Learning from Mistakes

One of my mistakes in life was opening a high-class, sit-down restaurant. I had consulted for many restaurant chains over the years, and I thought I knew how to run a restaurant. I wanted one with Turkish food, which I love, especially since there were no Turkish restaurants in Santa Barbara, where I reside.

It turned out to be an expensive mistake. I failed to appreciate the difference between consulting for an organization with multiple restaurants and managing a single restaurant. It was a humbling experience with much to learn.

What did I learn?
Managing a restaurant is challenging, especially a sit-down, white-tablecloth, upscale establishment—not a fast-food outlet. It’s the only industry I’ve encountered, and I’ve advised companies in many fields, where all five human senses are involved. This means there’s a high risk of not meeting expectations in at least one area. The food must taste good. The aroma must be inviting. The presentation has to be visually appealing. The lighting needs to be neither too bright nor too dim. The noise level must be carefully controlled—not too loud, not too quiet—which is why upscale restaurants often have low ceilings to create the right ambiance. The tablecloth should feel soft and welcoming to the touch.

But that’s not all.

As the owner, you rely heavily on the waitstaff to ensure a satisfying experience for the customers. A single rude or moody waiter can ruin the atmosphere. And the consequences extend beyond one lost customer. Word-of-mouth spreads quickly in the restaurant business, especially for upscale establishments, where people dine in groups of four, six, or more. If one person is dissatisfied, they’ll discourage others from coming too.

Then there’s the issue of theft.
My accountant provided mea list of 108 ways employees can steal in restaurants. It was mind-boggling—108 ways! One of my waiters was an alcoholic who disguised wine in his coffee cup during breaks. Bottles of wine vanished, and steaks disappeared from the fridge. Even my produce supplier was tricky, placing beautiful produce on top of the box and hiding less attractive items underneath.

Managing the bar was even harder. How could I control how much the bartender poured or verify that all clients were charged?

The Menu Challenge
Planning the menu was another hurdle. If we prepared too much food, we faced the problem of dealing with leftovers. If we prepared too little, customers were disappointed when certain items weren’t available.

Ultimately, running a sit-down restaurant demands constant presence—from opening to closing. It’s not a job; it’s a life sentence. I joked that if you want to get rid of a spouse, open a restaurant for them. You may never see them again, but at least you’ll know where they are.

The Importance of Strategy
An upscale restaurant isn’t just about feeding people. The food is secondary; the goal is to provide an experience. This requires a clear concept. I had to change the concept multiple times because the chef I hired from Turkey quit. He was worried his wife was becoming "too American," wanting to learn to drive and go to university. So, I had his sous-chef—a Mexican—try to cook Turkish food. I thought he could do it because he’d watched the Turkish chef. How foolish of me. Taste is difficult to teach, and you can imagine how the “Mexican Turkish food” turned out. Lesson learned: The chef needs to be your partner, as should the restaurant manager if you’re not there to manage day and night.

I discovered that consistency is more important than whether a restaurant is high-end or mid-range. People want to know what to expect.

Another Lesson
Happy employees lead to happy customers, which, in turn, leads to a happy (and profitable) owner. My mistake was focusing too much on the customers. Isn’t that what we’re taught in business school? But in the service industry, we should prioritize employee satisfaction. Happy employees create happy customers, which brings happiness to the owner.

There’s always more to learn, and the tuition for life’s lessons can be steep. Mine certainly was.

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