Chapter 6
As I mentioned. Good communication skills are the arts which are tough for me even now.
After securing the lease and hiring a chef, our next step is to plan and construct the restaurant.
Operation partner SB has started searching for a designer and has found a decent French designer who happens to have a good Chinese wife. I also had a chat with them, and they believe that the FDA does not have any standards on kitchen design. However, I believe that their approach to kitchen design may not align with the key standards set by the FDA.
My suggestion for shareholders regarding decoration is to consider hiring an independent designer to ensure there are no issues of corruption between the designer and the constructor or others. Everyone agrees, until later partner SB insists on using the designer’s recommended constructor, stating that it would be beneficial for the designer to manage the project.
I started to have concerns when my partner SB asked me to negotiate with the landlord for a commission if he found new tenants for the house next to our shop, Will he use the smilier logic on desginer`s constructor?
Especially during our second round of capital injection.I was the first one to inject capital, SB claimed his Hong Kong accountant had issues. I immediately offered to help him out with his small cash part because he had put in most of the sweat equity. He then said he would work out his part of the cash, which is normal for different people even if there’s a signed contract. There’s no right or wrong, just different perspectives. Let’s not forget about any red lines from others within the contract.
Later, shareholders began to discuss the salary of the Chinese GM who will be working 5 nights a week during the soft opening for 9 tables. The initial cost of over 20k was surprising to me, but I understand that he needs to take care of his team with the shareholders’ money. There may be some disagreement on this point, and those who are not in favor may not be welcomed by the operation team. Just something to keep in mind if you find yourself in my shoes one day.
Soon, the funny thing happened. The HK tailor called me one day asking if I had a solution for cost control because he and SB decided to hire a designer and their constructor, spending all their money. How is it possible that an operator has no experience with budgeting during pre-opening? Imagine you have 100RMB in your pocket and you spend it all at once. How do you move forward from here?And people doesnt like to let other find out their fault.For me.its ok if you take the responsibility to fix the fault asap.
I suggest that if a decision has been made, please proceed. I am willing to share the cost as a shareholder. Mathild encourages me to review cost control once more. I seek advice from my partner David, who is experienced in business. He advises me to wait for a cash call and suggests diluting rules if we don’t have enough funds to follow through. David’s experience as a successful capitalist proves his point once again. Although he hasn’t been in the restaurant business before, he has extensive experience in commercial property with over 1000 staff members. A successful Chinese gentleman returns from Germany, and I need to push because there isn’t extra budget for playing money games.
The outcome is that I made a mistake in following the HK tailor and Mathild to handle cost control, especially after the HK tailor and SB signed the contract with the designer and his constructor. Since Mathild has a family restaurant, I reached out to his wife for help in contacting their kitchen supplier to compare prices with my contact, ensuring transparency. As a result, my supplier offered a better price.
The HK tailor and I sat down with the constructor. The quote is as follows: They charge 5000 per session for deep cleaning, which is around 1800 per session. They charge 2000 for a wind curtain machine with no brand, which is around 200 for one. I made changes to most of the expensive items from this constructor and he started yelling at me for not following the contract that my partner had signed.
New suppliers are getting involved, the French designer refuses to manage them because they believe it’s not their responsibility as SB is the supplier. This seems contradictory since the designer previously claimed to be independent. After the decoration, there was a protest inside the shop as the designer and their constructor found mistakes from the new suppliers. It’s ironic that they initially claimed no duty in managing new suppliers but are now taking on that role or placing blame.
Partner SB has started to become more selective with my new suppliers. The most amusing situation involves the power exhaust system. This supplier, Da, is a professional from the Camel Restaurant Group. Everyone, including my partners and their families, has complained about the poor quality of his exhaust systems. However, after a year, Supplier Da discovered that we hadn’t turned on the switches for the exhaust system.
I had a big disagreement with the designer, the end we were able to have a meeting and make amends. I’m just not sure why my business partner SB is unhappy with my cost control efforts.
On the day of handover, I informed the shareholders that I will be taking a break from WeChat conversations to avoid further issues. Instead, I will be responding to questions via phone call or email as per our investment contract. It’s really draining my energy and I hope you understand.
If you are not aware of the appropriate timing for communication, the more knowledge you have, the more detrimental it will be. You may find yourself being excluded from certain circles. Life will continue to present the same lesson until you grasp its meaning.I should keep silence when I feel weired from my experience.