Restaurant Industry Archives

What a difference 60 days make

60 days ago I was in Miami visiting family before my daughter, Taj, and I headed back to Europe after our 3-month road trip around the United States. It was a difficult and turbulent time.

A week earlier, I was at The Fontainebleau Las Vegas attending RFDC, surrounded by restaurant industry friends who were all encouraging me to follow my heart and to continue building. Meanwhile, a few people close to me wanted me to find a stable job at a stable company.

I seriously considered it…

But I had investors telling me, “Whatever you do next, I’m interested.”

I had restaurant executives telling me, “You need to go build your vision, because the industry needs it.”

I had a team of people telling me, “Build something new, I’m in. Don’t worry about the money. We will figure it out.”

I had a network of followers reaching out and telling me, “Whatever I can do to help, just say the word.”

It felt like the universe had made up its mind for me. How could I ignore this inertia and go find a job with an established company? It felt like I would be letting so many people down. Most importantly, it felt like I would be letting myself down.

In December I posted my opening bank balance after opening my business account for High Margin. Investors have now started wiring funds. It’s real now. I don’t have the words to express my gratitude to all of you for helping me create this company.

I’m turning 49 on Saturday. Lots to do over the next 365 days before the big one.

The unforeseen impact of tariffs on the restaurant industry

One of our potential customers was at an offsite last week. He had indicated to me that by the end of the week, he would know whether or not we would have a green light for our data analysis project. Although he promised to call me this coming week, I couldn’t wait. I figured I’d text him on Friday at the end of the day so I didn’t have to think about it all weekend.

He responded immediately saying that the executive team was in ‘all hands on deck’ mode because of the announcement on Friday that the US would be implementing tariffs on February 4th. The concern about how the tariffs would impact their business may actually accelerate our path to a project and commercial agreement. Turns out that the sudden implementation of tariffs creates a great deal of uncertainty.

It got me to thinking how the tariffs may impact the restaurant industry. The most obvious, direct impact will be that ingredients imported from Mexico and Canada will become significantly more expensive. But it turns out that tariffs can also disrupt global supply chains. Demand for products from Mexico, for example, may shift to other countries that are not subject to tariffs. Sudden demand from countries with limited supply or bottlenecked import channels will likely cause shortages and delays.

Restaurants will inevitably have to adjust purchasing, menu design and prices accordingly.

I’m curious to hear from restaurant companies that are thinking about this. It’s something that High Margin is looking at very closely.

The High Margin Fundraising Strategy

High Margin was incorporated on December 9, 2024. The idea was to #bootstrap the company to profitability by January 31st, 2025. But the only certainty when launching a #startup is that there is no certainty about anything. It was a long shot that we could close deals and have revenue coming in within 53 days. It’s day 53 and I believe we’re close.

Last weekend I decided that with the #momentum we have building, it wasn’t worth the risk of running out of funds. I decided to start #fundraising to have a safety net: A plan to build our product, even in the unlikely event that all of our potential short-term deals fall through. The immediate interest was greater than I had anticipated.

I asked myself what would I do if we get commitments from investors and then close the deals we have in the pipeline? The conventional response would be “Well you’re not obligated to take the money.” True… but I don’t do “conventional.” I believe that I owe these people for believing in me and for jumping in so quickly. I need to show my gratitude for that.

The day I started High Margin, I reached out to a group of about 20 investors that had invested in a previous venture that I led, and I said some version of the following: “I want to thank you for believing in me, and for investing in me. I am giving you equity in my new venture, High Margin, and I am not asking for anything in return.”

Without exception they were all shocked (in a good way). One said to me “This is highly unorthodox and ‘not in market’. But the fact that you’re doing this is exactly why I invested in you in the first place.” I replied, “Well… I don’t really care what’s ‘in market’. It’s the right thing to do and that’s just the way I do business.”

Unreasonable Hospitality should apply to all aspects of business, including how we treat investors. So I’m going to take care of my supporters. If we close one of the deals in our pipeline, we would no longer need the investment. But I’m going to accept the funds from those that have committed by then anyway to show my #gratitude.

This is a win-win. It gives people an incentive to get in early. It also shows people my commitment to delivering a return on their investment. If we close a deal and find ourselves in a situation where we could #bootstrap, then the investors who committed early get a piece of a much more valuable company.

It’s fun to break rules that were meant to be broken.

A strong social media presence has a direct correlation to success

Within 1 hour of posting on LinkedIn yesterday that I was opening a pre-seed funding round for High Margin, I had inquiries from interested investors. This particular note came from a well-respected CEO in the restaurant industry.

I continue to be amazed by the power of social media. As of January 1st, I started posting not only on LinkedIn, but also on Instagram, TikTok and X. Soon afterward someone asked me why I decided to do that. What was the benefit? Truth is, I don’t know.

When I started to post daily videos on LinkedIn during the summer of 2021, I also had no idea what the benefit would be. It was a gut feeling that it would one day pay off, but I could not produce any hard evidence that it was a good investment.

Why did I suddenly start writing a daily blog post in addition to the videos starting yesterday? Do I have a business plan with projections showing what the return will be on all this investment of time and energy? No. But I can tell you that posting daily videos on LinkedIn for the last 3 1/2 years has been personally and professionally rewarding.

“What if people don’t like what you say?”

“What if people don’t take you seriously because of the clothes you’re wearing?”

“I don’t see anyone else posting videos like that on LinkedIn… it’s not the right forum.”

I don’t believe in making decisions driven by fear. I especially don’t allow fear of what others might think to influence what I think is a great idea. This gives me agency over my personal brand.

“You’re putting all of your failures on public display. Don’t you think people won’t want to do business with you?”

Actually I think it has the opposite effect. Painting a rosy picture on social media is the ubiquitous modus operandi. How can you trust someone who creates the appearance of being flawless? Of never having any failures?

Messages like these… asking for a call to learn more about High Margin offering to help and potentially invest from a successful widely-respected CEO is all the evidence I need that a transparent, authentic approach to sharing on social media works.

Do some people watch my videos or read my blog posts and smirk or shake their heads incredulously at the ease with which I share so much about my approach to business and life? No doubt. Are they the people I want to do business with? Nope.

Weighing the benefits and drawbacks of a bootstrap strategy

I incorporated High Margin 7 weeks ago and so much has already happened. It has been 7 weeks of non-stop hustle, of deep soul searching and self-reflection, of hope and resilience.

“This time, I’m going to bootstrap it,” I told myself. All the pieces are in place.

We have:

A great idea for a solution that can show immediate value and impact.
A team of smart, hard-working individuals ready to roll up their sleeves and work for the promise of future compensation and of being a part of building something great.
Enterprise customers interested in what we have to offer.

What could possibly go wrong?

It takes so much more to achieve that one spark that ignites the fire that can become a new, successful business.

It always takes longer than you think. Always.

I thought that if I explain to potential customers with full transparency that we can really help them, but that we don’t have the luxury of a 6-month sales cycle, they would understand.

The truth is, not having a runway is a “we” problem. What we have to offer is good. Really good. It will solve many pain points for restaurants. But that doesn’t mean restaurant companies will shift priorities and find budgets to work with us, no matter how much they like us and what we have to offer.

Very early on, we had three solid deals and it has been my goal to close at least one of them. One deal would be enough of a basis to build a long-term sustainable business. Three deals would be ah-maz-ing. I mean… we’re going to have a KILLER 2025 amazing.

I gave myself until January 31st.

With 4 days left, the deal status is:

We’re committed, but we might have to do it later, not right now.
Happy to give it a try. We will pay you as soon as we see value.
I’ll let you know by the end of the month.

I’m thinking it’s time to raise a pre-seed round. The feedback around our product vision is very positive and it would take little time to stand up a first version to get a few case studies under our belts.

These 3 deals are likely to turn into long-term successful partnerships. Is it worth the risk of running out of air just to avoid taking any outside capital? The answer is clearly no. It’s time to raise some money.

As travel returns, companies like Tripadvisor, Google and OpenTable will struggle to clean up outdated restaurant content

Living in Italy over the last year felt surreal. Visiting sites like The Sistine Chapel and The Colosseum with just a handful of other people, when normally there are 20,000 people trampling through them per day, is a once in a century experience.

But using Tripadvisor, Google and OpenTable to research restaurants has become quite frustrating. The number of establishments that have not survived the pandemic is substantial, and many did not think of notifying these websites and apps as they closed their doors for good. The result is that travelers who previously relied on these sources are often sent on a wild goose chase resulting in cranky families. Users now must double check the date of the last review to figure out that the #2 rated gelateria in Florence, Italy no longer exists.

I recommend that a button is added for the next 6 months that says “This establishment has closed” so that users can easily report these instances and minimize the impact on future travelers as we all hit the streets again in search of good eats.