We live in a world that constantly evolves — where the rate of change keeps getting faster, sometimes seemingly spinning out of control. Just when you think you’ve got a handle on a situation, it morphs into a new reality. But as daunting as change can be, it can also open up new possibilities never before considered.
As millennials prime themselves to become leaders in their respective fields, everything we do is up for discussion and for disruption. For the restaurant industry, what’s worked in the past won’t necessarily pass muster today. In fact, business models are evolving at such a fast clip that what used to work as a general rule of thumb is now sometimes fodder for the waste bin.
Sound extreme? Not according to David Chang, New York chef extraordinaire, founder of the Momofuku food empire and outspoken restaurateur.
Earlier this spring, Chang wrote a biting article called “The Earthquake that’s About to Hit Restaurants” published in GQ magazine. In the article, he warns readers about the demise of the restaurant industry, citing the high cost of ingredients, the growing disdain of the tipping model and the sad reality that many good chefs are fleeing the kitchen. Chang posits what most operators know only too well: restaurants “are at the mercy of weather, acts of God and a sluggish economy.” And, with profit margins so slim, success is more elusive than ever. Rising rents and changes to labour laws, says Chang, are also making it increasingly challenging to own a restaurant.
Sound harsh? Perhaps, but given that we live in a precarious time, where changing demographics, technology and disruption are rewriting the rules of business, his sentiments could be echoed by almost any business operator across any sector.
Still, despite the obstacles Chang cites in the article — or perhaps because of them — the innovative chef/restaurateur continues to expand his empire, adding new revenue streams such as meal delivery, grab-and-go items, a magazine, cookbooks, bar and packaged products to his repertoire. Recently, he also launched a restaurant called Nishi where, as a way to hang on to the best kitchen staff, he implemented a no-tipping policy, joining a growing legion of restaurateurs experimenting with the new model.
Some days, restaurant operators must feel the world is conspiring against them, as the litany of challenges mounts. And, though not every operator can afford to expand their revenue streams, they do need to be open to, and deal with, the changes being foisted upon them, no matter how painful. Sure, success is more elusive than ever, but ultimately, for operators like Chang, and those like him, willing to work harder, smarter, and more creatively than ever, it’s there for the taking.
For the third consecutive year, F&H magazine is happy to profile a few of tomorrow’s leaders, culled from the Ontario Hostelry Institute’s Top 30 under 30 program (see p. #19). Undoubtedly, these millennials will shake up the status quo even further and make their mark in the coming years.
