WEBVTT - Restaurateur Sandoval Takes on Global Challenges

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<v Speaker 1>This is Bloomberg Business Week with Carol Masser and Bloomberg

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<v Speaker 1>Quick Takes Tim Stinovic on Bloomberg Radio One. Sector I

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<v Speaker 1>thought a lot about as a restaurant industry over the

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<v Speaker 1>last couple of years. We've been very lucky to get

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<v Speaker 1>to some really strong and uh connected voices, if you will,

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<v Speaker 1>in terms of the industry and some of the struggles

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<v Speaker 1>and then also coming out of the pandemic and uh.

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<v Speaker 1>The next guest that we have plays into that. Chef

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<v Speaker 1>Richard Sandoval is the creator of Biblioteca Toro Maya so

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<v Speaker 1>many more. He's the founder of the Send of All

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<v Speaker 1>Hospitality group. They've got I think roughly fifty locations, four continents,

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<v Speaker 1>nine countries, tenuous states. In the company's own words, they're

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<v Speaker 1>ever evolving. And Richard joins us on the phone from Tuscany,

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<v Speaker 1>where I think it's a pretty gorgeous day, although the

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<v Speaker 1>phone connection we're keeping our fingers cross. Richard, how are

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<v Speaker 1>you very very thanks for having me, Well, it's great,

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<v Speaker 1>great to have you here. First of all, give us

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<v Speaker 1>a little background in terms of the impact the pandemic

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<v Speaker 1>on you guys are and then kind of where we

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<v Speaker 1>are in contrast today. Well, obviously, you know, we had

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<v Speaker 1>to furrow everybody when the pandemic hit. I mean, we

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<v Speaker 1>closed every restaurant around the world, so it was very impactful.

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<v Speaker 1>Um And as you know, luckily, you know, the government

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<v Speaker 1>helps us with PP money, so it helps us stay afloat.

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<v Speaker 1>And then all of a sudden, I mean, you know,

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<v Speaker 1>as the pandemic started to go away, I mean, just

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<v Speaker 1>the numbers and people you know wanting to get out

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<v Speaker 1>into into the restaurants and get out of their homes

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<v Speaker 1>with staggering So you know, our numbers just skyrocketed. Um.

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<v Speaker 1>As you were saying that, you know, we you know,

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<v Speaker 1>we had our challenges, you know, with labor, with supply chains,

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<v Speaker 1>so it's been you know, it's been balancing act. But

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<v Speaker 1>you know, luckily that the numbers are there. People are back,

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<v Speaker 1>you know, going to the restaurants, and you know, the

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<v Speaker 1>numbers are looking very good. Well, you've got a great

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<v Speaker 1>view because you've got four different continents, more than fifty

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<v Speaker 1>restaurants around the world, and I'm wondering what you can

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<v Speaker 1>tell us about regional differences when it comes to bounce

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<v Speaker 1>back that you've seen in recent months. Chef, what are

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<v Speaker 1>you seeing that where are you seeing differences and what

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<v Speaker 1>are those differences? Right? Well, I think the biggest differences,

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<v Speaker 1>you know, I mean the bigger cities were much more impacted.

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<v Speaker 1>I mean, for example in New York you know, you know,

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<v Speaker 1>has been more challenging. I think you know, a lot

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<v Speaker 1>of people left the big cities. And also you know

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<v Speaker 1>people are working from you know, these new uh you know,

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<v Speaker 1>hybrids of you know, two days um, you know at

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<v Speaker 1>the office, three days at home. So you're not seeing

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<v Speaker 1>the density in the in the big city as far

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<v Speaker 1>as you know, lunch business for example, I mean the

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<v Speaker 1>tourist destinations for example, the mountains, um, you know, you know,

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<v Speaker 1>the resources like for example the rich Cross and Laguna.

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<v Speaker 1>I mean just I mean, we've never seen this kind

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<v Speaker 1>of business. Uh. I think it just depends on locality

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<v Speaker 1>and you know where people feel more comfortable, you know,

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<v Speaker 1>you know going out Richard, how much of your business

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<v Speaker 1>is tourism? How much is business? I mean, I don't

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<v Speaker 1>know how much of the demographics you guys are able

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<v Speaker 1>to analyze. Well, I think it depends on the destination,

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<v Speaker 1>right I said, I mean New York for example, you know,

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<v Speaker 1>if you're here in midtown, you obviously depend you know,

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<v Speaker 1>their lunch business. How you dependent on on businessmen. But

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<v Speaker 1>again for example, you know the risk Carlton, the mountains, Um.

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<v Speaker 1>You know it's it's mostly tourism, Denver Um proper of downtown.

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<v Speaker 1>You know, you know, we haven't seen our lunch business

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<v Speaker 1>come back as strong as we have our our business

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<v Speaker 1>dinner business. So I think every you know, every area

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<v Speaker 1>is different, um and for us, and we are in

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<v Speaker 1>so many different places that you know, we have different

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<v Speaker 1>challenges in different locations. For talking with chef Richard Sandoval,

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<v Speaker 1>founder of Richard Sandoval Hospitality Group, is still with us

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<v Speaker 1>on the phone from Tuscany, Tim and I mentioned earlier

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<v Speaker 1>they've got around fifty locations, nine countries, four continents, ten

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<v Speaker 1>US states, so they really have a great snapshot of

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<v Speaker 1>what's going on in the hospitality industry. So, Richard, how

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<v Speaker 1>did coming out of the pandemic, how did it, if

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<v Speaker 1>at all kind of shape maybe what you wanted to

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<v Speaker 1>do next? Well, you know, I mean I think it

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<v Speaker 1>helped us, uh you know, I mean almost you know,

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<v Speaker 1>like like recessions, I mean it helps you make adjustin

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<v Speaker 1>as you have to you know, react quicker. Um. You know,

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<v Speaker 1>we had a big problem with supply chains, which was

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<v Speaker 1>a big challenging challenge for openings that we had coming along.

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<v Speaker 1>So a lot of our openings have been delayed. Um.

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<v Speaker 1>So you know, I think what what we did is,

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<v Speaker 1>you know, we reacted and started going towards you know,

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<v Speaker 1>more local products. UM. For example, Marrakesh, you know are

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<v Speaker 1>osm Me which is our china, you know, glass ware

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<v Speaker 1>silver where was on a boat. You know, it was

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<v Speaker 1>three weeks delayed. So we went actually to local marks

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<v Speaker 1>and started by you know, local products. So I think

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<v Speaker 1>and even in the US, I mean because of inflation,

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<v Speaker 1>you know, we've had to go more towards you know,

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<v Speaker 1>you know local um, you know, to get better pricing,

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<v Speaker 1>you know, you know, seasonal products, you to help you

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<v Speaker 1>keep our costs costs on because you know you can't

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<v Speaker 1>you know, just cost you know, transferred all the costs

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<v Speaker 1>to your to your guests. I mean, UM, so yeah,

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<v Speaker 1>I mean it is been very challenging. Um. You know,

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<v Speaker 1>like I said, you know, we've also had to you know,

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<v Speaker 1>work with smaller menus because of you know, um, labor

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<v Speaker 1>issues that that that are happening in the country. So

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<v Speaker 1>you know, we turned our menus down um, you know,

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<v Speaker 1>to be able to cut you some of our labor

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<v Speaker 1>in the in the back of the house. So I

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<v Speaker 1>think right now it's very important to be very reactive

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<v Speaker 1>to these things that are going on because there's just

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<v Speaker 1>too many things happening and very fast. You have to

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<v Speaker 1>be very, very very reactive. So, Chef, I'm I'm wondering.

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<v Speaker 1>You mentioned inflation, and this is really where I want

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<v Speaker 1>to go. I'm glad you brought it up. Help us

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<v Speaker 1>understand how much prices have gone up since before the pandemic.

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<v Speaker 1>If we were, if we were thinking about this from

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<v Speaker 1>the perspective of okay, you know, February January, how much

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<v Speaker 1>more are you paying for labor? How much more are

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<v Speaker 1>you paying for ingredients? And then how much more our

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<v Speaker 1>guests paying at restaurants as a result. Right, So first labor,

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<v Speaker 1>I mean it's it's you know, probably three to you know,

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<v Speaker 1>five points on our on our on our on our budget.

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<v Speaker 1>So um, you know, we've obviously we we've had to

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<v Speaker 1>you know, make you know, price and increasister too, you know,

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<v Speaker 1>make adjustments to that. Um. As far as inflation, I

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<v Speaker 1>think we're probably seeing a thirty five increase in So

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<v Speaker 1>again you know we we've passed some of the costs

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<v Speaker 1>over to you know, to our to our guests. We

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<v Speaker 1>didn't I didn't quite get that. Your phone cut out.

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<v Speaker 1>Let's try to get that one more time. Chef the

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<v Speaker 1>numbers again, please? All right? So we're so so labor

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<v Speaker 1>it is probably you know, affecting our PML is probably

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<v Speaker 1>you know, five points. I would say, you know that,

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<v Speaker 1>you know, having to take people a lot for her

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<v Speaker 1>and before just yeah, we are having some technical problems. Uh.

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<v Speaker 1>Richard Sandoval, we're talking with founder of the Richard Senterval

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<v Speaker 1>Hospitality Group. He's on the phone from Tuscany. He's in

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<v Speaker 1>a rural area and he's been really kind enough to

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<v Speaker 1>move around to try and get us a cleaner line

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<v Speaker 1>because we'd love to. I know, I thought, I did

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<v Speaker 1>you know? He was talking about numbers in his higher costs.

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<v Speaker 1>He talked about five points I guess percentage points maybe

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<v Speaker 1>when it comes to higher costs for labor. And then

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<v Speaker 1>he said I didn't get the ingredients part though. Was

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<v Speaker 1>that thirty five to is what I think he said.

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<v Speaker 1>I wouldn't be surprised given the rising prices of commodities

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<v Speaker 1>that we've seen. I mean, you know, Carol Wheed alone

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<v Speaker 1>today surging, so I am, and we've seen a pull

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<v Speaker 1>back the in to some extent. It also is very

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<v Speaker 1>regional and that's something an area where I want to

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<v Speaker 1>go with the chef. Richard. You're back, Richard Senterval is

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<v Speaker 1>back and thank you for your patients. Richard, I know

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<v Speaker 1>you're you're out there in Tuscany and it's not so

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<v Speaker 1>easy for self service. You talked about labor and I

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<v Speaker 1>think you said about five points higher in terms of

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<v Speaker 1>what you're paying ingredients. Can you just reconfirm that I

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<v Speaker 1>thought you said thirty five to forty percent that you're

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<v Speaker 1>paying higher as a result of kind of today's current environment. Yes,

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<v Speaker 1>we've seen that in some in some products. Yes, so

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<v Speaker 1>again you know it is very challenging. Um, as you know,

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<v Speaker 1>we've seen them government pretty I mean place that n

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<v Speaker 1>so yeah, I mean you know two years ago. Yeah,

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<v Speaker 1>you know we're seeing on some sense of products. So

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<v Speaker 1>you know, the only way we're able to make up

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<v Speaker 1>for that is me and I'm sure you're seeing it

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<v Speaker 1>wherever you're at I mean restaurant. You know, many prices

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<v Speaker 1>have significantly over the last two years. Um. I think

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<v Speaker 1>the other thing that I mentioned go ahead, so no, no,

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<v Speaker 1>please continue. So I think what the we're we're able

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<v Speaker 1>to make it. Also adjustment is by using a lot

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<v Speaker 1>more local um, you know, purveyors, local farmers, you know,

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<v Speaker 1>a lot of you know, more seasonal ingredients and and

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<v Speaker 1>worked with that to be able to have some containment. Richard,

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<v Speaker 1>I really want to get to the new concepts that

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<v Speaker 1>you're working on around the world, starting in Athens and

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<v Speaker 1>then to Marrakesh, because you've got projects all over the world.

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<v Speaker 1>Give us an idea of what you're what you've got

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<v Speaker 1>cooking in those places. Right, So Marrakesh, we both we're

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<v Speaker 1>opening a tour which is one of our UM Global

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<v Speaker 1>brands and it's our first Pan Latin restaurant going into

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<v Speaker 1>into Marrakesh. It's about a hundred and fifty restaurant. It's

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<v Speaker 1>right next to the Four Seasons and the Four Seasons residences.

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<v Speaker 1>UM that was supposed to open last week because of

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<v Speaker 1>supply chain problems you got postponed, so we're hopefully opening

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<v Speaker 1>in two weeks. UM. You know, we're very excited to

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<v Speaker 1>be in the African continent, so we're excited about that project.

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<v Speaker 1>And then Mara Kes I mean sorry, then Athens. We're

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<v Speaker 1>opening a beach club in Athens. It has a it

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<v Speaker 1>has about you know, five hundred seed capacity, two hundred

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<v Speaker 1>sun beds. That's a three hundred seat restaurant. Um. So yeah,

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<v Speaker 1>we're super excited. It's our first beach clubs. So yeah,

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<v Speaker 1>we're very excited to be uh opening up next week.

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<v Speaker 1>All right, I'm ready to go. I'm gonna I'm headed.

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<v Speaker 1>That sounds like magical. Richard, good luck with everything. Thank

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<v Speaker 1>you for doing some of the technical problems, because we

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<v Speaker 1>really wanted to hear from you directly. Uh and so appreciated.

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<v Speaker 1>Good luck with everything, and hopefully we can talk again

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<v Speaker 1>soon in the future. Jeff Richard Sandoval, of course of

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<v Speaker 1>the Richard Sandaval Hospitality Group, joining us on the phone

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<v Speaker 1>from Tuscany.