March 26, 2024 • 1hr 48min

Sean Feeney - Reinventing the Restaurant Business - [Invest Like the Best, EP.366]

Invest Like the Best with Patrick O'Shaughnessy

In this episode of Invest Like the Best, Patrick O'Shaughnessy interviews Sean Feeney, co-founder of Grovehouse Hospitality Group and owner of acclaimed New York City restaurants Lilia and Misi. Sean shares the story of his transition from a successful career in finance to partnering with Michelin-starred chef Missy Robbins to build innovative and community-focused restaurant concepts. The conversation explores Sean's unique approach to the restaurant business, drawing on his finance background to rethink industry norms while prioritizing hospitality, employee empowerment, and giving back to the community.

0:00

-0:00

Key Takeaways

Finding your "genius" - Sean discovered his true passion and talents in the restaurant industry after leaving a successful finance career. He emphasizes the importance of understanding your greatest strengths and what makes you jump out of bed each day.
Innovative business approaches - Sean applied his finance background to rethink standard restaurant practices, like tying rent to a percentage of sales rather than fixed amounts. He focused on keeping things simple financially while allowing for creativity.
Building community and relationships - The restaurants prioritize creating memorable experiences and building long-term relationships with guests. They see dining as more than just a transaction.
Empowering employees - Sean emphasizes giving team members opportunities to grow and take on new roles aligned with their passions. Many long-time employees have created their own positions.
Intentional, focused concepts - Restaurants like Missy succeed by having a very specific, dialed-in vision and menu rather than trying to be everything to everyone.
Giving back to the community - Initiatives like placing trash cans around the neighborhood and hosting youth basketball tournaments are core to the business philosophy.
Constant creative response - Sean encourages being willing to try new ideas quickly, like creating a bagel program in just 72 hours when an opportunity arose.

Introduction

In this episode of Invest Like the Best, Patrick O'Shaughnessy interviews Sean Feeney, co-founder of Grovehouse Hospitality Group and owner of acclaimed New York City restaurants Lilia and Misi. Sean shares the story of his transition from a successful career in finance to partnering with Michelin-starred chef Missy Robbins to build innovative and community-focused restaurant concepts. The conversation explores Sean's unique approach to the restaurant business, drawing on his finance background to rethink industry norms while prioritizing hospitality, employee empowerment, and giving back to the community.

Topics Discussed

Transitioning from Finance to Restaurants (3:48)

Sean describes how he met chef Missy Robbins while living in the same building and was inspired by her decision to take a year off to reset after achieving great success. He explains:

Initially offered support as a loyal customer when Missy opened her own restaurant
Gradually realized he wanted to be her business partner, despite her initial reluctance
Wrote a business plan and spent months convincing Missy to partner with him
Left his finance career to pursue the restaurant business full-time

"I believed so deeply in someone that I was willing to do something that I never thought I could do, which was being entrepreneur or think anything other than being an employee."

Finding Your "Genius" (13:22)

Sean discusses the concept of everyone having a "genius" or unique talent:

Inspired by Jay-Z talking about everyone having genius-level talent
Realized his own genius was in relationship-building and hospitality
Defines success as doing something you love every day, not just financial rewards
Emphasizes understanding your greatest strengths and weaknesses

"Who you are is understanding your greatest strengths, understanding what you're not so great at and feeling okay about that."

Innovative Approaches to the Restaurant Business (16:55)

Sean explains how he applied his finance background to rethink standard restaurant practices:

Focused on achieving 20% EBITDA, much higher than industry average
Created a simple financial formula tying expenses to percentages of sales
Negotiated rent as a percentage of sales rather than fixed amounts
Approached decisions from first principles rather than accepting "that's how it's always been done"

"I loved hearing that because to me, it was, people stopped looking for better ideas."

Creating Demand and Brand Loyalty (25:12)

Sean discusses how they've built incredibly strong demand for their restaurants:

Focus on authenticity and treating people well rather than trying to be "cool"
Have 5000+ people on waitlists nightly for Lilia and 2500+ for Misi
Launched product drops (like sauces and pastas) similar to sneaker brands
Aim to have "customers chasing brands" rather than vice versa

Lessons from Kith's Ronnie Fieg (28:49)

Sean shares insights gained from observing Ronnie Fieg build the Kith brand:

Focus on making customers feel part of something special
Build long-standing relationships and collaborations, not one-offs
Use storytelling and content to engage customers
Create experiences that make people proud to be associated with the brand

Creating Great Hospitality Experiences (34:11)

Sean outlines his philosophy on hospitality:

Defines hospitality as "creativity plus compassion"
Focuses on understanding each guest's unique needs and reasons for visiting
Aims to make people feel safe, comfortable, and excited to return
Measures success by how many guests make future reservations while still at the restaurant

"The way we are going to measure success of Lilia is not by profitability, it's not by stars or reviews and acclaim. It's if you are proud to be a part of this, you have to feel safe when you enter our doors."

Building Long-Term Customer Relationships (44:09)

Sean explains their approach to customer relationships:

See dining as more than just a 2-hour transaction
Start building relationship from moment of reservation, often months in advance
Aim to be part of guests' lives for celebrations and difficult times
Use surveys and data to continually improve experience

"We've always thought about this opportunity we have, building a community in these four walls as not just a two hour dining experience. It's a much bigger investment for people than that."

The "Perfect Turn" Concept (50:40)

Sean describes their focus on optimizing the dining experience:

Surveyed guests to understand expectations for timing of service
Created framework for ideal flow of meal from seating to departure
Use data to coach staff on optimizing service
Aim to balance guest satisfaction with operational efficiency

Feeney Pizza Concept (1:06:30)

Sean shares the story behind launching the Feeney pizza restaurant:

Wanted to create neighborhood pizzeria that could be scaled
Focus on delicious pizza, hospitality, and community impact
Donate 3% of revenue back to neighborhood initiatives
Offer free pizza for reading books, volunteering, etc.
Placed trash cans around neighborhood to help keep it clean

Empowering Employees (1:36:07)

Sean discusses how they've enabled team members to grow and create new roles:

Many long-time employees have written their own job descriptions
Content director started as a host, now leads all social media and content creation
Encourage team members to pursue their passions within the company
See hospitality as a true profession with many opportunities, not just a temporary job

"The reward has been watching people who believe in what we're saying and doing and want to be a part of that and understanding how powerful that force can be."

Lessons from Missy Restaurant (1:30:31)

Sean shares key takeaways from opening their second restaurant, Missy:

Focused solely on vegetables and pasta, against many people's advice
Proved success of having a very specific, intentional concept
Showed benefits of smaller footprint, menu, and team
Reinforced philosophy of "the most important ingredient is the one left out"

Constant Creative Response (1:24:30)

Sean encourages being willing to try new ideas quickly:

Created bagel program in just 72 hours when opportunity arose
Empowers team members to pursue creative ideas
Stays open to new opportunities and pivots

"I think it's been fun feeling what's working and not afraid to admit when something doesn't, and to study both of those feelings."

Conclusion

Sean Feeney's journey from finance to acclaimed restaurateur demonstrates the power of following your passion, rethinking industry norms, and prioritizing hospitality and community. By applying his finance background in innovative ways while empowering his team and focusing on creating memorable experiences, Sean has built a thriving restaurant group that goes far beyond just serving food. His emphasis on constant creative response, intentional concepts, and giving back to the community provides valuable lessons for entrepreneurs in any industry.