Restaurateur Sandoval Takes on Global Challenges

many more. He's the founder of the Send of All Hospitality group. They've got I think roughly fifty locations, four continents, nine countries, tenuous states. In the company's own words, they're ever evolving. And Richard joins us on the phone from Tuscany, where I think it's a pretty gorgeous day, although the phone connection we're keeping our fingers cross. Richard, how are you very very thanks for having me, Well, it's great,

great to have you here. First of all, give us a little background in terms of the impact the pandemic on you guys are and then kind of where we are in contrast today. Well, obviously, you know, we had to furrow everybody when the pandemic hit. I mean, we closed every restaurant around the world, so it was very impactful. Um And as you know, luckily, you know, the government helps us with PP money, so it helps us stay afloat.

And then all of a sudden, I mean, you know, as the pandemic started to go away, I mean, just the numbers and people you know wanting to get out into into the restaurants and get out of their homes with staggering So you know, our numbers just skyrocketed. Um. As you were saying that, you know, we you know, we had our challenges, you know, with labor, with supply chains, so it's been you know, it's been balancing act. But

you know, luckily that the numbers are there. People are back, you know, going to the restaurants, and you know, the numbers are looking very good. Well, you've got a great view because you've got four different continents, more than fifty restaurants around the world, and I'm wondering what you can tell us about regional differences when it comes to bounce back that you've seen in recent months. Chef, what are you seeing that where are you seeing differences and what

are those differences? Right? Well, I think the biggest differences, you know, I mean the bigger cities were much more impacted. I mean, for example in New York you know, you know, has been more challenging. I think you know, a lot of people left the big cities. And also you know people are working from you know, these new uh you know, hybrids of you know, two days um, you know at

the office, three days at home. So you're not seeing the density in the in the big city as far as you know, lunch business for example, I mean the tourist destinations for example, the mountains, um, you know, you know, the resources like for example the rich Cross and Laguna. I mean just I mean, we've never seen this kind of business. Uh. I think it just depends on locality and you know where people feel more comfortable, you know, you know going out Richard, how much of your business

is tourism? How much is business? I mean, I don't know how much of the demographics you guys are able to analyze. Well, I think it depends on the destination, right I said, I mean New York for example, you know, if you're here in midtown, you obviously depend you know, their lunch business. How you dependent on on businessmen. But again for example, you know the risk Carlton, the mountains, Um. You know it's it's mostly tourism, Denver Um proper of downtown.

You know, you know, we haven't seen our lunch business come back as strong as we have our our business dinner business. So I think every you know, every area is different, um and for us, and we are in so many different places that you know, we have different

challenges in different locations. For talking with chef Richard Sandoval, founder of Richard Sandoval Hospitality Group, is still with us on the phone from Tuscany, Tim and I mentioned earlier they've got around fifty locations, nine countries, four continents, ten US states, so they really have a great snapshot of what's going on in the hospitality industry. So, Richard, how did coming out of the pandemic, how did it, if at all kind of shape maybe what you wanted to

do next? Well, you know, I mean I think it helped us, uh you know, I mean almost you know, like like recessions, I mean it helps you make adjustin as you have to you know, react quicker. Um. You know, we had a big problem with supply chains, which was a big challenging challenge for openings that we had coming along. So a lot of our openings have been delayed. Um. So you know, I think what what we did is, you know, we reacted and started going towards you know,

more local products. UM. For example, Marrakesh, you know are osm Me which is our china, you know, glass ware silver where was on a boat. You know, it was three weeks delayed. So we went actually to local marks

and started by you know, local products. So I think and even in the US, I mean because of inflation, you know, we've had to go more towards you know, you know local um, you know, to get better pricing, you know, you know, seasonal products, you to help you keep our costs costs on because you know you can't you know, just cost you know, transferred all the costs to your to your guests. I mean, UM, so yeah,

I mean it is been very challenging. Um. You know, like I said, you know, we've also had to you know, work with smaller menus because of you know, um, labor issues that that that are happening in the country. So you know, we turned our menus down um, you know, to be able to cut you some of our labor in the in the back of the house. So I think right now it's very important to be very reactive to these things that are going on because there's just

too many things happening and very fast. You have to be very, very very reactive. So, Chef, I'm I'm wondering. You mentioned inflation, and this is really where I want to go. I'm glad you brought it up. Help us understand how much prices have gone up since before the pandemic. If we were, if we were thinking about this from the perspective of okay, you know, February January, how much more are you paying for labor? How much more are you paying for ingredients? And then how much more our

guests paying at restaurants as a result. Right, So first labor, I mean it's it's you know, probably three to you know, five points on our on our on our on our budget. So um, you know, we've obviously we we've had to you know, make you know, price and increasister too, you know, make adjustments to that. Um. As far as inflation, I think we're probably seeing a thirty five increase in So again you know we we've passed some of the costs over to you know, to our to our guests. We

didn't I didn't quite get that. Your phone cut out. Let's try to get that one more time. Chef the numbers again, please? All right? So we're so so labor it is probably you know, affecting our PML is probably you know, five points. I would say, you know that, you know, having to take people a lot for her and before just yeah, we are having some technical problems. Uh. Richard Sandoval, we're talking with founder of the Richard Senterval

Hospitality Group. He's on the phone from Tuscany. He's in a rural area and he's been really kind enough to move around to try and get us a cleaner line because we'd love to. I know, I thought, I did you know? He was talking about numbers in his higher costs. He talked about five points I guess percentage points maybe when it comes to higher costs for labor. And then he said I didn't get the ingredients part though. Was that thirty five to is what I think he said.

I wouldn't be surprised given the rising prices of commodities that we've seen. I mean, you know, Carol Wheed alone today surging, so I am, and we've seen a pull back the in to some extent. It also is very regional and that's something an area where I want to go with the chef. Richard. You're back, Richard Senterval is back and thank you for your patients. Richard, I know you're you're out there in Tuscany and it's not so

easy for self service. You talked about labor and I think you said about five points higher in terms of what you're paying ingredients. Can you just reconfirm that I thought you said thirty five to forty percent that you're paying higher as a result of kind of today's current environment. Yes, we've seen that in some in some products. Yes, so again you know it is very challenging. Um, as you know, we've seen them government pretty I mean place that n so yeah, I mean you know two years ago. Yeah,

you know we're seeing on some sense of products. So you know, the only way we're able to make up for that is me and I'm sure you're seeing it wherever you're at I mean restaurant. You know, many prices have significantly over the last two years. Um. I think the other thing that I mentioned go ahead, so no, no, please continue. So I think what the we're we're able

to make it. Also adjustment is by using a lot more local um, you know, purveyors, local farmers, you know, a lot of you know, more seasonal ingredients and and worked with that to be able to have some containment. Richard, I really want to get to the new concepts that you're working on around the world, starting in Athens and then to Marrakesh, because you've got projects all over the world. Give us an idea of what you're what you've got

cooking in those places. Right, So Marrakesh, we both we're opening a tour which is one of our UM Global brands and it's our first Pan Latin restaurant going into into Marrakesh. It's about a hundred and fifty restaurant. It's right next to the Four Seasons and the Four Seasons residences. UM that was supposed to open last week because of supply chain problems you got postponed, so we're hopefully opening

in two weeks. UM. You know, we're very excited to be in the African continent, so we're excited about that project. And then Mara Kes I mean sorry, then Athens. We're opening a beach club in Athens. It has a it has about you know, five hundred seed capacity, two hundred sun beds. That's a three hundred seat restaurant. Um. So yeah, we're super excited. It's our first beach clubs. So yeah, we're very excited to be uh opening up next week. All right, I'm ready to go. I'm gonna I'm headed.

That sounds like magical. Richard, good luck with everything. Thank you for doing some of the technical problems, because we really wanted to hear from you directly. Uh and so appreciated. Good luck with everything, and hopefully we can talk again soon in the future. Jeff Richard Sandoval, of course of the Richard Sandaval Hospitality Group, joining us on the phone from Tuscany.