The Mindset Required to Succeed in Hospitality: Michael Chernow

The biggest advantage to coming up in the restaurant industry is that it forces you to be innovative. It rare that you have the money you need so you learn to do without or you learn to do it yourself. On today's show, we chat with chef , TV host, fitness guru and family man Michael Chernow who tears down the veil on our industry, showing the best and worst it has to offer. Chernow leads us on a no-frills tour of the lessons he's learned at the highest levels of our industry.  Click to sign up for our weekly newsletter. Click here to book time on my personal calendar. Click here to download our Restaurant Recovery Guide. Want to streamline your front-of-house operations and increase sales? Head over to http://restaurants.yelp.com/fullcomppodcast to claim your free page and learn more about these powerful tools for your business. SHOW NOTES NYC is the epicenter of culture and community Community congregates at restaurants and bars 50% capacity is not likely to work in NYC due to low revenue Renegotiating with landlords Tax loophole for landlords if they lose business Landlords don’t want to lose all of their customers Ball is in the operator’s court to renegotiate Could make a big difference to margins Medium article suggests that 19% margins in a restaurant is possible Micahel thinks this is unlikely because of the structure of the restaurant business Poor working conditions in the hospitality industry Many can’t afford health care No 401k No savings Raising prices as unlikely Michael believes people won’t pay more for food Overheads of the restaurant business Labor imbalances Food costs are not coming down Making many brands is not necessarily the way forward Could be more successful opening 1 restaurant every 3-5 years instead of a new concept every 3-5 years Focusing on one restaurant and making it amazing Hard-work can only get you so far In fitness, putting in the work creates 90% of the results In business, many other factors determine success Making good decisions in business Sold equity from Meatball Shop after 5 years Bought a house outside NYC Sold equity from Seamore’s after 3 years Sold in November 2019 Lucky that this was just before the pandemic crash Selling equity Equity is only worth something when you sell it Take as much equity as you can whenever you can Lessons from mentors Don’t become a fixture of your business Don’t get too attached to your business Running a sustainable seafood restaurant Passionate about seafood US is working hard on reforming fisheries Oceans are in bad shape globally Grew up fishing as a teenager 90% of fish eaten in America is imported Abundant and sustainable American fish that few people know about e.g dogfish, bluefish Created Seamore’s selling these little known varieties of fish ethically sourced in from American lakes Creating cultures and environments Environment the staff loves working in Attracting great guests Being in the memory-making business Cornell University study