4 ms·

I don't believe you. If a restaurant is unprofitable, it would be closed. Nobody in their right mind would choose to continue losing money.

itishappy 2y ago
> Nobody in their right mind would choose to continue losing money. In isolation, sure, but losing money in one area to make money (or some other form of currency such as fame) in another sounds a lot more reasonable. That's what a loss leader is.
- moate 2y ago
  Exactly! Every restauranteur knows the steak draws the attention but you pay your bills with baked potatoes and creamed spinach. There are only a handful of restaurant that are able to operate on that level, but the food loses money so you can make money on the cook books or merch or other opportunities (or even other restaurants. I promise you craftwich and craft have very different operation budgets/profitability).
Ekaros 2y ago
When Michelin stars get involved it becomes really intrinsic(not monetary) vs extrinsic values. At certain levels of passion just achieving and keeping a star has value in itself. This then often comes with monetary cost. Many of the chefs pushing for Michelin stars likely are not in their right mind.
- bobthepanda 2y ago
  we already know that many top restaurants are toxic work environments with rampant drug abuse and scandals.
  - hinkley 2y ago
    Forbes interviewed a bunch of chefs about what they think of The Bear. https://www.forbes.com/sites/kristinwolfe/2024/07/31/real-talk-with-real-chefs-on-the-reality-of-the-bear/ https://www.forbes.com/sites/kristinwolfe/2024/07/31/real-ta... Seems to be considered fairly biographical.
hinkley 2y ago
You don't think there are rich backers out there willing to eat money on a restaurant in order to achieve status amongst their peers?
InitialLastName 2y ago
If this were true, nobody would ever try to build a career as an artist.
moate 2y ago
Hi there! Please google “el buli profitable”. “The exception that proves the rule” or proof that some restaurants aren’t about making money through food sales alone. Also, I spent a decade working in restaurants, I never met a single back of house employee that was in their right mind (myself included). It’s an entirely different breed from the HN set.
- detourdog 2y ago
  I can’t figure out where ambition and rationality diverge.
silverlake 2y ago
They do not break even on food alone. All their profits come from alcohol sales.
paulryanrogers 2y ago
Money laundering? Drinks? Both?
willcipriano 2y ago
A lot of people buy a business so that they can say they are a business owner instead of a inheritor.
PlunderBunny 2y ago
To the point someone else made about one part of the business propping up another, I wonder how many hotel restaurants are profitable?
Hikikomori 2y ago
Never watched kitchen nightmares?

itishappy 2y ago

> Nobody in their right mind would choose to continue losing money. In isolation, sure, but losing money in one area to make money (or some other form of currency such as fame) in another sounds a lot more reasonable. That's what a loss leader is.

moate 2y ago
Exactly! Every restauranteur knows the steak draws the attention but you pay your bills with baked potatoes and creamed spinach. There are only a handful of restaurant that are able to operate on that level, but the food loses money so you can make money on the cook books or merch or other opportunities (or even other restaurants. I promise you craftwich and craft have very different operation budgets/profitability).

Ekaros 2y ago

When Michelin stars get involved it becomes really intrinsic(not monetary) vs extrinsic values. At certain levels of passion just achieving and keeping a star has value in itself. This then often comes with monetary cost. Many of the chefs pushing for Michelin stars likely are not in their right mind.

bobthepanda 2y ago
we already know that many top restaurants are toxic work environments with rampant drug abuse and scandals.
- hinkley 2y ago
  Forbes interviewed a bunch of chefs about what they think of The Bear. https://www.forbes.com/sites/kristinwolfe/2024/07/31/real-talk-with-real-chefs-on-the-reality-of-the-bear/ https://www.forbes.com/sites/kristinwolfe/2024/07/31/real-ta... Seems to be considered fairly biographical.

hinkley 2y ago

You don't think there are rich backers out there willing to eat money on a restaurant in order to achieve status amongst their peers?

InitialLastName 2y ago

If this were true, nobody would ever try to build a career as an artist.

moate 2y ago

Hi there! Please google “el buli profitable”. “The exception that proves the rule” or proof that some restaurants aren’t about making money through food sales alone. Also, I spent a decade working in restaurants, I never met a single back of house employee that was in their right mind (myself included). It’s an entirely different breed from the HN set.

detourdog 2y ago
I can’t figure out where ambition and rationality diverge.

silverlake 2y ago

They do not break even on food alone. All their profits come from alcohol sales.

paulryanrogers 2y ago

Money laundering? Drinks? Both?

willcipriano 2y ago

A lot of people buy a business so that they can say they are a business owner instead of a inheritor.

PlunderBunny 2y ago

To the point someone else made about one part of the business propping up another, I wonder how many hotel restaurants are profitable?

Hikikomori 2y ago

Never watched kitchen nightmares?