Chris Tripoli 6:24
Well, yeah, and some of them have developed and I’m very, very proud of the way that develops, you might know a salad bar concept called Salata. Salata started, we went to work for him right after he opened his very first concept. And we had a lot of operational work to do and structuring and systems. And by the time we got all of that organized, we got him registered for franchising. And by the time he and his brother opened up the second store, we had him registered, done ops manuals ready franchise program written. And he was off to the races. And so today he’s in, gosh, I don’t know, five states, he has over 70, some salad bars open, he has another 40 or 50. franchises. So it’s so that’s the one that I have a particular pride level for. I also love looking at Freebirds the burritos, I had fun with them went to work in College Station for Pierre Dube. Right after he opened the first one and did similar work, you know, we had to do some structure and systems and in growth planning. And as the growth planning and fundraising occurred, then came the second, third, fourth and ensuing sale and now they’re everywhere. So but some of my more satisfying ones would be immediate, and the smaller ones that don’t necessarily become regional, or national. Working with Lynn Gwynn and his wife Tracy in Alexandria, Louisiana, a small secondary market where they just wanted to be the quality, casual full service anti chain. So So that’s tremendously satisfying to get to know people really well and work with them on a long going basis and, and see them reach their goals. They are operating well. And they’re profitable, in a sense on off into a second piece of concept. And so you know, things like that, you know, trigger happiness to see generations continue. There is a restaurant I think it’s 50 or 60 a year now, I think called Nico Nico’s. It’s a tremendous casual counter service Greek concept, Dimitri, the son, you know, was sort of born and raised into the business. So working with him on the secession planning bomb, slowing down and taking over, and how to do that was tremendously satisfying. So we’ve got a lot of examples, you know, you know, like that we’re, they may not ever become a national or regional household name. But they will operate correctly, they’ll grow, they’ll be profitable to pass on to their children. And that’s just tremendously satisfying.
Chad Franzen 9:01
Yeah, I would imagine. So, tell me a little bit more about what you’re doing now.
Chris Tripoli 9:07
Now, I get to spend time, what is just tremendously enjoying for me, I’ve retired from a contract consulting, so I’m not going back into that business. But I spend more time now helping others that are consulting I work with advisors regularly, I work with a group it you may have heard of the Small Business Development Centers, there’s about 1100 of those centers nationwide, and I contract with them to help their advisors understand the principles they need to know in order to help small independently owned restaurants. They work with a tremendous amount of small businesses nationwide. And so I’m doing a lot of zoom webinars. I’m doing a lot of classroom instruction. I helped them with some of their clients. And that gives me more time to write I’m doing some work with my friends at restaurant owner.com. That’s a wonderful website, for example. In fact, I think it’s the single best A collection of operational data for the small guy is a small, independently owned restaurant wanting to grow. And anyway, I’m helping them with some additional services. And we’re updating some materials and, and then I get to host Corner Booth, which is a gas. It’s a podcast, you know how much fun they are obviously, very Schuster, who’s the editor of restaurant startup and growth, and I get to visit with independently on restaurant operators. And we, we talk about, you know, their stories and their challenges and, and that kind of thing and follow them. So between some of the podcasting and writing and networking with other advisors, I’m seeing him dizzy, but it’s really lightwork. You know, so I can call it retirement, it’s all fun.
Chad Franzen 10:43
Good, hey, based on your experience in consulting, what maybe is one thing or a few things that are often overlooked by people who are kind of excited about opening a restaurant brands? But you know, maybe they maybe they didn’t think of one aspect of it, that would be key.
Chris Tripoli 11:01
There’s a couple, yeah, there’s a couple that popped into mind that seem to be, you know, repetitious, that seem to come up. And one is, restaurants seem to be tremendously attractive for people who have been successful in other businesses. I don’t know why. But I mean, somebody might spend 2030 years in oil gas distribution, they can’t wait to take early retirement. So they can grab their mother in law’s marinara recipe and open a piece of yarn. Countless people will say, I just want to consult to help me with my idea, I want to open up a bar, you know, like, like the ones that I went to when I was in college, they don’t have bars like that anymore. And you know, and so we seem to be a very attractive industry to people who are coming from having worked successfully and others. And so, so the challenge is transitioning there now, because this industry is is different. It is tight margins. And extremely competitive. I think those are some of the things we have to teach people when they come is that this industry requires tremendous volume. I think people are surprised at how tight the margins are, but we call it a lot of dollars going in, in order to get a lot of dimes in your pre tax profit. Sometimes, of course, you can get more than 10 or 11, or 12%. But a lot of smaller startups operate on less than that. So I think those are the couple things that come to mind that consultants have to do a really good job of which is educate that person entering our industry. Some of the new nuances things that they’re just not used to and, and one is that the tight margins and the other one is the extreme costs. Too many times people think they’ve got a good idea. Can’t wait to open up my restaurant, I set aside a couple of 100,000 I’m ready to go. And in the start when they you know build that budget, they realize I don’t have mercy, there’s a personal guarantee on the lease, there’s money I have to raise from a bank banks are very hard to work with. It costs two to $300 a square foot just to build a soccer. That’s before I get equipment, inventory, etc. Lord at Mercy. So I think between the transition to the tight margins and the cost, which is typically twice what they’re thinking, those are two things consultants face with startups today.
Chad Franzen 13:16
What are some advice you give restaurateurs about facing the competition? You mentioned that it was a very competitive industry?
Chris Tripoli 13:25
Yeah, yeah, you really have to see how you can fit in with an established buying habit. Number one, try not to recreate the wheel. Some people feel like competition means I’ve got to go do something dramatically different. You know, I’m the only guy doing whatever this you know, I’m the only guy who’s inventing. You know how to get into an egg roll? I’m the only guy who can? Okay, well, sometimes it isn’t about how to be that different. It’s more about fitting into an established buying cycle. Are you convenience concept? Are you a medium priced a multi market concept? Are you more of a destination fine dining fit into a trend that’s established, then create your own point of distinction. So find your way of putting your own little spin the poll boys that you wanted to do or something unique about the way you’re going to do your build your own pieces. So fit into an existing buying habit? Don’t try to go out there and be so totally different that you’re teaching the public.
Chad Franzen 14:32
How important is it to be close to the competition in terms of proximity to look at location proximity?
Chris Tripoli 14:39
Well, it kind of depends on the concept. For most concepts. It’s very important. Some of the busiest restaurants are surrounded by other restaurants. In fact, some of the most successful restaurant companies develop more than one concept and then what do they do they build right next to each other. It’s like the mall theory. You know, you go to a mall and you see 789 10 Different women’s shoe stores, you know, to the you know, the naive I you would say, Isn’t that stupid? Why are all these guys here competing for the same women’s feet? No, it’s not they know what they’re doing. You’re it’s more about sharing the customer base than it is trying to be alone and creating your own customer base.
Chad Franzen 15:23
What are some, maybe something to keep in mind when it comes to management of the staff at a particular location?
Chris Tripoli 15:30
Well, that’s getting more and more important. You know, right now we’re hearing things about people aren’t coming back to the industry post COVID, we have a labor shortage, no one wants to work. And there are three things that I repeatedly tell anyone who will listen or anyone who asked that. And that’s, please don’t be left behind be the winner. Labor is challenging, but there are people winning, and the way they win by following three E’s. The first one is embrace the change, don’t sit there and think that this post COVID market is coming back to the way it used to be. And there are many people that think that it isn’t, it’s a different world with employment now embrace that change. Okay, get get in. And then second one is engagement staff. The winners are the ones that realize it isn’t just about hiring and paying people anymore. We’ve got to develop an atmosphere where people feel a sense of belonging. So I’ve got to engage with staff, I’ve got to ask them for their input, their suggestions, I need to sit around a table, not just with my two or three managers once a week, but how about every couple of weeks, getting the key staff that want to sit in and let’s give them a complimentary cup of yogurt, and let’s review things that might help our brand or our our customer experience. And let’s get involved and lit and listen, listen, if you’re engaging your staff, and you’re listening to them, then you’re helping them feel like this is where they belong. And then the third one, and this is normally the tougher one for the more experienced manager. And that’s empower your managers and staff, today’s ownership really needs to be more about leading by direction, be there for support, review, evaluation, but not so much the hands on, today’s employee wants to feel like they’re in an atmosphere where they belong. They’re listened to, they are part of the process. And then they’re directed. And then by the way, they’re congratulated. Notice the small things, you don’t want to just, you know, have one big monthly contest and congratulate the winner. Excuse me, that went out with the employee of the month to make sure that you’re closer now. And you’ve empowered your ship managers and your staff under duties, they know that you’re there to support them, and not there to you know, handhold every step of the way. And then you review them regularly, you compliment them daily. So this way, you’re building a team, you’re not just employing people anymore.
Chad Franzen 17:56
What do you think is the difference between a good manager and a good leader?
Chris Tripoli 18:03
A manager manages situations. So manager by virtue of definition needs to be more control, and manage step by step follow the checklist. And I’m not saying that this is a bad thing. But when it comes to handling people, you want to take that really good manager and develop him or her into a leader because the leader is somebody who can actually engage with others enough to to set an example for them to do their managing. So it’s like a leader is able to get those principles set as an example for others to follow. And that makes the managing partner much easier.
Chad Franzen 18:45
You talked about the importance of being adaptable, especially now during this time of the pandemic, how has success in the restaurant industry changed from pre COVID to now?
Chris Tripoli 18:58
Well, we follow the buying habits and we can see that the good news is people love restaurants, people will eat out we learn that your COVID is not a luxury as some people may have thought in the old days. No no dining away from home is is a part of the daily fabric. We do it at all levels. We do it with young families, we do it with couples without children. We do it as we age. It’s what we do. So that’s the good news. And that’s the good news is we have to adapt because people are doing that in a different way now. So you know, if you just think that people are going to come back to your dining room, well, that’s only part of the program. We need to be able to reach out and sell our product the way people are wanting it. They want their they want the restaurant, they want their quality. They want their variety, but they also want now a lot more convenient. So if you don’t have a really good online presence if you don’t really have a really good pickup CARSIDE type of program if you’re not reaching out with social media to keep people informed on the family packs and what they can Pick up the third party delivery, then you’re missing the way the market is gone. Because people want things much more convenient now. So that means you got to follow your buying trend, you’ve got to be a lot more technologically astute now, in order to keep up and hold on to your customers,
Chad Franzen 20:18
you with all the with all the challenges associated with the restaurant industry, you know, everything to do with COVID, and narrow margins and competition, all that stuff, what is it about the restaurant industry that’s so kind of invigorating and keeps people like you around. And you know, people do it for their life’s work.
Chris Tripoli 20:33
You know, I just think that it’s a principle about following your interest. I would say that to anybody, you know, the best way to succeed really and feel good about yourself is to follow what you’re most interested in, and then just be as successful as you can at it, you know, you got to follow your passion. So mean, just because you’re good with numbers, for example, unless you are really passionate about working with numbers, please don’t be an accountant, you know, just be good with numbers. And I think what draws people to hospitality is that there is a need, I think, for people to feel good about working with people. And that’s what hospitality is, it’s a people business. After all, I think people enjoy the atmosphere of service, the immediacy of gratitude, the the development of Team things that happen in hospitality. And then because we’re dealing with likes and dislikes, and food trends and things that continue to change is an industry that keeps you on your toes. So I think that might be part of what draws people. I don’t think it’s, you know, I don’t mean to be discouraging to people who are looking at this from another industry, they can’t wait to leave your job and jump in. Because it isn’t, you know that it’s that hard. He’s successful, it’s just that it is risky. We don’t ever want to, you know, underestimate the challenges. So, I always like to tell people coming into our business is not about being scare. It’s about it’s all about being prepared. So if you are entering the industry, and you will take the time to be prepared, you will study the market, you’ll develop a business plan you will budget correctly, then you have every opportunity as anyone else says to succeed today,
Chad Franzen 22:20
I have one more question for you. But first, tell me how people can find out more about what you’re up to, or get in touch with you or check out your podcast, the corner booth?
Chris Tripoli 22:28
Oh, absolutely. You can find corner booth anywhere you like to look for podcasts, Spotify, iTunes, Google, or you can go right to the restaurant owner.com I encourage people to go to that website. I do an awful lot of writing on that website, you can find me there. Or at any time people can email me directly at Chris CHR is at Chris tripoli.com.
Chad Franzen 22:52
My final question for you I saw on your website, that a key thing is to be afraid of mediocrity. Why do you say that? Why would you put that there? What do you say that?
Chris Tripoli 23:01
You brought that up? Because it’s true. It isn’t just enough, you know, to be in the business. You’ve got to make it because it’s competitive. And because people know so much more now. But 99 I think we can thank the Food Network for that. But people are more astute now. So just because people demand go out. Just because people like going out doesn’t mean they have to be in your place. So you don’t ever want to rest on your laurels. I think I think the reason I make such a big point out of anyone that I work with about not accepting mediocrity is that that’s where you don’t learn. When you’re stuck in mediocrity, you’re you’re accepting the word satisfied. Satisfied is no good, good. You want you want to create a loyal guests that will come back and bring the others satisfied guests is just there and you can’t figure them out. It’s almost easier to work with a dissatisfied guests. Because if you can work with them and find out where you missed, you know what to correct. But mediocrity just keeps us going through the motions. It doesn’t identify where we need to improve, and it doesn’t challenge us to get better. So be very, very fearful of mediocrity.
Chad Franzen 24:09
Sure, sure. Hey, Chris. It’s been fantastic to talk with you today. I really appreciate your time. Thank you so much.
It’s my pleasure. Thank you so much.
Chad Franzen 24:17
So long, everybody.
Outro 24:18
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