The Unchanging Essence of Hospitality
Episode Details
Transcript
Jeff and Jamie go back in time and chat with their first business partner, Paul Manley—a successful Charlotte restaurateur with experience in fine dining, fast casual, consulting, and more. Discussing the massive changes that have taken place since 2009 when these three went into business to open an 11 table eatery called Crêpe Cellar, it is clear one thing stays the same: the loving element of hospitality.
Speaker 0
Welcome to Jeff and Jamie Feed episode one. This is so exciting. Speaker 1
This is Speaker 2
gonna be fun. So today, we're kinda going back in time. Speaker 0
We are going back in time. But should we talk a little bit about what we're actually gonna talk about on the feed? Speaker 2
Sure. Speaker 0
It is just gonna be a deep dive into what we do. So little kinda behind the scenes look of hospitality business. Speaker 2
And the restaurant business and business overall. Because I think there's a lot that people can learn by looking at the hospitality business and restaurant business in terms of, you know, all the challenges that we face because those are very applicable to businesses across the board. Speaker 0
I am so happy that Paul Manley, our first business partner, is coming on here. We actually met in a hospitality tent at a NASCAR race, which is pretty cool. So we we go we go way back, but I was working for a race team. He was working for one of the sponsors. And, we got along really, really well and had, you know, similar ideals and goals, and, we just got to be good friends. Speaker 2
I love that. And he has now risen to have a number of different restaurants that are favorites around Charlotte, Ace number three, Sea Level, and Waterman. And he has a hospitality company called High Tide. But, today, we are lucky because we're gonna go back in time a little bit to two thousand nine when we opened our very first restaurant, Crepe Cellar Kitchen and Pub. It's actually located next door to where we are right now at Growler's Pour House, and it was just a little eleven table eatery and, just a crazy time to open a restaurant. And I would love for you to set the stage a little bit about what that was, why in the world we went into this business, and, kind of what the setting was for the economy opening a restaurant at that time in two thousand nine. Speaker 0
This is awesome because it it really is the culmination of us quitting our jobs, traveling around the world, coming back to Charlotte, and still being totally lost, not having Speaker 1
a clue. Speaker 2
We went on an overseas trip in order to find ourselves, and we came back more lost than ever. Speaker 0
So we we come back, and we had been I or maybe I had been dreaming about having a little cafe. We talked about how cool it would be. And, when we got back, I finally got the nerve up to say, I I wanna open a restaurant in a recession, the worst of times. But it actually ended up being the best time to do it ever because every restaurant's closing. There was lots of, you know, restaurant equipment available, and people would actually talk to us about leasing their spaces. I think if a a couple like us asked to lease a space in today's day and age, I mean, you would just get laughed out of the room. Zero restaurant experience. We didn't know anything about the restaurant business, really. Speaker 2
We did not. We yes. We had never run our own business, let alone the restaurant business. I had once applied to be a busser at a restaurant and didn't get the job. Speaker 0
Because you didn't have a pen. Speaker 2
Because I forgot a pen. Speaker 0
Kids, bring a pen to your restaurant interview. Speaker 2
That's right. So this was a totally new venture for us, which is really the reason why you brought on a business partner. Speaker 0
Yeah. I mean, this was kind of the key to setting everything up correctly to, just, yeah, I mean, building our culture, building what what we've built today. I mean, we we wouldn't be here without Paul. And, it's really cool, I think, to bring him get the gang back together. Speaker 1
I love Speaker 2
I was joking with him before this that, we've jumped into some crazy endeavors before. Today, we're bringing him on our very first podcast. So this is nothing compared to jumping into Speaker 1
the restaurant this is together. Speaker 0
Do our first restaurant. Speaker 2
That's right. Speaker 0
The first day that I worked in a restaurant was as an owner. So I'm sitting there, you know, just wide eyed. It in in incredible. Speaker 2
There there was a lot to learn. Well, without further ado, let's bring on Paul, and let's just talk to him about, you know, all the experience he has had, changes that have happened, since two thousand nine, a lot of insights that he has that can just shed light on the business overall and business in general and and find ways to kind of learn from what he's learned over the years. And, I think we're gonna learn a lot today. Speaker 0
Let's do it. Speaker 2
Alright. So welcome today, Paul Manley. We are so glad to have you here. You have been a dear friend, a mentor, a person who we have relied on in so many different ways, to just help steer us along our path, and we're so grateful you're here with us Speaker 0
as a guest today. Speaker 1
It's an it's an honor. I'm I'm super excited to be here. Thank you. Mhmm. Speaker 0
Appreciate it. Just to set this up, I was going to text you yesterday. And and by the way, you're still in my favorites on my iPhone, which the number of restaurant business partners that have, like, separated their restaurant groups and gotten this far, they're still talking to each other, is probably pretty slim. So I think we're I think we're doing pretty well. Speaker 1
Doing great. Speaker 0
Yeah. But as I clicked on your contact information, I noticed that I had your landline number in my phone still. But even better than your landline number, this is how long we've known each other. I had your home fax number. Speaker 1
And your God. Wasn't I know Speaker 0
that was a thing. Of us. There's no way to, like, do hundreds of things. Right. Like yeah. It was it's Wow. Crazy. That's awesome. I remember when we got a digital fax, and we could do it all by email from a little while. Speaker 1
You could check your email, and if fax came in your email, you're like, we're high-tech. Speaker 0
I'm killing these guys. Yeah. That that was awesome. Speaker 2
I'm bringing you back on track. Speaker 0
Thank you. Speaker 2
So Paul joined us back in two thousand nine when we were opening up a little restaurant called Crepe Cellar Kitchen and Pub. Thank god he joined us because we really had no idea what we were doing. You worked for ownership of the business at the time, and you had a number of different consulting jobs that you were doing at the time as well. Speaker 1
I was a bit of a horse trader when it came to, restaurant ownership. Yes. At that time, for sure. Speaker 2
Yes. Speaker 1
Yeah. So I I and your story about, you know, you, going through and and traveling and and coming back with this dream to open a restaurant, it it started a little bit on your trip because I I was hoping I could bring it here today, and I can't I can't find it, but I know I have it. You sent me a postcard from your travels, and I don't know where it was from, but it was a metal postcard with sunflowers on it. Speaker 2
I know exactly which postcard you're talking Speaker 1
about Yeah. Speaker 2
Because I had dozens of those. Speaker 1
And I had received that, and I think that you were still on your trip or you had just gotten back. I'm not sure, but you sent me this nice little thing, which is one of the things I learned from you guys is particularly you always were you're you taught me how to be a gift giver and how that those kind of things can be super important to somebody or or or meaningful. And you sent me this I've never seen a metal postcard before, and I got it. And it was just a simple little with your chicken scratch writing on it Yeah. Terrible. Of, let's talk about a restaurant if you, you know, if you so choose Speaker 0
to do so. And the first thing you did was sit me down and try to talk me out of it. Speaker 1
Oh, a hundred percent. That's my job. That was a that was my job. Yeah. I was convinced. I was like, okay. I'm going in with this, and I'm gonna he's gonna be crying by the end of this conversation. And Speaker 2
Why why do that? Why convince people not to go into the restaurant? Was it that specific time or just in general? Speaker 1
No. I think that, you know, the the success rate in our business is is small. Right? And a lot of times, I think that's because people go in, ill prepared. And I think that they like, I like cooking, and so and I'm a good entertainer, so I'm gonna open up a a bakery or a restaurant. And I think that your first move was, hey. We don't know what we're doing, but we don't really wanna do this. Let me talk to somebody within the industry and see if we can figure out maybe some of those obstacles overcome. And that was the first thing you did was you were like, we don't know what we're doing. We didn't you didn't pretend that you did. And so and it's not like I knew all the answers, but I was in the industry. Might have spent my whole career in here. So I think that was the first part of, like, overcoming that first obstacle where people a lot of times are you know, I have this illusion of this, this fun and and, and it is fun. But, you know, all the things that happen Speaker 0
Not lucrative, but fun. Yeah. Speaker 1
Seldom. Seldom lucrative, but always fun. Speaker 0
But I I I remember when you when finally you were like, okay. These guys are in and gonna do it. Mhmm. And you got so excited because we just had an eleven table spot. Speaker 1
Right. Speaker 0
And and I also I I wasn't one of those those people that had a job and was like, yeah. I wanna open up a restaurant. I was like like Speaker 2
He was unemployed. Like, Speaker 0
we're gonna be we're gonna be in the trenches together. And once you figure that out, you're like you know, like, yeah. We can just the two of us can just muscle this place, like, whatever, you know, whatever it needs. And, like, we're like handle it. Yeah. You're like, eleven tables. Yeah. Like, you and I, we got this. You know? And I'm like, oh, okay. Speaker 2
Well, tell us tell us about that first night of Speaker 0
of we've got we got this. I I love your story from the first night. Speaker 2
Well, the I remember the first night as, the doors open, and we had people waiting to come in. And we filled that place up. There were, you know, three people deep at the pond. Speaker 0
Know them either. Speaker 2
Yeah. I looked around. I was like, oh my gosh. I don't know these people. This is amazing. They were actual, like, real people. You know? And that was the most, that was an amazing feeling that that people came to enjoy something that we all had made. Speaker 1
Right. Speaker 2
And I remember going back to the bathroom hallway and being so excited. Like, I couldn't believe people actually came. You know? It it was, a high, and I think that's something that restaurants are. I mean, there's these highs and there are lows. Speaker 1
I remember that a little bit differently than you do. Sure. Because you Speaker 2
were in expo and running around. Speaker 1
Me know. I was making crepes. I was on the crepe griddle, and we had to learn the the the craft of making crepes because I no. Nobody knew it. So we went through all that. And I remember going through the first shift, and it is just like the kitchen's a disaster. Peep you know, somebody's in tears probably. And we go to check the sales, and it's like fourteen hundred dollars in sales. And I'm like, oh, what's Speaker 0
the That's what that's what I that's where I remember. The three of us, at the end of the night, we go to the POS, and I go pop it up and, like, the look on your face, you're and I think it was the twelve hundred and some change. And you're like, that was the hardest twelve hundred dollars ever made in the history of the world. Speaker 1
I was like, holy Speaker 0
Yes. Holy moly. Speaker 1
But it was also but it was, you know, the there was a timing thing too because, you know, the it was o nine. Right? And so nobody was in and it it's not like that was your master plan, to suddenly open up a restaurant in the worst economic time that the city had seen in however long that had been. But, but it was also there was a there was a natural focus on the restaurant because there wasn't a lot of restaurants opening at the time. Right. And so, you know, to your point, there were people that were rooting for us and rooting for the restaurant and rooting for you guys and loved your your story. And, and there was a certain momentum there that was nice that would have gotten lost in in in better times. Speaker 0
It wasn't that hard to be top ten best new restaurant two thousand. Speaker 2
They were only Speaker 1
they were only six. But we Speaker 0
made the list. Right. Yeah. Exactly. Speaker 2
Well and I I think part of it too, a testament of that time was I remember when we were hiring and there was a line down the street That Speaker 0
was a great point. Speaker 2
Who wanted jobs. And the news came out to cover that story, not of people who wanted to eat at our restaurant, but people who wanted a job to work at our restaurant. Speaker 0
We hired everybody in one afternoon. Speaker 1
We did We did. Speaker 0
Open open invitation, and we just sat at booths. And it was just one after another. And you're like, hey. I like this one. Go talk to them. Speaker 1
And we also hired, you know, the bankers and tech people and things like that that were that just lost their job. And and Speaker 0
at one point a year into us opening, I think we had, like, three or four Ivy League people. So it was to UVA if you did. There were Speaker 1
a lot of masters in groups in that area. Speaker 0
It's crazy. Yeah. Speaker 1
Yeah. Speaker 2
So two thousand time was a pretty spectacular time to open a restaurant, for sure. And, but you have a number of restaurants now. You've got sea level. You've got the Waterman. You've got Ace number three. And a lot has changed since two thousand nine. Speaker 1
It has. Speaker 2
What what would you say are some of the biggest things that you've seen evolve since then that that impact your businesses now on a day to day basis? Speaker 1
Well, I mean, there's a big the biggest component of it stays the same. You know? There's just it's just taking care of people and trying to, you know, serve great meals and great and create great experiences and and provide hospitality. And, you know, the landscape constantly changes, but I don't think that the playbook changes a whole lot in my in in in my experience. You know? So I think that, you know, we're in great economic times right now or the the our city is is is is growing at a very rapid rate, and to me, there's opportunity there as as as y'all know. But I think that a large part of it is is, sometimes you can get distracted by, all that kind of stuff and and lose focus on the on the core piece. And I don't think from the first day of crepe seller to today walking into my restaurants, I don't think a lot has changed as far as what the focus is. Speaker 2
I love that. And that's something, you know, truly, Jeff talks about this all the time, not just to me, but to our restaurant group overall, and it's something that we had learned from you guys. Why don't you talk about that? Because I know it's so dear to your heart. Speaker 0
I mean, there's one principle that we start every meeting off with, and it's the principle of hospitality that you brought to us, and it's having a servant's heart. You know? Why don't you talk a little bit about that? I mean, that's that is your saying, and, we've appropriated it. Thank you. Speaker 1
Yeah. Speaker 0
But, I mean, it really the hospitality piece is at the core of everything. And I think that's what resonated with you when I said I wanna open a restaurant. I was I loved food. I loved cooking, and I loved all all that, but I was going at it when I looked at my goals and, like, who I was. The hospitality piece was really what I wanted to share. And then you ex put it into words Yeah. For me. And I Speaker 1
think appreciate that. And I think that but you understood that part of it without maybe knowing the words, but you understood that this was a place to make people happy. Right? And so, you know, the the core of our you know, we have a company called High Tide Hospitality, and the core of that whole thing is is just providing you know, is is my number one goal is to surround myself with people that genuinely want to care for others. And I think that we can teach you to saute. We can teach you to bartend. We can teach you all these other things, accounting or whatever. But if you don't have that innate need to please others and to take care of others, then you don't belong in hospitality. And I think that, you know, we've even gotten more so adamant that we empower the teams. You know, we have two hundred and twenty people that work in this company, and we empower them to to to guard that with, you know, with with make it sacred so that, you know, you you know, servant's heart is, you know, it's biblical. It's it's also, it's in any, you know, modern or any, religion, really, is the is is taking care of others. Speaker 0
Mhmm. Speaker 1
And that's where that's where hospitality to me means. It's the innate desire that when somebody opens that door and someone decides to come into your business, that you genuinely just want nothing more to to than to take care of them and provide a great experience to them. So that's at the core, and that's I learned that along the way, and I I worked in environments that wasn't important. And that even taught me even more so that so when we came together, that was, like, the the number one thing is that we have to understand that we're taking care of people. Mhmm. You know? Speaker 2
I love that so much because I think a lot of times these days, especially, I feel myself getting tripped up in all of the change that's happening and all the things that we have to do to adapt and and, you know, modify or grow into or do differently. And, you know, you talking about, hey. It's actually pretty simple. It's taking care of people. It's offering the best of what you have to give them something beautiful, a beautiful dining experience or a beautiful food, whatever it might be. And I know I get caught up in seeing those trends, the trends and the changes that have been happening. And, Well, Speaker 1
they're important. You don't wanna be left behind. You don't wanna Speaker 2
You have to be so nimble. And I think that right now, especially, it and I don't know if you feel this way, but we talk about it feels like exponential change right now. Like, there was always change. Yeah. But it feels exponential right now. I don't know if you guys are dealing with that at all. Speaker 1
I think one of the things that helps for me in my perspective is, you know, we have one of our brands is is Ace number three. It's a burger brand, and we just sell cheeseburgers. Speaker 2
Cheeseburger. It's a great cheeseburger Speaker 1
spot. Simple menu. It's a tiny menu. We've got, you know, a couple of specials and things like that. But it we're just selling cheeseburgers, shakes, and beer, and that's all and that's what we do. And it it kinda helps to you know, it it keeps everybody, sometimes from those parameters of of trying to, you know, find the next big thing or or or, you know, what's happening trend wise. And you do have to stay in touch with that stuff, but a lot of times it's like, hey. Let's just have really good bread, have a a fantastic beef. Let's let's just make a really good cheeseburger. And that's timeless. Right? Awesome. Speaker 0
And Speaker 1
so, so I you know, sometimes it's my job to kind of reel people back in to be like, you know, let's let's focus on what we do the best. And and, and I think that I've never been one that's much of a pioneer. I don't you know, I'm not I'm not, I'd I'd rather I I've just never been someone that's gonna be the first to do something typically. I'm gonna be someone who's gonna study and kinda stand back a little bit and see what works and what doesn't. And it's something I never got into the frozen yogurt business. You know? Speaker 2
That was real hot for a while. Speaker 1
It was, but the is it hot now? Speaker 2
It is. Yeah. Speaker 1
It is Speaker 2
not. It is not. But burgers are. Speaker 1
But burgers are. They're timeless. So I think that I've always been one that's a little bit more observant and then see what happens and see what sticks, and then we'll we'll jump in there. Speaker 2
I love what you do there because it is so classic, and you've got still that you've incredibly warm service at those just very kindhearted people. And, it it feels good to walk in there, and it it it's delicious food. It is that timeless food. It's classic, and, that sells. Speaker 0
Yeah. I had to annoy the crap out of you, though, because I always wanna do new stuff. And I always, you know, you would be like, yeah. This is how we do in the restaurant business. And I'm like, I don't like that. Can we do it this way? Speaker 1
I saw this set this setup this, this this studio setup. I was like, Jeff's been here. Speaker 2
He loves all this equipment. Speaker 1
This is this is his thing. Yeah. You were all but but you also you know, like, I didn't know about Speaker 0
lot of research though went into, you know Speaker 1
I didn't know about beer engines. Speaker 0
Right. You know, Speaker 1
I didn't know anything about that, but you knew all about that because you found it interesting. Speaker 0
So Right. Speaker 1
You would bring things, and I I would sometimes have to shut them down. Like, I'm not really interested into whatever that is, but there was just cool stuff that you're you know, there it takes enthusiasm, and it takes curiosity in this industry. And I think that that's the curiosity piece and the enthusiasm you had, you know, covered. And so, we were able to, you know, take some standards of practice and adapt them into, your, you know, genuine curiosity and your genuine, enthusiasm for the industry and learning and that kind of stuff. So, but, yes, did we always have the latest gadgets that we couldn't afford? Yeah. I think we're good. Those things. Yeah. Speaker 2
We sure did. Well, let's talk a little bit about one trend that I know is impacting us greatly, and I'm sure you're seeing it too, and that is the decline in alcohol consumption. That's something, you know, you look at two thousand nine versus where we are now and even just in the last couple years, how much that has dropped and how that's impacting business. I mean, both of you, I'm sure, could speak to this. Speaker 0
Yeah. I blocked it out, but you you can go ahead. Well, I Speaker 1
started drinking. So, no. I, you know, I I I think there's there's not a whole lot you can do about it other than just be great at what you do and and then just find other ways to entertain people. So if there's a if there's a business formula that requires you to sell a certain amount of alcohol, you can fight it, or you can just, you know, be creative on how you get the check average that you need from a business standpoint. And if it's not from behind the bar, which is, you know, where you would like to get it from, then you have to get it out of the kitchen or or some other way. So I think that, for us, we're just, you know, we're messing around with different drinks, but we're not gonna create I I don't we're not gonna suddenly create the drink that's gonna trade and change the trend that's gonna change that piece. So we just I just feel like we have to adapt to that and and just be great and have interesting wines. And, you know, you all do a fantastic job of that. You got, you know, phenomenal bar program. And so I don't know if we change that trajectory. We just do the best we can within it. And I think that's ultimately what restaurant business is. You know, that's, you know, how you know, there's, you know, tavern was was part of the, you know, the independence of the country of of, you know, of of forming the US. And so taverns are still a thing today. Mhmm. They've changed a lot, what they do, but they still says serve the same purpose. So, I don't I'm not too worried about that. It is it is a pain. It is a it's a problem. And, also, everybody get we talked about that. Everybody wants to they close out their tab every time. You know? You're like, we used to run tabs and forget about Speaker 0
it. Right? Speaker 2
I lost so many credit cards that way. Speaker 0
You guys are so responsible, Gen z. Right. So responsible. Speaker 1
Well, Speaker 0
they still yeah. Speaker 1
They still go out and have a good time, but they're just, like, they're very, yeah. I I don't really understand that part. But, other than that, it's Speaker 0
Well, yeah. I mean, I think for us, I mean, we're straight up. We're we're down ten percent in alcohol sales, which in a business like ours that we we joke about that it's hard to make money, it's really, really hard to stay profitable, and the margins are are super slim. So when you you have three, four, five percent margins, and then you're losing ten percent of your income. Now I think we've fought hard and, you know, we're really focusing on the NA beverage and Yeah. Really, really trying to do the the best job we can of a beverage to, you know, program in total. And so, yeah, we can get, you know, two percent back from Yeah. NA or or whatever. But Speaker 1
And that's where the that the adaptation comes from. Like, it doesn't have to be in the form of a vodka. It could be in a form of a lot of other things. Speaker 0
Of of, yeah, of of other things. So we're we're really trying to, you know, kind of pick up everything we can in the margins and operate more efficiently. But I think at some point, there has to be we have to get that six, seven percent revenue back. And, I mean, where where does it come from? Where does it come from? I don't think you can raise prices much more, you know, in this this environment. But, I mean, at at some point, you know, restaurants need to stay profitable. Speaker 1
Yeah. And and I don't wanna sound like an old timer, but, you know, it is harder to make money now than it was ten years ago, you know, fifteen years ago. Just there's it's just a more difficult business to make it profitable. And and so, you know, you just have to be disciplined in that, and you just have to you know, what I'm finding is that we just we know you have to you have to find it in pennies and dollars. And and and so, you know, you you do a great job with procurement and, you know, and try to, you know, get the best deals you can. Speaker 0
It's just great though that we love it so much. It that part doesn't even really matter. It doesn't really matter. Speaker 1
I always I mean, I go back to the fact that there's nothing I spent too much time in front in the office, in the computer, or in meetings, a lot of meetings. A lot of meetings. But my favorite part of the day still is to go into is just to walk into sea level or go into the water minutes, you know, the and just talk with the staff and have a great time and visit tables and and and You Speaker 0
probably shuck like shuck the moisture. Speaker 1
I shuck often. I do because I love that's my that's my safety zone. Right? I'm shucking tonight, actually. Speaker 0
Are you? Speaker 1
Yeah. Speaker 0
And That's Speaker 1
so awesome. And, but that's the part of the business that is rewarding and and whatnot. You know? The the less meetings, more time on the floor. Yep. That's that's my goal. Speaker 2
I love that. Well and that speaks to going back to that hospitality piece that is so central to you and your business overall too. Another trend besides the alcohol consumption going down, and I really love how, you know, you talking about being so flexible with that. But another one is that the it's third party delivery. A lot of people are eating on their couches at home. And, what does that do to dining? And I know we're certainly impacted by that particularly because a lot of our places are very, I'll say, experiential. Yeah. They're they're experience driven. We've got locations in old churches, old buildings. You're you're meant to be there and experience course food and Speaker 1
You're all in on the family dining aspect. Family dining. Speaker 0
Sharing a place. It'd be really nice to have the best burger place in town. Speaker 1
Yes. Well, I mean, you know, that part of it is, you know, that it's I look at it a little bit of the necessary evil because your your control of the experience leaves when the food leaves your restaurant. Speaker 2
Right? Absolutely. Speaker 1
And so no matter what happens, the fries are not as good when you get them at home. You know? And the first thing you do when you open up your bag is you eat a fry, and you judge your meal from that fry on. And when that fry is cold or mushy or whatever, then you're like, I guess it's gonna be you know? So, and so, you know, in that industry is a is changes evolving. Then this company buys that company and this this, you know, this rate changes and all those kind of things. And so, you know, it's it's we charge more for online food, and we're not apologetic about it because it it's an expensive premium thing. And if you do wanna sit on your couch and you do wanna enjoy a a cheeseburger, you are gonna pay a little bit more for it. And I think people are willing to and that they they understand that piece. But I don't like it because the fact of of, it it just it ruins the experience for the guest. You know? It just it just not gonna be as good when you get it at home and and and eat it there. So that's what I don't like about it. Speaker 2
And and, Jeff, I mean, you can speak to this, but in terms of, like, we don't do third party from most of or some of our spots, like, Supperland, for instance, we don't bother doing that. Speaker 0
Yeah. It just seems silly that you're getting a eighty dollar steak, and we'd, like, wrap it up and send it to your house. Right. Speaker 2
It just Speaker 1
yeah. Because part of that eighty dollar steak is that experience of that beautiful plate that you're eating it off and the music that you're listening to and the lighting in the room and the company that you keep and the fact that you got a little dressed up to go and eat that thing, but then you're in your pajamas. You're like, this isn't worth it. It's like, no kidding, dude. You're missing out on eighty percent of the experience. Speaker 0
Do you remember we used to have some local people in Noda here that would get our French onion soup? Yeah. Used to, you know, come in a crock and have the cheese melted on it. And we just got to the point where we're like, just I'll just walk the crock to your office and just give it back to me sometime because this is dumb, though. Like, we're we're putting a You're Speaker 1
doing crock inventory on Mondays. Yeah. I got got three Speaker 0
three over there, and I Speaker 1
got two down the street. But, I mean, Speaker 0
it was else got where we're, like, given a Styrofoam cup with a raw piece of cheese on top was, like, the best way. You know? Like, we're, like, this is this does not work. Speaker 1
Yeah. It is a component that it is. And I don't know I don't I mean, I would hate to try to predict the future of what that looks like, but I think that people recognize that there is that it does lack the hospitality piece of that. And we do as much as we can to try to get that hospitality and that experience in the bag and to your house, but there's always gonna be something messed up. Speaker 0
You guys do an awesome job with, like, just labeling everything. You know, when you get your bag, like, you know whose stuff is whose, and, I'm I'm always really impressed with that, especially if you're eating with a bunch of gluten free kids and Speaker 1
Yeah. Yeah. Yeah. Yeah. That kinda Gotta get it right. That kinda stuff. And I'll tell you, there's no more crime committed to somebody when they are in their pajamas and they're on their couch, and they get their burger from us and it's missing the fries. Like, it is it is a it is a personal assault. You know? Like, there's just nothing worse than that than than missing, you know, Speaker 2
just talking to them. Speaker 1
It is. Speaker 2
You can't go touch the table, talk to them, and you Speaker 1
a gift card and that kind of stuff, but it's like, they wanted that fry in their mouth right now. Like, that's what they the whole reason why they they went online Speaker 2
That's exactly right. Speaker 1
That. So there's hospitality in that too. But, but so we just try to control as much as we can from it and then follow, you know, kinda what those trends are and what and what's working, excuse me, and not. And, but, that's kinda you know, that's that's that's I think that that where we end up in another five years in that whole model, will be different than where we are right now. And the lack of profitability for the for the operators for the restaurant companies, that will have to come to head at some point. Speaker 0
And, so I have one kind of final thing to end on, which I think is something that I hadn't seen before and seemed pretty novel. And I I think it's so cool having having you here and talking to you that, you know, you kinda had your reset in two thousand nine where you started doing your restaurant consulting, and we jumped into this. And now the two of us, we have, you know, almost six hundred employees, five hundred and some employees, and, Charlotte's been really good to us. So I I I think that's incredible. But growth wise, there's not a bank in town that will loan money to a restaurant. Mhmm. It's Speaker 1
just it's Speaker 0
just not something that banks do. I don't think it's very wise for banks. I I understand. But you were able to do, kinda create a stock situation to raise money for your next restaurant. So how did that go? What do you think about it? Will you do it in the future? What talk to me a little bit about how it works and and what hoops you had to jump through. Speaker 1
Yeah. It's it's an expensive business for a start up. I don't have it falling out of my pockets. I'm not a wealthy person. So whenever a new opportunity comes or we decide to do something, there's always the capital raising piece of it. And I've done a few different things. I've had a few different partners, and I've I've I've tried to do a few different things. And some has worked and some hasn't, and I've had to buy some partners out and, just because of personalities or just the deal didn't work, whatever. And so, we tried a new thing with this new we're opening up a new Ace right in the middle of uptown. And, we tried this new method of class a, class b, and selling shares in the restaurant. And I really like it because it it makes us have to perform. Like, it's not just paying us back or me and, you know, my main partner, Dennis and, you know, there's a small group of us, but it's a there's twenty people that that would like to see their money returned to them and get a return on that investment. So it is high risk just like restaurant businesses is high risk, but people do have portfolios where they do need to have some risk in their in their portfolio. And so, I'm excited about it because it it, it we were able to raise it pretty easily, to sell twenty shares in in a in a company. And, and it also puts the pressure on us to really perform and really, answer to, more people than that. And so it's gotta be the right piece of real estate. It's gotta be the right formula. We gotta have the right team. Like, you know, instead of just being accountable for us, I've always been better at being accountable to others than I have been to being accountable to myself. Speaker 0
It feels so good to write those checks to the investors. Right? Oh, it's really Like, people believe in you, and they've given you their money to perform it. That those those distributions always feel so good when you, you know I Speaker 1
I have a main, investor named Dennis Thompson, and, there's nothing better for me than when I I like performing well, but I like performing well for him better. Yeah. I like it when when I can just send him a check and and or hand it to him and that kind of stuff. It it it really it makes the whole thing worth it. So we're gonna try it. I don't I don't know the end of the story yet, but, I'll inform you. But I'm, I it it was well received. And, and, I think that, you know, I'm excited about it. Speaker 2
What is next for you with that project? What's or any other projects? What's coming up for you? Speaker 1
You know, I've never been a very good planner, so Speaker 0
so I don't think that it's it's a very Speaker 1
good we just you know, we have three exciting brands right now. We are working on a on a fourth brand right now and, which I'm excited about, kinda takes me back to more upscale dining again. But, we we went through so I've had, you know, this this version of my of my company of High Tide Hospitality. We've had it for ten years, and we've gone through a lot of, changes and and and morphed into other things. And we've had a couple setbacks. We've had some leadership changeover that really kinda needed to happen and made them some tough decisions and and find some some, better talent. And I was able to, and through that course, we lost a restaurant. You know? You know, we went out of business at one of the restaurants, which is financially brutal, but also just really, killer because you go into a community, you set up shop, and you make a promise to that community. You're gonna be there for a long time, and you're gonna serve that community, and you're gonna build that clientele and and hire the people that live in that community. And when you fail, you don't just fail because you lost money. You failed that area. You failed in a lot of different ways. And so that whole experience for us made us made me kind of build a better team. And, and so now I'm super excited about the team that I have. Mhmm. And, and I feel like we can accomplish a lot more. So I can push the gas on growth or innovation or or changes or discipline, those kind of things because we have the team to be able to do it. We're we're the the previous, you know, form of that team. We hadn't changed everybody out, but we had to make a few strategic moves. And so I'm excited about our ability to to grow. And if the burger thing works and we raised capital that way and people wanna do it again, we're gonna do it again. Speaker 0
So Speaker 2
I love that. I love that. And that's such a good example too of just being nimble in your business and figuring out, okay. Well, this is working in other places, almost a little bit like crowdsourcing, I guess, in its own way. But you found a new way to to succeed in such a challenging business, particularly with starting up. But we can't thank you enough for Speaker 1
It's been a pleasure. Speaker 2
Going on today. Speaker 1
Yeah. It's been awesome. Speaker 0
I love having the gang back together. That's great. Growlers. In growlers. And I Speaker 1
do wanna take the opportunity to say just how proud I am of you too. Like, you like, you know, where we started in o nine and and, you know, it it That was You've grown so much, Jeff. So much. I mean, I can't emphasize enough. No. But I really am proud of of of what y'all have, built. And and, you know, you you do it for the right reason. You do it because you love the industry, You and you do like taking care of people, and you do enjoy the hospitality part of it, and you do like, you know, fun and interesting projects and stuff. And so I'm I'm super proud of you all, what you've done, and, and and I look forward to to more. Speaker 2
Thank you, Paul. Yeah. Thank you. Thanks for taking the time to come on here and jump in a new venture here with us too. Alright. Thanks, Paul. Speaker 0
Thanks, man. Speaker 2
Okay. So I loved having him on here. It's just it's so great to go back in time and to also just hear his insights on on where he's come and, you know, all that he's learned along the way. And I know we're we're traveling similar paths with our different concepts and and facing these different trends and everything in in maybe slightly different ways, but it's so helpful to just hear how he's going about things too. Speaker 0
We we missed some of the stories about how we were in a barn, like, picking up booths and for growlers and It was Speaker 2
a pretty scrappy time getting opening up our first restaurants. Right? Cream Cellar and then Growlers where we are here now too. It's there it was scrappy times. Speaker 0
We'd be looking at a piece of restaurant equipment. We're like, I think it's gonna run. You hand the guy some cash and Speaker 2
knock it out. So just looking listening to the conversation there, what for you was a key takeaway? Speaker 0
It's still for me, talk talking to Paul always just brings me back to that hospitality piece and how much he cares and how much we care, even when he's talking about closing a restaurant and how he really feels like he's letting the community down and the neighborhood down. I I remember when, we'd have a crazy snow day, and his goal was to open the restaurants knowing that we would lose more money if we open the restaurants just because he, you know, he felt like, hey. We have some employees that can walk and whatever we can get open and whatever we can do, we have to service the community and get them food. If they can walk there and need a place to go and need a place to be warm, we should do that. Like, we have power. We have Speaker 2
have a fun time. Like, it's setting them up to have a great time and that Speaker 0
It it was always just a a commitment to the neighborhood and the community. So I I I love how much he cares. It's awesome. Speaker 2
Yep. I I agree. I think a lot of people don't realize people in the restaurant business. Sure. You're trying to make money, but it is like it's this draws a very unusual type of people who are willing to put themselves out there and create something, and you don't know if people are gonna show up. You know, you don't know if your restaurant's gonna be full. You don't know if you're gonna make money, but you're creating something to bring joy to other people. And, you know, I surely get spun out sometimes that, our revenue numbers weren't where I want them to be or, you know, there's all these trends happening that are pulling us down. And I think the way he talks about it is so hopeful. And it's not about getting pulled down. It's how do you kinda look at things in a strategic way and in a way that can make your business better. And I I think that's a really powerful thing that truly that one piece of hospitality is what it all comes down to, and all the other things are just things we get caught up in that maybe aren't that important. So I'm grateful he came on, and, I I I think we can wrap up our first episode here. And That Speaker 0
that was really fun. I enjoyed it. Speaker 2
I think it was great. Well, thank you all for listening, and please stay tuned for our next one. We'll look forward to hanging out with you again soon. 