Navigating Restaurant Headwinds with Michael White

The longtime restaurant group partner and chef strikes out on his own, embracing the Miami gold rush while counseling prudence and caution.

Multiply Michelin-starred chef Michael White cofounded Altamarea Group, which opened and operated more than a dozen restaurants from 2008, starting in and around New York and including various branches worldwide. He left Altamarea in 2021, then took over the Lido restaurant at the Four Seasons’ Surf Club hotel in Miami. In May 2022, White reopened the Lambs Club restaurant in NYC’s Chatwal Hotel.

What prompted your departure from Altamarea Group and, for awhile, New York restaurants?

I was working at the restaurants until April of 2020. COVID was not good to any of us in the restaurant business, so it was time for a change. The restaurants were shut down, and it came to a point to part ways and start my own projects. So I now have the Lambs Club, and the Lido restaurant at the Four Season in Surfside, which I’ve been doing for the last year. 

Many people I’ve talked to over the past couple of years spoke about how the pandemic highlighted existing stresses or problems in the hospitality industry, and made them re-examine what they wanted to be doing in the business. Is that what you’re getting at, regarding a change?

When the spigot shuts off, the spigot shuts off. I didn’t want to leave the restaurant business, that’s for sure. But it’s damaged, and it will never be the same. Pockets in New York City are still extremely busy right now, but other pockets of the city are very, very damaged and will be for a while. I don’t know what to think. Every day is something different. 

So after you left Altamarea, how did taking over the Lido restaurant at Miami’s Surf Club come about? 

I’d been looking at that project for awhile. And then all my customers from New York and around the world were in Miami—I was cooking for all the customers that I had for the last 25 years, all in Miami. It couldn’t have worked out better. Miami is flourishing, the restaurant is fantastic, and it’s wonderful working with Four Seasons.  

Do you see that Miami boom still going? 

Oh, it’s still continuing. Kenneth Griffin is moving the headquarters of [investment firm] Citadel to Florida, for example. It’s not stopping. It’s a fundamental change. People think it’s going to be for a short period of time—that’s just not true. There’s so much hospitality infrastructure that has been put in place, whether it’s purveyors, warehousing ... Chefs’ Warehouse has a 140,000-square-foot facility. I mean, it’s real. You’ve got business there now, and that plus the infrastructure has pushed it to the next level. 

“For every 25 deals you talk about, maybe one comes to fruition. You have to be very, very choosy.”

And then how did you get interested in taking over the Lambs Club back in New York?

The Lambs Club had been closed for two years. I’m very, very friendly with David Rabin, and Jeff Kadish and the team at Grand Tour Hospitality. They wanted to relaunch it, and I’ve obviously been a customer there—it’s a unique spot in a boutique hotel. It’s not really Times Square, but it’s in between, in the sense that you’re so close to Sixth Avenue and all the major financial firms and Sixth Avenue businesses. It was just a perfect relaunch for me. 

This must have been a little different for you—taking over existing restaurants rather than launching new ones as you’ve done for several years. First with the Lido, then Lambs Club.

Many of my peers are taking over old spaces. The Lambs Club is a classic that’s been in that location for years. It’s an historic spot. To be able to go in and put my twist on it—there’s obviously a couple pasta dishes on the menu, and a few crudos, but also a great burger. It’s not just Italian. It’s very much a mix, using ingredients that I don’t normally use. 

And you have a third place in the works as well?

I’m building a restaurant In Nassau, in the Cove at Atlantis, which is called Paranza. It’s going to open in late November this year. Plus I’m working on other projects yet to be released. There are lots of opportunities, but one has to be very, very, prudent and make sure that you don’t take on too much, considering the market and everything going on in the world. 

What’s your approach when considering new spots in this environment?

It’s about looking for great partners and investors, whether it’s hotel groups or property ownership looking to invest in and build restaurants. For every 25 deals you talk about, maybe one comes to fruition. You have to be very, very choosy. Margins in the restaurant business are very, very slim to start with, and they’re getting even slimmer when it comes to fuel charges, surcharges, pricing—all these things that are getting baked into everything we do. So you obviously see the prices go up on menus. It’s frightening. You hope that things will start to even off eventually, but for the time being, it’s tough.

All three of these restaurants you’re doing are set inside hotels or larger properties. Is that your focus now, or are you open to launching standalone restaurants again? 

Oh for sure, absolutely. We’ve seen a lot of those. It’s just about knowing when to engage, when a deal makes sense, and when a deal is right. You never force a deal. 

Especially now.

There is a tremendous amount of opportunity though. Look how much building is going on in New York City right now. Everywhere you look, there’s building. Of course, it’s never not a difficult time to operate in New York. You just have to be very prudent.

What’s changed about the restaurant business in the last couple of years as a result of the pandemic? Are you dealing with the labor shortages, compensation rises, supply chain issues, and so on that we hear about a lot? 

All those things combined can make it an extremely, extremely challenging market with many, many different headwinds. The first and foremost priority is finding people for the workforce. We’re all vying for the same people. I’ve heard some experts saying the labor situation won’t slack off until the third or fourth quarter of 2023. That’s a long time to go, a long time to be looking for workers. 

“The first and foremost priority is finding people for the workforce. We’re all vying for the same people.”

And it’s even harder here in New York City because those workers can’t find an apartment anywhere. The rental market is tough. A lot of people have changed industries. When Broadway closed down—a lot of those people also worked in restaurants to supplement their income. That’s just one group no longer in our workforce. It’s going to be a while before we get headed in the right direction. And it’s not just in big cities. Even at restaurants in my hometown in Wisconsin, everybody’s looking for people. 

I try to count help wanted signs when I pass restaurants, and it seems like 80% of them are urgently hiring, all over the country, all kinds of places. Do you think these issues represent permanent changes in the business? Will it really never be the same, like you said earlier?

I should say, never say never. I’m a firm believer in what we do. But there are obviously things that will impact your business right now that will also change your business. Is there ever going to be power lunch again? In Times Square and Midtown, people are coming back to the office three days a week. It’s pretty quiet in New York City when it comes to office spaces. Is it going to be like this forever? I’m not sure. But it’s going to like this for the foreseeable future.