In short
Podcast Summary: HUNGRY Episode on World Class Operations
Episode Title
How To Be a World Class Operator - Ole & Steen, Wagamama, SoHo House, Caravan Managing Director
Overview In this episode of the HUNGRY podcast, the conversation centers around the unique challenges and insights faced by operators in the food and drink industry, particularly within challenger brands. The discussion is led by Graham, a seasoned managing director from well-known brands such as Ole & Steen, Wagamama, and SoHo House. The episode explores the nuances of the founder-operator relationship and offers valuable lessons on effective management and operations.
Key Themes
Founder-Operator Tension
- Dynamic Relationship: The relationship between founders and operators is often marked by tension, characterized as a "bull-ragingly bombastic" dynamic.
- Balance of Control: Operators must learn to manage the intense passion of founders while driving operational success. This requires understanding the founder's vision and aligning with it while also establishing necessary operational controls.
The Role of Operators
- Steering Vision: Operators are tasked with channeling a founder's zeal into productive operational strategies.
- Building Trust: Operators should start with an "empty bank account of trust" when joining a new brand to build relationships effectively.
Key Insights and Principles
- Focus on Core Competency:
- "Do one thing well." Businesses should avoid diluting their focus by trying to offer too many products (e.g., fish & chip shops selling unrelated items like chicken nuggets).
- Decision-Making:
- 40/70 Rule: Operators need to find a balance in information gathering; 40% of information is insufficient, while 70% can lead to paralysis. The sweet spot is knowing when to make decisions.
- Managing Expectations:
- Under-Promise and Over-Deliver: Always set realistic expectations, especially when working closely with founders.
- Communication and Conversations:
- A problem only exists in the absence of the right conversation. Open dialogues can prevent misunderstandings and foster a collaborative working atmosphere.
- 1-2-1 Meetings:
- Implementing a “Stop, Start, Continue” approach in regular one-on-one meetings can help clarify expectations, highlight issues, and reinforce positive behaviors.
- Responsibility:
- Responsibility is defined as the ability to respond; this concept is crucial for effective management and leadership.
Operational Challenges Discussed
- Supply Chain Issues: Operators face challenges in managing perishable goods, such as fluctuating fish prices and seasonal variations in supply.
- Building Relationships with Suppliers: Establishing strong relationships with suppliers can help stabilize costs and ensure quality.
- Cultural Nuances: Different market dynamics (e.g., in Denmark) impact operational strategies; understanding local expectations and behaviors is vital.
Lessons Learned from Experience
- Hiring Practices: The importance of hiring the right people cannot be overstated. Poor hiring decisions can lead to significant operational challenges.
- Cash Flow Management: Understanding the difference between sales and actual profitability is crucial. A focus on cash flow ensures business sustainability.
- Training and Development: Investing in staff training is invaluable for operational success. It fosters a culture of growth and enhances employee performance.
Personal Reflections
- Graham reflects on his experiences across various brands, emphasizing the importance of maintaining a people-centric approach in business. He discusses how Norwegian and Danish cultures prioritize work-life balance, hospitality, and employee well-being, which he seeks to integrate into his operational practices.
Conclusion The episode concludes with a reminder that successful operations hinge on effective communication, fostering relationships, and focusing on core competencies. It stresses that the greatest lessons come from real-world experiences rather than theoretical knowledge, advocating for a holistic approach to management in the food and drink industry.
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Call to Action Listeners are encouraged to engage with the podcast host and share their insights or pain points as part of an ongoing dialogue about the challenges faced by challenger food and drink brands.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00I remember someone in the industry went, how do I know who's the manager? And I went, is it ticking over? Who's checking? Who's talking to guests? Who's touching tables? Who's looking at ticket times? And they were like, that girl there. I went, that's the manager. And what they're actually doing is not managing. I've got a uniform. I've got a position of power so I can lord it over you. And I walk around the clipboard and I'm not really bothered about my team. I'm not really about the guests. Early doors, you've got to be a super team player. even if you're leading you've got to be on the pitch
0:41Graham thank you for doing this mate yeah super excited as I said to you when we were when I came in here one I massively huge respect for this brand Olinstein but also I liked your career running up to today so you know sort of Wagamama, the chippies, which we're going to talk about because I love good fucking fish and chips. Caravan, Laura and Chris have been on this poddy. Jess is a really good mate of mine. And then obviously, you know, Nick Jones at Soa House. So I think it's a really nice mix of different cultures, you know, Kiwi, Danish, British, potentially Japanese, which I love. And so there's that part, but then I'm also really excited to explore the operator part.
1:27As I said to you, I've had so many founders on this podcast but there's definitely a tension between founder and operator that can even be a wonderful jazz-like dance or it can be a sort of uh you know malevolent kind of just head-bashing arguments all the time um so thanks fain i'm excited absolute pleasure let's let's start with chippies and looking through it through an operational lens and eye because i think this will give us fertile territory to how we sort of get on to the other parts um so what it talk me through like what are some of the uh operational headaches of running successful fish and chips restaurants you're dealing with um yeah you're dealing with two natural products so unlike burger pizza or whatever you're dealing with fish that won't go yeah i'll be exactly this every single time so you can buy weight you can buy size to a certain degree but you can't flex that in your prices unless you you know uber call and doing it all by weight and the same with potatoes you know doing the business for i think i probably did it nearly six years one year was you know absolute shite harvest and you know luckily we had such a good relationship with our potato merchant that we were getting it but our yield from a you know a 40 kilo bag would be half of what you used to do.
3:09You can't suddenly go, ah, hey customers, I'm doubling the price of chips because they'll tell you where to go. So you've got that fluctuation. And I think the reason that I was kind of lucky is really good relationships with our suppliers that would fix the price for the year. So we could go, okay, we haven't got that fluctuation. We know what we're dealing with. And then really getting close to them. so I went all the way to Norway, Ausland, went on the vessel, didn't go out to sea because they're out for ages but went on the vessel, met the captain so I could come back, tell the team, tell the customers, oh yeah this is us.
3:53We used to go out with the farmer, David, he used to take me up around the fens, we'd go to the pub at lunchtime, sometimes we'd leave, sometimes we didn't but you know he where was this sorry this was in this was this was um deep blue and then when I had my own business catch yeah yeah so sorry no where were you going to the pub like what was Cambridge so we were up we were up kind of up past the fence so kind of almost borderline of Leicestershire Lincolnshire Cambridge um and you know he he walked the fields pretty much every day and he could tell me exactly what was happening um you know would get the royal tour and he'd be like they're your potatoes these are the potatoes for you know the kind of the chinese chippies and these are pig food and those are and he was like oh i can't say i'm like what what he said no i can't say i can't say where was it it was for a well-known crisp company that aren't real crisps that base and lester that the the um you know you flip it until you can't stop thing in the tube um and i'm like that he said yeah there's no what you think there's real like loads of potato in that product wow scary but true so really really lucky in terms of all of the other challenges and i think that there's no there's lots of mum and pop operations so you know It's kind of in the family, so you're not as hard on yourself as you probably should be.
5:26Just for context, to deep blue for listeners, how many sites was that? It was a chain. Yeah, yeah, yeah. I joined and we had two. I left and we were in the mid-30s. Yeah. We would literally go to a town, find the run-down fish and chip shop where people were in their 60s going, we've had enough. Buy the shop, rebrand it, redo it. quality products quality people quality service and suddenly you know you bought a shop that was doing two grand a week and you're doing 20 yeah that was the model um how would you what was because i think chippies are so it's because as i was saying to you my mate's got his massive property business done really well but he he was thinking about going into opening a chippy because he's like mate the fucking margins are absurd if you if you can get it right yeah what are you doing differently because this will be this applies to any business you go in you say right how i get like improving the decor and improving like how do you get it something from 2k a week or a month whatever is doing a week to 20k that's 10xing something yeah yeah what was the deep you're looking at that mix of who uses you so when you uh as in like the shopper yeah the consumer the consumer and you're looking so if if the town had a waitrose we'd kind of go right tick we know that and you know it's that do you do you go with the the demographic or do you do you know the kind of psychographic that you're all kind of into and we kind of did that piece of work and and it just was we got a couple of you know brands that we could go they've done their homework and then did that usually you'd put hard-working people in there and give them a really nice little slice of the pie um and that made all the difference you've got a character behind the the range frying that can see you damn i don't mean i've got a massive one and we'll just you know that little bit of theater it just makes such a difference from your usual you know yeah yeah yeah what are you having mate yeah yeah yeah about 10 minutes and i yeah i lived in uh At the time, I lived in Banstead in Surrey.
7:37Oh, mate, yeah, that's like, this is where my mate lives. Oh, okay. Yeah, yeah, so I know that thing very well, yeah. So, our local chip shop. You've been to La Raj, the curry house, just out of interest. Fucking banging, isn't it? Yeah, really good. Yeah, yeah, yeah. Yeah, he always manages to sell you a little fart sauce on the side. Yeah, yeah. No matter what you're having. It's the best curry, it's the most underrated curry in the world. Super good. Yeah, yeah, yeah, sorry. My local chippy, super expensive. I mean, super affluent area. and every Friday I'd go there and be like, it's two products you need to get at the same time.
8:09And you queue for 20 minutes and it'd be like, oh, just waiting for the chips, mate. How difficult can this be? And the guy had one shop, absolutely minted, got to that success syndrome of, I don't need to keep trying harder, I've got these people. And I just thought, this is just something, if you can execute it really well. the packaging you know we spent a lot of time and working out this this was a deep blue yeah deep blue yeah um um i did catch after i left it we'll get on to that yeah um but yeah i mean packaging and just just raising everything and also just doing fish and chips you know so i oh you should do burgers you should do pizza you should do kebabs and i get the single operator gets kind of blindfolded and and just sees why do you think people do that because that's one thing if you're a challenger brand that's absolutely killing it in d2c but you're struggling to crack retail then you've got to listen to this maybe you've got an ocado listing maybe you've got a whole foods listing maybe you're absolutely killing it in selfridges maybe you're absolutely killing it in your farm shop and your indies but my friends making the leap crossing el chasm Crossing El Rubicon to grocery retail is not easy.
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10:03Northstar are not like another data company that force feeds you data like Fuagua that act like a NASA space mission. It's super, super simple to use. Their team are amazing and they actually get the challenger mindset. Northstar are your shortcut to smarter decisions, stronger pitches and investor confidence all built specifically for challenger brands like yours you don't need a massive sales team you need north star link in the show notes click that link and you'll be able to book a free demo with north star highly highly recommend that and thank me later because so on so on the a friend of the show rory southern he says just do one thing well correct just do one thing thousand percent but then but then I go to so Isha have you been to the Baron Isha yeah local booze I love it like they've got it's called Isha Best K over the road yeah when I'm drunk I'm in there and they do the most phenomenal kebab known to man yeah but they've also got a plethora of other things on the menu and I'm like I just don't from their perspective I don't understand why they're doing that because it's like surely it's just like just economy to scale just do get the kebab right get the fish and chips right get the pizza right yeah But why do you think from their perspective they add on this whole litany of different things?
11:14Because they'll be told, you know, you'd be really good if you did this. And then at some point a salesman will come in and go, oh, if you did this, look at that. And what they don't realise is that their sales of fish and chips, say, were 10 grand a week. And then they suddenly add kebabs. Yes. And they're going, oh, I'm doing 12 grand a week. But what happens over a little period of time is that that two just creeps in and then they'll sink back down to the 10. But they've lost a big chunk, 20 % of their core. And then they go, ah, remember when I did kebabs? We got a big lift. I'm going to do burgers.
11:53And then they get another big lift. And because they're taking... It's a constant cycle of trying to like... Totally. And they're taking their eye off what is the absolute one thing, the key thing you've got to get right. because the difference between a great bit of fish and a bad bit of fish is 30 seconds literally in in in the range yeah it's 30 seconds and then suddenly you got a pizza oven and and you've doubled your overheads of electricity you're going i need more staff i've got to get different packages in you know you're getting a harder time from the eho because you have all these different chopping boards and you just get in the weeds i've instead of going two supplies one for chips one for fish I've now got the kebab guy ah the kebab guy comes on a Tuesday morning I've got to get up early for him and you just lose total focus you just kind of this goes on on this pursuit of of trivial pursuit oh I've got to get one of every pie no just stick with your one pie and smash it and that's what I did with catch I added things like salmon catch catch was talk me through catch catch I just took fish and chips and elevated it to another level.
13:04And you had your own physical stores? Yeah, yeah, yeah. Whereabouts? Kent. Yeah. I looked, because of Deep Blue, because of Deep Blue and... Is Deep Blue the one in Cobham? Yeah. Yeah, yeah. It's not anymore, is it? I don't think so. Yeah, yeah. So that's my... I know this GP well. Yeah, yeah, yeah. Yeah. So they bought Harry Ramsden, so they've got that. They've got International. Doing a phenomenal job. Yeah. But I thought there was an opportunity to just elevate it even more. yes um you know people didn't always want chips so there was other options what were the other options just just salads different ways of doing potatoes uh elevated the packaging even more um got different types of fish so you know like not rock salmon but proper fillets of salmon um would grill stuff so not everything was just through the range so had grills so you could come in and go just want a dover soul dude just want a dover soul i've got everything at home sorted I'm going to walk in put it on me and the missus bottle of wine Dover salt so I did that which was good fun working on your own is not good fun where were you sorry they were down in Kent yeah so I was travelling to Kent every day from Banstead from Banstead which was great fun and sitting on the motorway and then you know obviously you had the problems with the channel tunnel there's a backup and like two and a half years was just like nah and what because I think you learn a lot from people's mistakes and i'm huge like what were some of those biggest mistakes you made uh with catch because i think every category can be premiumized i've had there's a brilliant business called willie's pies yep um who again like you know pie and mash shops have kind of you know kind of dwindled you could say yeah um then there's a there was a massive room for someone to come and premiumize pies elevate prize he worked at saint john he worked at brat oh wow um so he's got like the chef background they go to hg water to get their ingredients three pies fucking does it well into wicado and i think i one of the categories i think there's which is ripe for innovation is is fish and chips you've got pop art is it poppies which is the old school one in East London, I think.
15:25Yeah, yeah, yeah, yeah. And then... Yeah, they've got a couple. They've got one in Soho as well, I think. Yeah, and they've got one in... Where were we the other day? Shoreditch, just by Trimble Brewery. Yeah, yeah, yeah. I think it was when we were recording that podcast last week. Yeah, anyway, round that. Yeah, that's it, yeah. Trimble Brewery. So they're sort of the best in class. But then... So I think Fish and Chips, there's room there. But I'd love to know what happened, what went wrong, what the one to three things uh location it was just you know wearing down and you kind of do a 12-hour day and you're like i gotta drive home i gotta be up at six gotta drive back um and you kind of get into that moany cul-de-sac of you know oh oh um i think also just always being in big companies of going right i need to do some marketing that'll be me oh i need to do like the accounts and you know do all the ni payments etc that'll be me oh i need to do a risk assessment because one of the one of the girls is pregnant so who's going to do that oh that'll be me and you suddenly just got to become everything you know like a like an octopus and i think that bit of admin admin admin hate admin really really detest it you know left school worked in offices worked in the city I'm just like no way I need to meet different people every day I need to have something you know different landscape every day um so they were the two real big things opened second site in Canterbury um and just didn't do my homework was probably a little bit what didn't you do about a little bit arrogant um I just just made this assumption that Canterbury was super posh um and i and i went there when tourists were there i'm like man ace footfall this is brilliant this is brilliant um and it took a really long while to do the deal um and then and i just didn't i mean it was it was good but it was just nowhere near as good as i wanted it to be um and you know literally after the first month you know you know when you open a business that kind of 12 to 18 week period that's where you're going to be that is where you're going to open and that's where you know your turn will be um and we were probably we were probably about 5k a week off where I wanted that to be and then suddenly to lift that you know for every grand that you're off you got to spend 10 grand in marketing minimum um And yeah, just didn't pick the right site.
18:12So, you know, I know when you roll stuff out, you get one in 15 wrong. That's not quite right. But for your second one, and I just, I guess I probably fell a little out of love of it. Had some people that wanted to invest and then kind of looked at some other sites that were better. And then did the maths and thought, I'm going to work my nuts off for the next five years. and just kind of still be earning this level, working for five times harder. And yeah, just started chatting to my silent partner and was like, yeah, no problem. We're good. I'll take it. Yeah, yeah, yeah. Yeah, I think there's, knowing when to quit is a hard, because it's like, there's one of those things, I've said this a lot on the podcast, don't quit is both right and wrong so it's like don't quit if you're doing something that could actually work like keep fucking going but like I'm about 5 foot 2 mate if I'm saying I want to be an NBA player and be a basketball player I probably should quit that if you look at the actual the likelihood of it being a success but I think the whole idea of never quit man all this hustle entrepreneurship just keep going well actually if it's not working put the ego aside and say right It's time to quit and just move on.
19:36And it's funny, in other situations, other jobs, our chairman's just like, you are so resilient. I can't believe how resilient you are. And at that time, I think it was just that bit, that passion and that love had just started to creep away. So that normal bit of being super resilient and whatever chip you've got on your shoulder, pardon the pun, that just keeps you going. I just kind of lost that. Yeah, just fell out of love. So one thing we're talking about is the founder-operator tension. Yes. So what you detailed there of the octopus and having to literally do everything's on you, that's almost like you've come from the operator background and then working with the founder, being the founder, you realize it's kind of a very different game as a business scales you need operators and you need founders founders have the magic operators create the scaffolding that actually builds business um let's talk about nick jones so house you work with him for x number of two and a half years and a half years i love i think so a house one of those businesses that have scaled but kept their panache and the twinkle in their eye and the uniqueness of it and they've gone across like multiple different brands as well like molly's uh motel all that stuff talk to me about founder operator attention like from an operator's perspective what's the best way to work with the founder's magic but then build the scaffolding around it to create um i think you've got to come in um the the big one is that you're both starting with empty bank accounts of trust so so you've got to kind of you know in the in the first three six months there are going to be situations that are going to test you both and i think it's that first few steps and how you react how the trust is between you how the honesty is you know if if you're you know bullshitting and i've you know seen you know what it's like people to bullshit nick you you get caught out really badly and at the end of the day it's it's a little bit like you know when you have a kid and you take it to school you hand it over to the teacher and you're not really sure what's going on you know you've got a rough idea but it's just like that's that's just my everything that i'm handing to you and they're like yeah bye see you off you go um and for for a founder to kind of relinquish control there's got to be that trust and there's got to be that you know do you really get what i see and i think with with certainly working with nick just standing back and just watching him is what you've got to do you gotta so when you sat back and watched him what did you observe Why is he such a force?
22:40Phenomenal. I mean, seriously, the guy is a titan. Every single person, he knows their name. Honestly, I've got nicknames for all my friends because I haven't got a clue what their names are. My name bucket is, you know, there. Pretty much everyone's either mate or handsome because, you know, oh, that's right, your name's David, whatever. But he knows everyone's name. He makes, he's just so charming. and he makes everyone feel special. I mean, you can just see. He walk in, light up a room, identify people. Oh, how you doing? You've been with us now 10 years. Amazing. Do you remember when we did this?
23:18Do you remember when we did that? And people literally grow afoot after he's left the room. Yeah. His attention to detail is above and beyond. So we, at Molly's, for example, we did a mock-up bedroom. and he's there going, right, where's the chair? Right, that is three millimetres too low because I want to work on my laptop. And where's the plug? I don't want my lead going over here, so the plug socket's going to go there. He's got this whole thing about showers. So when you say outside of a house, the shower taps are nowhere near the shower head. Why is that? Because if the water's at the wrong temperature, you're either burning or freezing your arse off.
24:01Wow, yes. And you can adjust it there. so you can just go boom boom boom boom boom boom there and it's just that any other little beautiful details like that the way he'd operate just everything you know he'd be like no wrong mayonnaise I know we've got a GP but it's the wrong mayonnaise this is the mayonnaise that you need when we were doing the drive through drive through Molly's we had the motel and the diner and was like we're going to do a drive through okay let's just try and keep up with him um we were looking at all the design and you know he goes what do you think what do you think and I said well you know I've been to In-N-Out I've been to Mackie D's and they all have at least two windows we've got one and we ended up going to the farmhouse overnight in the big barn and mapping out with tape the whole drive-through so the Monday morning and he pitches up you know and at the time you're thinking really i've got to pretend i'm in a range rover going through the the drive-through but honestly the amount of screw-ups we avoided with the flow deliveries and we're suddenly going but the delivery is going to mix with our customers and that's going to be a complete nightmare so so we created a whole little road for deliveries and that whole flow you're actually at so a farmhouse with masking tape masking tape on the floor this was Nick's idea yeah he's like I don't like these plans I want to you know almost like the Joey from Friends I want to be in it yeah yeah yeah no it's wonderful and it was literally where are the cups okay the cups there where are the napkins they're there the till's there okay where's the ice and it was just literally when that ice goes where's my backup ice well you go and you know the designers go well you go to the ice machine he's like I'm serving people I can't be doing that yeah and it was just every single detail you can think of.
25:59Amazing, yeah. And what, and then from the other side, from the operator's side of the kind of the dichotomy or the interrelated relationship of the two, how do you take that, the shower head is the founder's genius, the shower head, sorry, shower taps to head separation is the founder's genius, but then the scaffolding to do this at scale, to actually build a business,
26:27to have that vision and let it run through management processes and systems. Talk to me how you did that or how that happened at Sohouse. Standards, just standard standards. The other amazing thing about Nick is he will remember everything. He sees everything and he's constantly in the houses. And he's got this whole thing, I'm going to surprise them, but they're like, just to let you know, Nick's on the way to you. And he just, you know, the team that he assembled, you've got Martin, who's got Dover Street now, the restaurant on Dover Street. Phenomenal. What was your role there, sorry? So I was the MD of the kind of external bit, Dirty Burgers, Pizza East, Ollie's.
27:18So that was like a little separate, this is to the public facing not the houses right um you know nick i remember he wasn't happy with food in general in the houses so to run the uk he picked tom collins who was the exec chef it's like this is my statement of intent tom collins the entire business so i think tom's now like the ceo right um or or you know like looking after i'm pretty sure he is yeah and again attention to detail great guy you know and and nick would you know he phoned me up at half seven on a sunday morning the beans are fucked stop nick you all right yeah the baked beans i'm at molly's the beans are fucked right right okay so they're watering them down it's like okay give me 10 minutes hold on one second speak to the exec chef yeah we had them in the bain marie but they were just going all a bit slodgy.
28:14So what we do, the bain marines at a certain temperature, then we put them in the ramekin, then we put the ramekin on the plancher, and that warms them up. I'm like, so the juice is going to the top, beans are floating down to the bottom, it looks like we've watered them down. Yes, chef. Right, let's fix that, and let's fix it in 30 seconds. Call Nick back, this is what's happened. And he's like, right, I've got you. So you've just, and the problem... This is what I'm trying to get to. This is the darling example of how, from your perspective, mate, the operator deals with the founder's chaos.
28:46Totally. You've met Richard today. I'm basically that. I'll be like, why the fuck is that? I had this the other day. Why is that shot? Yeah, yeah, yeah. I was like, it's not me being malicious or rude. I'm just like, I'm saying, I'm like panicking. I'm like, why the fuck is like, why is the shot? The shot was slightly off. I called him straight away. I'm like, and he's very good at like appeasing that. But from your side, there'll be a lot of people listening to this or even founders who just need to just get in their box a bit. so what's your approach you take the sting out of things yeah you've got to take the sting out of things how do you do that don't argue I've always said throughout my career whether it's a chef or a founder arguing with a chef is like wrestling a pig in mud after 10 minutes you realise that the pig's fucking enjoying it just don't even bother just go right take it on the chin don't try and make excuses or bullshit and and then when everything's calmed down you've got to understand how important it is and and the process to fix that because founders have got so much going on their head that you just you can't just go sit down and tell me everything you've just got to get it bit by bit and understand what are the real levers you know it's like okay their uniform wasn't absolutely spot on i could see that let that go but I'll pick that up and you then start to share the same language of going you know it'd be like you know how's how's your coffee it's not quite spot on no mine's not spot on either glad you saw that and you just start sharing the same language you build that trust up you've got to see the business through their eyes and then just keep having those honest dialects of going really how important is this you know or some business that I've been in you know oh my mate's coming in for another freebie it's like dude we spent three hours going through a p &l and you're pissing away another 300 quid for your mate who i reckon is only your mate because you're giving freebies every month yeah yeah yeah oh yeah i never thought about that and you and you just you just create and build that and build that and build that and yeah i mean boring real shit like processes of this is how we do baked beans which you know is a big deal yeah yeah and then you what I find interesting you said you hated admin but you liked processes like what's the difference because I think processes can get quite you can get bogged down in the semantics and minutiae oh totally totally and that's and that's the other bit I think Nick's got this real passion for middle managers that just don't get stuff done just he just loses it and I get it it's just like because Because people kind of see this guy who's got great ideas.
31:33They try and match his ambition. So they will do the over-promise, under-deliver. Time and time again, you know, just loses his shit of middle managers. Oh, so wait. So you think the art of great middle management is to under-promise and over-deliver? Totally. Yes. Totally. What is reality? What can you do? And, you know, if you think you can do it, surprise them. Surprise them. oh you know that thing that we said would take a month we've only gone and aced it in a week oh well done i'm playing the game i've built up your trust account a little bit more wow and then and then you then get to that point it's like come on you can do this by five o 'clock can't you yeah yes yeah i can um keep let's keep pulling on this thread because this is brilliant mate what are the other ways of success because i know i'll be i'll be brutally honest like I think you can change your mind on things.
32:26And I have changed my mind. Probably when I started the podcast, I was very, because I'd had a few run-ins with middle managers and we'll get on to that. People who come in, the executive, you know, senior executive fallacy, they come in and try and, that's an art, which we'll talk about. They ruffle the feathers, everyone fucked off, everyone left the business. So I've seen examples where middle managers do my nutting, quite literally. So I was quite ardently against them. But then as I've had more of these conversations with bigger operators, I've realised, oh, if you want to actually build, get this to a scalable business that is X number of sites, X number of customers, X number of employees, you need middle managers because they're the scaffolding that gets the ship moving, whatever you want to call it.
33:11I think the art of just basically over, sorry, under-promised over-deliverers are brilliant. What are other ways to be a successful middle manager? I think when you're joining a company that's got some, Sour House is a great example, that people have been there 10 years, and you know that their opinion of you is going to be really, really important. But you've also got to manage them. You've also got to put your line in the sand. This is how I like to operate. This is how I see things. These are my standards. This is the behaviours that I'm looking for. and we got all of the managers together of everything I was looking after and Nick had obviously asked half of them that he trusted you know this new guy in what do you think and he said to all of the room he said this is Graham he's one of us so I think that connection with you know and real connection not blow smoke up people's ass just so you know you can get whatever um that real connection and that real honesty with everyone around you just just just goes and goes and goes because you do make mistakes and you do you know some stuff and and being i think also early doors you've got to be a super team player even if you're leading you've got to be on the pitch so when we open molly's and sorry so this is this is for this specific example this as a manager going, as you were a manager going into the business?
34:46Yeah, I joined. And yeah, talk about on the pitch, off the pitch. I think that was... Yeah, yeah. Laura and Chris too. Because we opened Molly's and, you know, we had some good expectations. And, you know, one day we were in the ship. I was like, right. Why were you in the ship? Just so busy. Just unbelievably busy. And it was just like, okay, we're rolling and it's still going. Everything's, you know, as it should be but you know there was no oh after lunch it would die off it was like we just got another wave um and you know i rolled my sleeves up i'm sorry okay i remember the table numbers from the layout i'm just gonna run food and you know obviously that got back to nick who lived five miles away he said oh you're running food the other day i'm like we do what it takes okay and that's another kind of little brownie point.
35:40But I think you've got to demonstrate that you're there for the greater good, for the team, for the founder and for the business. You're not there for you. And I think those people that make that mistake of, I'm here, I'm going to do a great job, I've got this big truck of ego coming with me, because I'm da-da-da-da-da, da-da-da-da-da. Before they've understood the business, before they've understand the dynamics, the business, understand what the problems are because if you are brought in to a business with a founder or a big corporation it's not because they go oh sorry cv we should get rid of who we got who's doing a brilliant job and we should get this person in it's because something's not right so that part of solving the problem and fixing it how you fix it what the priorities are just goes all the way um what were the uh you said you've got this empty bank account of trust between the founder and the operator at the beginning which i think is a beautiful way of putting it you said in that six months at some point there's going to be a clash um that's business yeah there's just no rich and i clash all the time like yeah um what are some of the clashes you had with nick I think probably just you know the the speed of getting things done um you know I think there was probably some some higher decisions that weren't quite cool enough for Soho house um just just you know some kind of managers that were you know probably you know instead of kind of gucci were probably a bit fred perry um that just you know weren't you know so how's just beautiful people all over the place um and you know i i think that was probably probably it just you know some sometimes around pace and just a couple of personnel things um and what you know i saw him i saw him at mountain and and well the restaurant yeah yeah i was sitting sitting down oh we were right by the open kitchen yeah the poor dude making the crab omelet he did six i was like he's gonna be taken off that and literally on number seven that went in the bin he was taking off the beauty of an open kitchen um and i was sitting with a couple of guys oh there's nick jones i said yeah yeah i said um just just watch literally came over how you doing graham how's it going how's things right what you up to oh yeah you're right how did it work out caravan you know 30 seconds you know literally i sat a bit taller before he left must call me must call me you know i'm not going to call him unless you know i need a favor or something but just you know that being able you know some three four years on yeah to be you know that and he does it all the time yeah all the time i think management is the art of having uh like i think the management um discourse traditionally was like the scientific management principles like basically which was born out of the industrial revolution I actually think there's an art to management and I think it boils down to getting very good at having difficult conversations Tim Ferriss has got a quote I love which is you are the sum of the most difficult conversations you have how do you approach difficult conversations and what's the most difficult conversation you've had as a manager
39:23the most difficult conversation I've had is probably personally um i did a an amazing um coaching and leadership course with wagabama a guy up in scotland jim mcneesh jim mcneesh what did he do he he's like management super coach right unbelievable i was like you know who do you coach you impress me you know i'm like you know this guy's full of shit he's like uh the archbishop of canterbury i'm like all right okay now you've got my attention yeah yeah yeah our trust accounts just gone out um and there was two two things he said one that's really relevant to this a problem only exists in the absence of the right conversation oh yeah and i just went stop just say that again genius let's say say that again so problem only exists in the absence of a right conversation and then we went on to whole you know framing a conversation rather than me pitching up and going you know Dan let's meet up I want to have a chat I'm going Dan just let you know you know got some you know big money worries and can we talk at the pub because you know I want to see if you can help me out in any way you're coming no surprises to go right I've checked my bank account I've checked my savings tell you what I can lend you a grand that's all I can do but I need it back by this so it's giving pre-context absolutely totally why surprise anyone and then so say you're doing a management meeting here you're saying listen mate like look yeah because I'd probably be like that I wouldn't even say can we have a call I'm just you know what I mean yeah no totally that's interesting and if you frame it they come prepared yeah they're there you know the minute that you kind of go at someone what are they going to do they're not going to listen to you they're going to get defensive you're going to have your natural you know fight or flight reaction whereas you've kind of framed it it's like okay just to let you know yeah i was a dick and i did this and i'm really really sorry so but but why didn't you tell me you know why is this why am i hearing it from that and you and you just solve so much and being that pure honesty of you know I didn't realise this was that important to you, forgive me is there anything else keep going, is there anything else that I do that pisses you off well yeah okay cool right okay how do you think you piss people off as a manager see I'm not a fan of management, I think of management as you know a caravan all the staff turn up in their own clopper wear what they want you know yeah and i remember uh someone in the industry went how do i know who's the manager and i went is it ticking over like yeah is it ticking over as in as is it a good shift yeah is it good shift yeah yeah i said just look around who's coaching who's checking who's talking to guests who's touching tables who's looking at ticket times and they were like that girl there I went that's the manager you know and what they're actually doing is not managing you know a manager for me is I've got a uniform I've got a position of power so I can lord it over you and I walk around the clipboard and And I'm not really bothered about my team.
42:57I'm not really about the guests and that whole thing. I think you touched on it with Osh about these people that want to progress so they get paid more but work less. Yeah, basically, it's the folly of middle managers. Yeah. And sorry, I agree. There's a nuance here. When I say manager, I don't. There's the archaic old school, which is that, you know, sort of, have you done your have you cleaned the fucking bogs yeah what's your time sheet basically totally yeah I won't go say that word but and what I'm but I'm still saying even with this this new wave of management and you know Osh Osh was talking about Sujan who's been with him for on the podcast yeah yeah yeah the manager yeah Sujan who's been with him for I think 10 years Donkeys at the Guinea I think yeah at the Guinea yeah I then did a pod about a couple of weeks ago with Ashley who does the food I'm actually having lunch with Osh tomorrow at the Devonshire but he I'm busy sorry yeah yeah no worries but so then Sujan was there and he'd listened to the podcast so the Oshman went live on the Monday I recorded with Ash on the Tuesday so Sujan was there and he's got this sort of so I agree with you it's like you don't want to be the dickhead in a with a clipboard but you still want that sort of gravitas and it's like what I'm trying to get to is how do you get that?
44:30If you're walking around in just chilled clobber then people will think do you know what I mean? Yeah and I think that that's your engagement with the team, engagement with the customer, you know you've got I think the other thing from that Jim McNeish thing he took the word responsibility and then he just broke it up and went you have an ability to respond so any situation and he said the more you become a leader the more you know if something really like you just said you're fucking hell rich you've got an ability you know you've got an ability to go hold on a minute do I want to lose my shit here what do I want what outcome Steve Covey's 7 Habits the end in mind what outcome do I want well I want to improve the situation so it's that ability to respond he got it from i'm told you i was crapping names there was there was a physician or a doctor in uh auschwitz who you know got put into the concentration camp first night people all around like losing victor frankel that's it yeah yeah man's search for meaning yeah yeah and he just you know then then had that epiphany yeah and then you know the next morning realized that when you say good morning to someone it's built in human instinct so it's say to the guards morning oh morning yeah is that is that the in-between stimulus and response is your ability to choose your correct and that's your freedom totally yeah that's it that was it and he just took that little bit yeah in terms of management he's got you've got an ability to respond and think about all of these things and framing it with honesty and difficult conversations it's like you know if you let it go four times they'll think that it's the right behavior so you've got to catch it at the beginning.
46:15What about like over, not over promising, but because I think it works the other way around. For middle management, it's like under promise over deliver. Yeah. But I think founders can sort of just, they're just, founders are lovable, like puppies. And they're like, right, we can do this. Myself included, like, yeah, yeah, we'll get that sorted. And then before you know it, then it's like, and you know, I had this meeting yesterday with, um, just potential agency who may come on board. And they were like, mate, you've got so many fucking ideas. Like, they're like, just just chill out yeah i'm like so i'm trying to work out how you sort of you just got to go through what the priorities are yeah and i think you know founders love all of their sites you know caravan you know exmouth market was the original and you know special place you know i i was running food and waiting tables on the 10th anniversary um that was just you know the the people that were there you know fergus and margo and stuff like that just just she's she's uh the cousin of lauren yeah yeah yeah um and and phenomenal um and you know king's cross you know the big step and and they'll be like you know every store is really important and then you get a p &l down and go the reason i'm spending 70 of my time here is because if we want to get to this level of sales or this level of EBITDA, this is the bad boy to do it.
47:42And there was stuff where totally against what you would as a founder. It's like we give them an overview of sales and a P &L. I'd get the managers in every month. I want you to go through your P &L with your peers. We've got a scorecard. Here you do it. Boom, boom, boom. This is your MPS. You're pissing customers off. How would you gauge that? it's a net promoter score right just yeah yeah just tell that just to detail what that is for listeners just so so you you would either have mystery diners i mean back in the day you kind of had a mystery diner and you'd look at google or facebook or something but now you've got companies that can just pull that in and just tell you this is your score you know with people that connect to the wi-fi here when they leave it's like would you recommend all instinct to a friend yes or no it's that blunt um and you can just go through a scorecard of you know what are what are the really important things and one of you know my scorecards always start even now people like people like yeah and they look through and you go look at your people turnover you're having the same conversation five times a year just just chef just hold on to a senior sue will you just hold on let's just talk through before you fire another senior sue let's just go through it all it's like really i hadn't realized oh well he was a prick and how was that it's like let's just and and just putting that structure in of what it is and you know you quickly i was in a business i'm not named names i was in a business and we had one part of the business that was a different cuisine to the rest.
49:27And the food just wasn't good enough. You know, just wasn't good enough. And after six weeks, I was like, with the founder, I know what the issue is. What's the issue? Your exec chef. He's great. I said, no, he's not. He's not. He's great at this cuisine, but this cuisine, nowhere near. Nowhere near. So we sat down and had a meeting. and the exec chef after, you know, it was a framed conversation. The exec chef is basically, it's a level up from the head chef, right? So it's almost more like, it's like the chef manager, right? Totally. That's what it is. And lots of menu development. It's not actually in the kitchen.
50:05Not as much. You're doing a lot of the buying, right? Exactly, you're doing all of that. And we sat down and the exec chef said, I know I'm only 50 % of where I should be. And I just held the silence. And I went, that's brilliant. And I just looked happy. And he's like, oh, I thought you'd be upset. I went, no, because if you're only doing 50 % of your job, you're telling me that I should be halving your salary. Oh, I'm losing his shit. I'm like, dude, if you're only doing 50%, what, what, what, what? And literally the founder was like, just so close to that guy. So close. So how do you balance, because I'm a people pleaser, how do you balance being almost not giving a fuck of saying that?
50:56Because I would feel very uncomfortable saying that to someone. Literally, sitting there, what is the end goal? What do we want to do? Well, I need to pay the bank, and I need to pay that investor, and we've got a payroll of 300 people. Yeah. Okay, so in order of priority, yeah, and the reason I got you in is my wife's sick and tired of me doing 60 hours a week, so I need you to, you know, if the phone goes at the weekend, it's your phone. Right, we've got that, we've got that. And then they're the kind of crimpons, so when you do have that falling out, and you do fall, you're like, dude, remember, we're falling out because of your mate, that you're comping 300 quid a month, we're falling out because of that.
51:38I'm not talking about the founder, I'm talking about from like, from when you're like, trying to have difficult conversations with people you look after. Like, I don't know, I'm not very good at doing that. Like, it just fills me with anxiety. Like, what's the art of basically saying, because I would basically just be like, oh, don't worry, it's fine, it's all good. But it's not. Yeah, yeah, so this is what I'm asking you for. But it's not. Yeah, so how do you, how do you, how do you think we're doing? How do you think we're getting on? You know, it's. Yeah. A date, you know? Oh my God, she...
52:13You know, how do you think it's going? Yeah! Do you not have friends? I was thinking you were doing something else then, mate. Do you not have friends that comment on you eating with your mouth open? Yeah, yeah, all the time, but they've grown to love me for it. And I think that as long as you come from a place that isn't about trying to assert power, that isn't aggressive, and you come from a really honest place of fairness. Because I think that if you've got people in a job, like an exec chef, if they're not doing a good enough job, then that's not fair to their team. It's also not fair to the founder because they're taking a 70 grand salary when they don't deserve it.
53:01And more importantly, it's not fair to that individual they're just deluding themselves and i and i don't think that you go in and like i make your shit do this this this and this in a week or your toast it's just about having that conversation of going where are your skill gaps okay i get i get that's a skill gap but i really need to fill that gap around that cuisine yeah what's the solution well you know the head chef yeah you know you know their their dad's italian right so maybe i should just step back and let them get the fuck on with it that's a good idea why don't you do that because then then the other brands will know that the the they've got the autonomy and then suddenly i'm like ego that's what you're worried about isn't it ego yeah ego i'm worried about ego okay so let's just put that out let's be really clear the reason that we're elevating the head chef is they're better at something so so you know what dude being a senior person and admitting a vulnerability is honesty it's a strength yeah so what are some of your vulnerabilities over the years from the managerial perspective or leadership perspective i should say I'm super high trust and high support and, you know, that can bite you.
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54:26How so? And just putting faith in people and, you know, they're going to do the right thing and it just doesn't happen. And of course, you know, that whole bit of, oh, I delegated it. Just because you delegated it doesn't mean you're absolved of responsibility. so I'd say probably that kind of trust bit of you know always thinking someone's going to do the right thing um has probably been the biggest one and then some of them yeah go on so I can and then um and then I'd say probably just not listening to your gut early enough you know and I and I think that's an art that's being lost because you know everyone's telling you look at the data the data will tell you the answer look at the data the data will tell you the answer and then when you've got that tension between you and your gut and the data and your gut's going nah dude this isn't this isn't going to work this isn't going to work and that's happened a couple of times and it's happened quite recently where it's just like i pulled that pin earlier and i remember i can't remember the dude that wrote the book but he referenced to uh colin powell who was george bush's secretary of state who had the 40 70 rule he's like if i had 40 of the information
56:12it wasn't enough. telling you something but yet your gut and what you see and tone of voice and listening i think it's really important to listen but also listen what's not being said yeah but like what's an actual example of i get the data sort of i get it from the top level but like specifically is it like we sold too many of these pastries or like no no it was just someone it was a it was a manager a senior manager's performance right that I came into the business everyone's like brilliant brilliant brilliant phenomenal I'm like I'm not getting phenomenal you know I mean you know been in been around the block a few times and this is just mmm just not picking up the right signals what are some of the mistakes you've made with having difficult conversations that have really taught you going in way too early thinking thinking you know hey everyone's the same um by that you mean well just just thinking you know that everyone has got at least a thousand quid in their trust bank account with me and just not doing that let's you know i'm i'm very much um you know a thousand miles an hour glenn house who was the who's at cafe nero's the ops director at wagamama he said when you come into this office it's like a tube train like I don't even see you but I just feel this gush and then then you walk past I'm just a thousand miles an hour so you know I kind of jump in and there's been conversations where I'm like yeah yeah we've done the whole how are you how's the family and I you know I framed it but but they didn't quite catch on to it I've gone deep in you're like oh dude please stop crying please stop crying right let's beep beep beep let's back that truck up right and then you're you know you're having to build that all over again and then you walk out and go I've just gone overdrawn there on that got to build that up.
58:13How do you build it back up? Go back to the basics. Just go back to the basics and you know I think. Pint and a packet of crisps or basics or anything else. Yeah and run at it you know and run at it and that bit of honesty just you know let things cool down and i've done that 24 hours later been to see the person that i didn't didn't expect you here dude come to apologize my right rawly screwed that up right rawly i didn't i didn't frame it enough i didn't check you're okay i didn't check what else was going on really really screwed that up huge apologies huge apologies sincere i know i'm overdrawn in our trust bank account but you know let's not forget we still need to talk about that and we still need to fix it but this is where i'm at and then i okay appreciate that yeah one thing i want to explore with you mate is um is processes and as and we can almost go through the different textures from wagamama to the chippy to caravan to odenstein stone house i think they're all high performance businesses and i also think there's like in some businesses you'll pick up maybe one thing that will stick with you right yeah and um i'm kind of not obsessed but one of the things that fascinates me is this scaffolding management scaffolding it's like how do you get this thing for me to be what are some of the process you put in place to get people when they to bring them their full selves to work to go the extra mile to stay past 6 p.m um maybe not in with the danish because they fuck off and put their kids to bed right but we'll get on to that one but um but and and i think moju you know the shots brand yeah yeah rich has been on this pod um he's a legend they're very good at like incentivizing the team but but also aligning with the values of the brands they have like a competition each month like the whoever did the best for the it's kind of like obvious things what are some of the things that put in that you saw at wagamama or sewer house i think haravan that really got the best out yeah yeah the number one thing which sadly i think is is a soft cost so it's just been cut again and again again soft cost yeah is training that's gone out the window it really has and i think with you know we're all across all businesses now yeah i think so i think so i mean there are some people that do it well i mean and especially if you've got a a rollout juggernaut like gals they're they're they're probably you know on tom said to me on said to me that he goes he's got like i call it the tower of tom molnett because it's like he's very like he's he's an american surfer dude like rocks up Siggy skateboard he's a G yeah but he was basically saying like training but my approach for training is actually telling people to slow down it's a day where you're not in the weeds correct and he gets we have these speed bumps that we put in place to actually slow the fucker down slow as I'm pulling out all these managerial literally but it's I I was it was part of Grand Met at the time so I was lucky enough to work with Robin Rowland and I left he did yo for quite a while he's now got an investment vehicle but he's a don for sure and I left an AGM role in a nice restaurant so assistant general manager to go and be a host at TGI Fridays they just opened in Covent Garden and my buddy was working there and he's like gee get yourself down here dude get yourself down here and i'm like dude you need a manager i'm your man it's like we need a host and you can do a trial and i then became a waiter and i think my waiter training was four weeks how old were you at this point mid-20s yeah i then became a bartender my bartender training was 8 to 12 weeks you had to know 150 cocktails not black it not go and look at a manual you had to know it you had to know the garnish you had to know the speck of the garnish you know it's like what do you mean it's a strawberry no it's got to be a minimum of one and a half inches round we had a little tape measure then went into management training i think that was three months fast forward to 2012 i'm at wagamama and they're like yeah we're thinking of cutting the management training from uh from a month to two weeks right you're not going to learn shit in two weeks you're just not going to do it and it's just this cost that you can see that you know i just think it's as times get harder you're like yeah let's cut that that cut that but you don't see what that looks like with the customer so an absolute game changer here as i mentioned before about you know we had a record week in September where I'm on honeymoon was all of August.
1:03:32I gave every single manager 25 hours to train their team. So on what 25 hours a week to get your team better. Okay. So I'll come. What's your problem? Our coffee's a bit shit. Great. I've got a coffee trainer. They're going to come and spend time with you. And that's all we did in August. We just trained every single person, got all of the diligent stuff out of the way and food safety and all that shit. but we just trained because when everyone came back from holiday i said look all of the work we've been doing on brand all of the work we've been doing on product people are going to come back and if we don't win them first time we're done you know we've got to go back to the drawing board and you know september we've just been flying and and i honestly believe that you know that that bit about osh said you know the gm you could just see him coaching coaching coaching coaching coaching that's his day is is sujan yeah sujan yeah yeah i just i think told you i was robbers we have no no no but i but i think that that's the bit has been lost it's like you know and and i think the bit and probably the bit where i kind of challenge the clipboard bit the whole leadership the difference between a leader and a manager is just just massive you A leader's thinking about strategy of who's my replacement?
1:04:54I'm going on holiday for two weeks. Who's going to run the show? Oh, you know what? Yeah, I'm going to develop this person. And have the kind of wanky mantra, each one teach one. Teach someone. Teach someone. What are you doing? Oh, dude, I'm just making this beurre blanc. Ah, no idea. I'm a pret chef. Right, so what we do, we put the butter in. Don't throw it all in at once. Dude, I can make a beurre blanc. Because nobody gets up in the morning and goes, I'm going to work to do a really shit job. They just don't. I don't believe that, you know, that's in anyone's brain of going, I'm going to do a shit job.
1:05:31When they get the work, it's just like, oh, that prick. Ah, that's not working. The oven's not working still. They haven't got that fixed. Yeah, la, la, la, that window's still cracked. Yeah, the uniform hasn't been delivered again. That's when they kind of get down into that bit of going, why should, you know, you don't give a fuck. Why should I give a fuck? And I think that if you've got that culture of, you know, every day you've got to learn something, show something, develop someone, it just makes such a difference. In kind of that bit of you're talking about that framework, that structure.
1:06:08Scaffolding. It's not like I know what I'm doing, so I have all the power and I'm just going to treat, you know, mushroom management, keep them in the dark and feed them shit. it's it's i'm going to share everything with you this is you know p &l this is this this is that you know manager new guy who's been in several brands he's like i've never been able to ask this question yeah what the fuck is he bit dark right dude you know and and your bit about incentivizing agms this year have got a 12 grand potential bonus 12 grand you know and i sat down the other day and did a pie chart of their benefit package i'm like you know 54 of your benefit package is your pay you know all this other stuff i get health insurance yeah we're with vitality i did not know that who did your induction you know and you're just finding out all that bits and i and i think that that training bit bonds puts the framework in it's like okay i know you don't know how to do it but but let me help you do that so thanks brother you've just given me a little bit of that i like that you know and whenever we discover something new whether it's you know someone recommends a book um a phrase or something that just sticks with you there's that little spark and that little human connection going oh man you know i remember remember telling me that you know back to back to Glyn at Wagamama.
1:07:38Who was Glyn? Was he the... He was the ops director. He's now MD at Nero. I said, what's the expenses policy? I spoke to HR and he went, don't take the piss. I went, what? He said, we've probably got a policy somewhere, but don't take the piss. And for the rest of my life, from 2012 till, I think it was the 3rd of January, someone asked me, oh, expenses policy. I'm like, don't take the piss. And there's that connection. and I hold Glyn in huge esteem because of that connection and I think that you can have that and that bit of trust when you're in a brigade in a kitchen and you're in the weeds someone's going to come and help you out you forage that team you forage that culture because you're sharing information whereas as soon as you stick someone in silos and go no no no no you're the manager of haberdashery please don't come into the furniture department you know there are there are amazing businesses um i met with a big supermarket the other day it's like yeah i've only been a buyer in this category for four weeks i'm like oh you're new to the business like no i've been with the business 14 years i'm like oh he's like like you know to keep us fresh new eyes we we move around the business i'm like genius yeah it's a pain in the ass for the brand yeah yeah yeah can't build a relationship totally yeah i'm in with the buyer yeah they've changed yeah they change it the whole time yeah yeah well from our side it's a nightmare yeah but the okay so the soft cutting cut the soft cost of management and training is dwindling totally much of our listeners will not even have the budgets of any of those brands you've worked for if you could out of all your training and your first-hand experience um what would you say are like three core fucking lessons that's It's just like if you're a founder about to build a team or if you're a manager going into a challenger brand or your manager has been at a brand for a while, like what would you say are your three things, Graham?
1:09:44Great question. I'd carve out the time. I'd diarise it literally and let everyone know that that kind of one to one. And even if it's just let's just grab a coffee and let's just talk through how's it going. you know what's good what's bad stop start continue that kind of shit but stop start continue so so you know we're doing a quick appraisal and you know just to let you know you piss me off because you're five minutes late every thursday can can you knock that on the head because it's you know affecting the team ah okay well see my bus and this get an earlier bus dude in fact let's put you on the day shift so you're never late on a Thursday boom and then the continue pieces the other day when you put your arm around the commie and you took them through that do more of that dude do more of that that's just fucking magic you didn't see him you didn't see him when you walked away but man he was just buzzing yeah yeah I was like okay start what do you want me to start I want you to start taking over this part of the stock take I want you to start taking over because you're ready what is that three what's that stop start continue I think that's probably you know that's brilliant that's the first one next one and with that carve time carve time yeah just diarise it just with the person you're managing absolutely absolutely and just go right Monday whatever and then stick to it don't be flaky stick to it and go you know when's good for you for us just have a coffee whatever period of time that you've got spare um what else i would probably i'd probably um share the load and and even if it's um uncomfortable you know whether it's like you know guys uh the bank's breathing down my neck or you know we had a killer of a december um without a doubt and then i think whilst you're sharing the information, share the love as well.
1:11:58I think if you're a founder and you're doing well, there's a story of Orler and Steen when they sold the company. Orler and Steen. You can say whatever word. One of them a week later pitched up to one of the shops in the Lamborghini. All the staff, sold the business, got a Lamborghini. what did we get dude what did we get so I think that bit of if you can I joined a company, Seattle Coffee Company and we sold to Starbucks was that with Jeremy Tours yeah Tours at McAtonia who were Union Coffee they set that up didn't they so they supplied Scott and Ali Svensson who were from Seattle Scott, Mr Finance So was that when they were in the UK?
1:12:53Yeah. That went to Starbucks, didn't it? Yeah, sold. 56 stores, 56 million. Yeah, yeah, yeah. And I remember, I think it was the first Christmas, we opened 12 stores. And they were like, dude, you know, pay's tight. Just to let you know, payroll's really tight. How's things with you? I'm like, I can skip a month. Why? What's the deal? It's like, you know, we obviously over-egged it. I'm like, okay. and they were like why I'm like well can I help what do you mean I'm like can I can I help in any way right do you want some shares like how much are they worth you know did did a bit of calculation yeah um when Starbucks bought Seattle I think a week later I went out and bought a Saab convertible I'm like they shared the love yeah um so I so I think it's that be honest and share share the love the some lessons so i'm um some management textbooks wind me up or did at university because i was like this is a load of bollocks because there's some lessons you can only learn through experience yeah like the i think the one like heartbreak right when you go through that you can only you can you can put that on a fucking textbook but until you go through that pain yeah yeah you can't you have to like you can't really you have to experience that to understand it right and it's horrible totally the other and i think that's the same with i'd love to know what some of those are some of those hard lessons you can only learn that you couldn't learn on a text but you can only learn through painful experience what have they been in in this wonderful world of operations for you i think maybe you know cash flow uh why cash flow you just you know it's one of those things that i've got this ongoing um vanity insanity and people can be going you know like the cars we're getting it you know we're doing these record sales and how much you know sell sell sales and then you get to the bottom you'd be like but you didn't convert it you just didn't you know and that's that's the sanity you know the bank manager would be like or your investors be like that's really really cool but what's your ebitda what did you you know what did you make physical money um so i think that that's really really really important it's just focus on that and making sure efforts turn into results you can do loads of really nice stuff you know oh we're going to do this we're going to do this campaign you know i remember uh starbucks are we going to do this big campaign i'm like what's what's it going to give us cash what you know we're going to spend all of this money what's the roi the ibm guy's got a thing i like which is so many people are working so hard but achieving so little it's kind of like the busy syndrome yeah busy fools yeah but step back totally it's what tom was saying he's like step back because you can then yeah and i'm not very good at this so i just go straight in yeah like it's um i think it's it's interesting and then what are some of the other painful lessons in the gym I'm some sort of Tonk Donny but I occasionally the things that you get on your hands from lifting those scabs those are the sort of lessons I'm trying to get to what would those be so cash flow, EBITDA sanity versus vanity yeah people, as I said before hiring the wrong people is probably the big one sometimes you know just running too fast or you know like me stupid geography you know you're an hour and a half away from everything that you've got to do and you know it's all on you so I think geography especially when you're doing rollouts is a big one of you know we're going to go here what's the biggest rollout you've done across any of the businesses uh i think i mean deep blue we went pretty pretty hard and fast over the the five years wagamama i joined probably around the 55 60 store and left at one 120 um you know and that was being on the other side of it it's like oh we're opening i don't know somewhere down in Exeter or Dorchester.
1:17:34I'm like, what? I was like, you know, Dorchester, man. You know, it's like, that's a four-hour drive and a four-hour back. That wasn't particularly productive. Why Dorchester? Oh, well, you know, we've got a sweet deal. The other big one I would say definitely around property is rent. Be kind of really wary and stay close to your landlord. and a lot of businesses I've seen. In fact, a guy that was at Caravan, Charlie, he was the GM at Exx Market. I'm leaving, I'm going to go and do my own thing, and this is it, you know, I've taken everything you've taught me about P &Ls. I'm like, where's your rent?
1:18:14I don't worry, it's rent-free for a year. I was like, okay, well, what's your rent after that? I was like, Charlie, just to let you know, in March, next year, you're fucked. What? I'm like, look at your rent. as a percent of your sales it's not going to happen so i think you know that's a big watch out of just going through all of that affordability and also i think founders should probably do that before you know you get someone in and go right i'm going to pay someone to come and do a big role is you know you know big salary what am i getting for that um and i think i think when you're at that stage if i could kind of akin it to a promoted football team you know rather than going right let's go and buy you know Wayne Rooney let's let's see who we can grow beforehand because you know we're going to be paying Wayne Rooney half of our total labor our labor spend and we don't have any guarantees that he's gonna score the 50 goals that he's scored at Man U also the people around him at Man U were really really good so that's how he scored lots of goals so I think that's probably a watch out as well yeah it's like championship um there's a mark palmer who does he's on the board at union all right and he does he did very he did green and blacks yes he was marketing director mike green and blacks and he's become being on the podcast like three times become a good friend of mine and he now does course and press you know the juice this course yeah uh and genius and he was saying some of these founders or brands uh they want to go and hire you know a harry kane or you know a ronaldina but yeah yeah or whatever and it's like actually and that say that's 100 bags yeah bags yeah a salary yeah it's like actually you could just get three or four young kids who are hungry yeah and get them molded in yeah and i think there is this idea of like in terms of the tension at some point as these brands get bigger and bigger the founder gets insecure totally those they're just like right yeah spunk on this yeah big senior person and it's like actually could have just got three other yeah amazing people yeah not to say that that doesn't always no no absolutely and this is the tension we're yeah no absolutely and the other watch out is you know size of departments and that dick swinging of i've got you know five people in product development i've got this many in marketing it's just as in what as what do you mean when people are growing their business oh they took yeah you know you've got to so keep an eye on that because you know whether it's cans of causton or bags of coffee you've got to sell a lot to pay for that and and you know i always remember um a business that was looking at private equity and the guy's first question was what's your company overheads you know all of this head office what percentages of that and the answer was boom it's like you're not ready for growth you're telling me that you've got this you're not ready for growth because it was like low single digits and then managed to pick up on that conversation said so what's too much it's like some people we you know look at businesses and their head office costs are like nearly 20 80%.
1:21:40They're going bust. So where's the sweet spot? And I always, you know, whatever business, look at it and go, or, you know, friends are in business. I got a mate that's, you know, completely different sector. And he's like, you know, cash flow is getting tight. I'm like, what's your head office costs? I'm like, if it's more than like 12%, you're in the shit. You've got to start making people redundant. He's like, oh, fuck. We've got to start making people redundant. It's like, you know, you can just, you can sleepwalk into so many things you've got to be and i think you know the bit with founders that you're kind of picking up on is you can just go you know you were worried about chipped crockery or or stuff that wasn't polished that's on me don't worry about that go and worry about what's next go and worry about whatever it is just just this is on me okay but fuck it up i get it wrong that's on me you know but go and worry about something else that's done a couple things we'll wrap this up mate yeah loving this it's just so much just delicious nuance but um working with the sort of the danish and he is it higi h-y-g-g-e who guy yeah who guy there we go um i think their approach to life let alone sort of management or running businesses is endlessly intriguing there's a brand called bativo um i think she's not from i don't think she's daniel i think she's from norway imma and she was talking a lot about sort of the scandy lifestyle nordic lifestyle this is you know you spend a lot of time um in in Denmark with these guys like what what have you learned from their approach to things I think to kind of pre-frame it getting you know the businesses decided to get a chairman which was my old boss at Wagamama David Campbell who I love working with so much you know when he said do you fancy coming to help me out was like an absolute must and the senior team as I joined the CEO, the CFO changed quite quickly.
1:23:54And David, you know, is an absolute legend. You know, he sold Virgin Radio. He ran the dome, O2. You know, he was the guy that took the phone call. You know, Madonna's running two hours late. It's like, well, we closed because the tubes closed, Madonna. Sorry. You know, he was the driving force behind Wagamama's success. So he's brought something in to, you know, the business got together in the 90s, Orla and Sting got together then and kind of grew. And he's kind of brought this pace to what was, you know, Boston Consultant Matrix. It wasn't a dog, but, you know, it was... What's Boston Consultant Matrix?
1:24:38You've got your stars, your cash cows, your dogs. So it's just this kind of matrix of where different parts of the business is. and he's just brought this energy back in because I think that I wouldn't say it was getting a bit lazy but you could see that there's just this whole different wave of what's possible and you know even in a really mature market like for likes in Denmark yesterday I think was something like 11 % in in a really mature market of 108 stores so I think that's been kind of a wake-up It depends in what part of Denmark, because you've got one part of Denmark that would just be like, you need to cut your hair.
1:25:22What is this jacket? Terrible accent. But just super, super direct. And you're like, whoa, whoa. And then you've got another side that's like, I'm not going to offend you. I don't want to offend you. I just want this to be cordial. And I just want us to just carry on and it will all be nice. but I think that there is a really nice precision you know of execution super hospitable really really like you know genuine
1:25:59gorgeous country I mean they're really connected with nature really focused on family really focused on kids and you kind of think where did we lose that did we ever have that but you know not a lot of crime and you know it's it's social everything's based at great pastries yeah but that's the thing you know you kind of think pastries you know sweet stuff everyone would be you know like 25 stone but then you've got the flip side of rye bread and it's just like open sandwich like why open it's like well because you don't really need two bits of rye that's enough fiber and you know just the freshness of stuff the provenance of stuff it's just you know the the river that goes through cobenhagen you can swim in all year round because they've got two separate sewage systems so your sewage will never meet fresh water they're completely different it's like and i I was like, there are people there.
1:27:03I came out of a store, saw this big group in the distance, all working out. I'm like, look at that, I bet there's some fit mums there. They were all over 70. All over 70, November, giving it. I'm like, man, this is really, really good. And from a business point of view, you've got Nordic who've got the fat drug. you know they're you know the jab the weight loss Zempek Zempek yeah so you know that I think is that from Norway yeah yeah yeah they're Norway no Norway I think they could be Danish actually they could be Danish but you've got some you've got some big you know Maersk the shipping containers you've got some big companies and I think probably the best example is you go to copenhagen airport and every single one there is a local danish brand so we've got five stores in copenhagen airport you've got gasoline burger which is you know an amazing burger i think they've got a couple of stores in town but everything's local bar the electronics you know joe and the juice which you know is from that region i think there's a couple there what's copenhagen like compared to london oh man it's lush you know you that whole bit of aggression isn't there you know is this person passing me on a bike going to try and nick my phone just just totally goes out of your head um it's pretty much flat so everyone rides a bike um the only real hill which is not even a hill uh is where the old carlsberg brewery was burghies hill and and the guy's son was called carl so he's like we've got the brewery so it's carlsberg yeah that's hilarious um you know transport clean on time there's there's no um you the honesty you buy a ticket and you get on there's no there's no barriers nothing you could just go yeah i'm gonna do it if you get caught i think it's a bit of a heavy fine but the social embarrassment of of of what you know being you know a raman is huge um yeah it's really if you should you should 100 go and when you do let me know um and we'll hook up it's just it's just so so nice so so calm it's a bit expensive um but yeah families rocking around loads of cyclists it starts early it finishes kind of early I've kind of been there like what now?
1:29:51now we go to bed it's midnight this is late I'm like okay I get that but yes it's a very very cool culture and the nice thing is that we can bring some of that here and the culture within our team is really really cool what do you bring from there to here? whole bit that whole bit of focus on people that whole bit of focus on family um you know and all of those good behaviors you know when i joined it was staff food was depending on how many hours you worked of what you could have so if you work four hours you can have a croissant but if you worked eight hours you could have a field croissant i'm just like you know 40 40 percent of our team students it's like do you know how expensive it is to eat eat what you want what eat what you want i mean physically how much food can you eat you know how much take some bread home so the guys you know every week take some bread home it's like that's that's what we would do with friends no so just stuff like that really you know looking after people being calm and just that extending it to the customer you know I think before it was probably a little bit let's be a bit QSR let's be a little bit disingenuous join a large one join a large one instead of a hey how are you sorry oh uh i'm all right okay you look a little actually an awful morning that coffee's on me see you in a bit so yeah pretty cool it's it's it's funny i've i thought the best time of my life was a wagamama because you know it was just such a great team and we just kept going and going but the last year and a half you know made made some mistakes early doors thinking you know our range is too big cut some skews and it's like okay that didn't work out why didn't that work out what skews did you cut you need just just categories just bringing them down it's just like you know you you want to you want a choice of you know whatever it is um and and some days you want to be kind of a bit decadent because it's friday and it's the weekend and you don't care so you're going to buy that slightly more expensive pastry or cake which you wouldn't do on a Monday and I'm looking at data going man look at the waste on this right let's cut that when really what I should have just done is done half the production there double it there so you know basic fundamentals like that but yeah it's been it's been an absolute blast um and the team that we've got together in in a really short space of time totally blessed um yeah good things mate let's wrap that up yeah i've absolutely loved that it's um yeah it's just so good to get what coming into this i wanted to get some of those managerial and operate managerial is probably not the right word operator lessons and just how to just take the sting out of things which which for selfishly is what i really need help with and you've given an abundance of of lessons so thank you so much absolutely really appreciate that totally thank you so so much for listening to the podcast i really really do appreciate it if you like that episode only if you liked it please do give it five stars subscribe tell all your friends families foes next door but one cat dog whatever please tell everyone about this podcast it means the world to me and i really want to understand what your pain points are as the new wave of challenger food and drink brands please do hit me up on linkedin search dan pope and hopefully we can together create a more meaningful and powerful podcast for the next wave of challenger food and drink brands thank you so much
From the publisher
The biggest HURDLE every challenger brand faces? The moment a founder hires a Senior executive.
Founder <> Operator tension is always bull-ragingly bombastic
Operators joining challenger brands is like a well-polished CowBoy mounting a Raged Spanish Bull
Operators must control founders rage, steer vision, channel energy, calm zeal
a Supple Art, Elusive Science so many get wrong
Honour to sit down for an Operator Masterclass with Graham xxx from Ole & Steen
HUGE!!! thanks to legends at UberEats and Sam Nicanui for setting up this conversation.
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ON THE MENU:
- Why Fish & Chip Shops Selling Chicken Nuggets it’s a route to failure. Do. One Thing Well.
- The Operators Role = “take the sting out of a founder” + share same language as founder
- Always Under Promise, Over Deliver when managing founders expectations
- Why Operators “Accept there will be clashes with the founders in first 6 months”
- Why Operators must always start with an “empty bank account of trust” when joining a challenger brand
- A problem only exists in the absence of the right conversation
- 40/70 Decision Making Principle: 40% Information isn’t enough, 70% Information is too much + find your sweet spot
- Stop. Start. Continue. How To Create Consistently Great 1-2-1’s With Your Team
- When Effectively Managing People Always Ask: What is the end goal?
- Always Remember. Responsibility is your ability to respond.
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