Acquired - Adapting Episode 1: Canlis

Episode Date: March 20, 2020

The world has changed. Acquired is changing too: we’re taking a pause from our normal episodes. The world doesn’t need stories of M&A and IPOs right now. But it does still need storie...s of great companies and great leaders. So we’re taking everything that we’ve put into Acquired - our format, our infrastructure, and the way we can reach all of you - and launching Adapting. Adapting is a series all about doing just that -- changing to fit what the world needs right now, not what it needed last week.Our first episode starts on the front lines of change: the local restaurant industry. Mark Canlis joins us to discuss how the world-renowned Canlis restaurant in Seattle is adapting by simultaneously closing their 70 year old dining room service, and launching three brand new, no-contact concept restaurants in just one week to keep their staff employed and the city fed:"Pretty quickly we realized that it would be just as risky to do nothing as it would to do something really radical. And if we were gonna live into our values, every once and awhile that’s really going to cost you something."This conversation is an incredible inspiration to us all, and a reminder of the vast power of the human spirit during challenging times. Sponsors:ServiceNow: https://bit.ly/acqsnaiagentsHuntress: https://bit.ly/acqhuntressVanta: https://bit.ly/acquiredvantaMore Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!

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Starting point is 00:00:00 It's kind of like the word pick six. I don't that just like happened a few years ago and now everybody says it. Watch now they're like ESPN. It's like pick six, pick six. And when it doesn't happen, they're like, we could really use a pick six right now. Totally, totally. No one said that 10 years ago. Welcome to Season 6, Episode 4 of Acquired, the podcast of... Ben, hey, I think you're on autopilot. Yeah, sorry. Muscle memory. All right, listeners, we are coming to you in a time of enormous change and upheaval. The coronavirus has spread around the world, challenging global health systems, bringing economies to their knees, and changing daily
Starting point is 00:00:50 life for everyone seemingly overnight. Given this, it just seems irresponsible to stay business as usual over here and put on our normal Acquired episodes for you all. So we're changing Acquired. For the first time ever, we're taking a pause from normal episodes. The world doesn't need acquired right now. People normally tune in to hear us talk about the stories behind great technology companies and what goes into building them. But these aren't normal times. What the world does need right now is stories of great leaders and how they and their organizations are responding to what might be the biggest moment of change we've ever seen. So we're going to take everything that we've put into acquired over the years, uh, our format, our infrastructure, um, and the way we can reach
Starting point is 00:01:34 all of you. And we're going to put our full weight behind this. So starting today, we're pausing acquired and we are launching adapting. Adapting is a series all about doing just that, showing leadership and changing to fit what the world needs right now, not what it needed last week. So with Adapting, we're going to take a shallow dive, a more shallow dive at the beginning of each episode into the history of an organization. But our focus is really going to be on the present and on the future, not the past. We also won't be grading. Adapting requires taking risks and putting yourself out there. And anyone who's doing that right now is forever an A plus in our book. Yep. Yeah, David, I think we were just talking about this, but I'm excited about this. It just feels right in this moment to do this. Totally.
Starting point is 00:02:20 Listeners, we are making some important changes to the Acquired community. If you haven't joined our Slack, you can sign up on the Acquired website and find all the announcements there. And we're doing some sort of new and pretty cool things in there. If you're not yet a limited partner, now is the time to join. In addition to LP episodes, we are adding a community component to the LP program. So last week, we had our first group Zoom call with everyone who's shut in at home. And it was really fun and therapeutic to get to talk with everyone. So we've decided to make it a regular monthly thing as part of the limited partner program. So we'll be announcing
Starting point is 00:02:55 more details on that in the LP show. And in the meantime, you can sign up at glow.fm slash acquired by clicking the link in the show notes below. And lastly, David and I feel very strongly that money should never be a reason that a single person can't become an acquired LP. So we were talking about this beforehand, especially when introducing this new sort of community hangout component. If you can't afford a subscription, especially as we all respond to this pandemic together, even if you already are an LP, just shoot us an email, introduce yourself, and we'll take care of you. Yeah, we feel super strongly about this. We want everyone who wants to be part of this community to be able to, so shoot us a note. Yep. Okay, listeners, now is a great time to
Starting point is 00:03:41 tell you about longtime friend of the show, ServiceNow. Yes, as you know, ServiceNow is the AI platform for business transformation, and they have some new news to share. ServiceNow is introducing AI agents, so only the ServiceNow platform puts AI agents to work across every corner of your business. Yep, and as you know from listening to us all year, ServiceNow is pretty remarkable about embracing the latest AI developments and building them into products for their customers. AI agents are the next phase of this. So what are AI agents? AI agents can think, learn, solve problems, and make decisions autonomously. They work on behalf of your teams, elevating their productivity and potential. And while you get incredible productivity enhancements, you also get to stay in full control. Yep. With ServiceNow, AI agents proactively solve challenges from IT to HR, customer service, software development, you name it. These agents collaborate, they learn from each other, and they continuously improve, handling the busy work across your business so that your teams can actually focus
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Starting point is 00:04:59 So learn how you can put AI agents to work for your people by clicking the link in the show notes or going to servicenow.com slash AI dash agents. Now, what is today's episode actually about? Well, we are doing an episode on a topic that we never thought we would do on this show, a local restaurant. But it is so much more than that.
Starting point is 00:05:21 Indeed. And we think our guests' words are very inspiring and super important today. So without further ado, please enjoy our conversation with Mark Canlis of Seattle's Canlis Restaurant. All right, listeners, most of you are aware that restaurants are among those hit the hardest from our current health crisis. Canlis is leading the way in adapting to provide a product in need, delivery food, saving jobs, and ensuring the continuation of the business through trying, trying times. Many are asking as a city, country, and a global community, can we do this? And as Mark said in the Seattle Times earlier this week, hell yes, we can do this, and we're
Starting point is 00:06:02 going to do it with burgers and bagels. So to introduce Mark, I'm going to borrow a line or a little bit of Mark's bio from the Canlis website because I find the prose just poetic. Mark Canlis is the second of three sons. He grew up in a restaurant family. He joined Canlis in 2003 after graduating from Cornell University and serving as a captain in Air Force Special Operations. He met his wife, Anne-Marie, while opening famed restaurateur Danny Meyer's fifth restaurant, Blue Smoke, in Manhattan. Returning to Seattle, Mark spearheaded the generational transfer and brand modernization that has garnered the family business national acclaim as one of the finest restaurants in America. He now owns and operates Canlis with his brother, Brian. He and Anne-Marie reside on Queen Anne with their three children. And as for Canlis, Food and Wine Magazine has called it one
Starting point is 00:06:55 of the 40 most important restaurants in the last 40 years. They have received 22 consecutive Wine Spectator Grand Awards and been nominated for 15 James Beard Awards and won three of them. Welcome, Mark. Thank you. It's good to be here. I also have the luxury of when you write your own bio, you can kind of make yourself sound good. I hope I haven't inflated that in any way, but thank you. I was going to say the most important thing for Ben and for me is I know, uh, both of us have had many special memories at, uh, at Canlis. So thank you guys. No, I'm honored to be on the show.
Starting point is 00:07:30 All right, David, take us in history and facts. Yeah. Well, so for anybody of our listeners who are in the Seattle area, probably many who even many who aren't, you already know a lot about Canlis, but Mark, can you give us a little bit of the history? I mean, it's a very, very special place. This isn't just another restaurant. Maybe can you go back and talk about your grandfather's story and Hawaii and Pearl Harbor? Sure. You know, we, if we're going to go all the way back, I run this restaurant with my brother, Brian, and we very much feel like this is the tale of a couple of different grandfathers.
Starting point is 00:08:04 It's the amalgamation of four generations of canlises doing restaurants. Our great grandfather cooked for Teddy Roosevelt after his presidency on an African safari. I was picked up at a hotel in Egypt and invited to come along and be a steward on that whole thing for a year and a half. So really, it starts there. He and my great grandmother would come to the United States somewhere around 1909, 1910. They started a restaurant in Stockton, California at that time and had a bunch of kids. One of them, Peter Canlis, started this restaurant, Canlis, in 1950. So that was my grandfather. He would pass away in the 70s, and my mom and dad ran this for 30 years.
Starting point is 00:08:53 Brian and I have now been doing it since 2003. And in so many ways, we feel like we're just getting the hang of it. So slow learners, but more or less hundred years of trying to cook for people. There's, um, there's a pretty cool military history with the restaurant and starting with Peter too, right? Yeah. So then on the other side of the family are a whole bunch of folks who have served in the armed forces. And that is, uh, just continues to be, uh, something that we're really proud of and this family and, and something that we've, many of us have chosen to do and, um, and represent, I think some of the sweetest years, at least for my own life. And I would say that the same is true for my dad and my grandfather
Starting point is 00:09:34 and my brother. So, uh, I was in the, I was in the air force. So with Brian, uh, dad was in the Navy. My grandfather was a Marine for 43 years. I don't even think you can do that anymore. But back then you could. And so we have, yeah, that's just been a part of our family story. And to be completely honest, a very large influence on the way that we lead. Yesterday we were running this crazy drive-through. We've got cars everywhere. Shut down traffic.
Starting point is 00:10:05 And I get a phone call and i am hearing it so the thing just comes like straight into my head it's as if like the phone is ringing in your brain so i just answered it because i thought it was our our road team and it was the colonel that i worked for you know 25 years ago colonel and a man that just had such a remarkable influence on the way that I lead. And it was random. I haven't talked to him in years. And I was like, Colonel Mueller, no way. I've been talking about you to everyone because in so many ways, I feel like you prepared me for this. And it's not about adapting your company, but the leadership, I think, the way the military teaches you to prize your people is just, you know, I just learned so much in my time in the service. So that was, that's just been a gift to us. That's great. So the
Starting point is 00:10:51 first iteration of Canlis the restaurant was on Honolulu grew out of the USO after Pearl Harbor, right? You know, he left the place in Stockton. He'd grown up there and he wanted nothing to do with restaurants. The way his parents were doing, he ends up in Hawaii. He'd grown up there and he wanted nothing to do with restaurants the way his parents were doing. He ends up in Hawaii. He's selling dry goods when Pearl Harbor happens. He remembers Zero's flying over. He was playing tennis in the morning. Like everybody, like so
Starting point is 00:11:15 many people in Honolulu at the time, they kind of all headed to the base and tried to do what they could. My grandfather had quite a healthy self-esteem. Just code for, you know. He sounds like an entrepreneur. Yeah, there you go. Thank you.
Starting point is 00:11:32 That's a nice euphemism for had a large ego and at some point he finds himself talking a lot of smack inside the USO about the quality of the food. The chef gets so upset that he kind of throws a towel at him and says, you think you do a better job? You try it, which of course he does.
Starting point is 00:11:48 And by the end of the war, he's running all of the food on base for the USO. It's about kind of between 3,000 and 5,000 meals. So maybe in some way, this drive-through is us getting back to our sort of, I don't know, high volume roots, if you will. But that's what happened. And then right after the war, opened a restaurant on a beach that was a little less known before the war and certainly than before now called Waikiki. So he had that restaurant in 1947.
Starting point is 00:12:18 It was called The Boiler. And then he came to Seattle in 1950. And Mark, just to context that for our listeners a little bit, when you say getting back to our high volume roots, for folks not from Seattle, canless is fine, fine dining. What does normal volume look like? And what does the adapted volume look like? I don't know. I feel like I live in a bubble and I don't really understand the real restaurant business. But in the world of, OK, so let's just try to understand fine dining for a second, because I think it's a funny term. We consider fine dining just to be the most considered form of caring for somebody with with food and hospitality.
Starting point is 00:12:57 It's like so for us, we're considered to be a massive fine dining restaurant in the world of fine dining. You know, 12 to 15 tables is pretty standard uh we have 33 um but on a busy night the most guests we can serve is somewhere around 150 to 200 um i have 115 employees to make that happen so we are a model of inefficiency and um that's just six dinners a week that's all we're doing so i say that like because i just want people to know just exactly like and not open for breakfast not open for lunch no no no no yeah 115 people to figure out dinner and there's always if not maybe there's like a couple hours a day where there's someone not there but when you talk about that 115 people it's like 2 a.m to bake bread or something all the way through.
Starting point is 00:13:46 Yeah, there are four hours a day we don't use our kitchen. So it takes us 20 hours to open for what is essentially five hours of dinnertime service. So a lot of prep obviously goes into that. And yeah, sure, you're baking bread and setting things up. Sometimes it takes a couple of days to make. But today we served you know about 1200 people through the drive-thru uh we served about i don't know somewhere in the range of 300 people for breakfast uh tonight we'll send a couple hundred dinners out for delivery so it's a much different impact for us and we're not exactly set
Starting point is 00:14:22 up for it so we're trying to figure that out as we go but um today was a day of rest for us and we're not exactly set up for it. So we're, we're trying to figure that out as we go. But, um, today was a day of rest for us. It felt so, um, every day this week, we've opened a new restaurant concept. Um, we started on Monday with a drive through Tuesday, we added bagels and yesterday we added, added home delivery. So today we were just sort of refining some of those systems again. And, uh, of nice just to run them and see how we could tweak it. So let's get right into, you know, this show is adapting. It's now 70 years that your family has run CanLess Fine Dining. And in two weeks, really, since you started planning, you've thrown that out the window. And now you're doing these three different things. Like, can you walk us through, when was the moment you realized that this was
Starting point is 00:15:05 going to happen and you needed to change? A couple of weeks ago now, my wife and I were in New York city doing something for the James Beard awards. And, uh, we got the news that Seattle had its first case and we went back to the hotel and just sort of talking through like, you know, this thing's coming. It's here. It's here in Seattle. Um, and what does that mean? It was a mean for our family was mean for not just our marriage and our own children, but our extended family. I have parents who are in their seventies. Um, and, uh, what does it mean for, for the restaurant family, for the staff? And a couple of days later, uh, back at home, we had a meeting as a team and we just said, you guys, let's, let's really think through this a little bit. Uh,
Starting point is 00:15:49 while we were having that meeting, uh, King County or governor, I can't even remember who it was, but someone official announced, we had this live stream and kind of came on and said, Hey, this is a much bigger deal than we thought. And you know, it's like, at first you just kind of have, it's like the sucker punch to the system. You've got the wind taken out of you a little bit. And then pretty quickly we realized that it would be just as risky to do
Starting point is 00:16:13 nothing as it would to do something really radical. And, and if we were, if we were going to live into our values, uh, then, you know, every once in a while that really is probably going to cost you something. And in this way it was going to cost you something and in this way it was going to cost shutting down what was still a profitable business for the unknown of opening up three new ones and and the only the reason we're doing three is because again it just took that many ideas to get all of my staff up to having all the hours they would have normally had and that was the goal here. So, um, we started
Starting point is 00:16:45 with the drive-through, um, for those that don't know, we're a fine dining restaurant looking this direction. Um, but if you turn around, we're on a really busy road, you know, and that's not ideal. No one would plan that out these days. Um, but we just said, okay, what do we have? Like what, what, um, starting with what do we have to be thankful for? And then what, what do we have? Like what, what, um, starting with, what do we have to be thankful for? And then what, what assets are at a disposal here? If we, if we started from scratch, um, how would we play this? And, um, we were, I remember watching the live stream. We're all sort of huddled on the couch there at the team.
Starting point is 00:17:17 There's seven of us on this is all in the first, in this meeting, this is like in the meeting. And, uh, we do these like three hour off sites. And we'd go to one of somebody's homes. We like kind of feel what it's like to be welcome into their home personally. So we're sitting on Marin's sofa and which is not seven person sofa. It's like a three or four person sofa. And we're all kind of like huddled and watching this thing. And yeah, I think it just it just hit us that like the game isn't up like wait a second this isn't
Starting point is 00:17:46 over this is just beginning and i think we'd all gone in with the sentiment of helplessness if we're honest maybe hopelessness i think there was a feeling of okay i gotta bat in the hatches i gotta hunker down i gotta you know and um protect yeah protect and that's a lousy strategy in a lot of things soccer being one of them um like you see it in sports all the time when when a when an entire team sort of switches the defense and loses their offense like suddenly you're like ah don't do that wait a minute like keep playing your game and for us offense, like suddenly you're like, ah, don't do that. Wait a minute. Like keep playing your game. And for us, we're like, if we're going to keep playing our game, we just need to admit to the game changed. And the game now currently today, this is two weeks ago, was no one understands the six foot rule and no one understands what is socially, socially
Starting point is 00:18:38 acceptable. We don't understand if we should be shutting down schools and public places or if that is you know building a fear that right so this is happening so quickly but so we just said well today what we know right now at that moment that like the game had changed we just got the sense that it was going to yeah it hadn't yet but it was like the writing is on the wall. And I think nobody wanted to actually say that out loud. But it felt that way a couple of weeks ago. And so... Well, I can tell you from the outside, the way it sort of felt is you made a more drastic move earlier than most places. Like, I think in the next week, a lot of places started trying to figure out what does it
Starting point is 00:19:23 mean for us to do delivery. But I will say from the outside, the way it looked was, and frankly, part of what inspired week, a lot of places started trying to figure out what does it mean for us to do delivery. But I will say from the outside, the way it looked was, and frankly, part of what inspired David and I for this was, oh my God, that was decisive. And that was severe and extreme. And risky. Like you, you know, you guys. I wish I could take credit for that. Let me tell you where a lot of that credit belongs. First off, we have an incredible board of directors and some advisors who are just remarkable sounding boards for us. Both of our wives were really key into sort of speaking into how we were perceiving the world. And I think in this time, it was a time of just great
Starting point is 00:20:02 perception, trying to understand and make sense of what we were hearing how it pertained to us and our team um but really when we launched this with the executive team we said you know this thing could work that's to say there's a chance the boat is taking on water and there's a chance it might sink and also there's a chance there's a lifeboat on the end will someone just go to the end of the ship and see if there's a lifeboat? That's kind of what that meeting felt like. And somebody came back and said, you know, it turns out there is a lifeboat on the back of the ship. Like we could all get in it. Right. And so I was like, huh.
Starting point is 00:20:34 So we sat on that as a team for about 24 hours. The next, or 48, two days later, I was having dinner with our staff and we're all sitting around having family meal, talking this through. And I just said, you guys, let me just tell you where my head's at. And I'm scared to tell you because I don't know what it means. But this is what we're thinking about as a team. And it would mean all of you need to re-volunteer to work here. They would mean all of you choosing to be in a position choosing not to be laid off or temporarily
Starting point is 00:21:06 furloughed choosing to actually continue to do this thing and would any of you be interested and not only that group of sort of five or six of us sitting around the table but the next night in a staff meeting announcing it to the entire team um this is up to you and you don't have to do this and every one of them saying we're in, you know, put me in coach. And I think that was just such a boost of encouragement to us. It's like, if you guys are in, we're in and let's do this. Right. It had like that sort of sentiment to it. It was like, okay, um, why not? And I think at some point you say to yourself in any time of crisis, if I have the ability to help, why am I not doing it?
Starting point is 00:21:51 And that is what it felt like to us. It felt like this could be an encouragement to the city. It was clearly an encouragement to the staff. And it was, for us, just a way through, a way that an untested, untried way. But I don't know, that would give it a whirl. That's awesome. is one of the fastest growing and most loved cybersecurity companies today. It's purpose built for small to mid-sized businesses and provides enterprise grade security with the technology, services, and expertise needed to protect you.
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Starting point is 00:24:25 notes. Our huge thanks to Huntress. I want to talk about communication and language and the language you guys use. And I've always, I've always used, but particularly now it's really inspiring. But before we get to that, can we go back to the three concepts you guys are doing breakfast, the bagel shed, drive through lunch and then delivery for dinner. Where did they come from? There's also a fourth concept coming, which I'm super stoked about. But yeah, I can kind of walk you through all three of those. The first one was the was the drive through.
Starting point is 00:25:02 We saw that as being the biggest revenue generator. We have a ridiculous amount of labor here. It's the most expensive thing. And we knew that one of these concepts had to actually work. And so we just geographically, if you understand the way this restaurant works, you can pull right off of the street, right under our pork cashier. You can stay in your car and you can roll right on down the driveway and it was like that's what we knew we needed that the cleanliness there the ability to not have any contact with the guest um but still sort of be facing them and so yeah we were
Starting point is 00:25:36 embracing our inner drive-thru as a fine dining restaurant it was just like guys this is us come on let's just let it out of the bag. And chef can cook a remarkable burger. And we've always joked about doing this sort of traditional salad bar is the camo salad. It's a go item. And like, why not? Like, let's just do burgers and ice cream sandwiches and salad to go.
Starting point is 00:25:58 It's like, I don't know. Sometimes that's all you need. Can you talk about average ticket price for each of these three concepts? And how that was compared to need. Can you talk about average ticket price for each of these three concepts? So, you know what, we, uh, have designed this thing not to make money. I think it's a little bit weird to be, uh, let's see, this is a tricky, this is tricky thing. I don't think there's any unethical, anything unethical um making money in this time i i in a certain sense we have a duty to do so but mostly as a as a means of um protecting the staff and to be clear i don't i do we're only four days in i don't know if we are that's to say the bagel concepts clearly
Starting point is 00:26:39 does not make money um it's labor intensive we don't have the equipment to scale that in any way such that we could move that to be a profitable business. We could raise the prices, but that just feels dirty. So the point, again, is to keep people employed. With burgers, we probably make a little extra. With bagels, we're definitely losing.
Starting point is 00:27:00 With dinner, as we scale that up, that'll be profitable and somehow if we can get to break even. even from the onset, that's what, that's what the goal was, was like, it'd be amazing if for the next three months, Canlis could not lose money. I think that'll posture us really well coming out of this thing on the other side. And I do think of it as a few months, not just a few weeks. So, um, yeah, bagels came out of the idea of what we're gonna be really busy for lunch.
Starting point is 00:27:31 Um, our expediter happens to be this incredible woman from the Lower East Side of Manhattan. Uh, she's a baker and she makes a ridiculous bagel and chef is from Brooklyn. And he, she was like, that's the best bagel I've had in New York city or in Seattle. We happen to have a bread oven and a shipping container. And it was like a no brainer. So we just opened the bagel shed and we're doing, you know, everything bagels with fried eggs and homemade sausage and, um, cheese. And can you sell the bagels as an add on to dinner for like breakfast at home the next morning? That'd be a good idea. We sell out of bagels in under an hour. So it's a full-time crew of eight making these things and it lasts that whole idea lasts an hour. So, uh, we actually thought about intentionally slowing the line so that, because again, the, the, the idea is to keep everyone employed here, but, um, but no,
Starting point is 00:28:19 we've been blowing through them too quickly. So we're, we're right now, we're looking at taking over another bakery, um, that is closed and maybe we can use their space and kind of scale it up a little bit higher. Yeah, I did see something. It was like you had some message on your website this morning, like, unfortunately, bagels are sold out as of 8.37 a.m. Yeah, yeah, they think I'm going nuts. So the last concept of just doing family meal at home, you know, we cook an amazing family meal for the staff. That's the meal that twice a day chef prepares for our team. And we always joke about like one of the best restaurants in the city actually being Camelot's family meal. Like it's so good.
Starting point is 00:28:55 The pastry chef is making cobblers and the bartenders are making homemade sodas. And chef is like, hey, this is my mama's meatloaf. And this is like enchilada from nico who's been practicing prepping all day and it's so good and it kind of kills us that the rest of city doesn't get to see what these guys are capable of outside of fine dining and so we just thought okay well that's a no-brainer like why don't we just keep making family meal we don't need a big menu delivery is tough to figure out and making a transition like this i think if you can keep it simple you should um and so we offer one thing a night um the very
Starting point is 00:29:31 first night it was cassoulet because we had all these dry aged ducks we're like what are we gonna do with ducks and moreover i have a farm saying are you going to take delivery of ducks going forward and we had a way to say yes so um tonight it is a rabbit pot pie and glazed carrots and it's um i had it for lunch it's insane it's so so good so we just thought shoot we can bake all that stuff here pack it up throw a bottle of wine in it and my servers who used to take food from the kitchen to the table are now just taking it to the parking lot and right on down the street a little ways so, it keeps them employed and it keeps my kitchen cooking all night long and it's kind of fun. That's so cool. How technically, how did you make that
Starting point is 00:30:15 happen? You guys adapted, you've been on talk the, um, reservation and ticketing system for a while. How did you, did you work with talk to make this happen? The guys that talk were awesome. We called them early on and we're like, we have this crazy idea and we're actually trying to like hack the system. It's so talk as a reservation system for those that don't know. And those guys are awesome. And we were trying to see if we could morph the reservation system into a delivery system. And we just about figured out and they, they called like, you guys stop it.
Starting point is 00:30:43 Hold on a second. We can, we can do this. Give us five minutes. Five minutes later, they call back and they said, you guys, stop it. Hold on a second. We can do this. Give us five minutes. Five minutes later, they called back and they said, we stood our company down. We're turning it back on. We just called everybody in. They're in Chicago. And we're just going to work on this until you have the platform.
Starting point is 00:30:55 And they cranked it out, working around the clock for a couple of days. And we were able to launch. And so that is a mechanism that any restaurant in the country, look, not everybody can do drive-thru. It's just the physicality of it. The location is going to work for them. But any restaurant in the company could do delivery. And now that we've got the software for it, it's not overtly tricky. Can you talk through any restaurant in the country can do delivery?
Starting point is 00:31:21 I'm sure there's a lot of folks that own restaurants that are listening to this. What does that take? It takes a little guts and it takes just that kind of good old fashioned restaurant scrappiness that every restaurant tour already has. If you're in this business, I guarantee you have what it takes because it's just the same thing it takes to run a restaurant. it's that. It's a little bit of the willpower just to make it happen. That's, I think, what all of us are going through. So all we did was figure out a menu, and we launched a website. So someone that knows what to do on the Internet, that's not me, but our design team drew up a little logo, which is not necessary.
Starting point is 00:32:05 We threw a little splash page on top of Canlis.com, which is also not necessary. You could just post on Instagram, having to switch to delivery. So appreciate you supporting us doing this. You can do various versions of it. It's pretty fancy. Our servers have it all on their phones. They get the maps. They get the texts.
Starting point is 00:32:23 We can do drop-offs, no-contact drop-offs. We can do alcohol. Again, talk made all that possible, but you can keep it really simple. I mean, it takes ordering some boxes and some to-go containers, coming up with one thing that holds hot really well and letting your constituency know that tonight's a great night for takeout. So yeah, we sold out three nights worth of takeout in about 90 minutes. Wow. One question that I have that I'd be remiss if I didn't ask, and I'll give a little context for listeners. So Canlis is innovative, not just in the way that over the last 60, 70 years, you guys have changed fine dining, which we haven't talked about on this episode, but Mark's given
Starting point is 00:33:05 some great talks that you can sort of read about and the evolution of fine dining and Canlis' role in it. But also in doing these wild experiments that you would not expect the finest dining in the city to also have a Shake Shack pop up in the parking lot before there was a Shake Shack, or you would not have expected... Well, why wouldn't you? Can we uncover that a little bit? Do you mind if we dig into why you wouldn't expect a fine dining restaurant to do that?
Starting point is 00:33:30 Yeah, definitely. One of the reasons I think this transition has been possible for us is that we practice this kind of thing. And by that, I don't just mean events in our parking lot. I mean, if you want to be a restaurant that is around, let alone relevant or germane to the conversation, you're doing a fair amount of this every year anyway. People always ask Brian and I, how come you guys haven't opened a second restaurant? I'm like, oh, you just don't know it. But we open a second restaurant about every 18 months. I would say that's how often the systems inside of Canlis are changing. And those are being rewritten by new employees and employees that have been here 20 years.
Starting point is 00:34:17 The idea is that there's probably a better way to do it than the way that we're doing it. We just kind of believe that. And so I think if you want to matter, you need to earn that right. And to earn it, you got to be working all the time and opening a restaurant that's really good. And tonight we're good.
Starting point is 00:34:35 Tomorrow will be better. And that's not news to anyone. I think what happens, that's to say, that's not a strategy that no one's heard before. If you're in business, you get it, right? And maybe thank you to the Japanese that's not a strategy that no one's heard before. If you're in business, you get it. Right? And maybe thank you to the Japanese
Starting point is 00:34:47 who made that a very popular concept in the late 80s and 90s, but like, we're all sort of thinking that way. What happens is it's really easy to get lazy. It's really easy to start to devalue that as the thing is working. And of course, if you go too far with that, maybe you're undoing things that still
Starting point is 00:35:04 had a usable lifespan inside of them. So you hate to take a system down that would have been amazing for the next foreseeable future. So that takes a little, I don't know, sorting through. You got to be careful there. But welcome to business. It's a delicate balance. And less listeners think that we're just talking about a one-time thing opening up a shake shot like i went to your restaurant last summer and when i say restaurant i mean parking
Starting point is 00:35:30 lot for the hawaiian nights luau where listeners it's the largest hot tub you've ever seen it's 24 feet long it's and it's up on like a second story deck overlooking like you guys opened a little pizza shop and like a multi-story like we wanted a swim up bar which we which we i think i think we created and then we also had so we built a couple of tiki huts and um yeah yeah the story is am i right you bought the swimming pool on amazon well no so uh for we like to test things out on staff parties and the goal of a staff party is to throw one that the staff would willingly come to if they had no association with the restaurant right so you just said look you guys it's a true day off or it's a true night off. Like, do whatever you want. And also, we're going to be throwing this party over here.
Starting point is 00:36:27 And it's like totally like no expectation come. Only let me just talk about it. And so anyway, yeah, at some point we were throwing a luau. Oh, yeah, we had covered the parking lot and sawed because we were like, it's not cool to throw a party in a parking lot in cement and it wouldn't be cool if it was grass. So we sodded the thing over and we threw a volleyball party and we had a pig roasting. And somebody said at some point, well, every luau needs a beach.
Starting point is 00:36:54 So we brought it in the sand and then I went on Amazon. I'm like, no way, you can buy a pool for like $2,000. Well, that's cheaper than, you know, in the world of staff parties, the stuff the stuff adds up quickly so anyway we bought a pool and we filled it up um and then it just kind of like went from there so then that was a really successful party and we were thinking about fun things we could do over the summer and we thought well why don't we just throw the staff party for the city and honestly you guys i thought like a few hundred people would come like who goes to a parking lot to find any restaurant to hang out in a above ground pool right it gets yeah like 1200 people came at night like it was nuts and all of them waited an hour or two to get in so that
Starting point is 00:37:35 caught us by surprise a little bit but it was also a ton of fun i mean a dj on top of a shipping container and underneath your bacon the best pizzas and roasting pigs. And I don't know what happened out there, but it was good. It was tons of fun. So we do like to just sort of think through these things. And I think it's a little bit of a good exercise. Look, just because we're fine dining doesn't mean we're not thinking of 99 other ideas to do. And to us, it's kind of like the Formula One version of putting out a sedan.
Starting point is 00:38:05 It's like, why don't we go push this as far as we can? Let's see what happens. And every one of these projects finds its way back into our menu. Every one of these projects influences what we believe about hospitality. And you need that stuff. You need to be inspired by it. Your people need to be inspired by it. It's fun. We want to thank our longtime friend of the show, Vanta, the leading trust management platform. Vanta, of course, automates your security reviews and compliance efforts. So frameworks like SOC 2, ISO 27001, GDPR, and HIPAA compliance and monitoring, Vanta takes care of these otherwise incredibly time and resource draining efforts for your organization and makes them fast and simple. Yep, Vanta is the perfect
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Starting point is 00:40:00 and go back to making your beer taste better, head on over to vanta.com slash acquired and just tell them that Ben and David sent you. And thanks to friend of the show, Christina, Vanta's CEO, all acquired listeners get $1,000 of free credit. Vanta.com slash acquired. So as we start to wind down here, that's the question on my mind is, I know it's only been four days, but of the three restaurants you talked about and fourth that we'll keep under wraps for now, what do you think might make its way into Canlis when we live in a normal world again? Here's what I hope makes its way into Canlis. I hope that what comes out of this is a visceral reminder of how alike we all are.
Starting point is 00:40:45 And if there's anything that I think we've learned so far, it's that our understanding of the human spirit is limited at best. And it's only when, when you come to me and say, Mark, I think you got this man. And when I reflect that back to you and say, Mark, I think you got this man. And when I reflect that back to you and say, look, Ben, um, you got this, right? Like that's, that's what happens. Something really powerful happens there. And the whole mission of this company, which is, I know really weird mission, but it's, it's to inspire people to turn toward one another. And when we saw the disease spreading,
Starting point is 00:41:25 and I am not talking about COVID-19, I'm talking about the amount of fear, the amount of discouragement. When we saw that spreading, and often for really good reason, these are not insignificant days. This is a good, overused, but good word. This is unprecedented for the entire
Starting point is 00:41:46 world to go through something together where no one gets to say, yeah, it doesn't apply to me. Right. When something like that happens, I think we have a responsibility to remind ourselves of the truth. And the truth is we don't know what we're capable of. We, the Canlis team, we, the city of Seattle, we, the United States of America, we, the citizens of this rock that we're floating around on. And I hope that we understand that better on the other side of this thing. And that's what we're learning. That's what we're learning inside this building. I don't know if we'll, we might not be able to do this tomorrow. Maybe this will go for months. I don't know. But, um, every day I tell the team, I was like, Hey, look, um, you're going
Starting point is 00:42:36 to want to go home and crawl under your covers and read your phone. And it is important to do so. But when you wake up the next morning, you go outside, you physically go outside of your house, your apartment, you look up at the sky and ask yourself the question, is it still up there or did it fall? And if it's still up there, you can be thankful for that. And you start with what you're thankful with. You say, all right, the sky did not fall. Contrary to the way I feel having read all the headlines, it's still up there. I hear a bird tweeting. I see a neighbor walking down the street. You know what?
Starting point is 00:43:07 Let's start with what we have. Let's go from there. And let's ask ourselves the question, if this is what I have, what can I do with it? And I don't know. Maybe what we get out of this whole thing is that as a discipline, as a practice, as a reminder that, I don't know, maybe that's a reminder that we need right now. I think it's a reminder that I needed. And I think it's a reminder that my team needed. And I wish you could feel the difference inside this place before and after we made this
Starting point is 00:43:37 decision before it was feeling of helplessness. And after it was a feeling of hope before it was a feeling that the, the, the overwhelming weight of this thing was too much. And after it was the understanding that I had a role to play and that even just enduring, even just enduring a little bit might be my role. And i think when we tell those stories then we start to remind ourselves the truth of who we are as people and that's pretty cool that's um that's why we wrote on that website we got this seattle it was the most poignant way i could say to a city that needed to hear it, we are capable of making it through. Well, I cannot think of a single better way to leave, uh, leave this episode and leave our,
Starting point is 00:44:33 our very first episode of adapted. Um, and with that line. So Mark, thank you so much. Thanks for, thanks for having me on the show. Anything else you want to tell listeners or, them where they should go get some great food? I do want to tell listeners something, yeah. I think they have the ability, even though it doesn't feel this way, to make a difference. What we've been talking about here is my restaurant. And you know what you don't have? You don't have my restaurant and you probably don't have a restaurant. And you know what you don't have? You don't have my restaurant and you probably
Starting point is 00:45:05 don't have a restaurant. To dismiss this as someone else's story in a city that you don't live in, I think would be a great, what would make me sad. I think to hear this and to know that if we're crazy enough to give this a whirl, maybe, you know, maybe some of your crazy is okay too. And I hope it gives them permission to think optimistically. I hope it gives them permission, um, to smile at a neighbor, keep it six feet away. I don't care. You can still smile at them. And so, um, that's not insignificant. It's important. And it's going to take all of us remembering that about ourselves, remembering that that is who we are as people. So this is a story about our country. And, and largely this is a story about well beyond our borders and
Starting point is 00:45:59 how like we all really are. That's all I got guys. Amen. Let's all go do not exactly what you're doing but do what we all can to You're all welcome to open a drive-thru. I'm not against it. I think competition only makes us better but you're going to have some steep competitions and burgers are pretty good.
Starting point is 00:46:22 Well, it is on my calendar to come tomorrow morning, I think hopefully around 7, 7.30 to the bagel shed and pick one up. Do it. Swing on through. Awesome. I'd love to see you here. Thanks so much, Mark. Listeners, we will catch you for the next one.
Starting point is 00:46:40 Thanks, guys. See you next time

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