Speaker 1: This is Bloomberg Business Week with Carol Masser and Bloomberg
Speaker 1: Quick Takes Tim Stinovic on Bloomberg Radio One. Sector I
Speaker 1: thought a lot about as a restaurant industry over the
Speaker 1: last couple of years. We've been very lucky to get
Speaker 1: to some really strong and uh connected voices, if you will,
Speaker 1: in terms of the industry and some of the struggles
Speaker 1: and then also coming out of the pandemic and uh.
Speaker 1: The next guest that we have plays into that. Chef
Speaker 1: Richard Sandoval is the creator of Biblioteca Toro Maya so
Speaker 1: many more. He's the founder of the Send of All
Speaker 1: Hospitality group. They've got I think roughly fifty locations, four continents,
Speaker 1: nine countries, tenuous states. In the company's own words, they're
Speaker 1: ever evolving. And Richard joins us on the phone from Tuscany,
Speaker 1: where I think it's a pretty gorgeous day, although the
Speaker 1: phone connection we're keeping our fingers cross. Richard, how are
Speaker 1: you very very thanks for having me, Well, it's great,
Speaker 1: great to have you here. First of all, give us
Speaker 1: a little background in terms of the impact the pandemic
Speaker 1: on you guys are and then kind of where we
Speaker 1: are in contrast today. Well, obviously, you know, we had
Speaker 1: to furrow everybody when the pandemic hit. I mean, we
Speaker 1: closed every restaurant around the world, so it was very impactful.
Speaker 1: Um And as you know, luckily, you know, the government
Speaker 1: helps us with PP money, so it helps us stay afloat.
Speaker 1: And then all of a sudden, I mean, you know,
Speaker 1: as the pandemic started to go away, I mean, just
Speaker 1: the numbers and people you know wanting to get out
Speaker 1: into into the restaurants and get out of their homes
Speaker 1: with staggering So you know, our numbers just skyrocketed. Um.
Speaker 1: As you were saying that, you know, we you know,
Speaker 1: we had our challenges, you know, with labor, with supply chains,
Speaker 1: so it's been you know, it's been balancing act. But
Speaker 1: you know, luckily that the numbers are there. People are back,
Speaker 1: you know, going to the restaurants, and you know, the
Speaker 1: numbers are looking very good. Well, you've got a great
Speaker 1: view because you've got four different continents, more than fifty
Speaker 1: restaurants around the world, and I'm wondering what you can
Speaker 1: tell us about regional differences when it comes to bounce
Speaker 1: back that you've seen in recent months. Chef, what are
Speaker 1: you seeing that where are you seeing differences and what
Speaker 1: are those differences? Right? Well, I think the biggest differences,
Speaker 1: you know, I mean the bigger cities were much more impacted.
Speaker 1: I mean, for example in New York you know, you know,
Speaker 1: has been more challenging. I think you know, a lot
Speaker 1: of people left the big cities. And also you know
Speaker 1: people are working from you know, these new uh you know,
Speaker 1: hybrids of you know, two days um, you know at
Speaker 1: the office, three days at home. So you're not seeing
Speaker 1: the density in the in the big city as far
Speaker 1: as you know, lunch business for example, I mean the
Speaker 1: tourist destinations for example, the mountains, um, you know, you know,
Speaker 1: the resources like for example the rich Cross and Laguna.
Speaker 1: I mean just I mean, we've never seen this kind
Speaker 1: of business. Uh. I think it just depends on locality
Speaker 1: and you know where people feel more comfortable, you know,
Speaker 1: you know going out Richard, how much of your business
Speaker 1: is tourism? How much is business? I mean, I don't
Speaker 1: know how much of the demographics you guys are able
Speaker 1: to analyze. Well, I think it depends on the destination,
Speaker 1: right I said, I mean New York for example, you know,
Speaker 1: if you're here in midtown, you obviously depend you know,
Speaker 1: their lunch business. How you dependent on on businessmen. But
Speaker 1: again for example, you know the risk Carlton, the mountains, Um.
Speaker 1: You know it's it's mostly tourism, Denver Um proper of downtown.
Speaker 1: You know, you know, we haven't seen our lunch business
Speaker 1: come back as strong as we have our our business
Speaker 1: dinner business. So I think every you know, every area
Speaker 1: is different, um and for us, and we are in
Speaker 1: so many different places that you know, we have different
Speaker 1: challenges in different locations. For talking with chef Richard Sandoval,
Speaker 1: founder of Richard Sandoval Hospitality Group, is still with us
Speaker 1: on the phone from Tuscany, Tim and I mentioned earlier
Speaker 1: they've got around fifty locations, nine countries, four continents, ten
Speaker 1: US states, so they really have a great snapshot of
Speaker 1: what's going on in the hospitality industry. So, Richard, how
Speaker 1: did coming out of the pandemic, how did it, if
Speaker 1: at all kind of shape maybe what you wanted to
Speaker 1: do next? Well, you know, I mean I think it
Speaker 1: helped us, uh you know, I mean almost you know,
Speaker 1: like like recessions, I mean it helps you make adjustin
Speaker 1: as you have to you know, react quicker. Um. You know,
Speaker 1: we had a big problem with supply chains, which was
Speaker 1: a big challenging challenge for openings that we had coming along.
Speaker 1: So a lot of our openings have been delayed. Um.
Speaker 1: So you know, I think what what we did is,
Speaker 1: you know, we reacted and started going towards you know,
Speaker 1: more local products. UM. For example, Marrakesh, you know are
Speaker 1: osm Me which is our china, you know, glass ware
Speaker 1: silver where was on a boat. You know, it was
Speaker 1: three weeks delayed. So we went actually to local marks
Speaker 1: and started by you know, local products. So I think
Speaker 1: and even in the US, I mean because of inflation,
Speaker 1: you know, we've had to go more towards you know,
Speaker 1: you know local um, you know, to get better pricing,
Speaker 1: you know, you know, seasonal products, you to help you
Speaker 1: keep our costs costs on because you know you can't
Speaker 1: you know, just cost you know, transferred all the costs
Speaker 1: to your to your guests. I mean, UM, so yeah,
Speaker 1: I mean it is been very challenging. Um. You know,
Speaker 1: like I said, you know, we've also had to you know,
Speaker 1: work with smaller menus because of you know, um, labor
Speaker 1: issues that that that are happening in the country. So
Speaker 1: you know, we turned our menus down um, you know,
Speaker 1: to be able to cut you some of our labor
Speaker 1: in the in the back of the house. So I
Speaker 1: think right now it's very important to be very reactive
Speaker 1: to these things that are going on because there's just
Speaker 1: too many things happening and very fast. You have to
Speaker 1: be very, very very reactive. So, Chef, I'm I'm wondering.
Speaker 1: You mentioned inflation, and this is really where I want
Speaker 1: to go. I'm glad you brought it up. Help us
Speaker 1: understand how much prices have gone up since before the pandemic.
Speaker 1: If we were, if we were thinking about this from
Speaker 1: the perspective of okay, you know, February January, how much
Speaker 1: more are you paying for labor? How much more are
Speaker 1: you paying for ingredients? And then how much more our
Speaker 1: guests paying at restaurants as a result. Right, So first labor,
Speaker 1: I mean it's it's you know, probably three to you know,
Speaker 1: five points on our on our on our on our budget.
Speaker 1: So um, you know, we've obviously we we've had to
Speaker 1: you know, make you know, price and increasister too, you know,
Speaker 1: make adjustments to that. Um. As far as inflation, I
Speaker 1: think we're probably seeing a thirty five increase in So
Speaker 1: again you know we we've passed some of the costs
Speaker 1: over to you know, to our to our guests. We
Speaker 1: didn't I didn't quite get that. Your phone cut out.
Speaker 1: Let's try to get that one more time. Chef the
Speaker 1: numbers again, please? All right? So we're so so labor
Speaker 1: it is probably you know, affecting our PML is probably
Speaker 1: you know, five points. I would say, you know that,
Speaker 1: you know, having to take people a lot for her
Speaker 1: and before just yeah, we are having some technical problems. Uh.
Speaker 1: Richard Sandoval, we're talking with founder of the Richard Senterval
Speaker 1: Hospitality Group. He's on the phone from Tuscany. He's in
Speaker 1: a rural area and he's been really kind enough to
Speaker 1: move around to try and get us a cleaner line
Speaker 1: because we'd love to. I know, I thought, I did
Speaker 1: you know? He was talking about numbers in his higher costs.
Speaker 1: He talked about five points I guess percentage points maybe
Speaker 1: when it comes to higher costs for labor. And then
Speaker 1: he said I didn't get the ingredients part though. Was
Speaker 1: that thirty five to is what I think he said.
Speaker 1: I wouldn't be surprised given the rising prices of commodities
Speaker 1: that we've seen. I mean, you know, Carol Wheed alone
Speaker 1: today surging, so I am, and we've seen a pull
Speaker 1: back the in to some extent. It also is very
Speaker 1: regional and that's something an area where I want to
Speaker 1: go with the chef. Richard. You're back, Richard Senterval is
Speaker 1: back and thank you for your patients. Richard, I know
Speaker 1: you're you're out there in Tuscany and it's not so
Speaker 1: easy for self service. You talked about labor and I
Speaker 1: think you said about five points higher in terms of
Speaker 1: what you're paying ingredients. Can you just reconfirm that I
Speaker 1: thought you said thirty five to forty percent that you're
Speaker 1: paying higher as a result of kind of today's current environment. Yes,
Speaker 1: we've seen that in some in some products. Yes, so
Speaker 1: again you know it is very challenging. Um, as you know,
Speaker 1: we've seen them government pretty I mean place that n
Speaker 1: so yeah, I mean you know two years ago. Yeah,
Speaker 1: you know we're seeing on some sense of products. So
Speaker 1: you know, the only way we're able to make up
Speaker 1: for that is me and I'm sure you're seeing it
Speaker 1: wherever you're at I mean restaurant. You know, many prices
Speaker 1: have significantly over the last two years. Um. I think
Speaker 1: the other thing that I mentioned go ahead, so no, no,
Speaker 1: please continue. So I think what the we're we're able
Speaker 1: to make it. Also adjustment is by using a lot
Speaker 1: more local um, you know, purveyors, local farmers, you know,
Speaker 1: a lot of you know, more seasonal ingredients and and
Speaker 1: worked with that to be able to have some containment. Richard,
Speaker 1: I really want to get to the new concepts that
Speaker 1: you're working on around the world, starting in Athens and
Speaker 1: then to Marrakesh, because you've got projects all over the world.
Speaker 1: Give us an idea of what you're what you've got
Speaker 1: cooking in those places. Right, So Marrakesh, we both we're
Speaker 1: opening a tour which is one of our UM Global
Speaker 1: brands and it's our first Pan Latin restaurant going into
Speaker 1: into Marrakesh. It's about a hundred and fifty restaurant. It's
Speaker 1: right next to the Four Seasons and the Four Seasons residences.
Speaker 1: UM that was supposed to open last week because of
Speaker 1: supply chain problems you got postponed, so we're hopefully opening
Speaker 1: in two weeks. UM. You know, we're very excited to
Speaker 1: be in the African continent, so we're excited about that project.
Speaker 1: And then Mara Kes I mean sorry, then Athens. We're
Speaker 1: opening a beach club in Athens. It has a it
Speaker 1: has about you know, five hundred seed capacity, two hundred
Speaker 1: sun beds. That's a three hundred seat restaurant. Um. So yeah,
Speaker 1: we're super excited. It's our first beach clubs. So yeah,
Speaker 1: we're very excited to be uh opening up next week.
Speaker 1: All right, I'm ready to go. I'm gonna I'm headed.
Speaker 1: That sounds like magical. Richard, good luck with everything. Thank
Speaker 1: you for doing some of the technical problems, because we
Speaker 1: really wanted to hear from you directly. Uh and so appreciated.
Speaker 1: Good luck with everything, and hopefully we can talk again
Speaker 1: soon in the future. Jeff Richard Sandoval, of course of
Speaker 1: the Richard Sandaval Hospitality Group, joining us on the phone
Speaker 1: from Tuscany.