Issue link: http://papercitymagazine.uberflip.com/i/1547305
The Panel. Ben Berg: Founder, Berg Hospitality Group (Annabelle Brasserie, The Annie Café & Bar, B&B Butchers & Restaurant, B.B. Italia, Buttermilk Baby, Emilia's Havana, Prime 131, Real Agave, Soy Cowboy, Trattoria Sofia, Turner's, Turner's Cut) Bryan Caswell: Chef/co-owner, Latuli Greg Martin: Consultant and former chef/owner, Bistro Menil Ryan Pera: Chef/co-owner, Agricole Hospitality (Coltivare Pizza & Garden, Eight Row Flint, EZ's Liquor Lounge) Chris Williams: Chef/owner, Lucille's and The Branch On the barriers to entry. Ben Berg: Before COVID, we could build a very nice restaurant for $600 to $650 a square foot. Today, it's impossible to do it for under $1,000. We could write a pro forma, and our expectation was to make our investor's money back in three years. It's very hard to pencil that in now. Houston's UNFILTERED INSIGHTS FROM THE PEOPLE WHO FEED US O n these glossy pages, we've covered the openings of countless high-profile, often chef-driven restaurants over the years. But beyond those plush multi-million- dollar buildouts, the daring menus, the polished service, and the gleaming façade where the beautiful people come to see and be seen as much as to dine and imbibe, this remains one of the most challenging businesses to operate. Laurann Claridge spoke to five successful Houston restaurateurs about what it's really like to run a restaurant in today's competitive environment — an insider's peek at industry workings. (Interestingly, we attempted to diversify these male voices with the inclusion of several women, each of whom declined our request.) Behind Pass the an interesting market, too. In less than five years, it's gotten very competitive and very expensive. Chris Williams: The most immediate thing, outside of the increased costs of everything from labor to ingredients, is just how saturated the market is. There are so many restaurants in Houston — more per capita than any other city in the country. COVID may have changed that, but I doubt it. And there are more popping up every day. Ryan Pera: Money disappears quickly, especially in the beginning. Ensure you have capital to operate once the buildout is complete — even at a loss — for at least a year. From an independent, mom-and- pop point of view, it's exponentially more difficult for someone undertaking a fine- dining build. Rev that up from a $1 million buildout to $5 million. And that's before you get a guest through the door. Then, the recurring financial hits come: insurance costs, permitting, and, worst of all, credit card fees. For a restaurant to succeed, you need a point of view that doesn't exist in Houston. Restaurants that succeed have something to say, a way to identify themselves — and Houston needs more of that. On no-shows. Bryan Caswell: The younger generation has no problem making three or four reservations for one evening at the same time. I couldn't even fathom doing something like that. Even before I was a restaurateur — oh my God, what a hard thing to do to people. We get no-shows; it's a part of the business, but what I would love more than anything else is to not have any reservations at all. Ryan Pera: If a guest cancels a day ahead, generally there's no issue. We can fill a spot in 24 hours 99 percent of the time. Most cancellation policies are stated clearly and can be flexible — the idea is not to ruin an experience before someone ever walks in the door. The no-show factor is far more detrimental. That 7:15 pm reservation held until Photography Pär Bengtsson. Art direction and styling Michelle Aviña. By Laurann Claridge 76