Like it or not, profitability is the number one goal of a restaurant endeavor.

The title is self evident, but the restaurant industry stands alone in its reliance on critics as a way to measure success. Far too often industry superstars are gauged by what the NYTimes or Michelin guide says about their cuisine, not for what return these managers bring to their shareholders. Many a Chef and Sommelier have ridden the wave to critical acclaim on the backs of their organization’s investors. Since the risk is high in restaurants, being part of a failed endeavor does little to dent past critical success, so temptation exists for management to run with high food, beverage and labor costs to ensure that critics enjoy their experiences.


The one place where old media still rules is the NYC restaurant scene. Sam Sifton of the NYTimes can make or break an establishment with the wave of his pen, and Adam Platt for NY Magazine has considerable clout. Restaurants spend untold thousands of dollars in design, flatware, and the right stemware with the intention of wooing these critical giants. Measuring the return on investment for such niceties is tricky, as it really depends on what the critics write.


Some top quality chefs understand the profit motive, and are moving their talents into quick service restaurants (QSR for short, most notable establishments are Panera Bread and Chipotle) and retail. Top Chef’s Tom Colicchio owns ‘wichcraft, a NYC based QSR with locations in NYC, San Francisco and Las Vegas. Chef Art Smith, previously Oprah’s private chef, has teamed up with ex McDonald’s executives to create LYFE Kitchen, a 600 calorie and below QSR. These establishments typically return 10% a year to investors, and can be easily replicated in markets throughout the country. NYC heavyweights Mario Batali and Daniel Boulud have even ventured into retail; Batali with Eataly, an Italian food Mecca in the Flatiron and Tarry Market in Port Chester, and Chef Boulud with Épicerie on 64th Street.

Most restaurateurs are passionate and are in it to profit, but lack the right structure to fully achieve it. It is time that industry investors demand their top managers look out for shareholder interests, and stop throwing money at critic's darlings with poor past performance. Also, diversifying a food portfolio to include a potential QSR as well as a retail establishment seems to be the current trend, and may be smart to look into.