WEBVTT - Cameron Mitchell Discusses the Restaurant Business (Podcast)

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<v Speaker 1>This is Masters in Business with Barry Ridholts on Bloomberg Radio.

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<v Speaker 1>This week on the podcast, I have a special guest.

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<v Speaker 1>His name is Cameron Mitchell. He is the author of

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<v Speaker 1>a new book about his career in the restaurant industry,

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<v Speaker 1>and he also happens to be uh, the founder and

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<v Speaker 1>CEO and soon to be chairman of Cameron Mitchell Restaurant Group.

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<v Speaker 1>I found our conversation quite fascinating if you're interested in

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<v Speaker 1>the restaurant industry and what it's like to develop a

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<v Speaker 1>restaurant concept and expand it from one restaurant too many

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<v Speaker 1>across the country. Uh. They have five thousand employees and

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<v Speaker 1>their restaurants of a variety of different names, probably best

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<v Speaker 1>known as Ocean Prime Um, generate over three hundred million

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<v Speaker 1>dollars a year and revenue. Uh. You'll find this to

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<v Speaker 1>be a fascinating conversation. So, with no further ado, my

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<v Speaker 1>conversation Cameron Mitchell. My special guest today is Cameron Mitchell.

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<v Speaker 1>He is the founder of the Cameron Mitchell Restaurant Group,

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<v Speaker 1>now twenty five years old and employing five thousand people

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<v Speaker 1>in sixty restaurants across the country. Cameron Mitchell restaurant group

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<v Speaker 1>generates over three hundred million dollars in annual sales. Mr.

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<v Speaker 1>Mitchell was named Entrepreneur of the Year by Ernst and Young,

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<v Speaker 1>as well as Small Business Person of the Year by

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<v Speaker 1>the U s. S b A. He was also named

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<v Speaker 1>to fifty New Tastemakers by the Nation's Restaurant News magazine,

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<v Speaker 1>and he is the author, most recently of Yes Is

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<v Speaker 1>the Answer. How faith in people and a culture of

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<v Speaker 1>hospitality built a modern American restaurant company. Cameron Mitchell, Welcome

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<v Speaker 1>to Bloomberg. Thank you very much. Pleasure to be here.

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<v Speaker 1>So let's let's discuss a little bit about your background.

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<v Speaker 1>You didn't seem when you were growing up like somebody

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<v Speaker 1>who was going to find his way into a chef's talk.

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<v Speaker 1>How did you get interested in restaurants and cooking? It

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<v Speaker 1>doesn't appear this is something you were very passionate about

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<v Speaker 1>as a child. Now, I it depends on how far

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<v Speaker 1>back you want to go. But I had a troubled

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<v Speaker 1>childhood into troubled youth, and struggled in high school and

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<v Speaker 1>ran away from my home and dropped out of high

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<v Speaker 1>school when I was fifteen, and my folks were divorced

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<v Speaker 1>and my mom didn't have any money. And so when

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<v Speaker 1>I came back would have been my junior year, I

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<v Speaker 1>didn't have any money for lunch money, and she couldn't

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<v Speaker 1>give me lunch money. And I needed to work. I

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<v Speaker 1>need to get a job. And so I got a

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<v Speaker 1>job in es a local local steakhouse Washington dishes for

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<v Speaker 1>two sixty hour and did that in bus tables and

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<v Speaker 1>prepped a little bit through my junior and senior year

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<v Speaker 1>in high school. And that's how I found my entree

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<v Speaker 1>into the restaurant business. So, so let's talk about that,

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<v Speaker 1>because you described in your book sort of being a

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<v Speaker 1>terrible employee, constantly being late. You were suspended, you put

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<v Speaker 1>on thirty days notice, and you describe an epiphany where

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<v Speaker 1>you realized, Hey, this restaurant thing is really interesting. What

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<v Speaker 1>explained what that moment was like and how it changed

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<v Speaker 1>your whole life. Well, I was just turned ninety at

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<v Speaker 1>the time. I've been out in high school for about

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<v Speaker 1>a year, and I was living at home with mom,

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<v Speaker 1>working for beer money, working for the man, not uh boy,

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<v Speaker 1>but not yet a man, and um, just really squandering

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<v Speaker 1>and UM I was working two jobs in the restaurant business,

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<v Speaker 1>and I had trouble getting to work on time in

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<v Speaker 1>the morning, and I got put on three days suspension

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<v Speaker 1>in thirty days probation. So midway through that probationary period,

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<v Speaker 1>and I'm just trying to fare what I want to

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<v Speaker 1>do in my life. And then I just have been struggling,

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<v Speaker 1>and so I don't want to go right after college

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<v Speaker 1>because I don't want to go to college not knowing

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<v Speaker 1>what I wanted to do. So UM, I have suspended

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<v Speaker 1>for three days, put on thirty days probation. And during

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<v Speaker 1>the middle of that probationary period, it was a Friday

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<v Speaker 1>afternoon and I was during shift changed, and I was

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<v Speaker 1>working AM cook that day and a PM host at

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<v Speaker 1>the same restaurant. Yes, and that restaurant was a very

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<v Speaker 1>busy restaurant, would probably do a thousand people that day

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<v Speaker 1>between lunch and dinner. And UM, four o'clock in the

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<v Speaker 1>afternoon shift change the restaurant, the restaurant's half full, the

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<v Speaker 1>bar is packed with happy are uh. The AM shift

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<v Speaker 1>was trying to leave, the PM shifts trying to come on.

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<v Speaker 1>The managers are barking orders, and it's kind of pandemonium

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<v Speaker 1>in the kitchen, and time froze. I looked across the

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<v Speaker 1>line in the kitchen and I said, I absolutely love this.

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<v Speaker 1>This is what I'm going to do the rest of

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<v Speaker 1>my life. I'm going to be in the restaurant business.

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<v Speaker 1>So I worked my double shift and I went home

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<v Speaker 1>that night and I wrote out my goals. I said,

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<v Speaker 1>I was going to go to the culinary. It's two

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<v Speaker 1>of America in Hyde Park, New York. I had heard

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<v Speaker 1>about that. I'm nineteen years old, and I was gonna graduate.

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<v Speaker 1>I was gonna become executive chef by the time I

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<v Speaker 1>was twenty three, general manager of twenty four, regional manager

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<v Speaker 1>twenty six, vice president oper as a thirty, and president

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<v Speaker 1>of a restaurant company by the time I was thirty five.

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<v Speaker 1>Those are those are ambitious. And I woke my mom

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<v Speaker 1>up at one in the morning, so I know what

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<v Speaker 1>I want to do with myself the rest of my life.

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<v Speaker 1>And she was quite relieved, needless to say. I got

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<v Speaker 1>up the next morning and now I was working for

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<v Speaker 1>my I did a complete hundred return. I was working

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<v Speaker 1>for myself, for my future, for my career. I had

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<v Speaker 1>the best attitude in the kitchen. I was the hardest

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<v Speaker 1>working guy in the kitchen, and I the day before,

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<v Speaker 1>I was the laziest guy in the kitchen, a lousy

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<v Speaker 1>attitude and working for the man and working for beer money.

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<v Speaker 1>So now you are change, Yes, I guess so for

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<v Speaker 1>people who may not have ever worked in the kitchen,

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<v Speaker 1>and I was a waiter and a short order cook

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<v Speaker 1>in college, there's really especially during a rush, there's a

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<v Speaker 1>tremendous amount of energy and sort of a controlled chaos.

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<v Speaker 1>Is that exactly? That's a that's a great way, And

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<v Speaker 1>for people who haven't experienced it, I could see how

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<v Speaker 1>there's a tremendous lure there because it's always different every

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<v Speaker 1>day and there's so much stuff going on. What was

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<v Speaker 1>it about that moment in time that had you flipped

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<v Speaker 1>from being the bum in the kitchen to the hardest

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<v Speaker 1>working guy in the building. Well, I just needed to

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<v Speaker 1>find my way. I need to have my goal and

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<v Speaker 1>that was the key difference. That was totally the key difference.

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<v Speaker 1>And once I I've been goal warning it ever since.

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<v Speaker 1>I still have on my desk today my fourth quarter

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<v Speaker 1>goals for my career for the next fifteen years. So

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<v Speaker 1>I've been a goal center since day one and and

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<v Speaker 1>it's worked well for me, and I'm still doing it today.

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<v Speaker 1>So the Juvenary Institute of America is described has been

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<v Speaker 1>described as the Harvard of food prep. You had written

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<v Speaker 1>there are three kinds of c I A students, those

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<v Speaker 1>gonning to be chefs, those who want to be in

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<v Speaker 1>the restaurant business, and those who were lost. How did

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<v Speaker 1>you know that you didn't want to be a chef

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<v Speaker 1>but wanted to actually be in the restaurant Well, it

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<v Speaker 1>goes back to my goals. I knew I want to

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<v Speaker 1>be a president of a restaurant company, and I said

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<v Speaker 1>to myself at nineteen, Yeah, So I said, if I,

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<v Speaker 1>uh uh, if I'm any president of a a restaurant company,

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<v Speaker 1>I'd better know about food. And I was already working

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<v Speaker 1>in the kitchen, but I didn't know anything about food.

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<v Speaker 1>So I said, I'm going to go to the CIA

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<v Speaker 1>and learn about foods. And you they turn you into

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<v Speaker 1>a chef even if you don't want to be a chef,

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<v Speaker 1>and if you want to be in the management side,

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<v Speaker 1>they still teach you how to cut. Oh, exactly exactly.

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<v Speaker 1>Those fundamentals and those basics I still work with today

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<v Speaker 1>and have been formed the base for my knowledge to

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<v Speaker 1>build my career from. Let's discuss a little bit the

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<v Speaker 1>process you go through in quote unquote finding great people.

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<v Speaker 1>A lot of executives say that's the most challenging thing

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<v Speaker 1>they do is hiring, and sometimes you never know who's

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<v Speaker 1>going to turn out to be great or not. You

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<v Speaker 1>think you came up with a solution, tell us about it.

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<v Speaker 1>The two questions I could ask thousands of times is

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<v Speaker 1>where do you Where do you get such great people?

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<v Speaker 1>And how do you deliver such great service? And I

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<v Speaker 1>tell people the answer to the same, to essentially both questions,

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<v Speaker 1>we get the same people everybody else gets. I actually

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<v Speaker 1>don't think it's that hard to get great people, uh,

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<v Speaker 1>because I think everybody operate on the premise almost everybody's great.

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<v Speaker 1>We just treat people great, and we inspire people to

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<v Speaker 1>grow and learn and uh, and we care about them tremendously,

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<v Speaker 1>and they in turn care about us, and they want

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<v Speaker 1>to deliver great service, and they get excited about our

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<v Speaker 1>company and they want to build their career. And it's uh,

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<v Speaker 1>such a positive momentum that permeates the entire organization. So

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<v Speaker 1>you don't hire great people. You hire people and allow

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<v Speaker 1>them to become great. Correct. And that's exactly right. That

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<v Speaker 1>seems like that's a challenge to do. How do you

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<v Speaker 1>take a regular person in jobs that could be long, tiring,

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<v Speaker 1>stressful and make sure that those folks always have a

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<v Speaker 1>good attitude and always are you know, uh, striving for

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<v Speaker 1>that the sort of greatness you describe, well, I think

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<v Speaker 1>those long, hard hours not having a great attitude is

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<v Speaker 1>a standard uh uh image of the restaurant business, if

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<v Speaker 1>you will. But in our company it's not quite the same.

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<v Speaker 1>Our company our number one value as our associates come first.

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<v Speaker 1>I see. I tell people that our company is built

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<v Speaker 1>by its people for its people. Were not built for

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<v Speaker 1>our investors, were not built for me. We're built for

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<v Speaker 1>our people. You describe in your book a book that

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<v Speaker 1>you found very influential, which was the customer comes second,

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<v Speaker 1>which is somewhat counterintuitive and very much not how the

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<v Speaker 1>usual management books discuss treating customers. Explain what the customer

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<v Speaker 1>comes second actually means to your corporate culture. Well, we've

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<v Speaker 1>all heard of the customer comes first. That's preached almost everywhere,

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<v Speaker 1>and here I am, as CEO of a restaurant company.

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<v Speaker 1>I would say, our customers do not come first. Our

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<v Speaker 1>associates come first. I'm even rasien enough to say we

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<v Speaker 1>don't even have a direct relationship with our customers. We

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<v Speaker 1>have a direct relationship with the people we work with,

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<v Speaker 1>eight and day out. Our customers, who I call guests,

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<v Speaker 1>come to see us once a week, once a month,

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<v Speaker 1>once a year, sometimes once never gone forbid. But uh,

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<v Speaker 1>we have the direct relationship with our people. So I look.

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<v Speaker 1>I described it as a triangular relationship. We take care

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<v Speaker 1>of our people, are people take care of our guests,

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<v Speaker 1>and our guests take care of our company. So that's

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<v Speaker 1>how we do it. So obviously corporate culture is a

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<v Speaker 1>big part of that. How do you go about building

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<v Speaker 1>a corporate culture that encourages staff members to try to

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<v Speaker 1>get to yes? How do you ingrain that into the

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<v Speaker 1>philosophy of a restaurant company. Well, it starts with us.

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<v Speaker 1>You know, um, we say yes to our people all

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<v Speaker 1>the time and they know that, and so, uh, yes

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<v Speaker 1>is the answer. What's the question? Permeates every single corner

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<v Speaker 1>of our organization And it might be as simple as

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<v Speaker 1>a manager talking with some friends and hey, we're gonn

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<v Speaker 1>a out of town in three weeks for a long weekend.

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<v Speaker 1>You want to go? And he doesn't say or she

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<v Speaker 1>does not say, I have to ask my boss, they

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<v Speaker 1>say yes, I can go, no problem, and then they

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<v Speaker 1>go tell their boss they're gonna be away for a weekend,

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<v Speaker 1>coming up here. And so, uh, that freedom and that

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<v Speaker 1>belief that it's it's good for me, it's good for you,

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<v Speaker 1>and so our whole team operates on that. So my office,

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<v Speaker 1>we don't have a vacation schedule, we don't have fixed hours.

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<v Speaker 1>We we we initially when it was just a handful

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<v Speaker 1>of us, called it big boy rules. Hey, you know

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<v Speaker 1>what you work is, come in, do your work. If

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<v Speaker 1>you've done it three and you want to go home

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<v Speaker 1>in three, who cares? And we assume you're not going

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<v Speaker 1>to be abusive on vacations. But one can imagine when

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<v Speaker 1>we're twenty five people, your thousands of people, how do

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<v Speaker 1>you make sure that people aren't taking advantage of being

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<v Speaker 1>abusive of that? Well, our culture, in many ways, UH

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<v Speaker 1>deals with that. But in particular I've always led the

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<v Speaker 1>organization believing we lead the organization for nine percent of

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<v Speaker 1>the people that are good, not the one or two

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<v Speaker 1>percent of the people that are bad. And so, yes,

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<v Speaker 1>do we have people to take advantage of us? Sometimes

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<v Speaker 1>yes we do, but we don't let that affect the

0:12:14.400 --> 0:12:17.480
<v Speaker 1>positive work environment that we have in a great company

0:12:17.520 --> 0:12:20.200
<v Speaker 1>culture that we have for the other of our people

0:12:20.240 --> 0:12:24.000
<v Speaker 1>to enjoy. And and you're one of the executives who

0:12:24.080 --> 0:12:27.320
<v Speaker 1>feels that your job is to help everybody else correct

0:12:27.360 --> 0:12:30.920
<v Speaker 1>do their jobs. And I'm gonna throw another quote at you. Uh,

0:12:30.960 --> 0:12:34.079
<v Speaker 1>instead of worrying so much about how I did my job,

0:12:34.280 --> 0:12:38.000
<v Speaker 1>I switched my energy to helping other people do their jobs.

0:12:38.040 --> 0:12:42.720
<v Speaker 1>This was another epiphany moment you describe. Tell us about

0:12:42.960 --> 0:12:47.560
<v Speaker 1>what triggered that that reversal and and how is it

0:12:47.600 --> 0:12:51.840
<v Speaker 1>helped you in business since then? Well, it changed my life.

0:12:52.520 --> 0:12:56.559
<v Speaker 1>One day as a younger general manager, I got I

0:12:56.640 --> 0:12:59.440
<v Speaker 1>was working my tail off ninety hours a week, and

0:12:59.480 --> 0:13:02.760
<v Speaker 1>I thought how successful the restaurant would be was how

0:13:02.800 --> 0:13:05.080
<v Speaker 1>well I did my job and how hard I worked.

0:13:05.080 --> 0:13:08.559
<v Speaker 1>And uh, my boss called me into his office and uh,

0:13:08.720 --> 0:13:11.320
<v Speaker 1>so you just had a clandestine me with eight servers

0:13:11.320 --> 0:13:13.800
<v Speaker 1>who were gonna have mutiny on the bounty and either

0:13:13.920 --> 0:13:16.040
<v Speaker 1>I go or they go. And he said, listen, he's

0:13:16.080 --> 0:13:17.640
<v Speaker 1>gonna stay, but I want you to stay and let

0:13:17.679 --> 0:13:19.840
<v Speaker 1>me talk to him. And so he told me about

0:13:19.880 --> 0:13:21.360
<v Speaker 1>this meeting and I was shocked. I thought I was

0:13:21.360 --> 0:13:24.480
<v Speaker 1>doing a great job and but I wasn't even focused

0:13:24.480 --> 0:13:26.440
<v Speaker 1>on new people. I wasn't even worried about the people.

0:13:26.480 --> 0:13:28.800
<v Speaker 1>I was running around, falling around the restaurant, making sure

0:13:28.840 --> 0:13:31.840
<v Speaker 1>they were doing their job right, etcetera, etcetera, with a

0:13:31.880 --> 0:13:35.520
<v Speaker 1>fine tooth comb and driving them nuts. Basically, So I

0:13:35.880 --> 0:13:38.679
<v Speaker 1>UH said to him, I said, I'll change my attitude.

0:13:38.679 --> 0:13:42.000
<v Speaker 1>I'll change my way. And I read several books, and

0:13:42.080 --> 0:13:45.240
<v Speaker 1>I thought, and I reflected, and I created, uh this

0:13:45.440 --> 0:13:49.520
<v Speaker 1>leadership style of working UH through the people. We're here

0:13:49.520 --> 0:13:52.360
<v Speaker 1>to support our people. And and then when I realized,

0:13:52.360 --> 0:13:54.640
<v Speaker 1>it's not how well I do my job, it's how

0:13:54.679 --> 0:13:57.600
<v Speaker 1>well everybody else does their job is what's important. I

0:13:57.920 --> 0:14:01.120
<v Speaker 1>and all my focus was on support all of my

0:14:01.240 --> 0:14:04.240
<v Speaker 1>fellow associates that worked in that restaurant, and the whole

0:14:04.280 --> 0:14:07.360
<v Speaker 1>thing changed on it on a time. So, how do

0:14:07.400 --> 0:14:10.600
<v Speaker 1>you spot talents when you're when you're looking to bring

0:14:10.679 --> 0:14:15.120
<v Speaker 1>on executive chef or even even a sous chef, or

0:14:15.640 --> 0:14:18.400
<v Speaker 1>or someone at the front of the restaurant, host or

0:14:18.400 --> 0:14:21.640
<v Speaker 1>hostess or a manager. What are you looking for in

0:14:21.680 --> 0:14:24.320
<v Speaker 1>that process? What do you think you could just pretty

0:14:24.400 --> 0:14:27.320
<v Speaker 1>much take anybody and move them into that role. We

0:14:27.400 --> 0:14:30.440
<v Speaker 1>pretty much believe we can take about anybody. So we

0:14:30.480 --> 0:14:34.440
<v Speaker 1>don't really do much outside hiring. Ninety percent of our

0:14:34.480 --> 0:14:37.480
<v Speaker 1>people come in from the hourly associate ranks and prove

0:14:37.600 --> 0:14:40.560
<v Speaker 1>themselves at that point and and get promoted and grow

0:14:40.600 --> 0:14:42.920
<v Speaker 1>with our company. Not to say we don't outside higher

0:14:42.920 --> 0:14:45.400
<v Speaker 1>but very rarely. I don't want people to work and

0:14:45.400 --> 0:14:47.200
<v Speaker 1>build their careers with the company and to have us

0:14:47.240 --> 0:14:50.040
<v Speaker 1>outside hire someone on top of them after they worked

0:14:50.040 --> 0:14:54.160
<v Speaker 1>for the company for years. So talent really identifies itself

0:14:54.200 --> 0:14:58.280
<v Speaker 1>through their job performance. As we move along, let's talk

0:14:58.280 --> 0:15:01.880
<v Speaker 1>a little bit about the book you wrote. Yes is

0:15:01.920 --> 0:15:05.280
<v Speaker 1>the answer, And I have to start with the Milkshake

0:15:05.400 --> 0:15:08.680
<v Speaker 1>story because it's got a little bit of five easy

0:15:08.720 --> 0:15:11.360
<v Speaker 1>pieces to it, a little Jack Nicholson and then a

0:15:11.400 --> 0:15:15.160
<v Speaker 1>little twist ending you and your wife are out with

0:15:15.240 --> 0:15:19.040
<v Speaker 1>the family at a restaurant and you obviously can look

0:15:19.120 --> 0:15:23.000
<v Speaker 1>at all the items on the menu, and if they

0:15:23.040 --> 0:15:25.400
<v Speaker 1>have bread and they have cheese, you should be able

0:15:25.400 --> 0:15:29.560
<v Speaker 1>to get a grilled cheese. Accept Some places say no,

0:15:30.600 --> 0:15:33.880
<v Speaker 1>tell us about that that moment, which I found amusing

0:15:33.880 --> 0:15:36.440
<v Speaker 1>it while we're dating ourselves that we know Jack Nicholson

0:15:36.520 --> 0:15:40.360
<v Speaker 1>and five easy pieces, right, So it's the film buffs

0:15:40.360 --> 0:15:43.720
<v Speaker 1>who are younger will certainly know of the of the

0:15:43.760 --> 0:15:46.960
<v Speaker 1>movie and the famous chicken salad scene. You can find

0:15:47.000 --> 0:15:50.040
<v Speaker 1>that on YouTube if you're not familiar with the of

0:15:50.080 --> 0:15:52.960
<v Speaker 1>the movie. But you're at you're at the restaurant. What happened?

0:15:53.000 --> 0:15:55.000
<v Speaker 1>So I wanted a grilled cheese sandwich. I had my

0:15:55.080 --> 0:15:57.280
<v Speaker 1>four year old, my two year old with me, my

0:15:57.520 --> 0:16:00.120
<v Speaker 1>wife and my mother and father in law, and so

0:16:00.200 --> 0:16:01.880
<v Speaker 1>I want to get a grilled cheese from my four

0:16:01.960 --> 0:16:04.240
<v Speaker 1>year old son. And uh, the gal says, we don't

0:16:04.240 --> 0:16:06.720
<v Speaker 1>have grilled cheese. I said, okay, So I end up

0:16:06.760 --> 0:16:09.760
<v Speaker 1>ordering a club sandwich. Hold the turkey, hamlets, tomato, bacon.

0:16:09.840 --> 0:16:11.920
<v Speaker 1>So they had the bread, they had the cheese, and

0:16:11.920 --> 0:16:13.920
<v Speaker 1>they had the grill. How Hard said, if you can

0:16:13.920 --> 0:16:16.800
<v Speaker 1>saute this on both sides, that be fabious. So I

0:16:16.840 --> 0:16:21.120
<v Speaker 1>get that cheese turkey club. So then I asked her

0:16:21.200 --> 0:16:25.040
<v Speaker 1>for a chocolate milk shake for my son, and she was, well,

0:16:25.120 --> 0:16:27.520
<v Speaker 1>all we have is a Hoggandah smoke shake. It's like

0:16:27.560 --> 0:16:31.400
<v Speaker 1>a quart of soft whipped ice cream. It's huge. It's

0:16:31.440 --> 0:16:33.440
<v Speaker 1>way too big for your son. We just can't do it.

0:16:33.800 --> 0:16:36.560
<v Speaker 1>And I said, okay, I said, can I will you

0:16:36.600 --> 0:16:38.760
<v Speaker 1>ask your manager. So she goes to ask her manager.

0:16:38.920 --> 0:16:41.280
<v Speaker 1>I see the manager shake her head. No. She comes

0:16:41.320 --> 0:16:43.920
<v Speaker 1>back says, we can't do it. I said, okay, well

0:16:44.520 --> 0:16:45.920
<v Speaker 1>can you have your manager come over to see me?

0:16:45.960 --> 0:16:47.680
<v Speaker 1>And my wife starts to kick me under the table.

0:16:47.760 --> 0:16:49.440
<v Speaker 1>Don't do this, And I said, I just want to

0:16:49.440 --> 0:16:52.160
<v Speaker 1>know why. Can I assume your wife has seen this

0:16:52.200 --> 0:16:55.720
<v Speaker 1>movie before. I mean, this is not the first time, right,

0:16:55.880 --> 0:16:59.080
<v Speaker 1>you've experienced what should be a yes and no, and

0:16:59.120 --> 0:17:01.960
<v Speaker 1>you're just just miffed by the whole prod exactly, And

0:17:01.960 --> 0:17:04.800
<v Speaker 1>I want to know why. So uh, she comes over

0:17:04.840 --> 0:17:07.400
<v Speaker 1>and she says, well, uh, the thing is, we pre

0:17:07.480 --> 0:17:09.200
<v Speaker 1>portion our ice cream, and we give your son a

0:17:09.240 --> 0:17:10.800
<v Speaker 1>little bit of ice cream. What are we gonna do

0:17:10.800 --> 0:17:13.040
<v Speaker 1>with the rest? Now, I've been in the restaurant business

0:17:13.040 --> 0:17:14.760
<v Speaker 1>at this point in time twenty plus years. I know

0:17:14.840 --> 0:17:17.480
<v Speaker 1>no one's in back pre portioning the ice cream. And

0:17:17.480 --> 0:17:19.199
<v Speaker 1>I say, okay, I said, well, will you can you

0:17:19.200 --> 0:17:23.360
<v Speaker 1>make a chocolate milk for me? She now, she's great hospitality. Absolutely,

0:17:23.400 --> 0:17:25.600
<v Speaker 1>I'll get your chocolate milk and starts to turn away.

0:17:26.040 --> 0:17:29.440
<v Speaker 1>I said, hold on a second. She had hot, too

0:17:29.440 --> 0:17:31.560
<v Speaker 1>hot desserts on him menu It said a hot carrot

0:17:31.640 --> 0:17:34.800
<v Speaker 1>one carrot cake and chocolate. Brannon is hurtess and all

0:17:34.840 --> 0:17:37.720
<v Speaker 1>amode to? I said, what's all amode me? She's well,

0:17:37.760 --> 0:17:39.600
<v Speaker 1>that's a scoop of ice cream. I said, perfect. Can

0:17:39.600 --> 0:17:41.040
<v Speaker 1>I get an order of all a mode to go

0:17:41.119 --> 0:17:43.960
<v Speaker 1>with my chocolate milk? And she said yes, but she

0:17:44.080 --> 0:17:47.240
<v Speaker 1>chastised me. She said, this okay, sir, but it'll be expensive,

0:17:47.359 --> 0:17:49.840
<v Speaker 1>and she was visibly upset with me and my wife.

0:17:49.920 --> 0:17:52.160
<v Speaker 1>By the way, while you're all amoting this, hey run

0:17:52.200 --> 0:17:54.159
<v Speaker 1>the whole thing through the blender, and now it's that

0:17:54.240 --> 0:17:58.920
<v Speaker 1>milk exactly. So I get the milkshake. And a couple

0:17:58.920 --> 0:18:02.159
<v Speaker 1>of weeks later, on the keynote speaker at aison lunching

0:18:03.000 --> 0:18:05.399
<v Speaker 1>for our local business magazine, I'm telling the story how

0:18:05.440 --> 0:18:08.479
<v Speaker 1>the answers, yes, what's the question? Or yes is the answer?

0:18:08.560 --> 0:18:11.520
<v Speaker 1>What's the question? However you want to phrase it? Um,

0:18:11.640 --> 0:18:14.800
<v Speaker 1>And I tell the story. And so about two weeks later,

0:18:14.840 --> 0:18:17.120
<v Speaker 1>a gal comes up to me on the street. She said,

0:18:17.359 --> 0:18:19.399
<v Speaker 1>my husband saw you speak at the Hyatt, thought she

0:18:19.440 --> 0:18:21.359
<v Speaker 1>did a great job, and I want to take you

0:18:21.440 --> 0:18:23.399
<v Speaker 1>up on your milkshake story. And so he went into

0:18:23.440 --> 0:18:24.960
<v Speaker 1>one of your restaurants to the bar in order to

0:18:24.960 --> 0:18:26.879
<v Speaker 1>try to order a chocolate milkshake, and they said no.

0:18:28.160 --> 0:18:29.960
<v Speaker 1>And it's like she punched me right in the stomach,

0:18:30.040 --> 0:18:32.360
<v Speaker 1>right there in the street. Tonight, I went into our

0:18:32.359 --> 0:18:36.760
<v Speaker 1>Monday morning executive community meeting, fired up and said, you know, uh,

0:18:36.800 --> 0:18:39.080
<v Speaker 1>our yes is the answer. What's the question? Is not

0:18:39.280 --> 0:18:42.280
<v Speaker 1>permeating our organization well enough. We need to correct this.

0:18:42.440 --> 0:18:44.960
<v Speaker 1>And so we started a brainstorm and we started, well,

0:18:45.040 --> 0:18:47.359
<v Speaker 1>let's tell that story, Let's make a video of that story,

0:18:47.440 --> 0:18:51.280
<v Speaker 1>and uh, let's do milkshake pins Let's make milkshake the

0:18:51.480 --> 0:18:55.040
<v Speaker 1>icon of hospitality and CM are all great stuff, and

0:18:55.560 --> 0:18:59.360
<v Speaker 1>people have little milkshake going on right now. And basically

0:18:59.359 --> 0:19:02.920
<v Speaker 1>it says if someone asked for something a milkshake or otherwise,

0:19:03.280 --> 0:19:08.560
<v Speaker 1>if you could deliver it the answer exactly. So I Uh,

0:19:08.680 --> 0:19:11.119
<v Speaker 1>every new associated starts the company goes through a for

0:19:11.280 --> 0:19:14.399
<v Speaker 1>our orientation into the company culture and philosophy and values

0:19:14.480 --> 0:19:17.159
<v Speaker 1>and so forth, and we make every new associate that

0:19:17.160 --> 0:19:19.399
<v Speaker 1>starts with the company of chocolate milkshake that day, and

0:19:19.400 --> 0:19:22.840
<v Speaker 1>we take a lot further than that. We make thousands

0:19:22.840 --> 0:19:25.760
<v Speaker 1>of chocolate milk shakes every year. We start every major meeting,

0:19:25.840 --> 0:19:29.840
<v Speaker 1>every staff meeting with a milkshake, toast to everybody, celebrating

0:19:29.880 --> 0:19:33.040
<v Speaker 1>great people, delivering genuine hospitality, and yes is the answer.

0:19:33.119 --> 0:19:36.919
<v Speaker 1>What's the question? So how do you how do you

0:19:37.000 --> 0:19:43.280
<v Speaker 1>make sure that the customer experience is consistent across all

0:19:43.280 --> 0:19:48.400
<v Speaker 1>of those different locations, different suppliers, different regions, different managers,

0:19:48.440 --> 0:19:51.560
<v Speaker 1>different staff members. If I walk into a camera Mitchell

0:19:51.640 --> 0:19:54.760
<v Speaker 1>Restaurant here, there or elsewhere, am I going to get

0:19:54.800 --> 0:19:57.960
<v Speaker 1>the same hospitality in the same meal or is it

0:19:58.040 --> 0:20:02.600
<v Speaker 1>going to vary widely? But you're gonna get the same

0:20:02.800 --> 0:20:05.840
<v Speaker 1>We are in UH coast to coast, were as far

0:20:06.040 --> 0:20:09.200
<v Speaker 1>west as Beverly Hills to New York and everywhere in between.

0:20:09.960 --> 0:20:12.199
<v Speaker 1>And we talked about our culture and values. You know,

0:20:12.240 --> 0:20:16.439
<v Speaker 1>we have the same training programs across the company, we

0:20:16.520 --> 0:20:21.160
<v Speaker 1>have the same standards, etcetera. But our culture and values

0:20:21.880 --> 0:20:25.639
<v Speaker 1>UH is the backbone of what we do. And I

0:20:25.680 --> 0:20:28.919
<v Speaker 1>look at it this way, Um, we teach our people

0:20:28.920 --> 0:20:31.960
<v Speaker 1>our culture and our values. We teach them how to think,

0:20:32.000 --> 0:20:34.000
<v Speaker 1>and if they know how to think, they'll know what

0:20:34.119 --> 0:20:38.280
<v Speaker 1>to do. And so early in our earlier years, our

0:20:38.280 --> 0:20:40.640
<v Speaker 1>culture and values as we spread out of town did

0:20:40.680 --> 0:20:42.480
<v Speaker 1>not resonate as well as it did out of town

0:20:42.480 --> 0:20:44.720
<v Speaker 1>as it does in town. Why what do you think that?

0:20:44.840 --> 0:20:48.600
<v Speaker 1>Because we opened our restaurants without a town people and

0:20:48.640 --> 0:20:51.720
<v Speaker 1>so forth, and we uh didn't really know how to

0:20:51.800 --> 0:20:54.639
<v Speaker 1>transfer that culture and those vous. We didn't we brought

0:20:54.680 --> 0:20:57.040
<v Speaker 1>people in. We thought if we hired it outside manager,

0:20:57.080 --> 0:20:58.960
<v Speaker 1>then come in for eight to twelve weeks and train

0:20:59.080 --> 0:21:01.520
<v Speaker 1>and and learn. And it's just not that way. So

0:21:01.800 --> 0:21:04.960
<v Speaker 1>can you change twenty years of experience in ten weeks now?

0:21:05.240 --> 0:21:08.080
<v Speaker 1>Now we take usually take six months to a year

0:21:08.119 --> 0:21:10.520
<v Speaker 1>for an outside hire to really adapt and learn to

0:21:10.600 --> 0:21:14.480
<v Speaker 1>our culture. So today we won't open a restaurant without

0:21:14.560 --> 0:21:18.160
<v Speaker 1>a homewre own management team in that restaurant. And it's

0:21:18.280 --> 0:21:22.240
<v Speaker 1>very important to inculcate that culture uh into that new property,

0:21:22.280 --> 0:21:26.399
<v Speaker 1>no matter where it is. So restaurants are notorious for

0:21:26.480 --> 0:21:30.320
<v Speaker 1>having a very high failure rate. You described the second

0:21:30.359 --> 0:21:34.800
<v Speaker 1>restaurant you opened as, Uh, you're you're prepping, You're in

0:21:35.080 --> 0:21:39.399
<v Speaker 1>the empty building. A police officer comes in and, uh,

0:21:39.520 --> 0:21:41.800
<v Speaker 1>he's just checking on the building. What he's doing here? Oh,

0:21:41.880 --> 0:21:44.680
<v Speaker 1>we're opening a new restaurant here. And at that point,

0:21:44.720 --> 0:21:46.600
<v Speaker 1>after you already committed on the lease and you've already

0:21:46.640 --> 0:21:51.000
<v Speaker 1>raised money and we're under construction. Yeah, hey, what's this neighborhood? Like?

0:21:51.119 --> 0:21:53.520
<v Speaker 1>Is it safe? And he kind of surprised you with

0:21:53.560 --> 0:21:57.280
<v Speaker 1>his answer, didn't he? Right there, there's been some some trouble,

0:21:57.400 --> 0:22:00.240
<v Speaker 1>wasn't there. Yeah. So it was seven o'clock at night,

0:22:00.400 --> 0:22:03.440
<v Speaker 1>you know, the construction team's gone. I'm just it's a beautiful,

0:22:03.480 --> 0:22:05.919
<v Speaker 1>clear night, and I'm talking to the police officer. I

0:22:05.920 --> 0:22:08.200
<v Speaker 1>look across, you know, a couple of blocks down the way.

0:22:08.200 --> 0:22:11.920
<v Speaker 1>I see a lady dressed provocatively walking down the street.

0:22:11.960 --> 0:22:13.959
<v Speaker 1>And I said to him, a lady in the evening.

0:22:14.280 --> 0:22:18.239
<v Speaker 1>That's in the evening early And I said, uh uh,

0:22:18.560 --> 0:22:20.760
<v Speaker 1>she prostituted. He was, oh, yeah, there's a bunch of

0:22:20.760 --> 0:22:24.439
<v Speaker 1>them down there, but there's some hotel dinner. And I said, well,

0:22:24.440 --> 0:22:26.879
<v Speaker 1>is this a safe area? You know? Yeah it is,

0:22:26.960 --> 0:22:28.760
<v Speaker 1>but you know, we had someone got killed. I was

0:22:28.800 --> 0:22:32.200
<v Speaker 1>just seen two nights ago across the street here blood everywhere,

0:22:32.720 --> 0:22:35.520
<v Speaker 1>and I'm like, oh, my goodness, what have I done? So?

0:22:35.640 --> 0:22:37.840
<v Speaker 1>And but you meanwhile, that restaurant was around for what

0:22:37.960 --> 0:22:42.920
<v Speaker 1>seven years? Yeah, But generally speaking, when a new restaurant launches,

0:22:43.240 --> 0:22:48.360
<v Speaker 1>that's that's a u The triumph of optimism over rationality,

0:22:48.440 --> 0:22:52.159
<v Speaker 1>isn't it. Most restaurants don't even last two years, right,

0:22:53.080 --> 0:22:55.840
<v Speaker 1>So how do you how do you manage that those

0:22:55.920 --> 0:23:00.520
<v Speaker 1>challenging odds and continue to open restaurant after restaurant. Well,

0:23:00.600 --> 0:23:02.800
<v Speaker 1>that particular restaurant I say, made enough to feed a

0:23:02.840 --> 0:23:06.520
<v Speaker 1>cat for seven years. But anyways, and that was a mistake.

0:23:06.560 --> 0:23:08.480
<v Speaker 1>And we've made mistakes and make lots of mistakes. And

0:23:08.520 --> 0:23:11.639
<v Speaker 1>I look at his batting average. Um, I look at

0:23:11.680 --> 0:23:13.720
<v Speaker 1>every five restaurants I opened, one is not going to

0:23:13.840 --> 0:23:16.600
<v Speaker 1>do very well or might even close. The other three

0:23:16.680 --> 0:23:19.000
<v Speaker 1>or what I call singles, doubles or triples, and then

0:23:19.080 --> 0:23:21.000
<v Speaker 1>and the other one, the fifth one is a home

0:23:21.080 --> 0:23:22.719
<v Speaker 1>run out of the park. And so you average from

0:23:22.720 --> 0:23:25.159
<v Speaker 1>all together, I get five good ones. So we know

0:23:25.200 --> 0:23:27.600
<v Speaker 1>we're gonna get mistakes, but we've we've gotten better our

0:23:27.720 --> 0:23:30.280
<v Speaker 1>craft along the way. And you know, I go back

0:23:30.320 --> 0:23:34.000
<v Speaker 1>to um when the high failure rate in the restaurant business,

0:23:34.000 --> 0:23:35.080
<v Speaker 1>to me is a little bit of them in this

0:23:35.280 --> 0:23:39.800
<v Speaker 1>misnomer simply put, Uh, a lot of people want to

0:23:39.800 --> 0:23:42.080
<v Speaker 1>be in the restaurant business, and they it's kind of

0:23:42.240 --> 0:23:46.080
<v Speaker 1>very relatively low barrier gentry as far as cash. Still

0:23:46.119 --> 0:23:48.399
<v Speaker 1>a couple hundred grands to open any rest for your

0:23:48.440 --> 0:23:50.399
<v Speaker 1>first one, maybe you can get away with that. You know,

0:23:50.480 --> 0:23:53.000
<v Speaker 1>we spend millions of dollars today to open our restaurants,

0:23:53.000 --> 0:23:55.720
<v Speaker 1>but certainly my first one was four hundred and put

0:23:55.720 --> 0:23:58.200
<v Speaker 1>it that way. But uh, I always say, people don't

0:23:58.200 --> 0:24:00.800
<v Speaker 1>walk around a grocery store pushing a grocery cart saying

0:24:00.800 --> 0:24:02.600
<v Speaker 1>I want to be a grocer, but they do go

0:24:02.640 --> 0:24:06.560
<v Speaker 1>to restaurants. Let's say I want to And so if

0:24:06.600 --> 0:24:08.560
<v Speaker 1>you think if you take out the people that maybe

0:24:08.640 --> 0:24:10.560
<v Speaker 1>really shouldn't be in the restaurant business, out of that

0:24:10.600 --> 0:24:12.760
<v Speaker 1>equation and the success rates a little bit higher. But

0:24:12.880 --> 0:24:16.800
<v Speaker 1>because of that um it creates a lot of failure rate.

0:24:17.200 --> 0:24:22.440
<v Speaker 1>So assume you have access to plentiful capital, especially your shop.

0:24:22.520 --> 0:24:25.240
<v Speaker 1>You have a good track record for twenty five years.

0:24:26.280 --> 0:24:29.680
<v Speaker 1>What's the most challenging thing about launching a new restaurant?

0:24:29.680 --> 0:24:32.359
<v Speaker 1>Is it the location? Is it? The theme? Is that

0:24:32.480 --> 0:24:36.679
<v Speaker 1>the food? What? What's the biggest challenge? Well, you already

0:24:36.680 --> 0:24:38.880
<v Speaker 1>took my first challenge out of the picture. Has capital

0:24:39.040 --> 0:24:42.120
<v Speaker 1>access to plentiful capital? That's never been the case. It's

0:24:42.160 --> 0:24:44.639
<v Speaker 1>it's a lot of capital. And you write in the book,

0:24:44.720 --> 0:24:48.480
<v Speaker 1>how challenging. It was to constantly come up with every

0:24:48.480 --> 0:24:52.560
<v Speaker 1>restaurant is four or five years ago, not not now,

0:24:52.680 --> 0:24:56.280
<v Speaker 1>that's today. That's two million dollars right right, exactly so,

0:24:56.359 --> 0:24:58.159
<v Speaker 1>and if you're in New York, it's five millions. We

0:24:58.240 --> 0:25:01.040
<v Speaker 1>spent eleven million open New York. Really that's a lot

0:25:01.040 --> 0:25:03.760
<v Speaker 1>of money. Was it worth it? Very much? So? And

0:25:04.000 --> 0:25:09.320
<v Speaker 1>I'm assuming Beverly Hills isn't cheap eve okay, we're so

0:25:09.440 --> 0:25:11.760
<v Speaker 1>that raises the question. You have a lot of restaurants

0:25:11.760 --> 0:25:16.400
<v Speaker 1>in Ohio and Columbus. I would imagine that's much less expensive.

0:25:16.880 --> 0:25:19.000
<v Speaker 1>And if you could attract as much of a crowd,

0:25:19.119 --> 0:25:22.840
<v Speaker 1>are are those restaurants more profitable or are they not

0:25:22.960 --> 0:25:25.639
<v Speaker 1>capable of doing the volume of a New York or

0:25:25.800 --> 0:25:29.720
<v Speaker 1>l A both? I mean, it's it's it's a We

0:25:29.760 --> 0:25:33.120
<v Speaker 1>talked about return on investment. It's about volume and uh,

0:25:33.359 --> 0:25:37.080
<v Speaker 1>you know capital invested. So yes, there's less capital invested,

0:25:37.160 --> 0:25:39.879
<v Speaker 1>but the lower the volume, so you might have the

0:25:39.880 --> 0:25:42.720
<v Speaker 1>same return on investment as we have out somewhere else.

0:25:43.160 --> 0:25:47.520
<v Speaker 1>So what are the other mistakes that that restaurateurs make?

0:25:47.640 --> 0:25:51.000
<v Speaker 1>I have to assume being eneralized, we will take a

0:25:51.040 --> 0:25:54.440
<v Speaker 1>break for dinner and we'll finish by midnight. Um, I

0:25:54.880 --> 0:25:58.720
<v Speaker 1>under capitalization. I've heard from other restaurateurs. What what else

0:25:58.800 --> 0:26:03.000
<v Speaker 1>is an issue? Obviously by the book, Yes is the answer.

0:26:03.000 --> 0:26:06.440
<v Speaker 1>What's the question? Is all about your values and your

0:26:06.640 --> 0:26:08.800
<v Speaker 1>beliefs and your philosophies. I think are very important. A

0:26:08.840 --> 0:26:12.040
<v Speaker 1>lot of people start out. I don't even have any

0:26:12.160 --> 0:26:14.800
<v Speaker 1>values written down, or any mission or anything. Don't even

0:26:14.880 --> 0:26:18.600
<v Speaker 1>understand that. So that's that's first and foremost of my book. Uh,

0:26:18.880 --> 0:26:23.439
<v Speaker 1>Understanding brand and brand development. Restaurant brand development. Uh, you

0:26:23.480 --> 0:26:28.280
<v Speaker 1>know I'm gonna have a barbecue restaurant that's super healthy. Also,

0:26:28.760 --> 0:26:31.400
<v Speaker 1>which is it? You're right, you can't have everything has

0:26:31.440 --> 0:26:34.040
<v Speaker 1>to be congruent all the way across the brand. So

0:26:34.480 --> 0:26:36.960
<v Speaker 1>an even restaurant branding itself has taken me years to

0:26:37.040 --> 0:26:40.360
<v Speaker 1>really understand and and and maybe get a little good

0:26:40.359 --> 0:26:43.400
<v Speaker 1>at it. Now here's mine naivete as a foodie here

0:26:43.440 --> 0:26:46.679
<v Speaker 1>in New York. If the food is really good, you

0:26:46.720 --> 0:26:48.160
<v Speaker 1>really have to go out of your way to mess

0:26:48.200 --> 0:26:51.000
<v Speaker 1>that up. Am I wrong? Once you get to wow,

0:26:51.040 --> 0:26:54.600
<v Speaker 1>this food is great? Is that sufficient or does that

0:26:54.640 --> 0:26:57.080
<v Speaker 1>not get it done? Well? That's just I think one

0:26:57.160 --> 0:26:59.640
<v Speaker 1>leg of the stool. What are the other likes well,

0:26:59.760 --> 0:27:03.400
<v Speaker 1>sir service, and you can debate whether food or service

0:27:03.440 --> 0:27:06.879
<v Speaker 1>is more important or there's different studies on both. I

0:27:06.920 --> 0:27:10.359
<v Speaker 1>think they're about equal. Really, I'm surprised to hear that, Yeah,

0:27:11.040 --> 0:27:14.720
<v Speaker 1>you remember bead service, but you don't you know, I can't.

0:27:14.760 --> 0:27:17.719
<v Speaker 1>I can tell you about a million spectacular meals, but

0:27:17.800 --> 0:27:22.640
<v Speaker 1>I don't recall every saying this waiter. Usually they're unobtrusive,

0:27:23.200 --> 0:27:25.800
<v Speaker 1>and when the service is really really good, you almost

0:27:25.840 --> 0:27:29.600
<v Speaker 1>don't notice it. Right, unless you're in the industry, I

0:27:29.720 --> 0:27:31.720
<v Speaker 1>can't help but notice it. You're not going to go

0:27:31.760 --> 0:27:34.159
<v Speaker 1>to a place that's got great food even though the

0:27:34.200 --> 0:27:37.439
<v Speaker 1>services loudy. Sometimes you have a bab But also you're

0:27:37.480 --> 0:27:39.000
<v Speaker 1>not gonna go to a place with great service and

0:27:39.119 --> 0:27:42.480
<v Speaker 1>lousy food. Correct. Correct, So that's why I say, Hence,

0:27:42.520 --> 0:27:45.679
<v Speaker 1>I think they're both equally important. Then, uh come as

0:27:45.760 --> 0:27:47.760
<v Speaker 1>the ambiance, which is a lot of that is the

0:27:48.359 --> 0:27:51.720
<v Speaker 1>uh unobtrusive things that you may not even necessarily realize

0:27:51.720 --> 0:27:54.600
<v Speaker 1>whether you like or don't like. You know, you might right,

0:27:54.640 --> 0:27:56.399
<v Speaker 1>you might sit in the restaurant saidies don't really like

0:27:56.520 --> 0:27:59.600
<v Speaker 1>this place. You may not know why exactly, but maybe

0:27:59.600 --> 0:28:01.399
<v Speaker 1>the lighting is not right or the music is not right,

0:28:01.440 --> 0:28:05.920
<v Speaker 1>all those intangibles to a certain extent, and then marketing.

0:28:06.040 --> 0:28:08.960
<v Speaker 1>You know, Um, you can't really have a successful restaurant

0:28:09.000 --> 0:28:11.280
<v Speaker 1>unless you also know how to market yourself because if

0:28:11.320 --> 0:28:13.840
<v Speaker 1>you're you don't have a great location, people need to

0:28:13.880 --> 0:28:15.720
<v Speaker 1>find you. So you have to spend a lot of

0:28:15.720 --> 0:28:18.320
<v Speaker 1>time and energy and tuning your horn to a certain

0:28:18.320 --> 0:28:20.800
<v Speaker 1>extent in marketing yourself. So it's really those are the

0:28:20.800 --> 0:28:23.560
<v Speaker 1>four legs of the stool in my book. So let's

0:28:23.600 --> 0:28:26.919
<v Speaker 1>talk about another intangible. You mentioned the music and the lighting.

0:28:27.320 --> 0:28:30.600
<v Speaker 1>I have some favorite places my wife refuses to go

0:28:30.680 --> 0:28:34.600
<v Speaker 1>to on weekends because it's so crowded and it's so loud.

0:28:34.680 --> 0:28:37.080
<v Speaker 1>It's not relaxing. You want to go on a Thursday

0:28:37.160 --> 0:28:40.320
<v Speaker 1>or Sunday, I'm happy to, But Friday and Saturday night

0:28:40.320 --> 0:28:42.960
<v Speaker 1>it's a zoo. Is that an issue you have to

0:28:43.000 --> 0:28:46.240
<v Speaker 1>deal with or is that just my Uh? It certainly is.

0:28:46.400 --> 0:28:49.120
<v Speaker 1>You know, noise and sound is certainly an issue. We've

0:28:49.120 --> 0:28:52.880
<v Speaker 1>had to add soundproofing to restaurants along the way. But uh,

0:28:52.960 --> 0:28:55.320
<v Speaker 1>you know, first of all, little energy has got to

0:28:55.320 --> 0:28:59.080
<v Speaker 1>be right. I say, people go out to be stimulated,

0:28:59.120 --> 0:29:02.320
<v Speaker 1>not to sedate it. So, uh, in a restaurant tours

0:29:02.400 --> 0:29:05.160
<v Speaker 1>nightmare is an empty, quiet nighting room, so we don't

0:29:05.160 --> 0:29:07.760
<v Speaker 1>want those. So, uh, think about where we're coming from,

0:29:07.840 --> 0:29:10.400
<v Speaker 1>and we we want loud. We want that energy. Energy

0:29:10.440 --> 0:29:14.120
<v Speaker 1>breaves energy earlier. The staff is happier, the guests are happier,

0:29:14.160 --> 0:29:16.920
<v Speaker 1>everybody's excited. Um. But you have to be able to

0:29:16.960 --> 0:29:18.440
<v Speaker 1>talk at the same time. You have to be able

0:29:18.480 --> 0:29:22.680
<v Speaker 1>to converse and enjoy yourself. That that's pretty reasonable. We

0:29:22.760 --> 0:29:25.960
<v Speaker 1>have been speaking to Cameron Mitchell. He is the founder

0:29:25.960 --> 0:29:29.520
<v Speaker 1>and CEO of the Cameron Mitchell Restaurant Group. If you

0:29:29.640 --> 0:29:32.880
<v Speaker 1>enjoy this conversation, be sure and check out our podcast extras,

0:29:33.120 --> 0:29:36.040
<v Speaker 1>where we keep the tape rolling and continue discussing all

0:29:36.120 --> 0:29:41.360
<v Speaker 1>things food related. You can find that at iTunes, Overcast, Stitcher,

0:29:41.840 --> 0:29:46.200
<v Speaker 1>Bloomberg dot com, wherever your finer podcasts are sold. We

0:29:46.320 --> 0:29:50.360
<v Speaker 1>love your comments, feedback and suggestions right to us at

0:29:50.760 --> 0:29:54.000
<v Speaker 1>m IB podcast at Bloomberg dot net. Check out my

0:29:54.120 --> 0:29:57.880
<v Speaker 1>daily column on Bloomberg dot com slash Opinion. You can

0:29:57.960 --> 0:30:01.520
<v Speaker 1>follow me on Twitter at rid Halts. I'm Barry Rehults.

0:30:01.640 --> 0:30:11.480
<v Speaker 1>You're listening to Masters in Business on Bloomberg Radio. Welcome

0:30:11.520 --> 0:30:13.920
<v Speaker 1>to the podcast, Cameron, Thank you so much for doing this.

0:30:14.520 --> 0:30:19.720
<v Speaker 1>I am a a foodie and I've gone out to

0:30:20.520 --> 0:30:25.920
<v Speaker 1>Michelin Star restaurants all over the world. I'm very happy

0:30:26.120 --> 0:30:31.120
<v Speaker 1>trolling my way through Chinatown finding random Malaysian restaurants or

0:30:31.560 --> 0:30:36.320
<v Speaker 1>Shanghai soupi buns or someone someone on Lynnette Lopez from

0:30:36.400 --> 0:30:41.920
<v Speaker 1>Business Insider on Twitter mentions that there's this restaurant in

0:30:41.960 --> 0:30:47.160
<v Speaker 1>Flushing called Galaxy Dumpling House, which goes, oh, they're opening

0:30:47.160 --> 0:30:50.680
<v Speaker 1>a new location, they're testing out a franchise concept. And

0:30:50.720 --> 0:30:53.000
<v Speaker 1>I said to her, we, you know, have some people

0:30:53.040 --> 0:30:55.080
<v Speaker 1>do a pub crawl to go to a bunch of cars.

0:30:55.360 --> 0:30:58.840
<v Speaker 1>We did a dumpling crawl through Queen through my birthday

0:30:58.880 --> 0:31:03.080
<v Speaker 1>year ago, through Flushing Queens. We went like a dozen.

0:31:05.680 --> 0:31:07.840
<v Speaker 1>I got home, I didn't eat for two days. It

0:31:07.920 --> 0:31:11.840
<v Speaker 1>was just that's a lot of dumpling. Galaxy Dumpling has

0:31:11.880 --> 0:31:14.520
<v Speaker 1>like a hundred different dumplings on the menu. It's just

0:31:14.800 --> 0:31:18.760
<v Speaker 1>and they're all, you know, individual hallmade. So I was intrigued.

0:31:18.800 --> 0:31:20.840
<v Speaker 1>But when I saw your book and I saw your

0:31:20.880 --> 0:31:24.880
<v Speaker 1>your history, um, I was kind of intrigued by it. Um.

0:31:24.920 --> 0:31:30.080
<v Speaker 1>I'm fascinated by the idea of taking a successful restaurant

0:31:30.280 --> 0:31:35.760
<v Speaker 1>concept and expanding it elsewhere, be it franchise or or

0:31:35.800 --> 0:31:38.680
<v Speaker 1>your own approach. And every now and then I'll see

0:31:38.720 --> 0:31:42.720
<v Speaker 1>you a little restaurant and say, this is little place

0:31:43.320 --> 0:31:45.760
<v Speaker 1>not too far from where I live called Cactus Cafe.

0:31:46.480 --> 0:31:51.000
<v Speaker 1>It's just really good, simple Mexican food and grilled proving

0:31:51.120 --> 0:31:54.640
<v Speaker 1>chicken in in a room smaller than we're sitting in

0:31:54.760 --> 0:31:56.800
<v Speaker 1>right now. And I was saying, every time I see

0:31:56.800 --> 0:31:59.360
<v Speaker 1>this place, some they could open a hundred of these

0:31:59.520 --> 0:32:02.880
<v Speaker 1>if they were wanted to. The stuff is it's not

0:32:03.120 --> 0:32:05.760
<v Speaker 1>there's a million of these little places like that. This

0:32:05.840 --> 0:32:09.600
<v Speaker 1>is different, it's unique. I'm shocked nobody ever did that.

0:32:09.840 --> 0:32:12.160
<v Speaker 1>So I have to ask you, when you come up

0:32:12.200 --> 0:32:16.360
<v Speaker 1>with a concept that's successful, are some of these successful?

0:32:16.440 --> 0:32:19.320
<v Speaker 1>Is just not translatable? It's just lightning in a bottle

0:32:19.680 --> 0:32:23.280
<v Speaker 1>and it's that one location. And are you ever surprised

0:32:23.280 --> 0:32:25.720
<v Speaker 1>when something that you thought, oh, this is pretty good

0:32:25.760 --> 0:32:28.320
<v Speaker 1>but not spectacular, and then it has legs in it

0:32:28.320 --> 0:32:30.800
<v Speaker 1>it keeps going? How do you How does that process

0:32:30.840 --> 0:32:33.600
<v Speaker 1>go from hey, this is a pretty good restaurant idea,

0:32:34.000 --> 0:32:37.440
<v Speaker 1>now they were a hundred of them. Well, it's kind

0:32:37.440 --> 0:32:40.200
<v Speaker 1>of a multi prompt question. I think. You know, not

0:32:40.320 --> 0:32:43.400
<v Speaker 1>every restaurant operator wants to build multiple restaurants. Not every

0:32:43.640 --> 0:32:46.120
<v Speaker 1>you know, an under a restaurant operator wants to live

0:32:46.160 --> 0:32:50.080
<v Speaker 1>on an airplane and travel all the time like we do. So, um,

0:32:50.120 --> 0:32:52.320
<v Speaker 1>I personally wanted to build a national brand. I wanted

0:32:52.400 --> 0:32:54.120
<v Speaker 1>to do that, so we we kind of looked for

0:32:54.240 --> 0:32:57.680
<v Speaker 1>it and we worked it. And building a national restaurant brand, uh,

0:32:57.840 --> 0:33:00.520
<v Speaker 1>takes a lot of time and effort, years years of

0:33:00.600 --> 0:33:03.800
<v Speaker 1>time and refinement of that brand. So it's not as

0:33:03.880 --> 0:33:07.120
<v Speaker 1>simple as just replicating you're right, there is Uh, there's

0:33:07.120 --> 0:33:10.360
<v Speaker 1>certain regionalities of the country. You know, barbecue doesn't necessarily

0:33:10.440 --> 0:33:13.360
<v Speaker 1>travel all over the country. It's just different, especially different

0:33:13.400 --> 0:33:16.560
<v Speaker 1>types of barbecue. So there's just a lot goes into it.

0:33:16.600 --> 0:33:20.120
<v Speaker 1>And I think just having a individual successful one restaurant

0:33:20.200 --> 0:33:23.280
<v Speaker 1>doesn't always mean as translatable to build across the country

0:33:23.360 --> 0:33:26.920
<v Speaker 1>or across the town. So now, what is the rusty bucket? What?

0:33:26.920 --> 0:33:32.920
<v Speaker 1>What is that? It's a corner sure foot hundred corner

0:33:33.040 --> 0:33:36.760
<v Speaker 1>neighborhood tavern concept. It's uh, we put in affluent suburbs.

0:33:36.760 --> 0:33:39.280
<v Speaker 1>It's a great place. We really say it kind of uh.

0:33:39.960 --> 0:33:43.120
<v Speaker 1>Uh is the default vote? You know, you've got kids,

0:33:43.200 --> 0:33:45.480
<v Speaker 1>you want to go out to dinner? Uh you don't,

0:33:45.520 --> 0:33:47.479
<v Speaker 1>you know where wore the kids be happy? Where were

0:33:47.560 --> 0:33:49.480
<v Speaker 1>mom and dad be happy? And that's where we're really

0:33:49.480 --> 0:33:53.640
<v Speaker 1>basically bedroom pasta's, pizzas, that sort of thing, but good

0:33:53.720 --> 0:33:57.720
<v Speaker 1>food from scratch, great environment. You know, the bar is

0:33:57.800 --> 0:33:59.160
<v Speaker 1>right in the middle of it. You're gonna have people

0:33:59.240 --> 0:34:01.160
<v Speaker 1>drinking at the bar and still walking with your kids

0:34:01.200 --> 0:34:03.200
<v Speaker 1>and feel very comfortable. And it's that kind of place.

0:34:03.240 --> 0:34:06.320
<v Speaker 1>So it's really those affluent suburbs were in six states

0:34:06.720 --> 0:34:09.680
<v Speaker 1>right now around the country. So a chain like the

0:34:09.920 --> 0:34:14.160
<v Speaker 1>twenty three how large can that get? Is that something

0:34:14.160 --> 0:34:16.800
<v Speaker 1>you would want to expand to two hundred restaurants or

0:34:17.719 --> 0:34:19.520
<v Speaker 1>is it you just have to find the right place

0:34:19.520 --> 0:34:21.480
<v Speaker 1>where it's a good fit. Well, we're still working on that.

0:34:21.520 --> 0:34:25.920
<v Speaker 1>You know, casual dining itself and is um probably one

0:34:25.920 --> 0:34:28.440
<v Speaker 1>of the more challenge parts of the restaurant business. So

0:34:28.600 --> 0:34:33.000
<v Speaker 1>fine dining where Ocean Prime brand lies is doing very well.

0:34:33.120 --> 0:34:36.319
<v Speaker 1>We all know fast casual is doing very well. It's

0:34:36.400 --> 0:34:41.080
<v Speaker 1>it's uh um competitive, that's the thing that's saturated, you know,

0:34:41.719 --> 0:34:44.560
<v Speaker 1>And I've never wanted to get into that fast casual

0:34:44.680 --> 0:34:47.280
<v Speaker 1>business because of that where do you draw the line

0:34:47.280 --> 0:34:52.160
<v Speaker 1>on fast casual above, like, um, well, you know it's Chipole.

0:34:52.880 --> 0:34:56.240
<v Speaker 1>You know everybody, everybody want to do the Chipole delivery model,

0:34:56.239 --> 0:35:00.279
<v Speaker 1>and and everybody wanted the success of Chipotle, and you

0:35:00.280 --> 0:35:01.879
<v Speaker 1>know you've had a lot of failures along the way

0:35:01.880 --> 0:35:04.439
<v Speaker 1>with that too. And but you have everybody her brother

0:35:04.560 --> 0:35:06.920
<v Speaker 1>throwing money on it, trying to get into it, and

0:35:06.960 --> 0:35:09.479
<v Speaker 1>I've just uh tried not to do that. I didn't

0:35:09.480 --> 0:35:12.160
<v Speaker 1>want to do that. What about all the burger chains

0:35:12.200 --> 0:35:15.600
<v Speaker 1>that are coming out to challenge McDonald's, some of which

0:35:15.640 --> 0:35:18.279
<v Speaker 1>have really taken off very quickly. Sure, I mean shake

0:35:18.320 --> 0:35:21.040
<v Speaker 1>Shack is actually a good example. Five Guys Burger is

0:35:21.040 --> 0:35:24.799
<v Speaker 1>another good example. Uh this At one point, I had

0:35:25.640 --> 0:35:28.360
<v Speaker 1>our vice president operations leave us because he wanted to

0:35:28.360 --> 0:35:30.800
<v Speaker 1>do a burger joint and start to burger craze, and

0:35:30.840 --> 0:35:32.640
<v Speaker 1>I didn't want to get involved with it. I mean,

0:35:32.640 --> 0:35:36.319
<v Speaker 1>that's a very competitive space and you have all the

0:35:36.400 --> 0:35:40.919
<v Speaker 1>legacy McDonald's, Burger King, Wendy's, um go down the list,

0:35:41.040 --> 0:35:45.919
<v Speaker 1>Arby's Summer margins. So that's a tough business that would imagine. Yeah,

0:35:45.920 --> 0:35:48.600
<v Speaker 1>it's just something I prefer not to get into. So

0:35:49.480 --> 0:35:54.120
<v Speaker 1>Fast Casual is Chipotle and Higher. Yeah, you're not in

0:35:54.200 --> 0:35:56.239
<v Speaker 1>the fast cast. That's that we would call that as

0:35:56.320 --> 0:35:59.120
<v Speaker 1>limited service. There's counter service, etcetera. I'm we're in a

0:35:59.200 --> 0:36:02.920
<v Speaker 1>full service space. The full service space is the casual

0:36:03.080 --> 0:36:05.520
<v Speaker 1>brands like a Rusty bucket. You know, you can put

0:36:05.520 --> 0:36:07.760
<v Speaker 1>Applebeas and Chili's in there if you want. There's others.

0:36:07.760 --> 0:36:11.760
<v Speaker 1>Then there's upscale casual, and then there's the fine dinings.

0:36:12.160 --> 0:36:14.840
<v Speaker 1>So we play in all three of those those segments.

0:36:14.880 --> 0:36:19.360
<v Speaker 1>Are there any upstir scale casual restaurants that have managed

0:36:19.400 --> 0:36:23.440
<v Speaker 1>to build more than just a local footprint, Well, sure,

0:36:23.680 --> 0:36:29.640
<v Speaker 1>the uh the national standard bearer, gold standard is Houston's

0:36:29.840 --> 0:36:33.640
<v Speaker 1>uh said, polished casual segments. You know, those are who

0:36:33.800 --> 0:36:36.640
<v Speaker 1>really the rest of us aspire to be cheesecake factories

0:36:36.680 --> 0:36:39.239
<v Speaker 1>in it and that genre, you know, not as good

0:36:39.239 --> 0:36:44.200
<v Speaker 1>as Houston's. But on that genre there is respectable, huge,

0:36:44.640 --> 0:36:46.520
<v Speaker 1>huge media. It's a little bit it's a different approach.

0:36:47.080 --> 0:36:50.520
<v Speaker 1>But along those lines and and and those are the

0:36:51.640 --> 0:36:54.200
<v Speaker 1>you know, then there's the fine dining brands like Ocean Prime.

0:36:54.840 --> 0:36:59.920
<v Speaker 1>That isn't a major markets across the country. So New

0:37:00.000 --> 0:37:03.800
<v Speaker 1>New York pass some rule on New York City about

0:37:03.840 --> 0:37:06.120
<v Speaker 1>if you have more than five restaurants with the same

0:37:06.200 --> 0:37:09.960
<v Speaker 1>name in New York, there was certain disclosure requirements of them.

0:37:10.280 --> 0:37:13.319
<v Speaker 1>So the Houston's and some other similar chains in New

0:37:13.400 --> 0:37:16.800
<v Speaker 1>York basically, well, we'll just change a couple of exacts

0:37:16.800 --> 0:37:20.680
<v Speaker 1>and thanks for the silly rule. Yeah. Um, there's the

0:37:20.800 --> 0:37:24.480
<v Speaker 1>national rule to that. Over twenty units, you have to

0:37:24.560 --> 0:37:26.880
<v Speaker 1>label all your menu items with the calorie counts and

0:37:27.080 --> 0:37:29.800
<v Speaker 1>all that. I think that's what the New York and

0:37:30.080 --> 0:37:32.920
<v Speaker 1>you know that's UM. The jury is still out on

0:37:33.000 --> 0:37:36.000
<v Speaker 1>really how that's affecting restaurants. I was talking to a

0:37:36.080 --> 0:37:39.400
<v Speaker 1>CEO of another restaurant company that has done that, and

0:37:39.400 --> 0:37:41.680
<v Speaker 1>and it's just shifted the way people order. It hasn't

0:37:41.680 --> 0:37:44.480
<v Speaker 1>really affected their business volume. So what does it do.

0:37:44.600 --> 0:37:47.040
<v Speaker 1>It affects the dessert order. Yeah, when they see lobster

0:37:47.560 --> 0:37:52.040
<v Speaker 1>mashed potatoes or grotten at calories, they're ordering something else,

0:37:52.120 --> 0:37:54.840
<v Speaker 1>but they're still ordering. So it hasn't really UM. And

0:37:55.600 --> 0:37:57.560
<v Speaker 1>you know where you believe and that I believe in

0:37:57.600 --> 0:37:59.520
<v Speaker 1>freedom of choice, and you know, people can do what

0:37:59.560 --> 0:38:03.919
<v Speaker 1>they want. The problem is once you put the calories down,

0:38:04.160 --> 0:38:09.879
<v Speaker 1>you're nudging people in one direction or another. I guess, Um,

0:38:09.960 --> 0:38:13.760
<v Speaker 1>let's talk about tipping. I that's a big issue some people.

0:38:14.360 --> 0:38:17.520
<v Speaker 1>I was just in Iceland, where there is no tipping

0:38:17.560 --> 0:38:20.520
<v Speaker 1>on the entire island, and when they told us that,

0:38:20.600 --> 0:38:22.799
<v Speaker 1>I was kind of shocked. Although everything is kind of

0:38:22.800 --> 0:38:26.120
<v Speaker 1>expensive there, so it's obviously no free lunch, it's built in.

0:38:26.719 --> 0:38:31.160
<v Speaker 1>That said, it was kind of nice not having to

0:38:31.200 --> 0:38:33.799
<v Speaker 1>worry about it to think about it. Where do you

0:38:33.880 --> 0:38:37.800
<v Speaker 1>land on the should we have tipped servers or should

0:38:37.840 --> 0:38:40.600
<v Speaker 1>we just pay them a salary and build that into

0:38:40.600 --> 0:38:45.080
<v Speaker 1>the price. Well, I definitely differ on that than our

0:38:45.120 --> 0:38:47.399
<v Speaker 1>friend Danny Meyer, who's leading the charge on the note

0:38:47.440 --> 0:38:50.319
<v Speaker 1>tipping program. And I understand what he's trying to do.

0:38:50.400 --> 0:38:52.760
<v Speaker 1>He's trying to bridge that gamp and the disparity between

0:38:52.800 --> 0:38:55.080
<v Speaker 1>front of the house associates and back of the house

0:38:55.120 --> 0:38:58.879
<v Speaker 1>associates people and people in the dishwashers, the bus by

0:38:58.920 --> 0:39:01.480
<v Speaker 1>people in the back. They're they're not making a whole

0:39:01.520 --> 0:39:04.959
<v Speaker 1>lot of money compared to the bartenders, waiters, correct hostess.

0:39:05.280 --> 0:39:07.600
<v Speaker 1>And I understand it. But uh, and again the jury

0:39:07.600 --> 0:39:09.800
<v Speaker 1>is still out on whether it's really working or taking

0:39:09.840 --> 0:39:12.919
<v Speaker 1>hold in his company, he's doing it, and he's making

0:39:12.960 --> 0:39:15.960
<v Speaker 1>that decision and trying to change the way we do business,

0:39:16.000 --> 0:39:18.759
<v Speaker 1>and there's a lot of pushback. Um, you know, I'm

0:39:18.760 --> 0:39:21.440
<v Speaker 1>trying to reserve judgment on that. I'm trying to keep

0:39:21.440 --> 0:39:26.040
<v Speaker 1>an open mind. But I don't really like that personally.

0:39:26.120 --> 0:39:28.400
<v Speaker 1>I like the tip, I like gratuity. I like uh,

0:39:29.080 --> 0:39:31.800
<v Speaker 1>great servers make more money than not so great servers.

0:39:32.920 --> 0:39:36.200
<v Speaker 1>Think that's great. And now we on other hand, uh,

0:39:36.920 --> 0:39:38.520
<v Speaker 1>tip of the hat to Danny. I mean, we're trying

0:39:38.560 --> 0:39:40.520
<v Speaker 1>to take care of our back in the house associates

0:39:40.520 --> 0:39:43.319
<v Speaker 1>more and and and still able to do that and

0:39:43.360 --> 0:39:46.279
<v Speaker 1>giving them raises and paying them more along the way. Um,

0:39:46.320 --> 0:39:47.960
<v Speaker 1>but you know, not everybody's cut out to be in

0:39:48.040 --> 0:39:49.520
<v Speaker 1>front of the house. Not everybody's cut out to be

0:39:49.520 --> 0:39:52.200
<v Speaker 1>in the back of the house, and not everybody, uh

0:39:52.600 --> 0:39:55.200
<v Speaker 1>makes the same amount of money across America. So it

0:39:55.360 --> 0:39:58.160
<v Speaker 1>is what it is to a certain extent, and I

0:39:58.200 --> 0:40:01.400
<v Speaker 1>do personally like to up and I think it's one

0:40:01.440 --> 0:40:04.920
<v Speaker 1>of the great hallmarks and hospitality. So one of the

0:40:05.000 --> 0:40:08.319
<v Speaker 1>questions we didn't get to during the broadcast portion was

0:40:08.840 --> 0:40:13.720
<v Speaker 1>the different regions in the country. Um, you mentioned Beverly Hills,

0:40:14.400 --> 0:40:18.760
<v Speaker 1>what about further up the West coast, San Francisco, Portland, Seattle.

0:40:19.080 --> 0:40:21.840
<v Speaker 1>Are you in in those locales or are you interested

0:40:21.880 --> 0:40:24.799
<v Speaker 1>in going there? Well, Uh, they're tougher markets to do

0:40:24.880 --> 0:40:28.200
<v Speaker 1>business in because of the regulatory requirements and so forth.

0:40:28.280 --> 0:40:31.200
<v Speaker 1>But and we had a deal in actually Seattle, and

0:40:31.239 --> 0:40:36.200
<v Speaker 1>we passed on that deal because of that. However, we're

0:40:36.200 --> 0:40:39.080
<v Speaker 1>working on a project currently in San Diego, and we're

0:40:39.160 --> 0:40:42.439
<v Speaker 1>currently looking up in northern California. So um. And there's

0:40:42.480 --> 0:40:45.440
<v Speaker 1>lots of great successful restaurants in California. Portland is a

0:40:45.520 --> 0:40:49.400
<v Speaker 1>fantastic food city, really good food city. Although people have

0:40:49.480 --> 0:40:52.840
<v Speaker 1>told me that it's very difficult to move the needle.

0:40:53.040 --> 0:40:58.120
<v Speaker 1>If you need any sort of local government waiver or approval,

0:40:58.200 --> 0:41:01.680
<v Speaker 1>it's can And there's a lot of independence. There's a

0:41:01.800 --> 0:41:07.320
<v Speaker 1>huge independent dining scene in too. So um. That's probably

0:41:07.560 --> 0:41:10.399
<v Speaker 1>we might not be top of our list in terms

0:41:10.400 --> 0:41:13.920
<v Speaker 1>of national destuls. So you started in Ohio. What about

0:41:13.960 --> 0:41:19.360
<v Speaker 1>places like Chicago and Indianapolis and other major cities in

0:41:19.760 --> 0:41:23.080
<v Speaker 1>the industrial Midwest, Sir, we're in uh we you know,

0:41:23.680 --> 0:41:26.319
<v Speaker 1>we started building outside of Columbus in the Midwest. So

0:41:26.360 --> 0:41:31.640
<v Speaker 1>we're in Chicago, We're in Detroit, Indianapolis, Columbus. Um. Natural

0:41:31.680 --> 0:41:33.440
<v Speaker 1>Movement from there in Florida. You know, we have a

0:41:33.520 --> 0:41:36.440
<v Speaker 1>lot of those are where are you? Are you in Florida? Yeah,

0:41:36.480 --> 0:41:40.239
<v Speaker 1>we're in Naples, Tampa, and Orlando, and we're looking now

0:41:41.480 --> 0:41:45.040
<v Speaker 1>on the east coast, the Boca North Miami Palm Beach area.

0:41:45.800 --> 0:41:49.560
<v Speaker 1>And which which concepts do you want? Really? So you

0:41:49.560 --> 0:41:53.360
<v Speaker 1>want to go high up, high ends in all those places? Correct? Correct?

0:41:53.719 --> 0:41:56.200
<v Speaker 1>Very very interesting. Yeah, Ocean Prime is the brand we're

0:41:56.200 --> 0:41:59.640
<v Speaker 1>building for the time being. Um, you know, we're you know,

0:42:00.440 --> 0:42:03.480
<v Speaker 1>we may build more Rusty Buckets. Like I said, we

0:42:03.520 --> 0:42:06.680
<v Speaker 1>have two concepts within our our independent group that we're

0:42:06.680 --> 0:42:08.879
<v Speaker 1>looking to maybe take outside. So I have to ask

0:42:08.920 --> 0:42:12.240
<v Speaker 1>you a naming question, a brand new question. Ocean Prime

0:42:13.160 --> 0:42:18.880
<v Speaker 1>it sounds very high end, you fresh seafood, Prime, Steak

0:42:19.160 --> 0:42:23.040
<v Speaker 1>sounds great. Rusty Bucket isn't a name that comes to

0:42:23.160 --> 0:42:27.360
<v Speaker 1>mind about a restaurant. What what's the concept? Like the

0:42:27.440 --> 0:42:31.200
<v Speaker 1>branding concept? It's casual. That name kind of came out

0:42:31.239 --> 0:42:35.239
<v Speaker 1>as a fluke and um and took off and it

0:42:35.320 --> 0:42:37.080
<v Speaker 1>has legs. But yeah, when we go to new markets,

0:42:37.080 --> 0:42:38.960
<v Speaker 1>people like what is that? And we have to explain

0:42:39.000 --> 0:42:43.040
<v Speaker 1>a little bit more. And restaurant naming itself is very

0:42:43.160 --> 0:42:45.880
<v Speaker 1>challenging because that name you want to reflect on what

0:42:46.000 --> 0:42:48.879
<v Speaker 1>that brand is. It's just like Prime exactly, So how

0:42:48.880 --> 0:42:53.680
<v Speaker 1>does rusty? Yeah, but there are there are examples to

0:42:53.760 --> 0:42:56.360
<v Speaker 1>that that you know, have broken that mold to a

0:42:56.360 --> 0:42:59.520
<v Speaker 1>certain to me easier or not to me. I hear

0:42:59.600 --> 0:43:01.520
<v Speaker 1>Rusty buck and I'm like, do I want a Rusty

0:43:01.560 --> 0:43:04.560
<v Speaker 1>bucket of food? It's it's so countintuitive, but I know

0:43:04.640 --> 0:43:07.239
<v Speaker 1>that's been a very successful chain for you guys. So

0:43:07.680 --> 0:43:12.520
<v Speaker 1>whatever that quirkiness is, it seems to catch ps. But

0:43:12.520 --> 0:43:15.719
<v Speaker 1>but once people once it's in the neighborhood, people kind

0:43:15.760 --> 0:43:18.560
<v Speaker 1>of it stays with them and it's like, oh, the

0:43:18.640 --> 0:43:23.240
<v Speaker 1>Rusty Bucket, it's a very different Um. It's not McDonald's clearly,

0:43:23.360 --> 0:43:26.360
<v Speaker 1>and it's not Ocean Prime, um, but it seems to

0:43:26.360 --> 0:43:28.879
<v Speaker 1>have found a sweet spot right in the middle. Well,

0:43:28.920 --> 0:43:30.600
<v Speaker 1>what you get is people say, let's just go to

0:43:30.640 --> 0:43:36.399
<v Speaker 1>the bucket, and it's just the bucket that that's that's

0:43:36.440 --> 0:43:39.600
<v Speaker 1>really interesting. So we went over tips um, and we

0:43:39.640 --> 0:43:46.319
<v Speaker 1>went over branding. I have to just a little bit,

0:43:46.360 --> 0:43:50.880
<v Speaker 1>just just put a toe into the con restaurant concept

0:43:51.800 --> 0:43:56.560
<v Speaker 1>creation because you describe in the book, you describe the process,

0:43:57.320 --> 0:44:00.000
<v Speaker 1>but it's very generic. You don't get into the specifics.

0:44:00.680 --> 0:44:06.279
<v Speaker 1>So I for my own curiosity, how do you come

0:44:06.360 --> 0:44:09.719
<v Speaker 1>up with the brand new concept that's different from are

0:44:09.760 --> 0:44:13.319
<v Speaker 1>you going to other restaurants? Is it brainstorm storming? How

0:44:13.360 --> 0:44:16.120
<v Speaker 1>do you come up with, Oh, this is a new idea,

0:44:16.560 --> 0:44:19.600
<v Speaker 1>let's test it out, and now it's in fifty cities.

0:44:19.880 --> 0:44:23.719
<v Speaker 1>How does that happen? Uh? Well, I'm not sure there's

0:44:23.760 --> 0:44:26.399
<v Speaker 1>really a lot of new ideas out there. It's just

0:44:27.280 --> 0:44:30.680
<v Speaker 1>your version of your artistic impression of someone else's new

0:44:30.719 --> 0:44:34.799
<v Speaker 1>idea and the twenty people painting the fields out the

0:44:34.840 --> 0:44:38.520
<v Speaker 1>window exactly. So I think, you know, in every restaurant

0:44:38.520 --> 0:44:40.880
<v Speaker 1>we've done kind of has a story to it, you know.

0:44:41.200 --> 0:44:43.959
<v Speaker 1>Um we have a restaurant called the Barn at Rocky

0:44:44.080 --> 0:44:47.799
<v Speaker 1>four Creek and it was an old barbecue restaurant, and um,

0:44:47.840 --> 0:44:50.200
<v Speaker 1>our guy said, they called us and said, hey, we've

0:44:50.280 --> 0:44:51.840
<v Speaker 1>gone out of business. Would we like to put a

0:44:51.840 --> 0:44:55.799
<v Speaker 1>restaurant there? And I said, no, we don't want to

0:44:55.960 --> 0:44:58.279
<v Speaker 1>this barbecue replace this bar now, we don't want to

0:44:58.320 --> 0:45:03.560
<v Speaker 1>do it. And I remembered, uh as I was saying that, Uh, well,

0:45:03.640 --> 0:45:05.880
<v Speaker 1>the one of the top grocering restaurants in the country

0:45:06.000 --> 0:45:08.480
<v Speaker 1>is called the Angus Barn in North Carolina, and it's

0:45:08.560 --> 0:45:11.720
<v Speaker 1>the top restaurant in North Carolina. And I said, boy,

0:45:12.120 --> 0:45:14.359
<v Speaker 1>this barn is perfect for that concept. It could be

0:45:14.440 --> 0:45:18.640
<v Speaker 1>perfect is the concept of the they say, uh, upscale

0:45:18.719 --> 0:45:21.840
<v Speaker 1>casual steakhouse, kind of a little little bit of a

0:45:21.960 --> 0:45:25.680
<v Speaker 1>Ralph lauren Field. It's not fine dining, it's not all

0:45:25.719 --> 0:45:31.200
<v Speaker 1>white tablecloth, but it's it's approachable and um, between cat

0:45:31.360 --> 0:45:34.960
<v Speaker 1>fast casual and fine dining, well somewhere between fine dining

0:45:35.120 --> 0:45:38.440
<v Speaker 1>and upscale cats just a little bit up there. But

0:45:39.800 --> 0:45:42.520
<v Speaker 1>and and we did it. We have another restaurants site

0:45:43.000 --> 0:45:47.200
<v Speaker 1>in our short north of Columbus that this location became available.

0:45:47.760 --> 0:45:50.279
<v Speaker 1>And this is back when the gastropub craze was going

0:45:50.320 --> 0:45:53.200
<v Speaker 1>on across the country. And and so we said, you know,

0:45:53.280 --> 0:45:55.839
<v Speaker 1>I called the land ord up. He said, what are

0:45:55.880 --> 0:45:57.560
<v Speaker 1>you gonna push? I said, I don't know, but I'd

0:45:57.600 --> 0:46:00.239
<v Speaker 1>like the site. But they'll be fried chicken with street

0:46:00.719 --> 0:46:03.439
<v Speaker 1>street tret shots sauce on it. And you're exactly In fact,

0:46:03.480 --> 0:46:06.160
<v Speaker 1>I was just there last night. So um, you know

0:46:06.440 --> 0:46:09.640
<v Speaker 1>it's just two pans now Ocean Prime. You know, we

0:46:09.640 --> 0:46:12.600
<v Speaker 1>we wanted to build a high end steak and seafood restaurant,

0:46:12.640 --> 0:46:14.759
<v Speaker 1>and we didn't want to necessary Botto Steakhouse, and so

0:46:14.800 --> 0:46:17.120
<v Speaker 1>that's how that it was. Original name was Mitchell's Ocean

0:46:17.160 --> 0:46:21.200
<v Speaker 1>Club and when we sold to Ruth Chris, I sold

0:46:21.239 --> 0:46:25.200
<v Speaker 1>the name Mitchell's specifically, so we saw had Caram's restaurants,

0:46:25.239 --> 0:46:27.319
<v Speaker 1>but it was Mitchell's Fish Market and I couldn't call

0:46:27.440 --> 0:46:30.359
<v Speaker 1>Mitchell's Ocean Clubs. So that's when we rebranded and came

0:46:30.440 --> 0:46:33.719
<v Speaker 1>up with Ocean Prime and we felt it fit the

0:46:34.200 --> 0:46:37.279
<v Speaker 1>the concept perfectly. I know I only have you for

0:46:37.320 --> 0:46:40.000
<v Speaker 1>a certain amount of time, So let's jump to some

0:46:40.080 --> 0:46:45.640
<v Speaker 1>of our favorite questions that we ask all of our guests. Uh,

0:46:45.760 --> 0:46:48.959
<v Speaker 1>nobody's gesturing at me yet, but sometimes they'll wave and say,

0:46:49.080 --> 0:46:52.279
<v Speaker 1>we have Uh, you know, I get the bring bring

0:46:52.320 --> 0:46:56.560
<v Speaker 1>the plane into the carrier. Um tell us the most

0:46:56.600 --> 0:47:00.359
<v Speaker 1>important thing? People don't know about your background? Although after

0:47:00.400 --> 0:47:01.719
<v Speaker 1>the book, I don't know if there's a whole lot

0:47:01.719 --> 0:47:04.920
<v Speaker 1>of stuff. Yeah, that's a tough question because I am

0:47:04.960 --> 0:47:07.879
<v Speaker 1>an open book and its talks about that, and yes

0:47:07.960 --> 0:47:11.040
<v Speaker 1>is the answer. What's the question I would say? If

0:47:11.280 --> 0:47:15.000
<v Speaker 1>what people really don't know about me? As I'm still

0:47:15.040 --> 0:47:19.520
<v Speaker 1>an entrepreneur, I'm still chicken little. I'm still scared every day.

0:47:19.800 --> 0:47:24.600
<v Speaker 1>And uh, even with the national success we've had, I

0:47:24.640 --> 0:47:27.120
<v Speaker 1>still wake up every morning and check our numbers and

0:47:27.160 --> 0:47:30.080
<v Speaker 1>see how we're doing. And and I'm nervous all the time.

0:47:30.400 --> 0:47:33.880
<v Speaker 1>So that's that's a surprising answer. You you mentioned the

0:47:33.920 --> 0:47:37.359
<v Speaker 1>fourth quarter for a Cameron Mitchell. Really at this point

0:47:37.400 --> 0:47:40.000
<v Speaker 1>I should ask you, what what are your plans for

0:47:40.040 --> 0:47:43.920
<v Speaker 1>the fourth quarter? Well, two things one uh, and I'm

0:47:43.920 --> 0:47:47.799
<v Speaker 1>working on this currently is to move to truly a

0:47:47.880 --> 0:47:51.480
<v Speaker 1>chairman's role within the company, which is chief strategy officer,

0:47:51.600 --> 0:47:55.920
<v Speaker 1>if you will, uh. And then really uh chief steward

0:47:55.960 --> 0:47:58.960
<v Speaker 1>of the company and and legacy and stewardship of the

0:47:59.040 --> 0:48:02.400
<v Speaker 1>organization and really about part and partial. While we were

0:48:02.440 --> 0:48:04.200
<v Speaker 1>at the book, guess as the answer, what's the question

0:48:04.280 --> 0:48:07.880
<v Speaker 1>is to share that knowledge and to tell that story. Uh.

0:48:08.080 --> 0:48:12.080
<v Speaker 1>We uh were the lead donner. I'm opening and sharing

0:48:12.120 --> 0:48:14.799
<v Speaker 1>the fundraising efforts to build new eighty thousand square foot

0:48:14.920 --> 0:48:19.400
<v Speaker 1>Hospitality Management School and Columbus at Columbus State College. Um,

0:48:19.520 --> 0:48:22.360
<v Speaker 1>we are opening to Bud Dairy Food Hall, which is

0:48:23.000 --> 0:48:27.360
<v Speaker 1>uh takes ten restauranateurs, young buddy restaurateurs will be in

0:48:27.400 --> 0:48:29.520
<v Speaker 1>this space. And our goals to help and we run

0:48:29.560 --> 0:48:31.480
<v Speaker 1>the bars, and we run the food hall. We curated

0:48:31.520 --> 0:48:34.640
<v Speaker 1>these restaurants, and our goal is to help take these

0:48:34.640 --> 0:48:39.400
<v Speaker 1>restaurateurs to bricks and mortar restaurants along the way. Um,

0:48:39.440 --> 0:48:42.120
<v Speaker 1>just all about the young leaders in our company, working

0:48:42.120 --> 0:48:45.640
<v Speaker 1>with them and helping build their careers, etcetera. Tell us

0:48:45.640 --> 0:48:51.680
<v Speaker 1>about some of your early mentors who helped guide your career. Yeah,

0:48:53.239 --> 0:48:56.800
<v Speaker 1>I didn't have really uh a lot of early mentors

0:48:56.800 --> 0:49:01.000
<v Speaker 1>and who I talked with. I believe people could have

0:49:01.040 --> 0:49:05.200
<v Speaker 1>mentors that they don't even necessarily know. Rich Melman and

0:49:05.400 --> 0:49:08.160
<v Speaker 1>Chicago that's entertaining your restaurants was certainly one of mine.

0:49:08.680 --> 0:49:12.520
<v Speaker 1>Norm Brinker from Chili's his book and he's been inspirational

0:49:12.520 --> 0:49:17.000
<v Speaker 1>to me. Dave Thomas from Wendy's his story. Um, there's

0:49:17.080 --> 0:49:20.279
<v Speaker 1>lots of those. Herb Color, CEO of Southwest Airlines. I

0:49:20.320 --> 0:49:24.080
<v Speaker 1>think their story and how he ran a business is incredible. So, um,

0:49:24.440 --> 0:49:26.000
<v Speaker 1>those are some of the people I looked up to

0:49:26.040 --> 0:49:28.120
<v Speaker 1>as I was coming up the ladder. You mentioned a

0:49:28.160 --> 0:49:31.600
<v Speaker 1>few books. What are some of your favorite books? Um,

0:49:31.600 --> 0:49:34.799
<v Speaker 1>My all time great favorite book is good to Great.

0:49:34.960 --> 0:49:37.480
<v Speaker 1>Jim Collins. I'm a Jim Collins disciple. I think he

0:49:37.560 --> 0:49:40.040
<v Speaker 1>was instrumental in that book, was instrumental in helping turn

0:49:40.120 --> 0:49:42.960
<v Speaker 1>our company around and ultimately resulted in the sale of

0:49:43.000 --> 0:49:45.840
<v Speaker 1>the fish Market. It's been instrumental in the ability of

0:49:45.840 --> 0:49:49.959
<v Speaker 1>the Ocean Prime brand itself. And um, so I love

0:49:50.000 --> 0:49:53.560
<v Speaker 1>all the management books pat Lyncone. Uh, I've read every

0:49:53.600 --> 0:49:57.960
<v Speaker 1>single Spencer to the Who Moved My Cheese? One Man Manager,

0:49:58.040 --> 0:50:00.800
<v Speaker 1>all those leadership books, I've it too. I find it

0:50:00.880 --> 0:50:04.120
<v Speaker 1>was very valuable. So and you you mentioned in your book, Um,

0:50:04.120 --> 0:50:07.640
<v Speaker 1>the Customer Comes Second. Any other books from your book

0:50:07.640 --> 0:50:12.440
<v Speaker 1>you wanna bring up a reference? Uh? Well, the Customer

0:50:12.480 --> 0:50:14.880
<v Speaker 1>Comes Second was from how Rosen Booth that that was

0:50:14.920 --> 0:50:20.080
<v Speaker 1>inspirational in helping me write the company Culture and Values. Uh. Um,

0:50:20.200 --> 0:50:22.600
<v Speaker 1>I think yes is the answer. What's the question I

0:50:22.640 --> 0:50:27.520
<v Speaker 1>think will be hopefully people. UM tell us about a

0:50:27.560 --> 0:50:34.440
<v Speaker 1>time you've failed and what you learned from the experience. Um.

0:50:34.480 --> 0:50:37.080
<v Speaker 1>I'd like to think I've never totally failed. I've been

0:50:37.160 --> 0:50:42.720
<v Speaker 1>knocked down many, many, many times, and um the biggest Uh.

0:50:42.760 --> 0:50:45.239
<v Speaker 1>But I would think failure in my experience was we've

0:50:45.239 --> 0:50:48.759
<v Speaker 1>had restaurants fail, etcetera. I've made some mistakes there, but

0:50:49.000 --> 0:50:52.239
<v Speaker 1>really after two thousand eight, we just sold you know,

0:50:52.320 --> 0:50:54.720
<v Speaker 1>two thirds of our business for ninty two million dollars,

0:50:54.719 --> 0:50:58.239
<v Speaker 1>and I in my humorists and my ego, and I

0:50:58.320 --> 0:51:01.520
<v Speaker 1>ran out and signed a bunch more leases. I was

0:51:01.560 --> 0:51:06.360
<v Speaker 1>gonna uh another twenty plus million dollars in development. I

0:51:06.400 --> 0:51:08.839
<v Speaker 1>was gonna rebuild the even that we sold and uh

0:51:09.000 --> 0:51:10.520
<v Speaker 1>it took ten years to build. I was going to

0:51:10.640 --> 0:51:13.200
<v Speaker 1>rebuild it in three years. And and then the great

0:51:13.239 --> 0:51:17.160
<v Speaker 1>crash happened, you know, eight, and these restaurants didn't perform well,

0:51:17.320 --> 0:51:19.799
<v Speaker 1>and I almost ran a company off a cliff in

0:51:19.800 --> 0:51:23.360
<v Speaker 1>two thousand nine. It took some really lousy entrepreneuring to

0:51:23.400 --> 0:51:25.520
<v Speaker 1>get us into that mess, and it took some really

0:51:25.760 --> 0:51:27.840
<v Speaker 1>hard work and great entrepreneuring to get us out of

0:51:27.880 --> 0:51:30.760
<v Speaker 1>that mess. So if a young millennial or a college

0:51:30.760 --> 0:51:33.040
<v Speaker 1>grad came to you and said they were interested in

0:51:33.320 --> 0:51:36.319
<v Speaker 1>going into the restaurant business, what sort of advice would

0:51:36.320 --> 0:51:40.640
<v Speaker 1>you give them? First and foremost, anybody started a business,

0:51:40.640 --> 0:51:43.360
<v Speaker 1>I would say, get some experience. You know, we have

0:51:43.400 --> 0:51:45.560
<v Speaker 1>a lot of these young eighteen eight twenty year old

0:51:46.080 --> 0:51:48.160
<v Speaker 1>two I wanted to just graduate from college, start their

0:51:48.239 --> 0:51:51.200
<v Speaker 1>business and make a bazillion dollars, And I think people

0:51:51.239 --> 0:51:54.040
<v Speaker 1>need to get experience first, first and foremost and work

0:51:54.120 --> 0:51:57.319
<v Speaker 1>for some successful companies and understand what it takes to

0:51:57.360 --> 0:52:01.600
<v Speaker 1>be successful. UH. Secondly, they better think about their values

0:52:01.600 --> 0:52:03.520
<v Speaker 1>and their culture and what they stand for and get

0:52:03.560 --> 0:52:07.279
<v Speaker 1>those identified right away. And thirdly, you had to be

0:52:07.360 --> 0:52:11.440
<v Speaker 1>willing to UH work your tail off and be knocked

0:52:11.440 --> 0:52:14.799
<v Speaker 1>down and get right back up. And entrepreneuri has been

0:52:14.800 --> 0:52:16.520
<v Speaker 1>one of the toughest things I've ever done in my life,

0:52:16.560 --> 0:52:19.840
<v Speaker 1>if not the toughest thing. And our final question, what

0:52:19.920 --> 0:52:22.959
<v Speaker 1>do you know about the restaurant industry today? You wish

0:52:22.960 --> 0:52:25.399
<v Speaker 1>you knew twenty five years ago when you were first

0:52:25.480 --> 0:52:28.160
<v Speaker 1>launching Oh, sure, you know. I think the biggest thing

0:52:28.200 --> 0:52:31.560
<v Speaker 1>I've learned really is the power of branding UH and

0:52:31.560 --> 0:52:34.400
<v Speaker 1>how to develop restaurant brands and how important that is

0:52:34.480 --> 0:52:36.719
<v Speaker 1>and that the brand, all the brand touch points and

0:52:36.760 --> 0:52:41.280
<v Speaker 1>the brand DNA UH is congruant with everything across that brand.

0:52:42.040 --> 0:52:44.600
<v Speaker 1>So that took us a long time to learn, and

0:52:44.239 --> 0:52:47.319
<v Speaker 1>it takes years to really refine a brand and really

0:52:47.360 --> 0:52:50.680
<v Speaker 1>to create a successful brand doesn't happen overnight. H quite

0:52:50.760 --> 0:52:54.480
<v Speaker 1>quite interesting. We have been speaking with Cameron Mitchell. He

0:52:54.760 --> 0:52:58.800
<v Speaker 1>is the founder and chairman of the Cameron Mitchell Restaurant group.

0:52:59.440 --> 0:53:02.560
<v Speaker 1>If you and joy this conversation, we'll be sure and

0:53:02.600 --> 0:53:06.320
<v Speaker 1>looked up an Inch or down an Inch on Apple, iTunes, Stitcher,

0:53:06.400 --> 0:53:10.200
<v Speaker 1>Bloomberg dot com, wherever final podcasts are sold, and you

0:53:10.200 --> 0:53:14.240
<v Speaker 1>can find any of our other two hundred and prior

0:53:14.360 --> 0:53:17.680
<v Speaker 1>podcasts over the past four years. We love your comments,

0:53:17.680 --> 0:53:20.560
<v Speaker 1>feedback and suggestions. Be sure and write to us at

0:53:21.239 --> 0:53:24.920
<v Speaker 1>m IB podcast at Bloomberg dot net. I would be

0:53:24.960 --> 0:53:27.440
<v Speaker 1>remiss if I did not thank the crack staff that

0:53:27.480 --> 0:53:32.239
<v Speaker 1>helps put together these conversations each week. Medina Parwana is

0:53:32.320 --> 0:53:36.960
<v Speaker 1>our producer, Attica val Bron is our project manager. Taylor

0:53:37.000 --> 0:53:40.320
<v Speaker 1>Riggs is our booker. Mike Batnick is our head of research.

0:53:40.920 --> 0:53:45.040
<v Speaker 1>I'm Barry Ridholtz. You've been listening to Master's Business on

0:53:45.120 --> 0:53:46.040
<v Speaker 1>Bloomberg Radio.