#282: How To Raise The Bar On Your Bar w/ Ro Patel
SUMMARY KEYWORDS
people business restaurant bar landlords tampa talking fuck consultant metrics open good feel recession big real estate agents find money drink thought
SPEAKERS
Law Smith
Law Smith
0:02
sweat equity podcast and streaming show pragmatic entrepreneurial advice with dick jokes. I'm your host last Smith. co hosting with me dancing to the oldies sitting to my right your left on the tube Eric Readinger hashtag girthy ROI hashtag 69 b2b that's how you help friends to help your business. Hashtag sweat equity.
0:28
We are the number one to fall asleep.
Law Smith
0:32
Just taking pregnant pauses baby num We are the number one comedy business podcasts out there.
0:41
Because there are none. Right?
Law Smith
0:44
We got the 100% market share. That's what I'm saying. And what are we the 2020? Yeah, Luxe magazine. Best podcast don't know Hold on. No, I
0:56
don't have no no, it was something different.
Law Smith
0:59
Yeah, it was the bonus. We're the business. Business. Oh, best. Business small, mid sized enterprise level. Business podcast number one. Number one we won an award business SMI pirate Horton award. This podcast. That's how you become number one. It's really just a trophy company scammed I want to do a whole episode on what my trophy does on our own and put get that lettering on there. We start out the email we still fucking
1:35
focus right at
Law Smith
1:36
2020 2020 best small business pocket. Okay. This episode is brought to you by grasshopper. Try grasshopper.com forward slash twit. It's a $75 off an annual plan. What's grasshopper you say? It's a business Bowman scalable business phone line. You can have the app on your phone. You don't need to funds like an old school drug dealer. You can get an app on your desktop like I do because I like texting for my keyboard. Try grasshopper.com forward slash twit. It's a 70 $75 off an annual plan. That is an eighth a week and then some for a lot of people eight and a half. Yeah. Give them that value out. That's all I'm saying. This shows about added value baby. Try grasshopper.com forward slash like it's a 75 bones off an annual phone plan Don't be a jabroni have a business phone line and make sure it's not a Google Voice number. That is a recipe for bad branding, bad marketing. Our feature sponsors Express VPN Virtual Private Network don't get tracked by Big bro man. Don't have your log into other countries. If you're if you're a jet setter, you're someone who works from another country needs to get into the US IP addresses. Try expressvpn.com forward slash twit get to three months free on an annual plan to get that virtual private network that computer in the sky. And lastly, Warby Parker Warby Parker trial.com, forward slash twit. I am
3:08
putting on my warm
Law Smith
3:10
fit my horse said I looked like john Elway in a Coors commercial from the 90s and my Warby Parker's look good on my horse said that look good years sunglasses, eyeglasses prescription, just type it in with your little pause. Hit that prescription in there. You don't like the five free prints. Try out from the Warby Parker trial.com. First, URL,
3:31
Citibank, get
3:32
five more. Let's get this show started.
3:36
About my sweat equity.
Law Smith
3:57
Yeah, man, we'll just get right into it. It's good to see your face. It's been a while huh? It's been How long? Probably a couple years now. At least Yeah.
Law Smith
4:06
So for the listeners, viewers. Row and I had a weird friendship of running into each other. Outside of my office, my old agency office while you're doing some consulting, I don't remember how we started talking. But you're helping the restaurant that was downstairs, the boss Ron, and then we just started talking and then we'd have these crazy like Scrum 15 minute, 20 minute like, intense, small talks and then See you later, because we're both like just running around. Is that about right is my memory.
2
Speaker 2
4:41
I think that's about right. That's about right. Got to me. A bit of your family and I got to learn you're a comedian.
Law Smith
4:47
Mm hmm.
4:49
It's fun times.
Law Smith
4:52
Well, I think it helps. I think it helps just a lot of people are like, how What is that like doing? Stand up and kinda Having the normal like kind of business See, consulting advisory kind of role. And it's like, they're both kind of like you just sit there and you can't not observe things. Right? And then it makes you mad.
3
Speaker 3
5:14
Did you actually say something funny? Or did you tell him your stand up?
Law Smith
5:18
I definitely told him.
2
Speaker 2
5:20
He told me Well, he was flexing his muscles. He was making jokes and saying he was a former footballer. Well, he was trying to when my when my hall,
3
Speaker 3
5:28
right. And then you found out it was American football.
Law Smith
5:32
Exactly. And I was like, I love cricket with its cricket ball and things in how
5:40
they talk about your Powerball or anything.
Law Smith
5:43
Oh, you mean the leg power? You drop that in all the powers from the legs? Yeah, drop that in there. I was a gay man. I'd be great power bottom. Yeah.
2
Speaker 2
5:51
Actually, that's the first thing you said to me. I was just trying to ask you. What would you like to have a drink? You know?
Law Smith
5:56
I probably said I wish I was gay. My life would be a lot easier. I feel
6:00
Oh, yeah.
Law Smith
6:02
Think about it. We you play Sega? And then you know, wrestle fuck. To see us on top, you know? times. Okay. Do you like well, this interview? I can't use anything?
6:18
Yeah, yeah,
Law Smith
6:19
we can cut it out. Ain't nothing.
6:22
Cut it out. Ain't
Law Smith
6:23
cutting. What's it called? We can splice stuff out. We can repurpose something if you if you prefer. I've been on big tip about that. But, uh,
2
Speaker 2
6:36
you know, taking myself off social media, just before this interview, so none of my friends will know that I even exist. And they'll just, you know, they won't see this like, well, you kind of don't exist
6:47
then.
6:49
I'm not there. It doesn't count.
Law Smith
6:51
I'm the perfect Exactly. For this show. I just tried to find people with no online presence
6:57
to grow the audience.
Law Smith
6:59
Well, your your work is kind of exemplary. You. You have one, you've created one the speakeasies in our area in Tampa. We have listeners outside the area. But you know, it's one of those things where you're kind of a speakeasy bar consultant of sorts, because you're not out there self promoting, like some of the other guys I see. Are you a big person on good work begets more work? Kind of theory? It Yes, that and
2
Speaker 2
7:31
there's a bit there's another bit of it, I don't know, I would say the other side of it is that I'd like all the projects I get involved in to succeed. And that means that I have to really understand and respect and want to work with like minded individuals. And when you expose and you probably I don't I'm probably not as gifted with working with everyone in personalities and stuff. So I have to really gel well with with the, with the clients, I guess, my partners, and so when the blanket market yourself, and everyone can find you and that's one once or twice people have found me on LinkedIn, from like, upstate New York and Catskills and it's like, I really can't help you with that, you know, strip joint that you have, with no, there's no like, there's nothing else around there. That's not really what I do. Although, tell me more about this strip joint, you know, but, you know,
8:27
give me free passes.
8:29
How does everyone get there?
Law Smith
8:31
FaceTime me in whenever, you know,
8:33
the, the address? I mean,
8:34
I can't work with you. But
8:35
what's the address again?
Law Smith
8:37
First thing is maybe get rid of all the dancers with the C section scars.
8:42
Maybe you should be a consultant. Yeah,
8:45
I think so. I
Law Smith
8:45
feel now I'm in my head. I'm pitching a show. It's the reverse of
8:52
bar red bar restaurant
Law Smith
8:53
do it. But I love Bar Rescue so much Jon taffer. man crush Hall of Fame for me. Yeah, I've got a man crush Hall of Fame. Bo Jackson's he leads the clubhouse.
9:05
I'm not surprised that that makes it I you know,
Law Smith
9:09
yeah. Because he actually he knows and shows corny. The information he does give out is very interesting. He drops in like, you know, your, your, your metric. A lot of the time for a bar is sales per seat, right? Like that's a good metric, because it's basically boiling down square footage anyway. You know, most most service businesses, they'll do price per square or sales per square foot. Like as a good metric to see how healthy the business is. For bar it's a little different because if you have a weird capacity, I also learned the 8020 rule you want 20% people coming back all the time to drink your regulars and you want 80% kind of turnover because too much either way is bad. Because if you get all regulars, it's not going to keep the bar open. You get too much churn. You don't have any consistency. Is that right?
2
Speaker 2
10:06
Yeah, I thought you nailed it. And actually, a lot of the not a lot of the success of a bar is actually on that 8020 rule. I mean, 80% of all your money is coming 20% of the time that you're open. So you just have to, rather than focus on a dead Monday, and put your marketing dollars and focus all your energy, trying to maybe build up a new night, like a Monday, you're better off actually building more opportunities, while you have all your staff there to kind of tackle an earlier part of a busier night, rather than trying to tackle reinventing a new night, you know, so I think
Law Smith
10:45
if I had a bar right now, you're saying, Don't try to reinvent the wheel, there's still enough market share audience share out there on a Friday and Saturday night. Try to do that.
2
Speaker 2
10:55
Yeah, I agree. But I mean, that's a little bit more. that's a that's a loaded question. Because what
Law Smith
11:00
I yeah, it's tough, because you're I know, you're thinking about each sector and location matters. Exactly.
2
Speaker 2
11:07
But like, for example, tip to your point, you're there on a Friday, and you've got all your staff, you should really be looking at, well, how are we missing opportunities? Are people being able to get to the bar to get a drink? You know, how are they waiting five minutes for a drink or 1020 minutes, just fine, an extra body for those two hours to be in the right place, you've already got the team lined up, you've already got the audience that is there, just you know, try to limit the the time it takes to get the second drink or the third drink, you know, or get people through the door quicker, like you said, with the the seats, the seat time by having an extra body in the right place in the right, you know. So
3
Speaker 3
11:49
to me, that goes to like the know what you're good at, you know, the same way we took the personality test, and it said, You're good at this. Focus on that
Law Smith
11:57
as your strike price. Yeah, go ahead.
12:00
Yeah, I agree. That's the end. Yeah. I mean,
Law Smith
12:02
I was talking to a friend that I kind of, she's a little bit younger, she does kind of digital consulting. And she's asked me about, you know, this thing I was doing over the summer where I was doing custom video and stuff. And like, it's kind of a new tactic really is like, I would custom make videos. And as a lead gen thing that she was asking me about, then I go, Well, what do you what? Why are you getting there, I know, you just got a new kind of big client. I mean, the first thing I and I have to remind myself this all the time, you want to do the cool new shiny tactic, and you want to do something to put your stamp on it. But really the best thing to do, and you tell me if this is how you look at it, is what do you do? Well, let's note the shit out of that. Right?
2
Speaker 2
12:46
Absolutely. And just become better at that rather than it you know. I guess it's like, for me, Mike, my style of creating space and bar programs is the experience, the experiential kind of thing, where you kind of like subversive will not just the drinks, but it's the music's the ambience, obviously, the food, what the menus look like, what the what the staff look like, and you just keep focusing on that, that you're good at, you know? Don't try to go for the easier option, I guess of like, Okay, well, this gets hot right now. So let's just go do this. It doesn't, you know, sometimes it doesn't translate to always just keep finding the next fad or niche niche product.
Law Smith
13:28
Yeah, remember that molecular what was that stuff called the molecular food thing
2
Speaker 2
13:33
that was like, gastronomy. So like, that's a great example, to all people. Mind that. People find that and that's a beautiful thing. It's great artistry and chemistry. We, you know, you'd have to be grant Achatz in Chicago with like, 50 people in the kitchen to pull that off, over 48 hours before he even gets to the table. People want that experience. They want to go I'd like to adapt that to my restaurant or bar, that's fine. But you do have to have 50 people in the kitchen that are qualified to do that. Do you have to spend all that time in labor to put that together? You know, so there's, you know, there's there's a trade off to like wanting to do new cool things, and actually investing in people and time and money. Sometimes, like you said, Go back to the 8020 rule. It's just, you're just going to spend a lot of energy learning something that's not going to be perfect or not perfect. It's not going to be like you wanted it.
Law Smith
14:29
Yeah. You know, what, what metrics would you use just a blanket general? Do you have any benchmark metrics that you kind of live by as like, these are kind of what I see. No matter what, kind of as a bar or restaurant kind of success measurements.
2
Speaker 2
14:49
Oh, man, that's different because we live in Florida. It can be anything.
Law Smith
14:54
So you have I mean, you have international kind of background. I mean, yeah, Bahamas Like Virgin Airlines, which so that could be the sky. Yes, Sydney, Australia, a lot of you have a really interesting kind of resume that's all over the world. And obviously, you know, your accent you're from Texas. No. But yeah, no, but I'm saying like, Oh, my reverse. Jon taffer show is just, you just go around and politely help people. You don't yell at him?
3
Speaker 3
15:24
He does. Politely not helpful, right? Yeah, lightly sabotage their bar,
Law Smith
15:28
we put it after Downton Abbey or something, you know,
2
Speaker 2
15:31
I don't, I don't know what it is about Jon taffer. But most people in the restaurant industry that actually do that for a living too. And then there's bartenders in this industry and managers, and everyone, they don't really think a lot of what he says, at least in the first I think four or five series was, was any kind of worth of information other than you know, you got to get the staff to not drink booze, you know, hit them while they're working. You got to clean the kitchen. I mean, it's all kind of obvious shit, but, but I think recently, actually, I'm not not gonna knock him but I think he got more into the sight of legalese. The production company put a lot more emphasis on actually putting the science into it, which is you're talking about the metrics, for example,
Law Smith
16:16
yeah, he, he would throw him in there, but it definitely changed. It definitely changed into him a little bit more professional kind of thing. It was definitely, like, super reality show cooked, you know, no pun intended, but like, very produced very much like a cheesy reality show. And he chose the fact that he Jim did up a bit, you know, he knew he was doing but the reason he yells at everybody. And the reason I didn't, I don't really like having bar restaurant clients, unless they're a group, or like a franchise group, or have a lot of experience, like success already. Is because that personality type sucks. Like, that show will always have people to have on because a lot of people do the remember in college, every guy you knew was like, two businesses. For every friend, you every guy friend you had in college, one t shirt company, right? t shirt company, bro, we should I still want to do it. But I still I still might do but we're
17:14
literally talking about doing our T shirts, like two days.
Law Smith
17:17
I'm just saying. Every dude that you're friends with in college is like bro t shirts. We're funny man. We can, we can use special, right? And then the other ones are funnier. The other ones bar, open a bar, we like beer. We like booze. Like not knowing any of the math behind it or anything just like
17:36
real math.
Law Smith
17:38
I like having a good time. You know, I'm a good host, when we have people over for a party, you know, like, yeah, so I feel like it draws people in. Also, a lot of people start a small business, they're really good at one part. And I feel like the bar restaurant has
3
Speaker 3
17:58
never been a business owner. I'm a great bartender,
Law Smith
18:01
I'm a great, I
18:02
should own this place.
Law Smith
18:03
I make awesome pizza, I suck at everything else, right? When I open a business, because there's a bit of ego there that won't let you go, I should maybe look into these other things, or just, you know, I'm so good at this thing. Everything else will fall into place, which is I think how usually a lot of people do it. So he's trying to break down that personality type that's got it's the undoing project of sorts. Do you find yourself? You find I bet you don't have that a whole lot. The guys that from the upstate New York strip club. Those are the guys that are like that, I assume? I assume you don't work with that personality type.
2
Speaker 2
18:39
So much. Yes. So yeah, not having to go back to the original question not having a presence like a website, not pitching not not not going out to get the business if you like, like sending messages to strangers and stuff, which is good. Thank you. That's, that's a, that serves a purpose in some other place. But for me, the reason I don't do that is because I'll experience what you just said, like I need, I need a referral. Someone goes, man, we just had this guy did this, this and this, you might want to listen to him. And they like that person that they're listening to say that. So they're like, I will give him a chance. So when they meet me, it's a different kind of conversation from the minute we meet, it's like, it is literally consultants here. It's like, well, we both know that we need something out of this. And I'm not going to talk about the money. I'm really honest, one understand about what you need from it. And then I actually like you know, sometimes I'll say, Look, man, you can just do this and this. And I'll, I'll say but you can't, you don't need that we need a consultant either. You've got some easy things that you could lean into, maybe find a new manager and actually have some of the things, the hardest things you might say. So you might need to go back into your restaurant because sometimes people are really successful with the restaurant, and then they walk away from it and then 10 years later, you know, they coming back into and I'm like, Man, this thing's really struggling. But if the Mojo's missing from the space because the It's not there. Sure, yeah. Do you get into like, tell them and you just have to get back into your own space man. And I also don't normally work with places that are already open. Because of that this is too much going on in there, man. I mean, it's not me, I'd love to tattva Actually, I can be the top of the screen, I think people so I'd rather not get to put myself in a situation where I'm just gonna be like arguing with people. Right. You can't change them, like you said, you know?
Law Smith
20:25
Yeah. I think the the rate of which those owners on that show, and we don't have to talk about the show the whole time, but like, the rate at which it is a good kind of jumping off point, though, for I think a lot of people listening. It's a good reference for me. Yeah. It puts me in a good frame of mind. They end up changing the brand back, like two thirds out of the time. Like,
20:44
yeah, like something Exactly. Normal.
Law Smith
20:48
Like, I know what I'm doing. Right? Yeah. Just embarrass myself on national TV. This guy just showed me showed everybody I mean, $600,000 worth of debt. Right. But I know better, I think, right? Yeah, I
3
Speaker 3
21:00
think we're rows doing way harder than what tappers? I mean, you and I can go into a restaurant say, well, this part sucks. And this part sucks. Yeah, I'm not busting out any metrics to help them out. But I mean, picking things apart. It's way easier than building it from zero.
21:14
Yeah, I agree. I totally agree with you.
Law Smith
21:16
How do you? Yeah, how do you mitigate making those errors in the planning stage like that? Is it just experience times knowledge equals wisdom?
2
Speaker 2
21:28
This is what I think the first thing I've learned, like, you know, what I'm learning to like, I'm always learning. So started consulting. Maybe when I was 2223, first restaurant I consulted on at 23. I thought I knew everything. And I bankrupted the place. And he went out of business. And I was like, fuck did I just see someone. And, luckily, was is not his first business. And he ended up next door, he had another restaurant, so he just folded in that space to his other restaurant. So it wasn't the worst thing in the world for him, I think. But it could, I mean, I still like I felt I hugely responsible for my bravado and bullshit in like, not taking seriously enough to keep, you know, to have two ways to one mouth. So like, I'm still learning my profession. But it's, you know, I don't know, 20 years later. There are metrics to it. So the first thing is, what do you need to make from this space? You know, what is your rent? What do you need to make from it? Because they have ideas of, I want to do this and this and you just go, Okay, well, we need to fill so many seats up, each person needs to spend $35, blah, blah, blah, whatever, you know. And then you'll this is done, we have to work into like, so now we need a menu item that's $20 or $13, or whatever. Because a lot of I think this is where I come into it. I like to believe that from day one, when we open they're not needing to wait six months to a year to realize they're actually you know, the p&l is aren't right. You know, we just spent six months working, which is knackering, you know, all the energy it took to open up, and they realize they're not making a profit, because they didn't Chuck the unit price out the ingredients or the menu correctly. They didn't they didn't realize how many staff they needed. Didn't know that they, you know, oh, shit, we have to pay for the social media we have to pay for, for the DJ or whatever. Yeah, whatever. Yeah, yeah. And then, so I tried to get all that lined up early enough, before they actually open. And the goal is actually, let's make sure, listen, if your space needs to charge people 100 bucks a person, then we have to create a menu for that. But if you've got like an outdoor patio area, with the beach bar, it's all about the volume and turning as quick as possible. So we don't want to clutter it up with fancy cocktails. Yes, yes, you've approached me because you want fancy cocktails. But believe me, if we get into the fancy thing, you're not making money, because your space is really designed for a huge patio, fun party experience. And you could be a millionaire. Or you could just be sitting on, you know, a place that will never, you know, will never let you you know, get to where you want to in life because we just, we just didn't we didn't create the right products.
Law Smith
24:18
Yeah. Would it be fair to say you are you know, consultant is a word that's very elastic. Now, I would call you more of an advisor.
24:29
What's the difference? Because
Law Smith
24:31
you can be a data consultant. But advisor usually aligns with like financial advisor, it's, it's smarter people. That's all I mean, that's, that's how my brain thinks but I'm saying I would say you are that pure, old school consultants style. What would it be fair to say? You're basically writing a business plan with them. They don't know that.
24:57
Yeah, exactly that
Law Smith
24:58
because I mean that all you're doing Like you're talking about cost analysis and cost accounting and pro formas of sale. And you know, what's your nut? Okay, what do you got to pay back? What? You know, let's do some simple math on this and reverse engineer maybe, okay, we kill it, you know, we kill it this first year. What does that actually mean in terms of x, y, and z? And then, you know, let's start with our best foot for something you mentioned early in this show was, it sounds like you're pretty good at getting the right staff in. And I feel like turnover for a lot of restaurants is the secret killer. It's not I mean, it's because you have to just onboard someone new all the time. And maybe you don't have the playbook developed as you're going to. Because it's just you got a, it's like, and you mentioned this too, which I found interesting. upfront, you mentioned it. I've only got a limited time capacity to really crush sales. Yeah, I always think of that, like, wasted kind of space. We lose. Yeah.
26:04
Oh, there we lost row.
26:07
He's out.
Law Smith
26:09
Anyway, well, saying I was saying like, I think about the comedy club model, right? A lot. Because just because I'm in there all the time. It's like, Oh, you got to make your nut on. On.
26:22
I blame making your nuts. Keep going.
Law Smith
26:26
I'm going to reset the table. We lost you for
26:31
sorry. Yes. I'm so sorry. It's all good.
Law Smith
26:35
I was going to reset the table as it were. But one thing you brought up is the time capacity restraints you have you only have a few nights, sometimes as a restaurant, maybe some lunch. If you're doing those two, you're probably not doing breakfast. So it's like, you got certain time of the day. You got like, what did you say? 20% of the week sometimes to make your nut right.
2
Speaker 2
27:05
Yeah, so that's where everyone's there. Yeah, 20% of all the
Law Smith
27:10
Yeah. So that that's why the that's why the bar restaurant business is a little crazy. Because you're basically like, from the top down, there's an anxiety that maybe just kind of everybody's worked at a bar or restaurant where you can kind of feel it's palpable. This guy's like, we're gonna, we're gonna turn people over, we gotta get you know, we got to get done. Being the manager. Yeah. But you feel it, the power, that palpable energy can go down to your staff a lot of time and makes a fuck up. Yeah. At least me.
2
Speaker 2
27:42
Bob is is a restaurant business. If you'd like you said restaurant versus bar, there's two different things, but it's so weird. Because
Law Smith
27:49
it right, yeah. Okay.
2
Speaker 2
27:50
Yeah. But when you're talking, like say, like for another industry, like you develop with property, and you tell them your return, at the gold standard of a restaurant return is is like 12% or 15%? And they're like, Why the fuck are you doing this? You know, because, you know, there's very few businesses where you, you know, you put your heart and soul into it. And your, your, your rate of return is like, like, Why are you putting that energy into it? You know, I mean, because, like, they suck, like you say that 20% is like a huge risk, isn't it? You know, and, yeah, it's not like other industries where you can kind of like, residual income or, you know, things are happening in the background, when you're sleeping, you know,
3
Speaker 3
28:31
you find a lot of people that they've kind of just always worked at a bar, and they just have adapted even that lifestyle to staying up late waking up, like, like, I feel like a lot of people, they start there, and then they just kind of stay there because it's, it's a huge swing for them personally, to change that up to go to a nine to five or whatever. Do you see that? A lot? I
2
Speaker 2
28:53
think that Yeah, well, so it's a double edged sword in America, because in America, you know, everyone gets paid in the restaurant business to their tips, if you like. And, you know, it's a, it can be a really healthy living for a lot of people. It's not unusual or uncommon before COVID to make 50 to $70,000 in a restaurant, you know, working four days a week or four nights a week, working six hours, you know, of those days. So trying to transition that into like, as your body takes its toll on your body. You're like, Oh, shit, maybe I should get into a day job. And I also want a family and a lifestyle change the weekends, I'd like my friends and family. Well, you just now how do you like who's gonna? What are you doing to make the same income? And I think that's when the penny drops, and you're like, Oh, shit, I need to do something. But then you're like, I think I'll become a real estate agent. You know. The next segue I think, no offense, real estate agents. bartender.
Law Smith
29:48
The real estate agents don't like the ones that aren't serious about it either. You know, like, they don't like anybody coming into their field thinking it's just a fallback job.
29:57
Absolutely. That
Law Smith
29:59
Yeah. When you Really good at it and you're really diligent, like, they hate those want to be real estate agents, you know?
2
Speaker 2
30:06
Yeah, well luckily, yeah. Oh say well luckily I think you can see that very quickly. Can't you ever tried to say you ever trying to buy a house or you're trying to rent sell something called sell something you kind of see that very quickly I think, you know, with EG rather list your house whether your apartment, you know,
Law Smith
30:23
yeah, my theory now is half the job used to be finding a spot for you. And now that's kind of evened out, everybody has the same access to information, you know, no one really got the jump on it. So really, it's about you know, walking through contracts, and being able to walk through houses and stuff and point out shit, you know, work work on the deal part. To me, I feel like that's, that's most of the job. Now, if you're good, you know, let me ask you this. In the COVID era, we may go through a national, you know, second wave of shutting down I caught I hope not. I think the economic impact is having way worse effects and the actual, like, death wise or just depression wise, then
3
Speaker 3
31:07
by the way, that's based on nothing, nothing just based on your feelings, no science or research?
Law Smith
31:13
I think. I feel I don't know. I feel like it's a lot. The economic impact has that indirect effect that's worse than probably the death count. Just feeling wise anyway.
2
Speaker 2
31:29
No, I you know, it's funny, we're live. We live in Florida here. And I'll say life, all the leads to you guys. I'm actually quite socialist in so many ways. In my life, growing up in London, coming from like, my father was working class mom was working class too. So I've always wanted to like I've always believed in like, sort of like, like, it's true socialist values of schooling and health care and blah, blah. But push comes to shove, like, I don't know if I'd like to live anywhere else right now than Florida. Because like, this is what it's taught me a lot, is I'm actually quite centrist. Because I want to have an opportunity to actually feed myself have a roof over my head. And I want that choice. I'm not saying amen. Such a difficult thing. And I'm talking about the science of it, like you talked about, I'm just my own gut feeling is Me, me personally has nothing to do with the sadness that's going on. So I'd rather have an option to survive or not. I think we're very lucky here that we have that option. Yeah. Yeah.
Law Smith
32:35
I think that simultaneously, both more progressive and conservative, have a viewpoint that both sides really
32:43
well. Yeah, the choice is,
32:44
you know, that's America,
32:46
you have the choice. If
3
Speaker 3
32:47
you steal an apple, they're not gonna chop your hand off, you're gonna have consequences. But it's not the end of like, it's not a 10. Like there's, you know, there's nuance to it. That's what's beautiful.
Law Smith
32:57
What would you say to someone trying to start a restaurant now? Any advice in the COVID era? Just blanket advice? This shows, it can be small, it can be something pragmatic, like, no, inside.
33:10
Yeah.
2
Speaker 2
33:13
It's actually a great time to start business. I know, it sounds odd.
Law Smith
33:16
No, it definitely we,
2
Speaker 2
33:18
yeah, we were high on the hog. Like the way we were just before this. Man, you know, you just just, you know, you're making money. Everyone was kind of like, okay, and it was hard to create new things, because there's no space for for young startups. Because why would I spend if I'm, if I'm finance or, you know, if I have money, and I want to invest, I don't have to spend an investment in a startup, I'm not even listening to you. You're not even on my radar. Because I'm putting my money like, where this machine is rolling so fast. I don't have time to listen to even like trying to find the space. It's like you'd have to be a millionaire. And you'd have to be very lucky to know the landlord to get the space. Now, this is just it, you know, yes, it's a lot worse than the last recession, but it has a similar play place where anyone can now knock on the door to a landlord and they'll listen you'll now be able to negotiate a fair term. You know, because let's face it since the last recession until just before March, I would say rent for opening a restaurant or bar was ridiculous. It was going so far. You know 20 20% of your sales would have you'd have to put into your your rent you can't open a business like that. You know this margins have to be you know, have to be achieved. So the rent has to be decent and now you have an option. So let's say now go for it more than ever is probably have a go. Yeah, the time.
Law Smith
34:51
I heard unemployment back down pretty low to like 6% this morning, as we're recording this, I think lowest ever lately was like 4% I think, with Big Daddy, Donnie T was just like, thrown out Trump is awesome. just just just to elicit a response. Now, I don't like him. But I think, you know, it's one of those things that in this era, if you were kind of saving, and really the service industry is the one that got fucking jacked, it's different than a normal recession, because we saw it like, almost like manufacturing. Yeah, retail and service industries are, those are the ones that are really struggling, it feels like. And so if you were waiting in the weeds to maybe opens up, we've talked on this show with power business attorney, Steven fantatic, about commercial, you know, commercial real estate might be the best time now, to get into residential as the highest it's ever been. As far as trying to, they don't have enough inventory to sell and residential, but commercial is like, they can't keep anybody in these places. A lot of the time now, on the on the restaurant lifestyle, he kind of
2
Speaker 2
36:13
I'm seeing I'm seeing it's really healthy for operators, really seeing how, you know, where these landlords fair are these landlords future partners that you want to sign an agreement to for the next eight years. Because if they don't want to deal with you, in a nice way, now through the shitty time, you really don't want them as you know, you know, stakeholders of your success either. So when you're, you know, because they're just, you know, you just need to have really good landlords at this point. And you have your pick now where you can see them more easier than before.
3
Speaker 3
36:49
Interesting. It's like, your landlords, kind of a silent partner who doesn't really you know, they have control of power, but not really any anything having to do with your money. Well, I mean, I say that, but yeah, right. It's interesting. I never thought of it that way. Yeah. Do
Law Smith
37:06
they? Do they make improvements to this is just
3
Speaker 3
37:10
broad, sweeping stuff, fix stuff for you, when you need it fix?
Law Smith
37:13
Okay, you negotiated the tie down, you know, per square foot or whatever. But, you know, at the same time, are they going to do it, you know, or, you know, you negotiated a great deal to get in there on a 10 year lease with, you know, option at 10 years or something like that. Are they going to follow through the things in the contractor is going to be a fucking pain in the ass? Are they legit? You know, have they owned buildings before? That's a huge one. Because the big thing i'm sure when your location searching is parking, right? Yep. You think rideshare would clean up that issue. But the biggest thing when you're doing a, like a, you know, a retail or service industry business is like, how do you get enough parking spaces? That's the like, the real hard issue right most of the time.
2
Speaker 2
38:03
Here in Florida. I've always found that interesting. When I first landed here, I was like, wait, so a bar needs a shit ton of parking. You want people to drive there? Okay, that makes sense. You can't open a bar unless you have parking. Now, with the taxis growing
Law Smith
38:17
up here. Like you tried to get a taxi in high school or college is like
38:22
mash six, over and over again. 813
Law Smith
38:27
it'll be like we might come out and get you and you're like what? Yeah, yeah. And then everybody be so impulsive to be like, fuck it. I can drive. Exactly. This is stupid. So yeah, ironically, it is a big thing. I mean, we're, you know, Tampa. It has a lot of startup restaurant kind of chains here for a reason, because we're the index city of the country. Our population breakdown, you know, demographically is very much like the US. You know, it's one of those things we're starting. You don't start in Tampa? I'm not doing an ad for Tampa. But I would say Tampa Bay is good for that. Hooters checkers. What else? Outback carabas bonefish grill.
39:11
What else you want those last three kind of?
Law Smith
39:13
They're all kind of the same. But, uh, let me let me add two more things. And we'll let you go because we try to keep this you know, around 33 minutes or so. I've got it. I'm going to pitch an idea I've got Well, here, it's gonna kind of get in this kind of world. I feel like if if I were to start a restaurant, I would be planning not to just start one right away. I'd plan on trying to get three because the economies of scale and your food if you're doing food, it's perishable. Right. So it's all about like, you've got this inventory that could if you can kind of spread it out between locations that I think PDQ right when they started right. They didn't start with just one out they that they started with the Few chick fil A's competitive people are outside the area. And so I feel like that and that's what you want to get to when you own like a sit down restaurant a nicer restaurant is you want to have several because the economies of scale are and it absolutely margins get better and all that stuff. Yep. So here's the pitch and I pitched on the show before. It's it's open source because I'm not a restaurant tour. But someone's got to make just like Taco Bell was back in the day. People thought Tex Mex was a stupid drive thru idea, right. You know, coffee, Cuban coffee, cube and drive thru. I want to in and out simplify menu. I want I want all I want to two things on the menu, Cuban bread, and coffee that are always $1. Under, that'll be your lead in by right. But I want a simplified menu get you through Cuban food, you only need seven ingredients. So they just bugging us that over and over again. Right? So I'm from pigs, right? I mean, you're from socialist stuff, because they had ration of certain things. So you had to you had to improvise, right? That's what, that's why they're awesome with a pig because they give you give a Cuban hot pig. He knows how to make it 40 different ways, right? And so it has that background, which to me plays into the business model of kind of a drive thru business. Now. If you do one, you got to do three, but coffee has a 90% markup. Now, anybody I brought to Tampa, any friend from outside the area that had Cuban food, and Cuban coffee is always like, Fuck, this is good.
41:38
Yeah, right. Yeah, I agree.
Law Smith
41:40
Someone's gonna do it. It won't be me. But someone will do it and figure that out. I think maybe it'll be you.
41:46
But maybe I'll steal it because you didn't ask me to sign anything.
Law Smith
41:49
Go for it. Neil told me. I said it's open source, man. Get him
41:51
to stop talking about what
Law Smith
41:52
what do you think about that concept poke holes through that quickly.
2
Speaker 2
41:56
I think coffee is a terrible idea. You nailed it with the drive thru piece of it, though, is opening a coffee shop. It really doesn't probably make as much money as you think. But having a drive thru concept. And the reason I say it's a good idea is because when when Uber Eats first started, and there was a few great sandwich shops in Tampa. That jumped on that in the mornings. I was so excited that that I could get Cuban coffee. A decent, you know, breakfast sandwich delivered to my house in the morning. Yeah, fucking kidding me. Yeah, it was ridiculous.
Law Smith
42:38
West Tampa sandwich. Oh, yeah.
42:40
Where my mind goes.
2
Speaker 2
42:42
I go to Lowe's, I think was another one. Yeah. But yeah, it's a good concept. You like it? Oh, man,
Law Smith
42:49
you turned it around. Yeah,
42:50
I'll be here for another 10 years.
Law Smith
42:57
All right. And
42:59
that was a concept. No, no, that
Law Smith
43:00
was the one thing I had that other thing we asked all our guests is, if you could go in a time machine to see yourself at 30. Give yourself advice at 13. What would what would you tell yourself?
2
Speaker 2
43:14
I would say? I would say you probably want to make love to every woman that you said no to. You had an opportunity to do it. Just do it anyway. Life is short. You have no idea
43:30
how much I agree with that. Right? Wow.
Law Smith
43:32
I like it. Yeah, though. did not think you're gonna go that direction. It's awesome. No, no, no, it's anything. I mean, this show is it's Yeah, we're the number one comedy business podcast in the world.
2
Speaker 2
43:47
No, we have as much fun as you want. And don't don't. The fucked up thing is everyone is so worried about, like, you know, making mistakes and listening to your, your family and your family. You know, whatever. The thing is that 13 I'd say no one knows the answers either. Even when they're older, they just fucking going through it with you. So just just know that even an adult is figuring out daily as well. So just have a go figure it out. Don't Don't put, you know, rely on Don't worry about upsetting or mess make messing up basically.
Law Smith
44:23
Yeah, yeah. That, you know, that's a common thread we hear from entrepreneurs on the show where it's, I don't take it too seriously when you're younger. Yeah. I mean, it sounds like you You may have done that a little bit.
44:34
I think everybody does. I you know, I don't take my seriously you know, I
44:39
think Well, I think males to also surely have that.
2
Speaker 2
44:43
So yeah, so a big part of my my first business, my first bar at the age of 34. But I've been opening other people's businesses, like I said since I was 2223. And I was always waiting for the next piece of information that I felt coming To open my own business, and it's only after open my first one, and I, by the way, I opened it in Tampa, in the beginning of the recession, because I couldn't find a job. I just do my own thing. And when I went through the process of opening, I was like, shit, is it that easy, you just have to learn the shit. Like, you know, and that's it, though. So it's kind of crazy. Like, there's only so much you can learn as a manager or whatever, but the nuances of ownership, you can't learn that unless you just do it. And yeah, so
Law Smith
45:33
yeah, that's it really experiential learning. You know, learn by doing, even if you know you're gonna mess up kind of thing. Yeah, I dig it. Well, dude, thanks for coming on. I want to have you on again. We just kind of got to the first layer of the onion. So I feel like there's a lot of stuff we could talk about, you know, on this show, that's pertinent. So we'll have to have you on and where do we send people because you don't have a website?
2
Speaker 2
45:58
Social media. Yeah. You can get LinkedIn.
Law Smith
46:03
People get get a hold of us to get a hold of you. I'll
2
Speaker 2
46:08
get them for me. You'll have to make sure that you know the material.
Law Smith
46:12
I'm happy. I'm happy to do it. If you want to help the show and get to you will will filter amount will be the bouncers at the nightclub.
46:21
Love it.
Law Smith
46:22
All right, buddy. Thanks for coming on, man.
46:23
Thank you.
