logo
So You've Taken Over Your Family's Restaurant

So You've Taken Over Your Family's Restaurant

Mint19-06-2025

(Bloomberg Opinion) -- Restaurants are delicate things — especially mom-and-pop operations. Among the smallest of small businesses, the most successful attract customers with a combination of low costs, intense deliciousness, do-it-yourself charm and pure gumption. The hawker stands of Southeast Asia are famous examples of this. Diners forgive rough service, put up with long queues and forego white tablecloths — if not tables — for a chance to enjoy a secret sauce, that special spark, the elemental spirit passed down generation to generation.
Scaling up these tiny treasures might maximize profits, but the risk is losing the magic. A line of cooks organized along Auguste Escoffier's kitchen brigade system may help churn out dishes and feed a lot more people efficiently, but certain recipes require exacting experience and a discriminating je ne sais quoi. They may not survive the transition. Customers who are used to lower prices will also grouse at the increased costs that come with more staff and expanded real estate. A purist or two will complain that you've sold out.
I've been worrying about this because friends of mine are in the process of scaling up a mom-and-pop operation that had a legendary cult following here in London. People used to take 45-minute train rides from the middle of the city east to less-than-posh Leytonstone on a chance that a table — even if you had to share it — might open up at the Thai restaurant Singburi. That's because 'mom' — who took bookings only over the phone — said there was no availability unless diners didn't show up. 'Pop' started the restaurant in 1999, but Singburi's reputation got going after Sirichai Kularbwong joined him in the kitchen toward the end of the last decade. Over that period, his parents toyed with the idea of retirement and finally decided to do it at the end of 2024. By then, the hole-in-the-wall underdog had become the 73rd best restaurant in the UK.
Will Singburi 2.0 — in a brightly modern, much bigger space in trendy Shoreditch — be able to replicate its former charms? Some favorites from its old chalkboard menu aren't on offer, and that will disappoint some followers. I'm a friend and fan of Kularbwong and his partners, and so, while I've tasted (and thoroughly enjoyed) a preview, I have to await popular acclaim — or the opposite — along with them after the restaurant officially opens this week. I'm rooting for them and sharing in the anxiety, almost like family.
I take some comfort from the recent remaking of another family-run Thai restaurant. In Copenhagen last month, at Noma chef Rene Redzepi's MAD symposium on the future of food, Justin Pichetrungsi — who'd been working for Walt Disney Co. as an animator — gave a speech describing how he had to change careers in 2019 when his chef father suffered a stroke. He took over Anajak, a four-decade-old traditional Thai restaurant. He proceeded to innovate (think Thai Taco Tuesdays), turning it into one of the most sought-after reservations in Los Angeles. He instituted his changes, including a huge list of natural wines, while in close consultation with his father and the kinfolk who'd always helped run the place. Pichetrungsi won the 2023 James Beard Award for best chef in California. His mother, who remains in charge of making Anajak's mango sticky rice, wore the medal when he returned to LA with the prize, and proudly got fruit stains on it.
Sometimes family may just be what a restaurant in jeopardy needs. In February 2003 — despondent over an unexpected demotion in the unforgiving world of French haute cuisine — Bernard Loiseau, the celebrated chef of Cote d'Or, a three-Michelin star restaurant in Burgundy, walked up to the upstairs bedroom where he usually took a nap after lunch service. He then shot himself in the head. There was heated debate in the media over what part of the system was to blame for the tragedy.(1) Then the world moved on.
But not Loiseau's family. The chef was the relentless genius at the center of not just Cote d'Or, but also the eponymous company he built around it. Indeed, Bernard Loiseau SA was traded on the Paris stock exchange. How could such a personality-driven enterprise exist without him? His culinary reputation was also the only real thing his grieving family could claim ownership of. So his widow Dominique decided to press on. With most of her late husband's staff, she persevered, keeping Cote d'Or going. Eventually, two of their three children — daughters Bérangère and Blanche — would become part of the operations. Bérangère took over the front of the house and the management of the finances; and Blanche would join the kitchen.
It hasn't been easy. In a poignant speech at MAD, Bérangère talked about channeling her father through his writings and documents to figure out how to move forward with the restaurant and the company. Nevertheless, in the 22 years since his death, Cote d'Or hasn't only expanded to include the small hotel Relais Bernard Loiseau and several other properties, it's also kept its Michelin stars. In 2003, Dominique told French television soon after his suicide, 'All these exceptional beings who give you the impression of so much assurance, they are all very fragile. They all have such strong moments of doubt.' But she and her daughters came to the rescue. And because of them, Bernard Loiseau has a living legacy in the world.
More From Bloomberg Opinion:
(1) In 2003, Loiseau was demoralized by his demotion by the Gault Millau restaurant guide and feared Michelin would follow suit. It did not. Cote d'Or would retain its three Michelin stars.
This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Howard Chua-Eoan is a columnist for Bloomberg Opinion covering culture and business. He previously served as Bloomberg Opinion's international editor and is a former news director at Time magazine.
More stories like this are available on bloomberg.com/opinion

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Protesters Rally in Thai Capital to Demand Premier's Resignation
Protesters Rally in Thai Capital to Demand Premier's Resignation

Mint

timea day ago

  • Mint

Protesters Rally in Thai Capital to Demand Premier's Resignation

(Bloomberg) -- Thai protesters began to rally in Bangkok on Saturday to demand the resignation of Prime Minister Paetongtarn Shinawatra, as the fallout continued from her controversial phone call with former Cambodian leader Hun Sen. Demonstrators gathered at the Victory Monument junction, a key intersection in the capital, waving flags as monks prayed and chanted on a stage. Organizers brought the rally forward by six hours, with crowds expected to become larger as the day progresses. Paetongtarn has resisted calls to step down after a leaked call with Hun Sen was released in which she criticized her army, prompting a key coalition ally to defect and her government to nearly collapse this month. The political turmoil compounds woes of Southeast Asia's third-biggest economy, which has been hurt by US tariff threats, a tourism downswing and a consumption slump. The crisis has also weighed on international investors, who have dumped a net $2.3 billion of Thai stocks this year. Thailand's benchmark stock index has slid 21% this year — among the worst performers globally — largely on concerns that US threats of a 36% tariff will worsen the economic slowdown and hurt company earnings. The gauge tumbled 2.2% on Friday as some investors cut their exposure of domestic stocks ahead of the weekend street protest. 'Domestic politics have returned to trigger extreme volatility in the stock market again,' said Nariporn Klangpremchitt, an analyst at Thanachart Securities Co. Investors are selling off Thai stocks on concern the protest and political uncertainty 'will affect the government's stability and economic policy implementation,' she said. A coalition without Bhumjaithai Party, formerly the alliance's second-biggest group, commands a very slim majority. That could complicate passage of key bills in July, including a controversial proposal to legalize casinos and the next fiscal year's budget. The rest of Paetongtarn's coalition allies have pledged to remain for now. More stories like this are available on

India's Rice Bins Are Stuffed And Another Record Crop Coming
India's Rice Bins Are Stuffed And Another Record Crop Coming

NDTV

time2 days ago

  • NDTV

India's Rice Bins Are Stuffed And Another Record Crop Coming

India's stash of rice is running at the highest for this time in at least two decades, raising the risk it will run out of room to store it all as another record crop looms. Overflowing reserves - equal to more than one-tenth of the annual global production - are becoming a headache for the world's second-biggest grower as authorities struggle to create extra storage. Forecasts of above-average rains have raised expectations that the nation will reap another bumper crop this year, increasing the risk of the grain rotting in open storage facilities. "Our outlook for Indian production is favorable, pointing to another record Indian crop being harvested in 2025-26," said Shirley Mustafa, an economist at the United Nations' Food and Agriculture Organization. The arrival of the new crop in September and October raises the prospect of increased supply pressure on public granaries, she said. India is the world's top shipper, and its move to ease export restrictions has helped push Thai prices - an Asian benchmark - down almost 40% from a 15-year high in January 2024. Still, the country's swelling surplus shows its struggle to find enough demand to meet rising supply. Global stockpiles are expected to reach a five-year high in the coming season, which could keep prices under pressure. Rice acreage in the South Asian nation jumped 58% from a year earlier as of June 20, helped by the early onset of monsoon, according to the farm ministry. Planting will be completed in most parts of the country by the middle of August. India heavily influences the global rice market, Mustafa said. "But we also have to see how crops fare in competing suppliers and in important rice buyers." Inventories totaled almost 38 million tons this month, according to the state-owned Food Corporation of India. It's also holding more than 32 million tons of the unprocessed grain, equivalent to about 22 million tons of rice, data showed. The country maintains wheat and rice reserves for various welfare programs, including 5 kilograms of free grains per person every month to needy people. The government last month allowed the use of 2.8 million tons of rice from state reserves for ethanol manufacturing, in addition to 2.4 million tons approved earlier, according to the Hindu Businessline newspaper. It was a highly unusual move for the important food staple, and a bigger crop could spark further steps. Still, more than 140 million people remain excluded from the food distribution program, due to the continued use of decade-old population data to calculate beneficiaries. India plans to spend about 2 trillion rupees ($23 billion) in the fiscal year ending on March 31 to run the world's biggest food program. The federal government purchases cereals such as rice and wheat from farmers at guaranteed prices and distributes the grain to about 800 million people through a vast network of retail shops. These assured prices aim to shield farmers from distress sales in the open market.

How to Avoid Bank Safety's Death by Many Cuts
How to Avoid Bank Safety's Death by Many Cuts

Mint

time2 days ago

  • Mint

How to Avoid Bank Safety's Death by Many Cuts

(Bloomberg Opinion) -- The Federal Reserve is aiming to lessen the costly fluctuations in bank capital demands created by its annual stress tests. But big lenders are pushing for more relief while the central bank is politically weakened and some board members seem keen to please the White House. The Fed must be careful not to give away too much bit by bit by tackling several different regulatory changes in a piecemeal way. A gathering of industry leaders and regulators next month to discuss an integrated review of large banks' capital requirements, which was announced by the Fed on Thursday, is the place to start. Financial safety is vulnerable right now. President Donald Trump favors looser regulation in the hopes of promoting growth and squashing what Republicans see as a political focus on climate risks and diversity efforts. At the same time, Trump is trying to undermine Fed independence by hounding Chair Jerome Powell to lower interest rates. Key board members have recently backed early cuts. Powell himself has also had to eat humble pie over perceived overreach by bank supervisors to influence industry lending decisions through the prism of reputational risk – he has now ordered that be removed from bank assessments. The central bank also stumbled badly in its attempt to update US capital rules and bring them into line with the international Basel standards, which led to a humiliating climbdown by American regulators last year. This year's stress test results are due out today and the Fed might also update markets on plans for the first change to how the outcomes apply to banks. Since 2020, the results of this test are used to calculate between a quarter and a half of big banks' minimum capital requirements, but because the tests are different each year the amounts involved have varied wildly. JPMorgan Chase & Co., Goldman Sachs Group Inc. and the rest have seen their capital needs fluctuate by billions of dollars. Rulemakers at the Fed, sympathetic to complaints about the costs and uncertainty, are planning to start using an average of two years' results to limit the variation. Normally, banks must meet their new requirement three months after it is set: by October after results are released each June. The industry wants a phase-in period to the end of the year. This sensible smoothing could aid banks' planning without undermining the safety of the system. However, lobby groups such as the Financial Services Forum, which represents the eight biggest lenders, and the Bank Policy Institute want more. First, they've asked that banks be allowed to take the full benefit of any cut in requirements, while using averaging to limit any increase. The argument is that the cost of adding capital is asymmetric and so there's a justification in making the averaging asymmetric too. Obviously, this is self-serving. It will tend to favor moves toward less capital over time. It's also only one side of the argument: There is asymmetry to releasing equity that the Fed should worry about, which poses an additional risk to the stability of the system. The less capital is required, the greater the chance that some bank is unable to cover all its losses and fails. Averaging should apply both ways if it is being used at all. The cost of extra demands is somewhat academic right now as well because all the biggest banks have significant excess equity over requirements, and this year's test was less onerous than last year's, so is widely expected to mean a cut in demands for most banks. The industry also has more substantial, longer-term changes on its wish list. First, is more transparency in how the stress tests feed into the Fed's calculations of capital needs. The process has grown more opaque and less predictable in recent years, which hurts the banks. But the argument against too much transparency is that lenders could game the outcome. Worse than that, though, is that banks want to use this to challenge the Fed's decisions. 'It would enable firms to meaningfully seek reconsideration of their [capital] requirement,' the FSF wrote in a letter to policymakers on Monday. This would be a mess. There are problems with opacity, but regulators must have some power and discretion. Their job is to serve taxpayers and the financial system, not to be tied up in costly appeals and arguments every year. Another industry complaint is the double counting of some risks between the capital requirements set by the stress test and the base minimum that flows from the wider US capital rules. This is a fair complaint and was a big problem with the Fed's proposal launched in 2023 to update US rules in line with international standards. That proposal, nicknamed the 'Basel III Endgame' in the US, is being rewritten after it was pulled last year. The answer, however, is not to weaken the capital derived from stress testing – especially before America's 'Endgame' is complete. The best solution is to reexamine these elements together as a single piece of work and ensure an outcome that sets steady and safe capital levels in a way that is efficient and understandable (as far as possible) to all parties. My view is that the vast majority of banks' capital requirements should be set under the main capital rules (the Basel Endgame), more like other countries. Regulators should also have discretion to impose extra requirements if individual banks are squeezing much more risk out of their models than peers, or falling down on risk management or governance in ways that endanger their survival. Stress testing should be a warning system for extreme or unusual risks – a sense check on what the main capital rules tell us about the safety of banks. If this were the case, debates around averaging or transparency would be irrelevant. Michelle Bowman, the Fed board member now in charge of bank rules — and a recent convert to interest rate cuts — has promoted the idea of a holistic review of how capital rules work together, as have industry executives. That would be better than piecemeal bargaining that could cause the death of financial safety by a thousand cuts. More From Bloomberg Opinion: This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times. More stories like this are available on ©2025 Bloomberg L.P.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store