The Restaurant Genius Behind Carbone, ZZ’s, Torrisi & More | Jeff Zalaznick

28:37You know what I mean? That was kind of the last generation of, you know, of people that were doing this solely based on blind passion for this business. It was the only thing that, you know, we could imagine doing. And, you know, it's the type of thing that, you know, if you love this business, it is, you know, by, you know, by math, like the hardest business you could go into. But if you love it and if you're passionate about it and you study it and you do the work that's necessary, which is critical, you have a chance of being successful and you have a chance of creating really special places that you're proud of and that you love sharing with people.

29:23and that's truly the essence of hospitality right you know we love to bring people together and serve them great food and have you know make people happy and have them have a great time and leave with a big smile on their face and we that brings us great joy I think that for better or worse what's happened is that with the rise of social media with the rise of you know Instagram TikTok, et cetera, it did two things, right? You know, so two things happened. First, you had food TV going back 20 years, right? And I mean, that started the whole idea of celebrity chefs, celebrity restaurateurs, et cetera, right?

30:01So now cooking became cool, right? And cooking was in the spotlight and people were watching Food Network. And then the internet started and you had, you know, websites and blogs and all these different food content. And then, you know, obviously now Now we're living in an extreme where you have viral food-related content on all these platforms. And the thing is that now, to have a line around the block, you don't necessarily have to be even making something that's that good. It just has to go viral. And that lasts a pretty finite period of time. There's very few examples of this food that went viral that went for years.

30:43right it might go for six months it might go for four months might go for a year but it's very rare that that happens and in that the whole all those things combined turn the restaurant business and restaurateurs into a much more glamorous business right when i came in it was not a glamorous business it was a business that people were like why on earth would you go into that business right like are you crazy you know you're gonna be broke you're not gonna You know, there's nine out of 10 are going to fail. You're not going to have any chance of success. But they didn't know what's going on in my head or my partner's heads and what we believed and knew we could do from the beginning.

31:20Now that it has become more glamorous and you have all these other, not only people that want to go into it, right, but you have another reason for customers to come. You have different entry points. You know what I mean? that didn't exist before. People see it as, you know, are saying, let me try to create something that's going to go viral, not something, let me create the best version of this product because I have a great passion for it. Here's the history of it. And here's how we're going to do it. And here's why it's going to be the best version of that that's ever been done. They don't even know the history.

31:56They don't know the history and the history for them does not matter because all that matters to them is how does it look on my Instagram and how is it looking and how is it going to catch on. Right. And that's just a totally different approach. That being said, you know, everyone always says, well, do you have, do you not like that? No, I love it for me because the other side of that is that you have a much more educated consumer who's much more interested in spending their money on food and beverage than ever before. So we benefit greatly. Some people looked at it, I think the wrong way when, when that all, when that all started, you know, however many years ago, you know, restaurateurs would talk to each other, hospitality people would talk to each other.

32:38They'd say, they'd say, you know, Oh, I mean, now everyone's a food critic, you know, like, Oh, you know, how do we deal with this? Everyone's a food critic. And I'm like, this is fantastic. Like, you know what I mean? And everyone's like, why? I don't even have it scrammed to this day. I don't even know what goes on on it. But what I know is that if these people want to come and wait in line and wait months for reservations to come to my restaurant and sometimes only to just take a picture of a dish, that's an incredible shift of things. These are not cheap dishes, right? You know what I mean?

33:07So I'm not selling a bagel and a donut. You know what I mean? I'm selling expensive meals. And if that's going to drive people's willingness, not only to spend on it, but also it does drive their awareness and their understanding of food. Because naturally, if you're looking at food content all day, you understand it better than if you didn't, right? So we have a more informed customer, right? Some of them are there for the, you know, just to take the picture, but many of them are there for also to enjoy incredible experiences because they've tried all these different ones because they've become more engaged with food and beverage and more comfortable with it being something you spend money on.

33:50And I think that's probably the biggest thing that happened during my career was that right when I really started and right when we opened kind of Carbone and things started to explode for us, you know, food truly kind of joined the rest of culture as one of the significant things, right? So, you know, if you were growing up in New York, People would talk about, you know, Broadway shows and ballet and dance and sports. And, you know, restaurants became another form of cultural currency. It was something that if you were a cultured, sophisticated person, you need to know about restaurants. You need to talk about it.

34:34It became a topic of where did you eat last night? What did you have? Oh, my God, I want to try that. None of that really existed at the level that it did before, even when we started. And then that's just now been amplified to a level that is exponential and hard to even measure at this point when you add in all these new ways that people share their experiences. I found one of my all-time favorite quotes when I was reading the book Zero to One. The quote says, The single most powerful pattern I have noticed is that successful people find value in unexpected places. And they do this by thinking about business from first principles instead of formulas.

35:12That is exactly what Applovin has done with their advertising platform. Applovin connects you with over a billion potential new customers inside mobile games. Applovin allows you to capture undivided attention. Applovin ads are full screen video ads that are watched for an average of 35 seconds. That is retention that blows other ad platforms out of the water. And you can launch on Applovin in minutes. You set the goal and Applovin achieves it. There's no complex setup, no expertise needed, and AppLovin scales quickly. They can put your ads in front of over a billion potential customers. Other businesses have seen immediate results, have scaled to hundreds of thousands of dollars of spend per day, and increased their revenue by millions.

35:58So you want to get started quickly before all of your competitors are on AppLovin. And you can do that by going to AppLovin.com. That's AppLovin.com. Okay, I want to go to your unconventional path to break into the industry. This industry you were obsessed with since you were a kid. Yeah. Let's go back to, I think you're what, early 20s? Yeah. Can you just tell us like what was going on in your life at this time? You even had a different job, if I remember correctly. And then you take a very unconventional and risky decision to quit your normal job. And talk about the path that you actually, how you got into restaurants.

36:37I was, you know, strangely obsessed with food and restaurants from a very young age. You know, I was, I was, you know, while other kids were watching cartoons, I was watching cooking shows. Okay. At that time, the only cooking show was available on PBS. It was a show called The Frugal Gourmet. The Frugal Gourmet. Yes. There was like one cooking show that was on after school. That's what I would be watching. So my whole life was always focused around food. You know, in high school, I went to cooking school. I took a semester that I went to cooking school. So it was always an incredible focus of mine.

37:11Now, at that time, I could never imagine that this thing that I love to do so much, eating, cooking, drinking, bringing people together, having a great time, that's what I enjoy to do. It's still what I enjoy to do today. It was hard for me to even really realize because I like doing it so much that that could actually be what I would do with my life. Because at that time, it was a hobby. And that's how people looked at it. You know, oh, you love to cook? That's great. Okay. You know what I mean? Whatever it might be. My first job out of college was at J.P. Morgan as an investment banking analyst.

37:51And I worked there in the technology, media, and telecom group. That experience very quickly made me realize, I don't care whether this is the high. I only took the job. I didn't know what I wanted to do. I knew that if I could get this job just on paper, it was the highest paying job out of college. And very popular, higher status. Yes, but it was a very simple equation. It was like, I'm not sure what, you know, I don't know what, but if this is the highest paying job and I can get one, let me go do that. You're how old at this time? I'm 21 years old. I had never even opened an Excel spreadsheet you know I didn't go to business school so I didn't know any of this but so I went to JP Morgan and they basically you know they basically teach you it's like it's like it's an amazing thing it's like a free business school you go there for the first six months and they teach you how to do everything which was actually you know very beneficial to me but um but I very quickly realized when I was in the uh office you know I started to realize, you know, there was something a little bit different about, you know, every guy, all the other analysts around me be reading the Wall Street Journal and the Financial Times.

38:57I'm sitting there reading like Travel and Leisure magazine and like weird cooking magazines. And everyone's looking at me like, what's wrong with this guy? And I also realized the power of restaurants. There was two things that happened. One was, you know, because I was so obsessed, I would go out. This is before you could even, you know, you would use a Zagat guy to find the great restaurants in New York. and I had memorized the guide, right? So the guide was memorized. So like a game I used to play would be like, someone would open the guide and they'd name a restaurant in New York and I'd tell you the rating.

39:28It was 24, 26, 40, it went up to 30. But that was a fun game for me. Name a random restaurant, I'll tell you the rating. I memorized this guy and I had, you know, so I wanted to try all these great restaurants. That was the Bible of New York restaurants, you know, 25 years ago. That's how everyone figured out what restaurants they were going to go to. And basically I found two things out. One was, you know, because I had this incredible passion and I, it was natural for me. It was natural for me to be in restaurants. It was natural the way I felt when I went to restaurants. It was natural the way I got along with, you know, the people who worked in restaurants, which is its own culture.

40:07Like, you know, whether it was waiters, whether it was the chefs, whether it was the restauranteurs and the owners. These were the people I got along with, you know, like we understood each other. So I would spend time and all my time that I could outside of work, which was not that much of that time, but, you know, trying this place or trying that place and spending all the money that I was making to go to try these restaurants and, you know, try every single thing that I possibly could in the amount of time that I had. Two things happened. One was that I realized the power of restaurants because, you know, because I went to these places because I had become friendly with a lot of restaurateurs at that time, you know, I realized that the greatest currency I had, you know, was that I could get, you know, my senior, you know, the managing directors that everyone was like afraid to talk to.

40:58Suddenly I was helping them get dinner reservations and they like thought I was the great, you know, it was, it was the craziest thing, you know, that I could get them into Nobu or wherever it was at the time, like they felt was the greatest thing that ever happened to them. So I started to see like, there's something here, like, you know, the, the, the, the currency of restaurants and it had already started, you know what I mean? Of people, these impossible tables and being able to access them and what that meant to people and what they do and, you know, to have those great experiences that were out there.

41:29I started to see that. And And at the same time, I started to see, you know, when you look up to the top of your job or wherever you're working and you look at the guy who is the top guy, the guy making the most money, you know, the guy who you're obviously going to try to be like if this is what you're going to do. These guys were miserable. Right. And I was like, I cannot do this. I kind of realized very quickly that there was a this was not I don't want to be like that guy. I want to be like that guy that I met last night in the restaurant. And on top of that, I'm never going to be the best at this.

42:07I can be the best. I don't know yet what it is, but as long as it's something that has food and people surrounding it, whether it be restaurants, hotels, or otherwise. So I walked out of my job on my birthday in my second year, which is a two-year program. So it was right before that was coming to a close. It was in August. And right at that point, I said, you know what? I've had enough of this. I got to go do something around hospitality and food and beverage. And it was still so crazy of an idea to go into the restaurant business that I didn't even take that. I went to go work in a hotel, which seems a little less crazy.

42:50Right. You know what I mean? So I walked from literally a few blocks from here. At the time, you know, you can see he puts it in perspective, the timing, the Mandarin Oriental Hotel in Columbus Circle had just opened. Right. And the Mandarin Oriental was at the time when my travel leisure, I was reading the most expensive hotel to ever open. Right. And it was like the crown jewel of New York. And, you know, everyone, it was a big deal because it was open with Columbus Circle. And it was it was it was a big, big deal. So I walked into the hotel to try to get a job. And so I went to the front desk.

43:29And they were like, we don't give jobs here. You got to go to the service entrance in the back. And I was like, oh, OK. So how do I get there? I'll walk around the thing. So I walked around the thing. I ended up going in and saying, I'm looking for a job. And they're like, do you have an appointment? No. It was on my lunch break. And I said, no, but I'm in my suit. I'm from JP Morgan. You know, and they said, well, you know, you got to come back with an appointment. I said, well, you know, please just do me a favor. You can see the guy, the HR director. You know, it's one of those like half walls, you know, like the half walls, like a show, like where you could see the person in the office through the glass.

44:09So he was like in one of these classic like HR cubicles where you kind of see what was going on. And I said, could you, he was like that far away from me. So I was like, can you just ask him, you know, tell him that I'm here, that I'm an investment banker at JPMorgan and that I will take any job in this hotel that he will give me. He thinks I'm out of my fucking mind. And I get up and I leave. And I remember going walking back to work. I remember calling someone and saying, like, I don't think that went so well, but we'll see what happens. You know, because he kind of was like, yeah, well, you know, we'll see.

44:45Nothing's available. let alone the next day my phone rings and um it's the head of hr at mandarin oriental and he says hey you know um it was nice meeting you yesterday we just had the head of guest relations quit do you want to take that job i said that'd be fantastic he was great because when can you start i said in two weeks he said great so i ended up leaving and going to work the mandarin oriental hotel. What I got very lucky with was that at that time at the Mandarin, guest relations, which means a lot of different things in different hotels, guest relations can be a synonym for concierge or it could mean VIP services, which is what it meant in this hotel.

45:30So it ended up being an ideal starting point for me because basically what I did as kind of what I ended up leading the the VIP kind of concierge, the services, whatever you want to call it, was that I handled all our most important guests no matter what they were doing. So from rooms to restaurants to check-in to every single aspect of the hotel. So I got to very quickly learn what I wanted to learn about, you know, how to run a hotel at the highest level and also the food and beverage outlets that were there that I got a chance to work in. So that was kind of my first foray into that. Now, my parents thought I was crazy.

46:10You know, they, you know, you're leaving the best job that it theoretically exists to go into what at that time, again, was not what it is today. It's not like this fancy, fun business, right? You know, that people are, you see people as being big successes. And it was like a place that, you know, you wouldn't, you could never make any money. I continued to do it, and it led me to, at that point, I still hadn't fully decided I needed to open a restaurant. I knew I needed to be around food all the time. I knew I needed to be around people all the time. I loved dealing with customers. I loved dealing with people.

46:49I loved being around food. If I could check those boxes, I was very happy. And so that led me at the time to, you know, do what I was, I started a website. This is a very unconventional path. Yes. So you go from employee at Manor Oriental to entrepreneur. For all my VIP guests at the Manor Oriental, I had been building, I built my own using my JP Morgan skills. I built my own Excel database, right, of restaurants. and this database was so well JP Morgan style organized, right? That, you know, that basically, you know, it was all my restaurants that I liked. It was exactly what you wanted to eat when you went there.

47:35It was exactly what table you wanted. It had, you know, who you need to speak to at the door. It had every information because this was now, you know, they'd call me and say, I want to go see here and here. I went, great. I rose through the ranks there because I knew I could get everyone into these restaurants because I was always spending my time in all these restaurants. That database, then one day I was walking into my building late from, you know, we didn't get out of work at J.D. Morgan until 2, 3 in the morning, you know, and I had an incredible doorman named Max, and I'm walking in, and I'm talking, and he says, you know, like, he introduces me to this kid.

48:12This kid is a student at NYU, and he's a programmer. so I say to him I said you know I have this idea this is all standing in the lobby at two o 'clock in the morning I said I have this idea I think I have this database already built in excel and there's nowhere to properly search online this is before anything existed you know there's no website where you can search restaurants properly and have it you know rated and graded and et cetera, et cetera. And also that tells you what to eat there and what the signature dishes are and blah, blah, blah, all things that we easily access now. But I had this vision to create this content site all around restaurants that would allow people to use what I had built, you know, for themselves, right?

48:58So they could just say, I want an Italian restaurant downtown. And it would say, here are the three that are recommended. Here, you should eat there, et cetera, et cetera. That became a site called Always Hungry that I created, which was a content site. And that was really my door into the restaurant business as a whole, because now I was on the content creation side. So I got to be very close with the best chefs and best restaurateurs in the city, interviewing them, talking to them, doing things like this, you know what I mean? Before, you know, podcasts existed or anything of that nature, but we were having them take us through their process or through the restaurant, et cetera, et cetera.

49:36And what happened was after doing this for, you know, a little while, I started to realize I understand this. Like it all made sense to me. I need to be doing this myself, not talking about the people that are doing it. It was that feeling of like, this is what I'm meant to be doing, not some Internet stuff thing. I really don't even understand the Internet portion of. I'm just creating food content. And that led me to starting another website called Dine Private with a guy named Joe Bastianich, who was one of the most famous restaurateurs at the time. He came to me because I was at the time, you know, this is 20 years, the food web guy.

50:13There wasn't anyone in my space. It wasn't like this, you know what I mean? I was the guy. So the biggest restaurateur, one of my, the guys that I looked up to, right, came to me and said, you know, I have an idea. I want to start OpenTable, which existed at the time, but for private dining rooms. Like this room. Like this room, right? But he had to just open a restaurant at the time called Del Posto, and he had like seven private dining rooms. And he was having trouble booking them all the time. And his idea was like, well, what if we automated this so you could do it online? so I didn't really have that much interest in doing it except for that I knew that it would give me an opportunity to spend time with Joe as his partner and do that you know on a daily or weekly basis so wait you were going to be co-founders together on this new project he was one of the restaurateurs or chefs that you most he was the biggest restaurateur of the of that moment.

51:17Okay. Um, he was, you know, he was partners with Mario Batali. He was, he was, he was the big, you know, he was one of the, one of the, if not at that moment, the biggest restaurateur doing some of the biggest projects. That was smart. And, and so, right. So I, I figured if I get to have a front row seat and, and not even beyond that, be his partner and start working with him and figuring out all these intricacies that we would have to figure out around restaurants, I can learn everything. You know what I mean? And so basically that's why I ended up doing that project. And he never knew my motive was that my motive was to become him, right?

52:01He's the opposite of the guy you saw at J.P. Morgan. I don't want that miserable guy. Exactly. I was like, I want to be like that guy. I want to be like Joe. So the opportunity to be his partner was something that I said, you know what? even though I don't want to build another website, I'll do it. So we built it. The biggest thing that it gave to me was obviously that I, you know, I would literally meet him three times a week. We'd sit in Del Posto, we'd drink wine, we'd hang out, we'd talk. I'd watch how he did what he was doing. I'd watch, you know, the way that, you know, he was, you know, we'd talk about restaurants, we'd talk about the intricacies of every last detail, many of which we needed to program into of this thing that we were building.

52:43And that really, really put me in a place where I realized I can do this and I think I can do it my way, you know, and at that, you know, I can definitely do it as good, if not better as what I see, you know, him and the other peers that we were working with. But this is really important. I want to pause here because like, Like, this is something that I see reappear over and over again in all these biographies of history, just guys entrepreneurs I read. And it drives me crazy because if you listen to normal people, they're like, oh, you know, you should generate evidence first and then have confidence.

53:22It's like, no, you have it exactly backwards. Belief comes before ability. You're in your early 20s at this time? About 25. You have this obsession. You're in your early to mid-20s. This is a guy you most admire. And you're like, actually, I can do that. It was natural to me. You know, the only thing I can equate it to when I talk to people, it's like, you know, it's like if you're an athlete and you were just naturally good at basketball and obviously now you've honed your craft to be one of the best. But I was good at this. I understood why they put this here. I understood why those guys are coming here on the service.

53:54I understood what was on my plate, how it was cooked. Was it seared? Had they blanched it? Had they done this? Had they done that? And I could tell you there's a problem with this because of this just by tasting it, right? okay, here's what you got to redo with it. And part of it was all the studying, right? All the years of eating, repetition, studying, cooking, et cetera, et cetera. And part of it was just natural talent. At the end of the day, like you have to have a great palate, right? You know what I mean? Like if you don't have a great palate, it's going to be tough to taste food professionally.

54:24Right. But, you know, part of that also just comes with a lot of studying, a lot of repetition, no different than anything else. Well, if you're 25, you've already had the succession at that point for half your life right and it's funny you use the word athlete because i hear when you were speaking this weird um clip of larry bird a young larry bird came to my mind because you know he played at this like small school they said he's too slow he's not he doesn't have like he didn't play against tough competition you're not going to make in the nba they're telling him after he got drafted the nba before he went and so he had a lot of self-confidence but he goes wait a minute so they used to have this thing called rookie camp where all the rookies would get and start playing together and he's like it took me i was hearing all this stuff like i'm too slow i have a horrible competition took me goes three days to rookie camp to realize not only can i play in this league i'm going to dominate in this league right it's like same exact that's very similar so like what i went through was exactly that it went from i can be like these guys to i'm going to be able to dominate this world right you know what i mean like and i was a hundred percent confident in that idea and I took that.

55:28I was able to sell off these two businesses that I had started. I took the very small amount of money that I made on those. Oh, wait, so you burned the boats. So you sold off your content, your website before you started your first... Yeah, so basically what happened was, I don't know why, is that I had both businesses running and at that point I was like, I gotta go and open my own restaurant. This is what I'm meant to do. I was so locked in on this idea and I got to get out of these businesses. And, you know, one thing led to another. I spoke to a friend of mine who was in kind of the venture capital world.

56:08We sold Always Hungry, which was the content site, to in a matter of a few months. We sold that and we sold Dime Private. So I was able to get out and then basically I hit the streets saying, I'm going to find a restaurant space. The best businesses I've studied all figured out the same thing early. Your team is only as good as the information they're working from. And today, that team includes people and agents. But most generic agents only have limited information and don't know the most important aspects of your business, like your actual customer conversations, your sales history, what worked last quarter and what didn't.

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57:16And now HubSpot for Startups offers this service at up to a 90 % discount exclusively for eligible startups. Visit HubSpot.com forward slash startups to learn more. That is HubSpot.com forward slash startups. Did you think you were going to be the chef at the time? No. Did you know who you were going to partner with or no? No. So what happened was I learned watching Joe and other restauranteurs, the biggest reason why restaurants don't work out if it's, you know, on the restauranteur owner's part is because there's always been this classic tension between the restauranteur and the chef. It's been happening throughout history, right?

57:56It's a classic thing. The chef wants to make this food. The restauranteur wants to make more money. and they're fighting all the time about these things and then eventually they break up. That's an age old, that's like the stereotypical restaurant story. So I watched that happen a lot of times, right? While I was watching the industry so closely. I also realized that the best partnerships were when, you know, were when restaurateurs and great chefs were partners. That was still somewhat of a novel idea, right? You know what I mean? And so I, from day one, was looking for who am I going to be partners with?

58:35I'm not going to hire a chef. I'm going to look for people that have the same ambitions that I have, but most importantly, that can make the most incredible food in the world. And as I'm looking around for spaces, so, you know, everything has, so simultaneously, I decide that the restaurant I want to open, which is my favorite type of restaurant was whatever my version in my head of Carbone was at that time. Carbone's going to be the first restaurant you would do? The idea of this elevated Italian-American restaurant was my big idea, right? Because what I saw was the following. And you know, to me, everything made perfect sense, but other people didn't see it, right?

59:22I saw that I'm some of my favorite restaurants to go to, you know, Molino's, Colina Tella, Rao's, et cetera. These are the best experiences. But like at the end of the day, the food is not that good. And they were very expensive restaurants. And I would spend as much time, as many times I could go there, spend all my money going to these places. That's how much I love them. I love the moves at the beginning of the meal. I love what they put down. I love, I love the whole thing. And as a New Yorker, that's like the most classic style, you know, New York restaurant, right? These, these kind of finer dining Italian restaurants.

1:00:04My idea was what if I take this, but we take the entire thing to a different level. So instead of a veal shop being the shittiest veal you could buy pounded this thin, right? You know what I I mean, why don't we buy the best veal you can buy and make it a beautiful chop and still make a veal parm out of it, but not pounded so you're eating breadcrumbs. You know, these little ideas. What if I made a lobster fra diavola, but the lobster was perfectly cooked? Never had happened at that point in time. Never. Okay. It never had happened. You know, simple ideas like this, right? What if you reinvented a Caesar salad, but the lettuce was perfect baby gem lettuce and you use this ricotta salata instead of pari?

1:00:47What if you took these dishes and gave them the love and respect that people would give when they were cooking fancy French food in terms of ingredients, sourcing, et cetera, and you applied that to Italian American food and to this archetype that I was very much beloved by New York and beloved by me. especially. And right around the same time, my two partners opened a small, you know, it was 10 seat Italian American restaurant on Mulberry street. And it had started to gain some traction and it was, you know what I mean? People were talking about it and they served sandwiches during the day and they served a five dish prefix menu for$35 in the evening.

1:01:33and people would line up to go to the$35 prefix. And so it caught my eye. And at first I just had the sandwiches during the day and they were spectacular. And they were very much in line with, you know, this philosophy that I was looking for. They were doing elevated versions of chicken parm sandwiches and of chicken franchise sandwiches, all the same idea, but in sandwiches, right? And at night they were doing reinvented versions of classic Italian-American dishes, right, with different influences and a little bit more avant-garde in that way. But it was still this elevated version of truly Italian-American cooking.

1:02:17And at this point, I'm a food expert, right? You know what I mean? I'm eating, you know, six meals a day at different restaurants. I'm tasting food, again, for a living at that point. and I go into that restaurant and another restaurateur I was friends with took me there said you got to try this place I didn't have a restaurant or anything at that point he knew me from my web stuff and we were friends and he took me to this you got to try this place I was so blown away by the food and I was like, this is crazy. You know what I mean? Like I've eaten the hundreds of meals I've eaten. This is by far the best food I've had.

1:02:59And it happened to be the exact same philosophy and genre of things that I was thinking about and actually actively looking at spaces to do. So, you know, that night I went, you know, Richard Mario working at the pass and we started talking and they tell the story all the time that like, you know, all the guests would come over and start talking to them. But like when we started talking, it was a little different because I knew what I was talking about. Right. So the high level food conversation, which has been the rest of what we've been going on now for 15 years together. But so we had this great conversation.

1:03:34I was blown away by the meal. I got home that night and I told my girlfriend at the time, who later became my wife, I said, I think that I found the guys I want to partner with. And I want to bring you back to the restaurant. I called because there was a line around the block. I called just doing what I would all, you know, you know. It was a Hail Mary. I didn't really know them or know what was going to happen, but I didn't want to wait on line. so I called and I said hey it's Jeff Salaz and you know I was hoping I could come in tonight for uh two people and they're like the girl who picked up Nicole who ended up working with us for many years after said uh said you know uh hold on one second it was a leap of faith that I'd have any idea who I was I wasn't a well-known person at this point you know I mean in restaurants I was But, you know, it all comes full circle because Mario, my partner, Mario Carbone, had worked at Del Posto, which was Joe's restaurant.

1:04:36And Joe and I, when we would meet all these times. As your partner on the. On Dine Private. Yeah. And we would meet all these times. We would sit in the dining room with Del Posto, like you and me are sitting now. And we would drink wine and hang out. And we'd be working and laughing and talking and whatever it was. And he would see me sitting with Joe in the dining room. So he knew me and recognized me and we had said hi once or twice or whatever it was. And so when I called, they said, you know, actually, we'd love to have you, but can you come in at 10? Is this after you had the high level conversation with them?

1:05:10We had just had a quick high level conversation on my way out. Okay. Five minutes, 10 minutes. Okay. And I only knew later because we tell this story all the time that they felt that, you know what I mean? I thought it was a great conversation. They felt the same. And apparently they felt the same. They said, can you come in at 10 p.m.? I said, you know, sure. She said, you know, because Mario gets a service at 10 and he would love actually to talk to you about something. Oh, great. And I said, that's crazy. I want to talk to him about something. That's why I'm coming in. This is all real, not made up.

1:05:41I literally say, like, I remember hanging up and being like, it's the craziest thing to my wife, Allie. I said, Allie, we got to go at 10 because the thing I was telling you about, he wants to talk to me too. So we're going to go with 10 and I'm going to go out with him after and we'll talk. And so we went for dinner and after service, him and I went for drinks. And, you know, the rest is kind of history. I mean, we basically sat down at the Jane Hotel. I told him my idea, what I wanted to do, you know, what I wanted to do with, you know, Italian American food. And he immediately said, that's exactly what we want to do.

1:06:18That's our dream. We were there till four or five in the morning, just talking about what we wanted to create. You know, when we talked through, he had worked for Joe for a long time. So we talked through like, we don't want to be, Joe only made Italian restaurants for the most part. We don't want to just make Italian restaurants. We want to make different types. And should this first thing work, you know, what's my ambition is to be the biggest, greatest restaurant company in the world. And my ambition is to grow into hotels and into much bigger things, right? And the entire hospitality experience.

1:06:54We talked about all these things in our first conversation, which has basically been the exact roadmap that we have followed up until today, right? Was talked about in our first conversation. and we stayed there all night talking and it was like you know meeting your uh you know soulmate kind of you know like you're like if you're playing in a band you guys start playing and then it just all starts working i then met rich you know the next day and we decided to you know to partner up and you know i i quickly started working with them at teresi which was the original restaurant, different than the one that it is now.

1:07:32From there, we started on our path to try to find the right space to do Carbone. And so that was probably in, you know, the summer of, they opened in January and that summer I joined them and we set our sights on creating what would be the greatest Italian American restaurant ever opened. And with no other ambition, the ambition was only to be the greatest New York style Italian American restaurant that had ever opened and to really truly reinvigorate this art form that we all had grown up with together in New York that was slowly fading and being kind of left for dead. Right, you know what I mean?

1:08:16Like no one was paying attention, right, in fine dining to spaghetti and meatballs, right? I mean, fine dining at that point in time had become this very, very, very serious tasting menu. The chef's always right. I'm going to serve you these five dishes. That's all you can have tonight. That's the only thing that I'm making. No substitutions, no allergies. You know, you eat what I tell you and say thank you. That was the general tone of restaurants. And people loved it. That was the general tone was, I'm going to go in. if I want to eat a great meal, you know, a great fine dining meal, the only options as we were coming up.

1:08:57So we loved this Italian American thing. And we were also very blatantly and very collectively fighting against something that we also liked at one point in time, but we're at this point just sick of, which was this incredibly inhospitable robotic style of fine dining, right okay which was didn't make any sense when you started to break it down the whole idea of hospitality the whole idea of restaurants is taking care of your customers when did it become that you come to my restaurant i'm telling you exactly what you're eating you can't have anything else i don't care what your preferences or your allergies are when did that become the way that people want to eat it had its moment and we basically were ready to say like we're done with that.

1:09:42And so when we came out with Carbone, which the Italian American restaurant has that spirit of abundance built into it, we celebrated to the maximum. That's why, you know, Carbone famously has, I made the menu, the biggest menu in Manhattan, right? Because at that point, everyone was giving you these tiny little cards with like six ingredients listed on it, that everything had become so austere. So our menu was big, it was bold, there was 70 things on it. And on the very top of that menu, it said a pieceri. A pieceri means whatever you want, right? Because my whole thing and our whole thing was that if we're so good, if someone asks for a piece of grilled chicken, why can we not make that for them really well?

1:10:25Like, what that means is like, we're not that good because I can only make you, if I, anyone, just so you understand, without even that much culinary training could make you four or five dishes. If they make the same exact dishes every single night and probably get them to a point that is acceptable, right? Obviously, you need to be great for it to be great. But the whole difficulty of a restaurant is that you've got 70 different dishes. All that's got to be prepared for. How much do you prepare? What ingredients came in? Did they all come in right? You got all these different moves. You got hundreds of moving parts just to put out the menu that you're putting in front of people.

1:11:01That being said, that's your job. Like, you know what I mean? Your job is to do that at an incredibly high level if that's what you're putting in front of people. Now, if I have the ingredients, obviously you come in and you ask me to make you Chinese food. That's what I call food terrorism. That's not, you know, that's like coming to, when people come to our Italian restaurants, they love Italian food, but they have nothing with onions and garlic, which actually we now accommodate. But at the time, we thought that was the craziest thing. You're coming to an Italian-American, you can't eat onions and garlic.

1:11:30but um but they're outside of crazy requests you know i mean our opinion was we're here to serve you we can make you anything you of course if you want that plain and not with sauce on it we can do it of course you want a pasta done a little bit of that pasta with this of course we can do that what do you mean we can't do that and that was at that point in restaurants that was a crazy thing so we came in not only with this big bold italian restaurant you know serving the best versions of Caesar salads and beef carpaccios and baked clams and, you know, obviously the spicy rigatoni vodka and, you know, different pastas and veal parm and all these different dishes done in a way that no one had ever been presented, a quality of product that no one had ever used for them.

1:12:18And that really resonated with people. And what really also resonated with people was that we created the category, which is now thrown around in every conversation of experiential fine dining, meaning that coming to Carbone because of the nature of what we created, because of the types of captains that I went out and hired, you know, they all were part of this movie. We were telling, to your point earlier about, we were telling a story. We were finding our voices in our creative process. We didn't realize what we were doing at the time that now guides everything that we do, But we were creating that story, right?

1:12:54This was 1959, you know, New York, little Italy, you know, we were on Thompson Street, which had a great Italian American history. We were in a restaurant called Rocco, which was the oldest open when we took it over, Italian American restaurant that was still open since 1929 in New York City. So we always loved history. That was the space we put the original Carbone in. We kept the original sign, which was obviously become an iconic thing. Now, explain the sign part because that was interesting too. The sign is a crazy story. So this is my first big lease I'm negotiating. It's our first big restaurant.

1:13:31But, you know, we found the space because, you know, I was one day standing there and a guy I knew taps me on the shoulder and he says, you know, I think I have a space. We've been looking for a space for Garbon for over a year. Why was it taking so long? Because it needed to be the perfect space, and we wouldn't settle for anything less. We had our restaurant, Teresi Running. We decided we were going to build a sandwich place next door called Parm, which ended up being the first restaurant that I built from scratch, and that was more of a sandwich shop. Small, though. We're talking about like 18-seat restaurants.

1:14:06That happened to be we moved the sandwich concept out and moved it next door. we did that because we just, we, we, we were waiting patiently developing the food, developing the concept, but we hadn't found the space and we weren't going to, we knew it had to be the very specific type of space. And one day a guy came up to me and he said, you know, I think I have a space you might be interested in. And he said, you know, it's right around the corner. And I said, great, let's go right now. And he walks me down the block. We will turn the right on Thompson street and I see the sign. And as we're walking up the block, I look at him.

1:14:42I say, we'll take it. Just from seeing the sign. Just from seeing the sign. He goes, you haven't even seen what's inside. I said, it doesn't matter. I know this sign. I know this place. This is exactly what we're looking for. We go in. Obviously, the place is a mess. It hasn't been maintained in many years. There's some old Italian guy in the corner smoking cigarettes and like, you know, that's been there and not paying rent for six months or something. At that point, he's like, I'm dying to get rid of this guy. I don't know what to do. He said, I said, well, give him until the end of the year.

1:15:12Let him get the holiday. We should start January 1st. I was trying to be very friendly. And in the least, I had put very specifically that I had this vision that this sign, we had to do a whole bunch of construction inside and change where the kitchen was and dining rooms and all this other stuff. But it had the perfect bones. that had this incredible history the building had an incredible you know history of you know new york and italian american um stories and this place was obviously a very storied place it'd been there for close to 100 years and basically we uh you know put in the lease that we needed the sign the sign had to stay and so they put in the didn't seem like a big ask they put in the lease and right Right before we were going to execute it, I get a phone call that the owner wants$10 ,000 for the sign to keep it there.

1:16:16Now it seems irrelevant at this point in time, but for us at that point in time,$10 ,000 was like a big decision and conversation. right so you know we had like a whole man and you know we decided and you know as the sign has to say we finally let's just pay him like it's worth it in the scheme of things this sign is very important even though we gave him the money you know in kind of classic new york fashion he was so angry that he was being removed even though he hadn't paid rent in close to this is the guy the guy who would have been in the restaurant for the last 40 years or whatever he's not the one that's getting this$10 ,000 though, right?

1:16:55No, he's getting it. Oh, okay. He's saying, if you want me to leave the sign, I want to know. Okay. So we agree finally. And New Year's Eve was supposed to be his last night and we were taking over January 1st. And that night, it's a neon sign if you've been to Carbone, right? So it's a, this old sign that, and it said, it was called Rocco, right? And it says Rocco, wines and liquor, below it in green, and it had Rocco in red. and when i show up on january 1st there's shattered glass from the sign is there but all the neon had been shattered by him you know as like to like you know like you know like a fuck you on the way out fuck you on the way out he shatters all the glass at that moment i look at the sign and i say at first i'm you know pissed off i'm yelling i'm cursing i'm calling a landlord, I'm doing the whole thing.

1:17:48And then after a few minutes, I'm like, I think this guy gave me the biggest gift he could have given me. We're going to keep this sign. And instead, we're going to put Carbone and Neon on top of the Rocco sign, put back the wines and liquor. And that became what is probably the most iconic sign in fine dining restaurants in the world, which we now have obviously all over the world. But that sign was incidental only because he broke all those lights, did it become the quintessential carbon sign that it is? We're like deep into this conversation just because I think like your lore and history is really, really fascinating.

1:18:21And it's just so in line with like the rest of the people I talk to, the people, it's my own experience, people I read about, it's like this like true interest revealed early. And it's like so smart. And you kept using the word natural, which I think is really important, that this just felt natural to you. And I think that's the biggest thing. It's like, you want to get to the top of your profession. It's going to be really hard fighting against your own innate like desires, stuff you're interested in. you should just go with whatever like is natural even if it's low status or you didn't even see you know i'm sure when you started you thought okay i can dominate this industry but the size that the industry has gone has become the amount of opportunity that you've already experienced before and that's in that's ahead of you too it's just probably beyond what you could predict right there uh back then can you give us like the state of the business now like just describe when someone says okay what's major food group like what does it entail so i would say at this point major food group is a you know on its way to becoming a fully vertically integrated hospitality company so you know we started as a kind of luxury fine dining restaurant group which is what we you know for the majority of our careers we've been uh and then now we've started to add to that you know private members clubs which has been a huge business for us branded residential towers like We're just finishing one in Miami right now called Dilla, which will be a, you know, 80 units, super high end condo building.

1:19:43Right. That we're doing that we've designed. We're doing all the amenities for all the food and beverage, all the apartments, you know, every detail, everything you touch, all the everything that you feel in there. um so we're doing residential we're doing hotels and we're really kind of expanding the scope of what we're doing so that we can you know really so we can take care of you 24 hours a day say more about that you know i think that you know right we get right now our approach to hospitality you know has proven to be one that's incredibly uh successful and beloved. And, you know, I always say that, you know, our process is not that difficult.

1:20:28We just create places that we want to go to, right? I mean, that's been our entire ethos is we build places where we want to go. That's it. And if we don't want to go there, we don't want to build it. Whether that be a restaurant or a private club or a hotel, like we know how to do and we know how we would want it done. And we create those environments. So, you know, being able to apply, you can apply that idea. The most difficult part of any property, any hospitality property is the food and beverage. It's the most complex, no matter what. But what's happened over the last, you know, decade plus is that everyone has come to realize that.

1:21:11So, you know, people building hotels, people building buildings, people building, you know, much larger format things, realize that the food and beverage is actually the most difficult and theoretically at this point the most important part of it. So that's been our way into spreading our wings to say, we don't want to just take care of you, you know, for the three hours you're sitting in our restaurant. We want to take care of you from the minute you wake up to the minute you go to bed, and the way that we do that is our style of hospitality. We're going to do that the way we would want it done and we're going to apply the same philosophies that we do to everything else in restaurants to the greater hospitality landscape.

1:21:57So that's really what we're focused on today as we grow into not just being a food and beverage classic restaurant company, but also adding all these different arms that come with it. And, you know, then you have other verticals that are not related to, you know, you have luxury hospitality and everything that we're building in that. For example, you know, we've taken the Carbone brand. It's become such an incredible lifestyle brand, you know, that we've applied that and we now sell Carbone tomato sauce. I don't think people understand these products. Now you're essentially selling products, right?

1:22:31They can scale to insane, like insanely large degree. Yeah, so Carbone tomato sauce, for example, which is sold in thousands of doors across America, right? More than you could ever penetrate with a restaurant. Only so many people can come to a restaurant in a day or a month or a year, right? So, you know, Carbone sauce has become an enormous business for us, which is growing at a pace we never even expected, you know? And it's really put us at the top of kind of the premium sauce category. and it actually has worked incredibly harmoniously where even though that's a product that you sell, that you buy in the store, you know, and costs less than$10, right?

1:23:14It's a little piece of what people see and aspire to, you know, at the restaurant and they don't contradict each other, right? One is at the end of the day, they're both standing for the same thing, which is being the best expression of something that you're familiar with, right? When I say that, I mean that, you know, everyone's had jarred tomato sauce, right? Whether it be ragu or whatever it might be. We make the best one. It's not going to be something you've never had before. It's going to be the best version. That's our entire thesis around restaurants, right? And food. If you look at our menus, very rarely am I going to serve you something it's the first time you've ever had these foods or this dish.

1:24:00Our goal is just to make you the best version that you've ever had, which is that, again, that same philosophy goes throughout everything that we do, whether it be how we build a building or how we make a jar of tomato sauce. All the same process. I recorded an episode for the show here in New York with James Dyson, who is my personal hero, just because he's like a completely, probably the most determined, stubborn, like indetermined person I've ever met. or have ever like read about. He like struggled basically a decade and a half and just failing after failing after failing, did 5 ,127 prototypes before he got it right, his vacuum cleaner.

1:24:36And that was his whole point. He's like, I don't have to invent markets. I can just look at the market, find a product that can be improved and then just relentlessly re-engineer and optimize it. And the end result, because he hasn't interrupted the compounding for 45 years, he owns 100 % of the business. It's like one of the most valuable privately held businesses by a single person in the world. And it's literally just like, that vacuum cleaner sucks. Everybody uses vacuum cleaners. I'll just make a better one. That hairdryer sucks. Yeah. It does it over and over again. That's our whole thesis.

1:25:02I mean, that's really our whole thesis. It's almost like, I think I said on that episode, it's like he identified like your mediocrity is my opportunity. That's really the thing in our belief about food and hospitality. Again, it's that everything has been done in one way or the other. Has it been done the right way is a better question, right? So there's always something to look at in our businesses and take something that generally people already like and make a much better version of it, right? You use the vacuum cleaner. It's like things that people already are eating. People have been eating spicy rigatoni, vodka, you know, with vodka sauce since way before you and I were born, right?

1:25:46But why does this one so much better than all the other ones? It's a very simple thing, but it's something that a lot of work and thought goes into. So I want to go back. You guys had this, remember this conversation with your partner the first night you stayed up till four or five in the morning talking about we're going to do, you know, Carbone first, but we want to do other things. What was the first thing that you did that was not a normal restaurant? The real first divergence, you know, was getting involved with hotels, which we did in Boston at the Newberry, which was really our first foray into hotel.

1:26:19What did you do there? We created and opened the entire concept. So we became partners in the concept and we were brought in to basically do everything from design to execution to branding, etc. Were you guys a partner with a hotelier? Yes. So the hotel group brought us, that was building it, brought us in to help with their, they needed, wanted our assistance with luxury execution. But do you own a piece of the entire project? We own a piece of the brand. Okay. And we have restaurants and we have bars and we have all this stuff inside the hotel. But we really brought in to design the experience.

1:27:02And that was years ago. And then I'd say the biggest step that we've recently taken in the last few years has been, you know, private members clubs. We started with ZZ's in Miami where you and I had dinner. It's my favorite restaurant in Miami. I appreciate that. And then we opened a much bigger one here in New York, you know, which has two. It's in the entrance to Hudson Yards. It's got two restaurants, three bars. It's a much larger thing. Why make it a private members club as opposed to just another restaurant? Why did you decide to do that? Private members clubs are fantastic because it's, you know, I love win-wins, right?

1:27:40So a private members club is a win for the business and for the customer, right? Because for the business, it's a much better business, right? So all the things that make the restaurant business the hardest business, right? Somewhat, if you know what you're doing, somewhat go away when you add a subscription model to it. Now you're Netflix with a restaurant, right? You have people paying annual dues and monthly dues every single year. It automatically renews. You know, you have, if you do your job while you have very little attrition and you've got it, you know that every year X amount of dollars of subscription revenue is coming in.

1:28:19So you start to look at it. It's a very different business in the restaurant business where you have virtually no visibility, right? If it starts to hail one day, that's not going to be a good day in the restaurant. If it's pouring rain, that's going to be a different... The restaurant business has a hundred different variables that are going to affect. It's spring break and everyone's away. The week's quiet. There's a hundred different things. Sure, at our level, you know them and you can predict them to some extent. But you're putting on a new show every night where the variables are always changing and you got to do it the same exact way you did it the night before.

1:28:57That's why it's the hardest business in the world. Everything's got to flow perfectly. So you're full every night and nothing is preventing people from getting to your restaurant. A private club, right? You know, again, you now have a subscription model below it. So that's, that's now fixed, right? And it changes the whole nature of what you're, that's on the business side. That's why everyone's trying to go into private clubs because it's a much better business, right? But the other side of it is that that wouldn't be the only reason we could do something like that. The other reason is that at the end of the day, it's what customers want in the luxury sector because you can apply a much higher level of personalization.

1:29:40You can apply a much higher level of, you know, kind of knowing your customer and not just anticipating what they want, knowing what they want, right? So here, you know, our job as a restaurateur is to anticipate what guests want. Private clubs, you don't need to anticipate. You literally have them fill out a form of what they want, right? So, okay, okay. So you know what kind of water they drink. You know what their drink of choice is. You know where they like to go. You know their favorite dishes. You know their diet. Yes, you know that in a restaurant, but sometimes you got to talk about it at the table.

1:30:14everything is more natural more fluid it allows for a much higher level of service and the interesting thing we've done in private clubs is that you've seen now that private members club have started to become much more popular they always were big in london i was gonna say what you have to know the history of this like where so private members clubs were always big in london right so even for you know for any of us that have traveled to london you You know, generally, you know, the majority of places you'd be going or being taken for business would be private members clubs, right? That was the culture in London.

1:30:50Everything was a private club. That's what it was. Still is to some extent. When does it come to the States? And so about, let's say, five, six, seven years ago, you know, forget about Soul House because that was always something a little different. the super luxury, super exclusive private clubs, right? You know what I mean? Which were prevalent in London. The idea started to percolate into New York and kind of right around the same time, you had a few different private clubs open. The difference, you know, that with ours was that, you know, what I saw and what I knew from London from being at all these places in London was that the thing about private clubs was that it was all about being there.

1:31:38The food was never any good, right? So you'd go there for dinner, but really you just wanted to go there to have a drink and kind of see what was going on. You never sought out to go there for dinner. Aside from that, it was a cool place and it was cool to take your friends to your membership club for dinner. What we did was that we applied our expertise, which has kind of, I think, set us apart in that space, which I take a lot of pride in, which is we're very, very much focused on food and beverage. Our club, ZZ's, the food comes first, right? It's a great place to hang out. It's a great place to sit and have drinks.

1:32:16Of course, you're going to build a beautiful place that people can sit and congregate, and that's a given. And there's lots of now examples in New York. But we actually have a point of view, which is that, for example, ZZ's in New York, right? We have two restaurants. We have an Italian, a private carbone that has, you know, about 30, 40 % dishes that are only available there. We have our ZZ's classic Japanese restaurant. We have bars that all have their own snacks and whatever else. We're also the first people to ever have a culinary concierge. So, you know, to double down on that idea, if you're a member of ZZ's, you can call 48 hours in advance.

1:32:55You can call your concierge. You can say, you know, I have investors coming to town from Egypt. You know, can you make me an Egyptian feast, you know, for my dinner? It's going to be six of us. And we have a team of chefs who put together whatever you call and ask for. It could be, you know, a theme, an Egyptian feast. It could be, hey, I want you to make, uh it's my mother's birthday here's uh her three favorite dishes that she had or here are her three fame my favorite three recipes of hers can you remake them for this dinner you know people do that kind of stuff a lot people recreate their you know my favorite birthday meals or anniversary people go you know we get and we people you know we get everything from people wanting to do hey, can you make me 10 courses of just beautiful caviar dishes to I want chicken nuggets and Big Macs done at the highest level.

1:33:51You know what I mean? And so we'll do anything. We'll make you anything you want and do it very thoughtfully. But again, it's all about indulging and indulging in kind of food, beverage, and excellence around that topic. Everything else is just amenitizing around that. At the end of the day, I always tell people, even friends, you don't, if you're not focused on eating and drinking, there's no point in being a part of our club, which is very different than most clubs because you join just to kind of go hang out there and have a drink that's okay. I just like it because the food's great. That's the idea.

1:34:25I also like it's way quieter than there. Yeah, well, that's the nice thing. But the food is just. You can control the crowd and it's all about the food. And that's what keeps people interested. You personally hang out there more. I feel like you gravitate towards that spot more than anyone else. Yeah, I definitely spend the most time there. I mean, in Miami, it's my de facto office. I love being there because it's got, A, it's got the, you know, I love the food. And I think it's, you know, it's the best environment for me to spend time in and be able to meet with people and have the right people around me.

1:34:57As you move forward, are you going to try to expand the members club more than the traditional restaurants? Listen, traditional restaurants for us is an ever-growing thing, right? Without, you know, just based on things that come to us, you know, we don't say, okay, we're going to open 10 restaurants this year. So how do you do future planning? Let's actually talk about that. We look at, you know, because of the nature of our business, you know, we're generally dealing with so much incoming opportunity. Our general process is sorting through, you know, what could be interesting and what's not interesting at all.

1:35:36Who's pitching you and what are they pitching you? Everyone you could imagine under the sun, generally people that are building new cities, new developments, new neighborhoods, whatever it might be. new stadiums, you know, whatever it might be, where food and beverage plays an integral role and hospitality plays an integral role. And so that's all around the world, right? So globally, so, you know, we're constantly looking at different opportunities and geographies that make sense to us. You know, I always say it's for me, it's not such a, you know, hard equation, right? If you tell me, is this an interesting city to open a restaurant in?

1:36:16All I say is, is find me two or three restaurants doing$20 million or more, and then it's an interesting city. There's not that many cities in the world that have restaurants doing 20 plus million dollars a year, fine dining restaurants. And when you can find those places, you already know that you can come in there with a great expensive concept that if you do your job well, you can blow away the competition in those markets because the business is there. You start in New York, maybe the most difficult place in the world to start a restaurant. But then you came down, I think this was accidental.

1:36:52Your accidental discovery that Miami was like this wide open market where people love to go out, they love to spend money, they want great food, and you essentially found a market with almost no competition. Is that the way you would describe, the way you spotted this opportunity? Miami was one of the great surprises of my life, you know, in the sense that, you know, I ended up there the day before, you know, COVID began, ended up getting kind of stuck there. What I started to realize, you know, as a New Yorker, when you would historically have gone to Miami, you know, you'd go for like the weekend with your family, you'd go for a night to party and come back.

1:37:32You know what I mean? Like it was really a place that you'd go for a couple nights and then, you know, go have a good time, come back. and what I realized after living there for you know the kind of first six months that I was there was not only is this an incredible place to live just in general you know what I mean like the entire place is a very special place that's not at all what you experience when you come in for your quick like come to our Basel to party for three days or come to you know this kind of thing to hang out for a couple of days. It's this incredible place with incredible people.

1:38:10And also with what you saw that happened during that time with this incredible drive that was not related to, you know, party affiliation or anything political, you know, there was a drive where there was a drive between all the people that I would meet in Miami as the momentum towards Miami started to make Miami the best city in the world. And nothing, no matter who you were, right, which I had never experienced because there's so much pushback on one side or the other, right, in New York about everything, right? Everyone's got, if you've got a good idea, someone's got a reason why you shouldn't build that.

1:38:54You know, there's always a push and pull on everything. And it's very hard to make a lot of progress quickly on things, whether it's filing plans to get a restaurant done or building an entire neighborhood, whatever it is, or moving a tree. Try to move a tree in New York. Your grandchildren will still be trying to move the tree. You wanted to move a tree in Miami, they move it the next day if you're doing something great. They were running. And that's why Miami exploded the way it did is that, Of course, it came from the leadership that was there. But what was amazing to me was that the entire city, everyone you'd meet, right, was all everyone would work.

1:39:34It was working towards the same goal, which was basically like, we've been waiting. We have the best city in America, right? You know what I mean? We've been waiting for people like you to show up and do your thing here. We're ready for more sophisticated products. We're ready to not only have restaurants that are in nightclubs. We're ready for all this stuff to happen. And so I felt that in such a positive, amazing way. How many times did you have to go out to eat to realize, oh, I'm going to clean up here? Not that many, right? You know what I mean? There was only a few places that people went.

1:40:07So within a few months, you know, I basically said, you know, I called my partners and then And I said, listen, the opportunity here is the biggest I've ever seen. You know, on top of that, it was in the middle, and it was New Year's Eve every single night. So every single night I didn't have a restaurant open. I was like, how do I not have a restaurant? Because everyone was there out every night. It was the only place that was open. So I very quickly, you know, found a space. I turned around the Carbone on Collins Street in 100 days from taking the lease. Got it open. Wait, the one that's south of Fifth?

1:40:46Yes. You did that in 100 days? In 100 days from the day I signed the lease to the day we opened, which was one of the great restaurant feats of all time. Is that one of your highest grossing restaurants? Yeah. And so, I mean, that's an amazing story. I mean, I basically found a restaurant that had closed down during COVID because they were afraid about what was going to happen. It was sitting there relatively new and, you know, relatively unknown, you know, in the sense that I knew that I could come in. It was in a perfect location. Everyone says, how did you find this location? And I say, well, a hundred yards in each direction, exactly, basically, from this restaurant are two of the highest grossing restaurants in America.

1:41:31Joe's Stone Crab and Prime 112, since I've been a kid. Okay. these are two of the highest grossing restaurants in America. Every time that list comes out, here are two of them. We're directly in between the two of them. That's all the math I'm doing. They're like, oh, well, what about the fan cross the street? I'm like, I don't care about the fan cross the street. You got the two highest grossing restaurants in America on either side of me. How bad can this be? You know what I mean? Like this is going to, of course it's going to be a great location. So I basically told them you can change any, I knew they couldn't do that much in that amount of time, right?

1:42:02So I was able to say things I don't normally say. I had like an Ocean's 11 style. Everyone was all over the country and we flew them in from all over the, you know, all my guys, all my guys that, you know, my, you know, we all flew in, everyone flew in to meet me. Mario came down and he ended up moving down there as well. And basically I said, you guys can do whatever you want here. And I had my designer there. He flew in from San Francisco, Ken Falk. And I said, here's the thing. You can spend as much money as you absolutely want, but there's two conditions. Nothing can be moved. So if there's a light, it can be a different light, but it has to stay there.

1:42:46If there's an outlet, there's an outlet, it has to stay there. The kitchen does not change, right? The bar that's there, you can do whatever you want to it, but it cannot move. Nothing can move. Bathrooms there cannot move. Do whatever you want inside. But here's the other catch. You have 90 days to do it. So go, feel free. It's the middle of COVID to spend as much as you can possibly spend to make this look and feel like the most incredible carbone in the world. But you cannot move a single thing. Because I know from doing this many, many times, that's what takes forever, right? You know, it doesn't take that forever to put up new curtains and paint and make it sound.

1:43:23But Ken and our team did an incredible job. It was ready in 90 days. We didn't move a thing. And it was a brand new restaurant that opened. And we didn't even change the floor plan. The floor plan was the same as the restaurant before it. And that restaurant with the same floor plan was doing about, you know, call it$7 million in revenue. And when we opened Carbone with the same exact seats, right? And I mean, that restaurant does over$30 million in revenue. So that is the smartest way to build restaurants, right? Because people invest so much money in building restaurants, right? Even here where we're sitting, right?

1:44:10We did spend a lot of money, but relatively to build this, right? From scratch would have cost hundreds of millions of dollars today. In a way, the greatest thing is when you can find something that already has the bones because where people get stuck all the time is you invest so much money into build outs that you can never catch up. When we came to Miami, we were able to open, there was so much opportunity. There was no one doing what we were doing. There was no great experiential fine dining. There was no real fine dining to begin with. And certainly there was also a culture there that the customers were ready for it, but there was no one there to train the staff.

1:44:54So everyone would come to me and say, you know, like, how are you going to open all these restaurants in Miami? There's no, the service there is horrible. And that's the first, everyone would say that. And I was like, I don't think the service, I think there's no one here teaching people how to do the service. Right. And that's what we found. We had a lot of people that won't move down from New York. I gave kind of a this, you know, town hall meeting where I invited any of our employees that were, you know, in New York furloughed or not working to come down to Miami and that I'd have a job for them there.

1:45:24We had a lot of our from, you know, from bus boys to C-level executives moved down to Miami. And they're all still there. They're all incredibly happy. And they brought the New York sensibility. you know, we brought our training and have found incredible people in Miami. They just needed someone to teach them. And, you know, that's how we were able to open, you know, we've opened seven, eight restaurants in the last few years in Miami and about, you know, 12 total in South Florida and a private club. And we're about to finish our residential condo building. We take over the largest beach parcel in America, you know, the three acres on the beach on Miami Beach.

1:46:09What are you going to build there? Imagine the greatest beach club you've ever been to, right? I think European style beach clubs with the most incredible food, you know, our take on that. Again, going back to your kind of classic, you know, you've seen it before, but we're just going to do it a lot better, you know, on the kind of beach club and restaurant side, the site is huge. So we'll have, it'll have an addition you know have another restaurant it'll have private you know private rooms it will have a spa it will have incredible pools and beach i mean it's three acres on the beach there's no property like that in america so it'll be a a giant campus of kind of indulgence and fun and great food done in a way that in a level that has not been done before and with some you know lots of different you'll have your main kind of beach club restaurant but You also have dinner restaurants.

1:47:00You'll have a Seidel's on the beach for breakfast. You'll have all these different elements to it, which are very exciting. But that's our next big project there. Jeff, this has been awesome. Way before I've gotten to know you, which has been an absolute pleasure, you've made my favorite products in terms of the restaurant space. And now that the more time I spend talking to you, the more it makes sense, that it all flows from this obsession and this desire you had to just be really, truly excellent at what you do. So I really appreciate you taking the time. This is awesome, man. Thank you. Great to see you.

1:47:32I hope you enjoyed this episode. Please remember to subscribe wherever you're listening and leave a review. And make sure you listen to my other podcast, Founders. For almost a decade, I've obsessively read over 400 biographies of history's greatest entrepreneurs searching for ideas that you can use in your work. Most of the guests you hear on this show first found me through Founders.