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A Restaurant of One’s Own

Statistically, they’re doomed. But despite the odds, a few new restaurateurs take the dare.

by Sara Deseran, Karen Palmer
posted on April 11, 2006

Ask anyone who’s opening a restaurant in San Francisco what question they get asked the most, and odds are it won’t be “what’s on the menu?” but “are you out of your mind?” In a city full of Michael Bauer wannabes, dinner at a new restaurant plays out like a first Match.com date: One trip-up and the relationship is toast. It’s on to the next suitor.

Certainly, there’s no shortage of them: The Health Department estimates that there are about 4,000 restaurants here, all trying to woo the same tough customers. But competition is just one factor. The clincher is that it’s incredibly expensive to run a business in this town. According to a survey conducted in 2005 by the Golden Gate Restaurant Association, the costs for occupancy and employees in SF are the real killers—especially as compared to the rest of the nation. Since 2004, restaurants have been required to pay their staff a minimum wage of $8.82 on top of tips (in the rest of California, it’s $6.75, and the federal minimum is $5.15). The GGRA also found that, largely due to this law, only 22 percent of SF-based restaurateurs with plans to expand intend to do so here. And although the city’s economy is much more vibrant now than it was during the dot-com bust, the first three months of last year saw 176 restaurant closures, while only 79 new restaurants opened.

SEBO

In the hierarchical restaurant world, there are plenty of co-owners—but co-chefs Michael Black and Daniel Dunham intend to play these very roles at Sebo, the small-plates Japanese restaurant that they opened in Hayes Valley, at long last, in February.

The two soft-spoken guys, who discovered they had an “instant chemistry” when cooking together at the now-defunct cult-favorite sushi restaurant Midori Mushi, had to tap their savings as the construction of the restaurant dragged on for more than a year. “We thought we’d just go to the city with our plans and say, ‘Here you go!’” recalls Black, who named the restaurant after his four-year-old son, Sebastian. But the two quickly learned that it doesn’t pay to act as your own general contractor, inspectors don’t show up for appointments and getting a beer-and-wine license entails sending out letters to everyone living within a 1,000-foot radius and then waiting 45 days to field the complaints.

Given all of these hurdles, the menu remained a work in progress until the final hour. Beyond sushi (minus the ubiquitous California roll), it includes the likes of tuna sashimi with okra salad and broiled sanma (a mackerel-like fish) with sautéed oyster mushrooms and garlic chives. Despite all of the hassles, the collective attitude remains refreshingly idealistic, some might say dreamy. They are determined not to cave in to the crazy hours the industry often demands. (“You want to have a life, which is more important than being filthy rich,” says Dunham.) Also, the restaurant’s seating is purposely under capacity and Black and Dunham want customers to be able to linger at the tables as long as they choose.

That’s not to say they haven’t hardened a bit. “If I knew then what I know now, I would have done it differently,” says Black. “It’s been a great—but painful—learning experience.”

LETTUS CAFE ORGANIC

Over a shot of wheatgrass juice followed by an orange-slice chaser, bright-eyed Matthew Guelke is explaining why a guy who’s dabbled in everything but restaurants (martial arts, technology, mountain guiding) would want to open one.

“There just isn’t access to this kind of food in the mainstream,” the Vancouver native says with Canadian earnestness. By “this,” Guelke means the reasonably priced, predominately organic fare that is being dished up at Lettüs Cafe Organic, the Scandinavian-chic spot that he opened, along with Mark Lewis, on a rainy day in December. The self-serve offerings include a salad of fennel and radicchio with apple and manchego, a quinoa bowl (add tofu, shrimp or chicken) and a chile-lime chicken panini. “We’re not a health-food place,” he clarifies, as a fresh veggie juice blend made with kale and called a Good Start is brought to the table. “Just inadvertently.”

With a 24-year age gap between them, the improbable pair formulated their concept for Lettüs while working together at Muse Communications, a company that creates web-based media environments. (Lewis also worked for years as a senior VP for Electronic Arts.) The key, they claim, is in putting together a good management team, which at Lettüs includes Sascha Weiss, George Lucas’ former private chef, who also used to work at Roxanne’s and Millennium.

Even with no budget for marketing, the first four days after opening in the heart of the Marina were “madness,” says Lewis. A peek at the comments being posted on Yelp.com provided a good jab. “The person said the food sucked, the service sucked, it looked like a Swedish shoe box. They said the staff was unfriendly and dour—and that hurt the most.” But, as Guelke asks optimistically, what would you expect on the first day? There’s also been plenty of positive feedback. “One customer came in and said, ‘If you guys franchise this place, I’d love to do it.’” Which is exactly what Guelke and Lewis are planning to do next.

Sebo 517 Hayes St., 415-864-2181

Lettüs Cafe Organic 3352 Steiner St., 415-931-2777

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Credits: John Lee

(TOP): From left to right: Lettüs Cafe Organic owners Guelke and Lewis and Sebo owners Black and Dunham