Building a successful food business one mistake at a time

Five tips for First Time Restaurant Owners

My wife Keiko and I opened Ezo Seafoods Oyster Bar in a ski resort town of Niseko in 2009 and followed up opening a sister restaurant Ezo Seafoods Summer in 2014. Neither of us had any experience in running restaurants, only a vision of what our restaurant could be and an underlying passion for seafood, especially Hokkaido seafood.

The first year in both restaurants was tough, physically and mentally. From 18 hour days to dissatisfied customers and financial abyss, you are faced with constant aggravations that sap your motivation and leave your nerves frayed.

Looking back now — after fifteen years, two restaurants, and a complete shift to our current take-out seafood shop, Ezo Seafoods Fresh — I can see that every mistake taught us something worth passing on. Here are several tips to help you prepare mentally for the first few weeks based on our experience opening two restaurants. 

December 2009, Ezo Seafoods Oyster Bar Open for business.

1. Be prepared for criticism

The first and most crucial tip is to be prepared for the criticisms that are coming your way. Nothing is off limits for customers and what you may regard as perfectly fine — such as the level of lighting in the dining room, or the choice of napkins — will inevitably be a source of irritation to at least one customer. If you are lucky the customer will let you know gently. But more than often the criticism will come unexpectedly and put you on the defensive. Keep an open mind to all customer suggestions, even the ones that seem at first to be way off the mark. Chances are if one person if unhappy with some aspect of the experience, there will be at least a few more. Most of the crucial innovations in our business have been the result of customer suggestions or criticisms.

Our first King Red Crab custom order, from a Hong Kongese guest.

2. Keep quality high — get used to stock loss

One of the scariest things about running a restaurant in the early days is stock loss. I recall many days stocking up on fresh seafood at the markets and driving it all the way back to the restaurant only to face nights in my own empty restaurant — except for a full staff. Before you get established and get a steady flow of customers, you have to accept that stock losses are inevitable. Don’t fall for the trap of serving up the old stock. By keeping stock fresh you will build a reputation for quality and attract more guests. It’s uphill for the first few weeks but once you break through into the “virtuous cycle” of stock rotation, loss becomes easier to manage. 

The first iteration of Ezo Seafoods (2009), a hybrid takeout shop & oyster bar.

3. Staff mistakes are your mistakes

In the early days, I was always taking staff to task for ‘their’ mistakes. It took me a couple of years to realise, but in 90% of cases, the staff mistakes were a result of insufficient training. One night in the dining room, for example, I saw that one party of guests who were drinking champagne from wine glasses. My immediate reaction was exasperation, but the fact was the staff didn’t know the difference between wine and champagne service. What may be obvious to you is not necessarily obvious to every staff member, hence the need for thorough staff training. Nightly staff meetings to address any issues that came up the night before are another way to build group competency. 

Our very first customers included a good selection of Niseko royalty

4. Don’t let problems snowball

Some nights things just go from bad to worse. Orders get mixed up, staff get flustered, another mess up occurs and so on. Often enough, if you analyze the train of events calmly afterwards, it can be traced back to one event that triggers a series of other minor disasters. So when a minor disaster strikes, and they will with surprising frequency, it’s crucial to stay calm and address the problem as thoroughly as possible. Avoid hasty reactions and casting blame, the cause of things is usually more complicated than what appears. 

Another night of thin trade in our first year

5. Make Sure the Food Is Good

When I look back, I wince at our service levels in the first couple of years at Ezo Seafoods. There was almost no staff training and very few systems in place — long waits, spills, order mix-ups — you name it. 

What saved us was the food. The seafood from Hokkaido — the oysters, king crab, scallops, and uni — was always handled with care and served at its freshest. Guests were forgiving because the quality of the seafood spoke for itself. In the end, people will overlook almost anything if the food is consistently excellent.

That same lesson guides Ezo Seafoods Fresh today. Whether it’s preparing take-out sushi and sashimi platters or packing premium crab and sashimi sets for Niseko guests to enjoy at home, every time i walk into the shop I always ask: what's happening with the seafood -- are the oysters sufficiently iced up, crab at right temperature, scallops live and active, etc. There are so many things begging for your attention, but it always comes back to what's happening with the seafood. If that is top of mind, the rest will follow.

I connected with local fishermen who were a great source of information and expertise

Bonus tip: Your status as amateurs is a source of strength

As beginners it is easy to fall into the trap of being insecure about your restaurant in comparison to much better established restaurants. What I realize is that the initial passion that sparks the whole idea of running a restaurant is a precious attribute. While many restaurants may look down on new operations, it’s often the new restaurants where quality is the most important factor. As restaurants get more established some will learn to cut corners on quality. Make your own rules and stick to them. That was the secret to our success.