Latest / Chef's PSA Podcast / The Chef's Dilemma: Balancing Passion and Profit Ep. 88
Transcript
- 0:00Hello Chefs, This is Chefs PSA Podcast.
- 0:02I'm your host, Andre Natera. On today's episode, we're going
- 0:04to talk about, Don't forget, this is still a business.
- 0:07Stay tuned before we get started.
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- 1:24Wait, there's a Jose hat? Shout out to Jose restaurant in
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- 1:30Sorry about the Happy Chef hats, the Jose hat.
- 1:32And as always, I appreciate all the support.
- 1:35It helps me bring you this podcast and keep giving you the
- 1:37information. I've been up to a lot lately and
- 1:39unfortunately I've spread myself a little bit thin.
- 1:42So I'm trying to write a book. I'm building a platform.
- 1:45I'm working on another AI app for menu writing, and I'm going
- 1:49to be a guest on a few podcasts that are upcoming.
- 1:51Getting those scheduled and recorded over the next couple of
- 1:54weeks, and we're quickly approaching the 100th episode of
- 1:58Chef's PSA, which I got to do something good for that.
- 2:01I haven't fully figured out what I'm going to do, but I can't do
- 2:03the same stuff for the 100th episode, so I'll have to do it
- 2:06big. Anyway, let's get into today's
- 2:07subject, which is Don't forget this is still a business.
- 2:10I put up a Chef's PSA the other day, which kind of sparked the
- 2:13idea for this podcast I put up on Instagram and it said don't
- 2:17forget about the person that's eating the dish.
- 2:19Remember to cook for them. And it's something that I think
- 2:21as chefs we get wrapped up and we end up making food for us.
- 2:24We end up making food to impress other chefs.
- 2:27We end up making food to satisfy our creativity.
- 2:29We want to express ourselves on the plate.
- 2:31We want to introduce new things to guests that are coming into
- 2:34the restaurant. And while there is nothing wrong
- 2:36with that, sometimes we forget about just creating delicious
- 2:40food that people want to eat. And if you follow Chef's PSA on
- 2:42Instagram, you'll know that not only do I put up the daily
- 2:45Quote, but sometimes I put little comics with it.
- 2:49And there was, there was a comic that I was pretty proud of and
- 2:51it was a chef talking to some culinary students.
- 2:54And he said, you see kids fuck those customers.
- 2:57I cook for me. And the reason I put that up is
- 2:59because that's the mentality that a lot of chefs and cooks go
- 3:03with when they're coming up with dishes for the restaurant.
- 3:05It's it's not necessarily with the guest in mind, they think
- 3:09about what do I like? How am I going to express
- 3:11myself? This is my playground.
- 3:13I'm the chef, and I can tell you that sometimes that's the wrong
- 3:16approach. And why can I tell you that?
- 3:18Because I've done that before. I've been that chef that wanted
- 3:20to make it a playground before I ever cared about what the guest
- 3:23wanted to eat. It was more about satisfying
- 3:25myself, my need to be creative. I wanted to learn new things, so
- 3:29I wanted to experiment with new ingredients, new techniques.
- 3:33Some of the dishes that I created throughout my career
- 3:35were really bad. I've probably created, you know,
- 3:3827 year career, let's just say thousands of dishes I've put up
- 3:41on a menu and I would say I'm batting about 500.
- 3:44There was about 500 really bad ones on there and about 500
- 3:47really good ones. Then the question comes up, have
- 3:49you ever been so caught up in the creative aspect of your job
- 3:54that you forgot about the customers, that you forgot about
- 3:56the business side of it? And what are the consequences of
- 3:59doing that? There's a certain aspect of
- 4:00creativity that's mature creativity, understanding where
- 4:05you're at, understanding the restaurant concept that you're
- 4:08cooking for and creating food for the audience in your
- 4:12restaurant. So these are the locals that
- 4:14come in. These are your customers.
- 4:16Depending on where you're at, this is the local palette, This
- 4:19is cooking on brand to the restaurant that you're in.
- 4:21You're not going to cook Greek food in your Mexican restaurant.
- 4:25And sometimes we really go off the rails as chefs, and we want
- 4:28to work with bubbles and spheres and alginates and melting salts,
- 4:33and we want to cure egg yolks and sous video them and make a
- 4:36little egg yolk skin and put that on top of something.
- 4:39But like, you're supposed to be a Taco shop.
- 4:43No one wants egg yolk skin at the Taco shop.
- 4:45And it's a chef's mistake to forget about the business side
- 4:48of it. Because at the end of the day,
- 4:49if you want to continue to cook this food, you have a
- 4:51responsibility. If you're the chef leading the
- 4:53kitchen and you've been hired to do a job, part of that job is to
- 4:56make sure you're responsible to the business.
- 4:59You're held accountable to it. An owner has trusted you with
- 5:02their business to create good food.
- 5:04They've put a lot of money into a restaurant.
- 5:06And for people that don't know, restaurants are not cheap.
- 5:08A lot of people think that, oh, I'm going to graduate culinary
- 5:11school and I'm going to open up a restaurant.
- 5:13And then you find out how much it costs to build a restaurant
- 5:16and you're like, oh, do you have several $1,000,000 ready to go?
- 5:18Oh, maybe you're not going to open up a restaurant right away.
- 5:21You don't have investors. Maybe you're not going to open
- 5:22up a restaurant, but someone has put up money somewhere to fund
- 5:26this project and their whole thing is they want an ROI return
- 5:29on investment. It's highly unlikely that
- 5:31they're just building a playground for chefs.
- 5:33So chefs coming in need to understand that while, yes,
- 5:36creativity is important, you need to make sure that you have
- 5:38food that is competitive, that's on the cutting edge, that's
- 5:41delicious, that's creative, that's going to make the
- 5:44customers want to return because they enjoy the experience.
- 5:46But it also has to make sense financially.
- 5:48Being a chef is not just cooking.
- 5:51It's about understanding the financial aspects.
- 5:53Do you understand the food cost, the labor cost, all the
- 5:55operating equipment and expenses?
- 5:57Are you able to make good decisions on menu pricing?
- 6:00Are you pricing yourself out of the market?
- 6:02Are you too high or are you too low?
- 6:04And I can tell you in my personal experience, I've always
- 6:06wanted to be the top end, the most expensive, especially if
- 6:10I'm working in a higher end restaurant.
- 6:12And the reason that is, is there is a little bit of psychology
- 6:15behind being the most expensive or having a very expensive item
- 6:18on your restaurant menu. And that is when you go out to
- 6:20dinner and you want to do the flex, you're flexing how much
- 6:23money you have and you look at the menu and you want to impress
- 6:26the table. You never say give me the second
- 6:29most expensive wine on the list, give me the 4th most expensive
- 6:33steak option. No.
- 6:34You want a flex. You can say, get me your most
- 6:36expensive wine, which might not even be that good.
- 6:39Give me the most expensive champagne.
- 6:41Give me the most expensive protein on the menu.
- 6:43I want to flex. And so if you're being good
- 6:46steward of the business, you want to give them an opportunity
- 6:49to flex and take their money. So have expensive items on the
- 6:52menu. There's that expression that a
- 6:53fool and their money are soon parted.
- 6:55Don't prevent a fool from partying from their money,
- 6:59especially in your business. Also, if you're running a
- 7:01restaurant, you need to have cost mitigation strategy.
- 7:03So what if food cost is too high?
- 7:04What if labor cost is too high? How do you prevent the ship from
- 7:07sinking again? You're the steward of the
- 7:09business, you're held accountable to make sure that
- 7:12the business is running well and you need to have strategies to
- 7:15save cost and you need to be able to implement them.
- 7:18And it's difficult. I'm not going to sit here and
- 7:19say it's easy because it is difficult when you solely focus
- 7:22on the cutting cost side because the other side to the equation
- 7:27is the revenue generation side. You have to learn how to make
- 7:30money. So it's an attack from both
- 7:32sides. You're attacking the cost side
- 7:34and you're also attacking the revenue side.
- 7:36You got to think to yourself, how can I make more money in the
- 7:39restaurant and how can I minimize the amount of cost,
- 7:42whether that's overtime, whether that's food cost, making sure
- 7:45employees are taking breaks, putting locks on the cooler,
- 7:48making sure you're not giving things away for free.
- 7:51And this is something I talked about as often people will just
- 7:54give stuff away for free for no reason.
- 7:56So the server, for example, is like, hey, they want avocado on
- 7:59their burger and they don't charge anything or get we're
- 8:01going to give them an extra piece of bacon and it's free.
- 8:03It's like, well, you wouldn't give someone a dollar for no
- 8:05reason. If I came up to you and said,
- 8:07hey, can I get a burger and can you also give me a dollar?
- 8:09You'd say, no, that's crazy. But you give them that dollar
- 8:12with the free slice of bacon or the extra avocado that you
- 8:15charge nothing for. So make sure you're charging for
- 8:17everything. And there's subtle ways to do
- 8:18that as well. Maybe you're not going to charge
- 8:20them for the avocado, but if you're giving away free toppings
- 8:24on your burger, you might just raise the burger price knowing
- 8:27that you're doing that. So make sure you're accounting
- 8:29for everything financially. And like I said, attacking it
- 8:31from the cost side, attacking it from the revenue side.
- 8:34Don't leave any money on the table now.
- 8:36I've been that chef of that high end restaurant tasting menu
- 8:40style where food cost is really high.
- 8:43You know you're running in your 38 to 40% food cost because you
- 8:46have to buy the expensive luxury ingredients, the A5, the caviar,
- 8:49the truffles, the UNI, all those things that cost money to create
- 8:52this beautiful tasting menu. And then you're only doing like
- 8:5515 to 20 covers and you have 10 cooks in the kitchen to pull it
- 8:58off. And eventually something has to
- 9:00give because ownership looks at it and say, hey, how are we
- 9:02going to make money on this? And I know a lot of chefs that
- 9:05have these very high end restaurants that struggle
- 9:07financially. Not all of them do because I
- 9:09know some chefs that run some very high end restaurants that
- 9:11print money, but not every restaurant is the same.
- 9:13So understanding what type of restaurant you are is extremely
- 9:16important. So what are some skills that
- 9:18every chef should have? Well, one, before you go open up
- 9:21your own restaurant, you need to understand how to manage a
- 9:23restaurant 1st. So like I said, don't go get
- 9:25$1,000,000 loan from the bank and find all these investors if
- 9:28you don't know what you're doing yet.
- 9:29You may know how to cook, but you might not know how to run a
- 9:32business. And 1 executive chef that I used
- 9:34to mentor. Fantastic Cook, one of the best
- 9:36cooks that I've ever worked with.
- 9:38Anything this chef would touch would be beautiful and
- 9:42delicious, but struggled as a chef to understand the bigger
- 9:45picture. And I would always tell them the
- 9:47difference between the chef de cuisine and the executive chef.
- 9:50The chef de cuisine could run the kitchen beautifully and make
- 9:53sure it's pumping out beautiful food, but the executive chef can
- 9:56run the restaurant beautifully and make sure it's successful
- 9:59and makes money. I think if you're going to be a
- 10:01good executive chef and you want to bring business to your
- 10:03restaurant, you have to understand how to manage costs.
- 10:06You have to understand the marketing aspect, how to gain
- 10:09attention for your restaurant, get eyeballs on it, how to go
- 10:12viral on social media for something that you're doing.
- 10:14You think about all these restaurant sensations, like when
- 10:17the cronut came out with Dominique Ansell and there was
- 10:20lines around the corner to get one of his cronuts or those big
- 10:24milkshakes. I think it was Black Tap.
- 10:25That was the first restaurant that came out with these super
- 10:28gaudy milkshakes that were over the top with, like, doughnuts on
- 10:31them and painting the glass with chocolate or some BBQ joints
- 10:35that have a line out the door. And when it's out, it's out and
- 10:39it's a whole experience to wait outside to get the BBQ.
- 10:42You know, you don't think that's part of the marketing.
- 10:44Understanding social media, how to create some food that's going
- 10:46to go viral, that's going to increase the amount of butts and
- 10:49seats is important. So it's not just about creating
- 10:51it. It's also about letting the
- 10:52world know that it exists. And I've been the chef of places
- 10:55where it's like we're cooking really serious food.
- 10:57But I always say we got to have some sucker shit on there.
- 11:00Some examples of that sucker shit would be like just put some
- 11:02tater tots with black truffles or put a big dollop of caviar at
- 11:06the table. Don't put it on in the kitchen.
- 11:08Put it on at the table so that everyone gets out their phone
- 11:10when the caviar tin comes out. If you can shave the truffles
- 11:13table side so people are watching.
- 11:15If you could pour the sauce, if you could light it on fire, if
- 11:18you could crack the chocolate pinata, maybe not the chocolate
- 11:21pinata, but you get the point. Whatever you could do that would
- 11:24allow people to take out their phone and be advocates for you
- 11:29so that they are showing your food to other potential
- 11:32customers. So that people want to go and
- 11:33they say, I want to crack the chocolate pinata, or I want that
- 11:37extra dollop of caviar or I want that big gaudy ice cream sundae
- 11:41to come to my table where they're pouring the chocolate
- 11:44magic shell homemade at the table.
- 11:46That's what you want. So you have to understand the
- 11:48marketing aspect, and if you're paying attention to social media
- 11:50right now, you're seeing a lot of chefs are getting really good
- 11:53at marketing themselves in their restaurant.
- 11:55If you could think of daubbers, someone that I admire, he does a
- 11:58great job on social media. He's always cooking these dishes
- 12:00and explaining them, and he closes out with that.
- 12:03Oh La La. I think it's pretty good because
- 12:05you remember it every time you hear that, you think of daubers.
- 12:08You see his food, you know his restaurant.
- 12:10And is it the best restaurant in the world?
- 12:12I don't know. I've never eaten there.
- 12:13But I'll tell you what, it's got my attention and I'm sure it has
- 12:16the attention of many chefs also.
- 12:17And would you know about that restaurant had he not gone viral
- 12:21on social media and started showing his personality and
- 12:24cooking those dishes? I saw a video on Instagram
- 12:26recently where they were talking about the tiramisu drawer and
- 12:29how much business it brought to them.
- 12:31Simply by doing that one video. People line up now to get that
- 12:34tiramisu. So don't underplay how important
- 12:36marketing is for your restaurant and how much business it could
- 12:39generate. Don't forget it's still a
- 12:41business On top of marketing. You need customer service.
- 12:44You need to make sure they have a great experience when they get
- 12:45there. You need to train your service
- 12:47team, the art of hospitality, which is a subject that I'm
- 12:50working on for a podcast right now.
- 12:51Make them feel welcome. Give them a space where they're
- 12:54going to enjoy the food. Make sure your servers are
- 12:57trained how to sell your food and tell that story.
- 12:59Food with the story tastes better and you can get away with
- 13:02some mistakes if there's a story behind it.
- 13:04And as I always say, the reason for this podcast is to educate
- 13:07chefs and cooks. But there's other resources out
- 13:09there for leadership and management.
- 13:10I know there's a lot of free online courses.
- 13:12E Cornell. I think Harvard offers free
- 13:15online courses. Ioffer a video course on
- 13:18culinary leadership fundamentals.
- 13:19There's podcasts out there. There's books.
- 13:21My book Culinary Leadership Fundamentals, as well as many
- 13:24others. But don't just look at culinary
- 13:26resources. If you're the type of person
- 13:28that likes to read, look at business resources.
- 13:30Read business books, read entrepreneurial books, read
- 13:33leadership books, understand management.
- 13:35Because although culinary is a part of it, your food alone can
- 13:38only get you so far. Managing the business is the
- 13:40other aspect. One of the little cartoons I put
- 13:42up the other day was a conversation between two people
- 13:45and said what's more important, a good food cost or good food?
- 13:48And the person answered a busy restaurant.
- 13:50Because as they say, sales forgives all sins.
- 13:53Food cost is important, food quality is important, but if no
- 13:57one's showing up, neither of them matter.
- 13:59You want to make sure that you're generating sales, you're
- 14:02creating an environment where people want to go and you're
- 14:04able to take their money. When I was young, in my career,
- 14:06I focused too much on plating and pretty food.
- 14:09And I had one dish that I created and this was almost 20
- 14:12years ago and I had 20 touch points or 30 touch points on it.
- 14:16And I remember my boss coming up to me is like, why is there so
- 14:19much on this plate now? I was an insecure cook back
- 14:21then, so I wanted to showcase all my tricks on one place.
- 14:24Like well, I could do a sphere here and I could do some foam
- 14:27there and I could put a gel there and it was just busy and
- 14:30messy. I don't even know if it tasted
- 14:32good. It looked really pretty though,
- 14:33but I would need 3 cooks just to pick it up.
- 14:35And there was like 10 recipes that went into the one dish.
- 14:37It was a complicated dish, It wasn't smart, but it fed my ego.
- 14:41The crazy thing was is that as I started to sell it in the
- 14:44restaurant, people didn't like it.
- 14:45They said it was weird, there was too much going on.
- 14:47It didn't make sense. Now, at that time was I
- 14:49devastated and think that everyone was an idiot and they
- 14:52didn't get it? Yes, but in retrospect they
- 14:54weren't the idiots. It was me.
- 14:56I was trying too much. Sometimes less is more on the
- 14:59plate and in that particular chef job, I struggled because I
- 15:02was so focused on the quality of food that I let the management
- 15:07and the leadership in the business aspect suffer.
- 15:09I wanted to create great food by any means necessary.
- 15:12And while the food was good, I was constantly in the office
- 15:15having to explain why my food cost was up five, five percent,
- 15:1810%, why my overtime was out of control, why I had so many
- 15:22unhappy cooks in the kitchen. And the reason was, is because I
- 15:25was creating dishes for me, for my ego and not for the business.
- 15:28I had one of my mentors come into the kitchen one day and see
- 15:31some of the food that I was creating.
- 15:32They said, why don't you do something simple like a green
- 15:35papaya salad with some shrimp? People love that and I was like
- 15:38mad, too simple. But to placate this person, I
- 15:40put it on the menu. Guess what happened?
- 15:42None of my creative fancy dishes sold, but that green papaya
- 15:46salad with shrimp #1 seller? Every single table got one, and
- 15:50I couldn't understand why. I was like, how do you want that
- 15:53boring papaya salad with like 4 things on it versus my creative
- 15:5730 touch point dish? Like I said, I was the one that
- 16:00didn't get it. Sometimes it's the simplest
- 16:01things that do extremely well. As I reflect as a chef and I
- 16:06think about food that I crave now, I crave simple things like
- 16:08lobster bisque, you know, a good onion soup, a good steak, a
- 16:12roasted chicken, some nice roasted vegetables, a good
- 16:15Curry, a really nice bowl of ramen.
- 16:17I never crave any of this complex stuff that I used to
- 16:21make. I actually crave the simple
- 16:23things that I used to make. Now that's me as a chef.
- 16:25Think about the customer who is not a chef.
- 16:27They just want something delicious when it says Caesar
- 16:30salad on your menu and they've had a Caesar salad everywhere in
- 16:34the world and they're excited to try yours.
- 16:36Then it comes out with crispy chipotles on it and cornbread
- 16:40and freeze dried corn. They're like, what the fuck is
- 16:42this? I just wanted a Caesar salad.
- 16:44Again, think about your customer.
- 16:46You need to look at those business skills early on.
- 16:48So don't forget, if you solely focus on the culinary side,
- 16:52you're going to become a really good cook.
- 16:55Don't neglect the business side, because at one point, if your
- 16:58goal is to run the business, you have to understand that, Invest
- 17:01in that now. So what's my recommendation when
- 17:03creating menus? I've talked about this before.
- 17:05I use a 8020 rule or a 7030 rule when creating menus.
- 17:10So 70 to 80% of the menu is going to be items that I know
- 17:13will sell. They're familiar people could
- 17:15wrap their head around them, 30 to 20% is going to be where I
- 17:18experiment. I'm going to try things out,
- 17:21fringe techniques, creative things that I want to work on
- 17:23that I don't fully understand yet and maybe that the customers
- 17:26are not ready yet. Sometimes you have to introduce
- 17:28things with training wheels to get them ready for what's
- 17:30coming. Can you imagine if you brought
- 17:32Renee Rezepi to Idaho and opened up Noma in the, you know, in
- 17:37just a regular neighborhood and he's serving you ants on a
- 17:40shrimp? And he's like, no people need to
- 17:42do this. This is great.
- 17:43This will be the number one restaurant in the world.
- 17:45And people in Idaho are like, what is this?
- 17:47I don't want ants. I don't want a book about shrimp
- 17:49has ants on it. Or maybe he's serving his, you
- 17:51know, whale sperm emulsion. Like, who wants that?
- 17:54Is it delicious? Does Renee Rezepi know better?
- 17:57Maybe. But why would he serve that in
- 17:58the middle of nowhere in a neighborhood?
- 18:00No, you got to have time and place and location.
- 18:02So some of these cookbooks and some of these Instagram sites
- 18:05are dangerous. You're going to put a reindeer
- 18:06peanut salad on the menu because it's in his new book.
- 18:08And then no one's ever going to come back to your restaurant
- 18:11because it's a diner and they just wanted good eggs and hash
- 18:13Browns. So anyway, creativity is
- 18:15sometimes a double edged sword. Make sure you're taking care of
- 18:17the business first. Objects to deep dive into.
- 18:20Understand food cost, understand how to control finances.
- 18:23I do a three-part series on food cost, but the formula if you
- 18:26could save yourself the time and not listen to all three parts.
- 18:29Cost divided by sales equals percent, so that applies to
- 18:32food, labor, operating expenses. But understand the finances,
- 18:36understand the marketing plan, understand and have a mitigation
- 18:39plan for costs. Understand how to balance your
- 18:41menu. Get feedback from your servers.
- 18:43Express yourself creatively, but don't make your whole menu a
- 18:47creative expression. Have some dishes on there that
- 18:49you know will sell those things that people are going to keep
- 18:52coming back for. Have a few dishes that are going
- 18:54to be Instagram ready where everyone's going to take their
- 18:56phone out and you have the potential to go viral.
- 18:58Create a demand for your restaurant.
- 19:00And don't forget it's a two-part equation.
- 19:03It's not just cost, it's also sales.
- 19:06Attack it from both ends and ultimately be a good steward of
- 19:09the business. And if you're in one of those
- 19:11Unicorn spots where you have complete autonomy, money's no
- 19:15object, and it's a playground, enjoy yourself and have fun,
- 19:18because those don't come often and you're a Unicorn anyway.
- 19:22If you want to support the show, you know what to do.
- 19:23Make sure you leave five stars. Nothing less than five stars.
- 19:26We already said that. Go to chefspsa.com.
- 19:29Get all the books, all the merch.
- 19:30Get this chef's PSA show your support T-shirt.
- 19:33We'll see you next week. Hit the porno music.