If you're looking for typical business advice or well-worn adages on profit margins, you're not going to get it from Kara Restaurant Group President Yianni Karapanagiotis. After 30-plus years of industry experience and a collection of six different boutique BYOB concepts, he isn't afraid to tell like it is.
If what you are looking for is an honest, unflinching, no-nonsense look at what it takes to launch your own restaurant concept, then his session at the 2023 Bar & Restaurant Expo – "The Best Bad Idea Ever: Dreams and Nightmares of a Restaurant Punk," on Monday, March 27 from 4:15pm-5:00pm – is a can't-miss.
Fortunately, you don't have to wait until March to hear from Yianni. We caught up with the restaurateur and talked about his upcoming session, his BYOB concepts, 2023 trends, and the advice he has for those in the industry. Read the full Q&A, below!
1. Why should people attend your session, "The Best Bad Idea Ever: Dreams and Nightmares of a Restaurant Punk"?
I didn’t go to restaurant school, but for more than 30 years – 10 as an employee and 20 as an owner – I’ve gone to school in restaurants. It’s theorized that it takes “approximately 10,000 hours or 10 years to become an expert in something.” Since I have three times that amount of time invested in the industry, I’d say I’m moderately qualified to share the lessons I’ve learned from the successes and failures faced over the past three decades. Whether you’re a (lightly) seasoned restaurateur, a line cook with visions of launching a food truck to serve your creations to the masses, or a waiter saving 30% of your tips towards opening a live music hotspot with delectable finger foods, I’ll teach you how to fight for what you believe in.
You should attend my talk if:
- You have a dream of opening a dining venue – be it a food truck, a café or a sit-down eatery.
- You enjoy dark, depressing nights of crying alone in your closet followed quickly thereafter by glorious days in the sunshine pursuing your passions and opening the door for others to chase their dreams, too.
- Opening your business checking account to a balance of negative $312.65, sacrificing all of your free time and possibly your health, sounds like your idea of a good time.
You should absolutely NOT attend my talk if:
- You want a 10 Step Plan for how to make a profit in the restaurant business.
- You’re expecting to hear a guy in a too-tight suit explaining why you’re losing 6% of your customers by not updating your POS system.
- Your ideal job comes with a consistent Monday – Friday schedule and a wonderful 401k matching program.
2. Your restaurant concepts are BYOB. Why did you decide on this approach versus an in-house bar program?
There are two "common sense" assumptions that I’ve heard echoed throughout my career:
- “A restaurant without an identity is simply called a diner,” and
- “You can’t make money without a liquor license.”
Despite this (probably good) advice, I fell in love with the BYOB concept in the late ‘90s while living in Philadelphia. Young, broke, and exploring the city by Vespa, I was consistently drawn to restaurants with less than 50 seats, atmospheres that felt novel yet familiar, food that could get in the ring with any Michelin-starred restaurants, and service that was approachable and welcoming. Places that made you feel like you’d somehow bridged the gap between server and customer to become part of their unique family. They always turned out to be BYOBs. The idea of creating a destination like that grabbed ahold of my existing obsession with restaurant culture and compounded it. Just a few years later, my dream materialized in front of my eyes (and after a sh*tload of work). My first restaurant opened on the corner of Beach and Perry in Cape May, NJ with 10 four-top booths, and I’ve never looked back.
I’ve stayed true to the principals of BYOBs as I’ve expanded the Kara Restaurant Group portfolio for all the same reasons why it struck a chord with me 30 years ago.
3. You’ve opened a variety of restaurants over your career. What does it take for a restaurant to survive in today’s climate?
Are you sick of my quotes yet? Too bad. Next up: “You can’t save yourself to wealth.” To be successful, you must not only know, but also be comfortable with the fact that some years, you’re going to have to pour every penny of your savings, and maybe some of your credit line, into keeping the ball moving forward. Other years, you’re going to be flush with cash and feel like you finally made it. But here’s the thing – those years are the years that you should keep spending. Reinvesting into your business – and especially the people who support it – is the ultimate success strategy, and the only way to continue building momentum while also allowing yourself the freedom to be creative.
You must also be adaptable. In 2019, our flagship restaurant was flush with customers. We had lines out the door waiting for a breakfast table before the first pot of coffee was done brewing. In 2020, we could barely give away a table due to the pandemic and its associated restrictions. Did we quit? No. We created takeout promotions, we improvised outdoor seating options, we offered gift card sales – we adapted to survive and in turn, we thrived.
For Kara Restaurant Group specifically, we’ve pursued a model of “consistency builds credibility.” For us, that doesn’t mean creating a successful restaurant concept and then duplicating it endlessly until we achieve millionaire status. That would be too easy, and frankly, too boring. Instead, we built a core business that evokes respect and trust and then used that reputation to pursue our passion projects (read: less profitable projects).
4. Any advice for other bar & restaurant owners/operators?
My biggest advice is to pay attention to the people around you. As a leader, it can be all too easy to alienate yourself by acting only in your own best interest. I’ve learned that it’s important to have mentors to seek advice from and a support team to delegate to. That regardless of which of those groups you’re talking to, to never believe you’re the smartest person in the room and to always be on the lookout for new ways to leverage talent that is already part of your team. Recognize and reward loyalty, and it will pay off ten-fold, time and time again.
5. What will be the biggest trend in restaurants in 2023?
Putting your people first (and second and third). As I said in my previous answer, people are the core of this business. Many owners will argue that the customer comes first, but I’ll go to my grave before I value a one-time guest over the employee who shows up on time and goes the extra mile every day. In the wake of the pandemic and the associated sky-high rates of staff shortages, I think the restaurant trends will place increasing value on maintaining quality of life for those upholding the industry.
So, consider, what sets me apart from the competition when applicants are considering working for you? Is it the quality of life you offer? Maybe it’s the flexible hours, the compensation package and signing bonus, or the health benefits and 401k plan. Is it the paid vacation, the staff meals, the company car, or the corporate retreat in Santorini? I can’t tell you what the maximum potential is in your business, but I can tell you the minimum: be available to listen to what your employees – or potential employees – need in order to thrive. If it’s within your means – make it happen. Then, watch what happens the next time you need something from your team. I bet you’ll have more volunteers than you could possibly need…
A young sous chef came and did a trial shift in one of our kitchens. Afterwards we spoke in the alley to see if it was the right fit. We both agreed that it was and set to negotiating. He was clearly nervous to ask for $30 an hour – I could almost hear his father sternly lecturing him to “start high and work your way to what you really want!” When I blankly responded “Done. What else?” he looked bewildered, almost as though he thought I was mocking his request. He hesitated before asking for Sundays off, nearly sure I would say no. “Done. What else?” I replied. He shook my hand with enthusiastic gratitude, then half hugged me while he said, “thank you so much. I won’t let you down.” To this day, he hasn’t asked me for anything else – and he hasn’t let me down.
People first. Second. And third.
Interested in learning more from Yianni? Register for an Education + Expo pass to attend his session today!
Plan to Attend or Participate in Bar & Restaurant Expo, March 27-29, 2023
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo, March 27-29, 2023 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at Bar & Restaurant Expo, contact:
Veronica Gonnello (for companies A to G) e: [email protected] p: 212-895-8244
Tim Schultz (for companies H to Q) e: [email protected] p: 917-258-8589
Fadi Alsayegh (for companies R to Z) e: [email protected] p: 917-258-5174
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