Wednesday, December 10, 2014

W.W.D.M.D

I've been a fan of Danny Meyer for a long time.

We moved away from New York during the early days of his restaurant empire, and honestly (and regretfully), I've only eaten at Shake Shack.   But if you live in the New York area or follow such things, you surely know of Union Square Cafe, Gramercy Tavern, Eleven Madison Avenue, Tabla...and his newest restaurant,  Marta, has just garnered two (out of a possible three) stars in the NYTimes.

I learned about him via his book Setting the Table: The Transforming Power of Hospitality in Business.  I first read it shortly after it was published in 2006.  Although I had no intention then of opening a restaurant, his insights resonated powerfully with me.  I believed his articulation of excellence in customer service could contribute to an initiative then in progress in QWBS (or was it QES by then?) to become more customer-centered.  At that time, I still labored under the belief that I could make a difference in that entrenched culture, so I reverently passed my copy along to the person spearheading the initiative in great hopes it could provide meaningful guidance.  Yep, I really did.

A few years later I straggled, chilled and exhausted, into a bar at JFK juggling sodden umbrella and bags, to pass the time 'til my delayed flight  The waitress who met me seemed to divine exactly what I needed.  She whisked me to a quiet corner and helped me stow my things, delivered a perfect martini, checked in at just the right times and basically wrapped me in a soothing blanket of hospitality.  She seemed to embody exactly what Meyer described.  So I tweeted about her to #dannymeyer.  When my plane landed in Portland, I found a message asking me to pass along her name and restaurant because she sounded like someone who should work at a DM restaurant.  Unfortunately I hadn't done my homework to get her particulars, (yes, I suck), but I was duly impressed at the response.

So a few weeks ago I ordered another copy of Setting the Table and have been reading it again, this time with a highlighter pen.

The quote that had stuck with me all these years (in lousy paraphrase) is this:

It's pretty easy to spot an overwhelmingly strong candidate or even an underwhelmingly weak candidate.  It's the "whelming" candidate you must avoid at all costs, because that's the one who can and will do your organization the most long-lasting harm...They infuse an organization and its staff with mediocrity; they're comfortable, so they never leave; and, frustratingly, they never do anything that rises to the level of getting them promoted or sinks to the level of getting them fired.  And because you either can't or won't fire them, you and they conspire to send a dangerous message to your staff and guests that "average" is acceptable. (p. 151)

Then there's the question DM poses on page 218 for any would-be organizational leader:  "Why would anyone want to be led by me?"

It's an obvious question, but it's prompted me to considerable soul-searching.    I know that I have many strengths, but, as Marie, my wonderful former boss and mentor, pointed out--our weaknesses are often our strengths taken to extremes.

So my intense drive for self-sufficiency turns into inefficiency, for example.  Why am I spending all these cycles trying to research / figure out everything myself?    Why am I uncomfortable admitting that I don't know everything about this thing I've never done before?  How can I possibly build a successful and sustainable business that way?

What would someone without this weakness do?  Find an expert on the things they're not expert in.   Hence, I've hired a restaurant consultant.  He has decades of experience and is obviously doing this work as a labor of love, because his fees are almost astoundingly reasonable and he takes a near proprietorial interest in his customers' businesses.   He has extensive connections in the business, knows all of the regulatory issues and will manage getting all permits, he will find and negotiate purchase and installation of equipment, he introduced me to an insurance agent who specializes in restaurants, and will oversee the build-out and key details through the opening.   BAM.  

If I can keep this perspective, and use my determination to succeed to push me out of my comfort zone...who knows?

















Monday, December 1, 2014

Shallow end or deep end?

I've been feeling guilty about not posting for so long.  If you look at the publishing dates you can see the intervals between posts grow longer and longer.   Hmm.

Despite the lack of posts, there has been progress...I'll try to summarize.

I've been consistently checking Craigslist to find carts for sale.  I noticed that as we transitioned to fall there were more carts for sale and they were not moving quickly.  None of them would meet my requirements as is, but they could be adapted.  It started me thinking about whether it really made sense to try to open during the slowest time of the year.  

Would it make sense to incur the start up costs, pay rent and utilities, and maintain perishable inventory (not to mention hanging out in an unheated trailer for several hours a day) when I might have little or no business?  Or would it be better to open in March, say, when business at the pods should be picking up, but I would still have the opportunity for a slow ramp up to high season? Especially if the surplus of carts for sale leads to lower prices.

I'm confident that waiting is the right decision, however it led to an overall loss of momentum which I'm struggling with a bit.  I'm helped by deadlines, you see, and since that deadline moved out by 3-4 months, my efforts have slowed.  

I must also admit that when I do the math, naturally being conservative, the numbers are a little underwhelming.  I'm not looking for / thinking that this would be a highly lucrative business.   I want job satisfaction and adequate income.  

Then, two weeks ago (give or take), I was contacted by a representative of "the Zipper", a new development that is currently under construction on a small triangle that was formerly a used car lot at NE 28th and Sandy Blvd.   It will be similar to the cluster of micro-restaurants at NE 24th and Glisan (same developers) but with some enhancements such as shared enclosed seating.  The restaurant spaces are between 500-600 square feet and it is scheduled for official opening in February.

The rents are relatively high per square foot by restaurant standards, however, that can be largely accounted for by the fact that nearly all of the space is dedicated to the kitchen and front counter, rather than tables, restrooms, etc.

After touring the site and meeting with two of the developers, I found myself intrigued by the possibility.  Mario had asked very early on whether I should consider a "micro" space initially, and I was convinced then that I needed to "prove out" Bywater Grocery concept via a cart and would gradually work toward having this type of "brick and mortar."   Now I'm not so sure.    If you would, walk along with me as I attempt to think this through...

PROS:
  • Should be much less seasonal than cart pods given interior seating, indoor bathrooms
  • Shares benefits with pods of having multiple cuisine offerings grouped together 
  • Located at busy intersection with massive commuter traffic and high visibility 
  • Will include a full service bar (as another tenant)
  • Opportunity for larger menu and specials (Jambalaya, Gumbo, BBQ shrimp)
  • MUCH greater upside potential
  • Better security / safety
  • Not vulnerable to losing cart space due to site development
  • Micro-restaurant concept has been very successful at other location
CONS:
  • At least double the initial capital investment.  The spaces will have painted drywall, polished cement floor, plumbing, electrical and gas hookups.   All internal construction, equipment, decor is tenant responsibility.
  • Higher fixed expenses (rent, utilities, etc)
  • Will require at least four employees as of opening
  • Site does not have ample parking.  The same is true of many cart sites, as well, though
  • More external dependencies prior to opening (Site construction, contractor, permitting, etc)
  • No established customer base for site (vs. established cart pods)

My friend, mentor and former boss, Marie, advised me that I have the most meaningful insights when I can be dispassionate.   I'm finding it difficult to access at the moment.

[More to come...]