and not let things linger. You can’t blame the decision on someone else so it better be one you can stand behind.
How do you create a healthy kitchen or floor culture that’s sustainable? Hire the right people, train them, and lead by example. Let them know what’s important to you and don’t compromise your belief system. If you do what’s right –even when it hurts: your team will be stronger for it.
Do you still cook or work service? Why or why not? I work the floor almost every day. I love it. Sometimes I wish I would give more time to the business stuff that happens off the floor; but its hard to sit in the office when I really want to be with the people: pouring wine, running food, and making people’s day a little bit better.
Wrap-up
What advice would you give to chefs or wine pros who want to be owners one day? I joked around at the conference–saying the advice that I got was: “don’t do it!” You have to want to do it so bad that no matter what people say–you’re still going to do it. You have to love it so much because it could be extremely difficult. You have to love the bad days as much as the good ones. You’ll miss very important moments in your life for this business, you might go broke for your business, you might loose relationships because of your business: so you better love it. Probably plenty of advice but one that stands out from our panel was patience. Be patient–you can’t rush it.
What’s the biggest myth about owning your own restaurant? I think sometimes people don’t understand the economics of a restaurant so its easy for them to think its expensive; but restaurants actually run on pretty slim margins. You can make money–yes; but there’s so many expenses that go into that $28 bowl of pasta. Is the restauranteur getting rich or are they trying to create a sustainable business where they could offer health care, paid time off, 401k, and other benefits that people don’t think twice about in other industries. Who’s taking care of the people taking care of you?