McKinsey&CompanyStrategy&CorporateFinancePracticeFinding a grounded approachto the restaurant businessMercerStreet Hospitality founder and CEO John McDonald discusses how heselects new projects while maintaining his stable of restaurants and bars in ainotoriously challenging industryApril2025
In this episodeofThe CommnittedlnovatarErikRoth:Andiwhat doestisllok lke odayprestaurateurJohn McDonald. the founderYou own and run arange of properties nowandCEOof MercerStretHospitality,spsealksJohnMcDonald:Curenty, MercerStreetisaleader Erik Roth about maintaining successandcollectionofahouteightornrinerestaurants,equl hrum in the notoriousl ffiut hosptaity including Lure Fishbar,Bowery MeatCompanyindustry. Thisis an edited transcriptof theirSmythTavern, Bar Mercer, and recentlyChaconversation.For more discussions on theCha Tang.I'm getting ready to relaunch thestrategy suesthat mate, folow theserieson. restaurantin the WUnion Squae.Wehavealyour preferred podcast platform.hospitality industry? What were youtrying toFrilkRath:Tellusabit about yourearlyaccomolish2rphilosophy is to be-on,to be around,nearyourhome,John McDonald, MercerStreetHospitalitylike alocal presencethatIt'sacomplicatediournevbutitctartoguys who were building the Merhate,becausemost ofhin avery easy walkinglive.I would argue there'sudon'tlet thingsgetoutofd.When it comes tothrough trouble, thinkit'sjustattentionandhavinathatlevelofendurance tonot takestarted thinking, "What couldldo?" And that'sthowlstarted MercBar, myfirstbusines, on.Erik Roth:Iknow beinga fatheris important toMercerStreet inlower Manhattan,close tohat changed the way you thinkofthe hotel.ErlkRoth:Howdidyougetthatstarted?Ihadkidsinmyforties, andIthink it gave me askil didn't have, which wasJohn McDonald: Essentially, Ihad been dowreliminating things in my life that don't reallythere every dav; I was what I would call a sofmatter[butlthatI probablyconvincedmvselfinternfor those guys. They were parking theiwereimportant or had meaning.It gave me totaleren't doing anything with it.So ljust naivelyErikRoth:Whatarethethingsvoudofocuson?ofconfience thatmadesensetomeandlhanIlthinkaldtof entrereneurs strgle with time tremendously;the hotel was mv andlord forJohn McDonald:Ivelearnedtodelegatealotalongtime.Andljustmovedforwardeverybetter.And I've learned to focus on singulanday.Idon't really know the explanation.It justthings andaccomplishthosegalswithouthappened.
exists. Restaurants are so chaotic.It can feellikeof thatpartoftown.Howdidyougetthere?aninsurmountable"trouble forest"every dayHowdoyougetintotheethos of thelocalineighborhoodand thecultureof that partofErikRoth:-Howdidyoubuild yourteam?What,the city?wasitthatyouwere lookingfor?.John McDonald :lopened my firstbusinessJohn McDonald:It's been anorganicprocesshaving never been emploved or had a realjob.IWhen Istarted,Ihad one bar. Thenit wentfiaghtobein therightplace at thebwn a cobblestone stretin SoHo,everyople who arelYork City for30-plusyears,it'sliving onErikRoth:How do you start and then maintalisomethingthat'srealy...
