Speaker 1: This is Bloomberg Business Week from Bloomberg Radio. Him Jason Kelly,
Speaker 1: and I'm Carol Masser. Welcome to the Bloomberg Business Week Extra.
Speaker 1: It's our weekly podcast bringing you an in depth interview
Speaker 1: you will not hear anywhere else. And we were really
Speaker 1: excited about this conversation. Tom collickio well known for owning
Speaker 1: a number of terrific restaurants. He's also a judge on
Speaker 1: Bravo's Top Chef. Folks have seen him on the TV.
Speaker 1: But he's thinking so much about not just his restaurants,
Speaker 1: but really the future of food. Right and Jason, he
Speaker 1: completely closed his restaurants in New York and l a
Speaker 1: shut them down, laid off his workers temporarily. He's been
Speaker 1: in the business what forty years. He said it was
Speaker 1: the hardest decision he has faced during those forty years,
Speaker 1: just really gut wrenching. So we talked with him about
Speaker 1: the shutdown and then what life is like after the virus. Yeah,
Speaker 1: this has been devastating, um, and not only for me. Um.
Speaker 1: I co founded the Independent Restaurant Coalition and so I
Speaker 1: am in constant contact with UH many hundreds of restaurants,
Speaker 1: turns and chefs, across the country pretty much a daily basis,
Speaker 1: and you know, we're we're struggling out there, and you know,
Speaker 1: p P KE we thought was really going to help,
Speaker 1: and it doesn't UM because we're not open. I think
Speaker 1: PPP and structure for for businesses and maybe are somewhat
Speaker 1: depressed and they can hire their staff back, but there's
Speaker 1: still a revenue moving through their system. Right now. Restaurants
Speaker 1: are closed. UM. Some are starting to open up in
Speaker 1: some states, but they're they're opening up into a really
Speaker 1: really depressed market and so p P P UM it
Speaker 1: doesn't really help us. And so we are asking for
Speaker 1: a restaurant stabilization package. UM. We're uh. We we sent
Speaker 1: our our letter to Congress yesterday. We're asking for a
Speaker 1: hundred and twenty billion dollars to stabilize our industry. So
Speaker 1: the eleven million employees that in a restaurant UM employee
Speaker 1: UM have a job to come back to, and not
Speaker 1: only a job to come back to when we can
Speaker 1: finally get open, but we're going to be depressed for
Speaker 1: until we find the vaccine. So we're talking about another
Speaker 1: year almost And what we don't want to do is
Speaker 1: have a situation where people start coming back to work
Speaker 1: and then we're closing right, you know, two months down
Speaker 1: the road and everybody's back on unemployment to get or
Speaker 1: out of the job. And so Tom, I want to
Speaker 1: talk about what it looks like on the other side
Speaker 1: of all this. But help us understand in in the
Speaker 1: short term, what are you hearing as you I know
Speaker 1: you just sent the letter yesterday, but and you're talking
Speaker 1: to people all the time in the government and other advocates.
Speaker 1: What's the response been, What's what feedback are you getting
Speaker 1: in terms of what's feasible in order to help the industry.
Speaker 1: You know, I think they're hearing us. I mean, I've
Speaker 1: spoken to many members of Congress over the last you know,
Speaker 1: three or four weeks, and so has There's so many
Speaker 1: members of our coalition, and um, they hear us, um,
Speaker 1: and they're they're trying to help us to try to
Speaker 1: figure out and and you know, obviously um uh they're
Speaker 1: hearing from a lot of different sectors and are looking
Speaker 1: for for uh uh for for help. Um. We just
Speaker 1: feel that we're uniquely positioned because so many people are
Speaker 1: employed by independent restaurants, and then if you factor in
Speaker 1: all the farmers and fishermen and winemakers and cheesemakers and
Speaker 1: other various services that we are purchasing. Keep in minds
Speaker 1: and every dollar that we take into a restaurant goes
Speaker 1: out the door. And so not only are you helping
Speaker 1: our business stay afloat and and providing those jobs and
Speaker 1: media jobs and workers, but also all the other people
Speaker 1: that were indirectly employ and these are these are small farmers.
Speaker 1: We're not talking about big, mega farms. We're talking about
Speaker 1: small farmers. Uh. Fishermen who are you know fishing, you know,
Speaker 1: dabot fishermen, small teethemakers and so um. You know, there's
Speaker 1: there's a desperation here. And again it's it's not just
Speaker 1: the restaurants that we're concerned that you know, uh Dijs
Speaker 1: Beer Foundations did uh um. You know, I have has
Speaker 1: data right now that maybe twenty percent of the restaurants
Speaker 1: won't open up. I'm hearing it's gonna be bigger than that,
Speaker 1: you know, We're we're hearing from from from the industry
Speaker 1: that maybe the restaurants might open up. If that happens,
Speaker 1: think about the supply chain that is going to actually
Speaker 1: end as well. So it's not just the eleven million jobs.
Speaker 1: It's it's probably jobs and a lot of people loblihoods. Well,
Speaker 1: And I was gonna say, Jason, we've talked you know,
Speaker 1: and Tom. We've talked to UM wineries out in the
Speaker 1: West Coast. We've talked to UM some suppliers that UM
Speaker 1: you know, you know, supply food and other items to
Speaker 1: the industry. And you're right, the supply chain is vast.
Speaker 1: So it's not just you know, the front and center
Speaker 1: workers you see at restaurants. It's it's much wider than that.
Speaker 1: I am curious. You do, say, Washington's listening, so what's
Speaker 1: the likelihood that they do something in terms of a stimulus.
Speaker 1: And you're right, it's not just now, but it's what
Speaker 1: happens on the other side of this, because this is
Speaker 1: not a quick bounce back in our economic recovery. No,
Speaker 1: I mean something. I think we'll bounce that quicker than others.
Speaker 1: I think the restaurant industry when we open up and
Speaker 1: we're hearing you know that we have to cut half
Speaker 1: our tables out, and then the question really isn't when
Speaker 1: we're going to open up. I mean, there's this idea
Speaker 1: that George is gonna open up and texts are gonna
Speaker 1: open up and people are gonna go. No, it's it's
Speaker 1: not when we open up, it's when do people feel
Speaker 1: comfortable conjure getting a place that is busy. When you
Speaker 1: walk into your restaurant, the bartenders wearing a face mask
Speaker 1: and a waiter comes up to you and greet you
Speaker 1: with a face mask, you are not going to be
Speaker 1: comfortable eating in that restaurant. Dodger, did someone coughs when
Speaker 1: they're you know, even even with social distancing, I just
Speaker 1: don't see how that works out. So we're we're we're
Speaker 1: in there for the long haul. Um. And when I
Speaker 1: think Congress they're listening, Uh, they're they're listening. I don't
Speaker 1: I don't know if there's going to be action, and
Speaker 1: that's what we're hoping for. Yeah, they're hearing us. Um,
Speaker 1: we have you know, representatives, you know who are making
Speaker 1: sure that that our our needs are are are being heard.
Speaker 1: The question is whether or not Congress will act on this.
Speaker 1: And so Tom, what has this laid there or how
Speaker 1: much has this laid there about the state of the
Speaker 1: industry going into this In a place like New York,
Speaker 1: it's a place that Carol and I all home, You know,
Speaker 1: we work in Manhattan. We have been each patrons at
Speaker 1: many of your restaurants over the years. You know this
Speaker 1: business so well, you know the industry. What does it
Speaker 1: tell us about the fragility of it? And obviously none
Speaker 1: of this was foreseen, but what is it laid bare
Speaker 1: in your estimation? No, I think that you know, restaurants, uh,
Speaker 1: for the last you know, you know, ten years or so,
Speaker 1: there's been a definitely a uh, it's been a a
Speaker 1: little more difficult, especially in New York City with rerents
Speaker 1: as high as they are. Labor markets are tight, and
Speaker 1: you know, we're fine paying people more money. Um, but
Speaker 1: it's definitely eaten into our bottom line and so we're
Speaker 1: nowhere nearest resilience as as we were. UM. We we
Speaker 1: we certainly are a viable business. Our margins are just
Speaker 1: definitely uh smaller than they used to be. But you
Speaker 1: hit on something, UM, that's you know, really I think
Speaker 1: it's it's really important here. UM. Thank you for for
Speaker 1: page rising. Uh. The restaurants and my restaurants, and we
Speaker 1: want to be there for you when this is over,
Speaker 1: because you know, we can look at the economics of it,
Speaker 1: and I can make an economic argument for why restaurants
Speaker 1: needs need help, and I think I've relaid that out.
Speaker 1: But also when we're through this, the cultural institution, that's
Speaker 1: what restaurants have become. They need to be there because
Speaker 1: people are gonna want to get back to normal. And
Speaker 1: what is not normal if it's not for walking into
Speaker 1: your favorite bar or restaurant and seeing that bartrander that
Speaker 1: you know it's going to take care of you, seeing
Speaker 1: that your favorite waiter, knowing you're gonna get the dish
Speaker 1: that you are craving. I mean a lot of people
Speaker 1: are cooking at home now, and I think that's great,
Speaker 1: but sooner or later, you're gonna get tired of your
Speaker 1: own food. I know I'm tired of my food. But
Speaker 1: you know you're gonna want to go to that restaurant.
Speaker 1: And you're gonna want to go if the song says
Speaker 1: you want to go where people know your name and
Speaker 1: and and these are the places where you celebrate anniversaries
Speaker 1: and birthdays and all those milestones. And I'm not only
Speaker 1: talking about my restaurants White Table, Cloughts Restaurant. I'm talking
Speaker 1: about the mom and problem. You know, a recent immigrant
Speaker 1: who who pulled a you know, pulled all of their
Speaker 1: money and came to this country, opened up their you know,
Speaker 1: their American dream, and they were making it up until
Speaker 1: two months ago. And that's what we need to get over.
Speaker 1: We need to say that we need to save Main
Speaker 1: Street right now. We need to make sure that those
Speaker 1: restaurants are there, because without restaurants and without these small businesses,
Speaker 1: what are we going to have? Where are we going
Speaker 1: to go? Where are we going to go to full
Speaker 1: normal again? Where we going to go to wrapper arms
Speaker 1: around each other and say we're safe, We're okay, we
Speaker 1: made it. So we need restaurants to be there for
Speaker 1: the long haul. I gotta say, Tom, We've had a
Speaker 1: couple of left overnights and I'm like, all right, really,
Speaker 1: can we just move on already? Um? The one thing
Speaker 1: I do want to ask you and Jason and I
Speaker 1: have been having this conversation. We've talked with UM Daniel Blue.
Speaker 1: We've talked to a couple of different folks about the industry.
Speaker 1: I mean, individuals like yourself. We're what we consider the
Speaker 1: people who have done really, really well, and yet it's
Speaker 1: tough for you, As you said, of every dollar goes
Speaker 1: out the door at a restaurant, is there something within
Speaker 1: I don't know the financial infrastructure of the restaurant industry. UM.
Speaker 1: And I think about those workers, the immigrant workers, whether
Speaker 1: they're working in the kitchen or you know, doing dishes
Speaker 1: or what have you. You know, the virus has laid
Speaker 1: bare the problems that we knew that we're out there,
Speaker 1: and that is a lack of safety net for a
Speaker 1: lot of workers and a lot of different industries hotels, um,
Speaker 1: certainly restaurants. Is there something we need to think bigger
Speaker 1: picture so that God forbid we're facing similar situations in
Speaker 1: the future, that these workers are better protected. Yeah, we
Speaker 1: we need resiliency, you know, through the entire system obviously
Speaker 1: for workers. But um, even if you think of me,
Speaker 1: if you're you're hearing about all these meat processing plants
Speaker 1: right now and how they're closing and estimates could be
Speaker 1: up to our meat supply could be could be compromised. Um.
Speaker 1: But that's because there's been so much corporate concentration and
Speaker 1: you know, these these companies are just getting larger and larger,
Speaker 1: eating up smaller companies. And so we need to do
Speaker 1: is actually have a more resilient system and the food
Speaker 1: system that is spreading it out, that is relying on
Speaker 1: small regional producers. So if if one part of the
Speaker 1: segment gets gets gets you know, hurt because of coronavirus,
Speaker 1: are even because of of you know, a climate disaster,
Speaker 1: that we're more resilient. I think we need a safety
Speaker 1: that that is more resilient. But you know, here's one
Speaker 1: way to look at this. So prior, prior to COVID,
Speaker 1: thirty six million Americans were on snap our food stamps
Speaker 1: in this country. So, uh, numbers that I've just got
Speaker 1: out of Maryland recently was that there's a seventy increase
Speaker 1: in applications. So if you extrapolate that out throughout the country,
Speaker 1: that's another people. Okay, eventually those numbers are gonna come
Speaker 1: down once the economy starts to turn. It's gonna take
Speaker 1: a while. But what are what are we aspiring to
Speaker 1: thirty six million Americans on food stamps? No, we can
Speaker 1: do better than that. And I'm not talking about a handout.
Speaker 1: I was talking about people who are working, who can
Speaker 1: afford nutritious food. So you said you talk about in equity,
Speaker 1: and so it's it's it's something you can just look
Speaker 1: at dollars in tents, but really we're in equity plays
Speaker 1: out is in health. If you do not have the
Speaker 1: money in this country, calaries are cheap. Nutritions expand if
Speaker 1: you don't have the money to buy nutritious foods, you
Speaker 1: aren't as healthy. You have diabetes, you have issues around
Speaker 1: BC and hards these and those are the people who
Speaker 1: are dying in the hospital because of COVID and these
Speaker 1: are in minority communities that typically are not sort of
Speaker 1: getting a fair shake. And that's what we need to change.
Speaker 1: So we need we need all of the country to
Speaker 1: be more resilient. We need to bring back manufacturing so
Speaker 1: we don't rely on other countries and we can keep
Speaker 1: that supplying here, but we need to make even even
Speaker 1: what we're doing here in this country much more resilient.
Speaker 1: Not only are our business practices but are human practice.
Speaker 1: So we need to start investing in the human capital.
Speaker 1: And So, Tom, does that change or in any way
Speaker 1: alter what you do on on the other side of this,
Speaker 1: I mean, I do wonder if it starts you thinking
Speaker 1: about new concepts or new locations or what what do
Speaker 1: you think about on the other side, Yeah, I'm not
Speaker 1: something we've always been thinking about, you know. We we
Speaker 1: try to buy through small producers is as much as possible. UM.
Speaker 1: We uh, you know our our our our pay rate
Speaker 1: is probably above clearly above average in the country. UM. UM.
Speaker 1: But yeah, we're thinking of what what does new business
Speaker 1: look like? You know, It's what everybody's trying to wrestling
Speaker 1: with right now. What what does it look like on
Speaker 1: the other on the other end, I mean, I'm this
Speaker 1: is the conversations I'm having to to with my senior
Speaker 1: staff right now, UM, because I think going forward if
Speaker 1: we open up, when we open up, it's going to
Speaker 1: have to be a combination of takeout c s A boxes,
Speaker 1: which you know, think about this. I have my supply
Speaker 1: chain and it's mostly small farmers and small fishermen, cheesemakers,
Speaker 1: and so if I can actually still buy from them
Speaker 1: and then turn my restaurant into a distribution center, so
Speaker 1: I'm kind of processing food. That's another avenue of business
Speaker 1: to get through, you know, to the other end, UM,
Speaker 1: returning a part part of what we do into the
Speaker 1: community Feeding center UM again to put more food through
Speaker 1: the system. UM. And then also trying to figure out
Speaker 1: the best way to to to UM take care of
Speaker 1: our staff and take care of patents coming in UM
Speaker 1: to keep them safe and healthy. And so yeah, there's
Speaker 1: there's uh, there's a lot of changes that they're going
Speaker 1: to have to be made, but I and I think
Speaker 1: that they're all going to be looked at through the
Speaker 1: length of how do we make all of these systems
Speaker 1: much more reslient to write not only something like COVID,
Speaker 1: but also UM climate change. You know, so many people
Speaker 1: are are are one climate adapter ways for losing their job.
Speaker 1: And that was chef Tom Collichio Carrol, a conversation we
Speaker 1: were really looking forward to, and a reminder that you know,
Speaker 1: chef's restaurant owners. They're right in the center of this
Speaker 1: from so many perspectives, obviously as entrepreneurs, as owners, as employers,
Speaker 1: and really for those of us who are just diners,
Speaker 1: you know, they provide such a key service, such an
Speaker 1: important part of life. So someone we definitely want to
Speaker 1: keep in touch with. Well, absolutely, And like you know,
Speaker 1: we've been talking since we've been in shutdown mode about
Speaker 1: the fifteen million restaurant jobs around the country, so many
Speaker 1: though in the major cities including New York Park and
Speaker 1: so when we talk about getting the economy back on track,
Speaker 1: taking care of workers, I mean This is an important
Speaker 1: sector that cannot be forgotten, and this industry is really
Speaker 1: asking for more help from the federal government. So I'm
Speaker 1: so glad we got some time with Tom to weigh
Speaker 1: in on that. You've been listening to Bloomberg Business Week
Speaker 1: Extra and be sure to tune into Bloomberg Business Week
Speaker 1: Radio Live Monday through Friday, starting at two pm Wall
Speaker 1: Street Time on Bloomberg Radio. I'm Jason Kelly and I'm
Speaker 1: Carol Masser, and this is Bloomberg