Tom Schwartz is ready to talk about “it” — but he doesn't expect you to feel bad for him.
“This year almost broke me,” says Schwartz The entrepreneur. “I'm glad we persevered, (but) there was a moment there where I wasn't sure if we were going to go.”
For those unfamiliar with the Bravo universe, in March 2023, a romance between “Vanderpump Rules” cast members Tom Sandoval (who was dating longtime cast member Ariana Madix) and Raquel Leviss, became a pop culture phenomenon after the lie. exposed in real time (and on camera). It was called “Scandal”.
Schwartz & Sandy's, a bar that Sandoval and Schwartz opened in November 2022, just four months before the drama unfolded, was publicly canceled in the aftermath.
Connected: Lisa Vanderpump says if you want to run a business, get a thicker skin
It has been evaluated that season 10 of “Vanderpump Rules” averaged 11.4 million viewers across all platforms, making it THE The most-watched cable series in 2023 among the 18-49 demographic. The first part of the season finale, which aired on May 24, 2023, is Bravo's most-watched episode of any program of all time, with an estimated 5.9 million viewers in a 35-day period, for Nielsen.
“There were times during Scandal on a Saturday night when there were five people in the bar. Two of those people were myself and Tom.”
Schwartz estimates that at its lowest point, Scandoval cost him 80% of the bar's total business.
“Our names are on the side of this building, which comes with a certain responsibility,” Schwartz said. “I've never experienced such a concentrated dose of negativity, especially online. It was a spectacle.”
The entrepreneur spoke exclusively with Schwartz and business partner and veteran restaurateur Greg Morris about the aftermath of the “Scandoval” and how they keep their business running in the face of public scandal.
Entrepreneur: What was your experience working in restaurants before venturing into the world of cameras? Have you always wanted to be in hospitality?
Tom Schwartz: I have been working in the industry since I was 15 years old. My first job was at TGI Fridays! I feel like it's kind of ingrained in my DNA. It was a dream of mine.
Do you think that early experience helped prepare you to make the leap to owning your own business?
TS: Honestly, nothing could have prepared me for what it takes to open a bar or restaurant. But I think it's important to get in there and work each position at least once to get a better feel for the business in general. I think on some level, the restaurant business is over-romanticized. It's fascinating on the surface.
How so?
TS: With Tom Tom (Schwartz and Sandoval's first bar with business partner Lisa Vanderpump), this was a great way to get my foot in the door. (Sandoval and I) were minority stakeholders, I was an investor, and we got our hands dirty. But for the most part, it was smooth sailing. We did the cocktail program, we were the ambassadors, the promoters, the investors. Schwartz & Sandy's was the first time he went in there – blood, sweat, tears, sacrifice, time, energy, money. This is the real deal, you know? It's intense.
Speaking of intense, when it comes to Scandoval, was it good or bad for business? What were the immediate effects of the real-time consequences?
Greg Morris: After our opening in November 2022, the business was making a modest 60% of the revenue we had projected, however, as the weeks went by we were seeing an increase in these numbers by 12-15% and we had calculated to be in our projections. numbers within six months. Immediately after Scandoval, however, we saw a boom in business, but it was short-lived. After experiencing a 30% increase in our revenue numbers within four to five weeks, we saw our numbers plummet. Week after week we saw the numbers drop, sometimes dropping 50% in a week. At the low end, we're down roughly 80% of our business.
TS: I learned from first-hand experience that not all publicity is good publicity. I don't know where to start. The people really rallied against us. We discussed rebranding or temporary closure.
Tom Schwartz and Tom Sandoval inside Schwartz & Sandy's (Jon Premosch)
Were you really ready to unplug?
TS: I know the risks inherent in this business. But it is unfortunate. We had great reviews on Yelp and Google before, I think we had 4.6 stars. And in the wake of that, I think we were down in the dumps by about 2.5 stars. It's really bad for businesses – cancel keyboard culture and critics. It was such a strange experience in the world. People were angry; they were shot. Things got dark and weird.
GM: After a month or so, it got dark. People were blowing up emails and phone lines 24/7, sometimes creating a hostile environment for our dedicated fan staff. There was at least one night where we had to close because people were calling in death threats. It's hard enough to be successful in the restaurant industry, but when the real world is singing your death, it makes it a little difficult to come in here and put a smile on your face.
This must have been a harrowing experience for your staff. How did you handle making sure your employees felt safe?
GM: It was really hard. Customers would come in asking for gossip, and when the employee didn't have an answer, they'd say things like, 'Well, your tip will reflect on that.' And it really created a kind of high-anxiety, tense atmosphere. Some people were here for the wrong reasons, and we didn't realize it then.
What did you tell yourself to keep going through the turmoil?
TS: This is my odyssey. Without a doubt, from a business point of view, this has been the most terrifying experience of my life. The bar business, ironically, is one of the most sober businesses. Maybe I had it pretty good before this situation. I used to live large, you get a little soft. Now I'm back walking away from the statue inside and I'm stronger because of it. But there it became difficult for a while. My faith was shaken.
GM: There were times during Scandal on a Saturday night when there would be five people in the bar and of those five people, two were me and Tom. There were some very dreary, dreary nights.
How did you get it back?
GM: (We) quickly adjusted our expectations and lowered operational costs. We faced such a big drop in revenue, but (we) were able to stabilize and keep the business alive. (Now, we're focusing) on one customer at a time and we've worked our way back from the ” in seeing the business grow week after week. According to our estimates, we are about 70% behind the pre-scandal number.
Is Tom Sandoval still involved?
TS: Tom (Sandoval) is back in the mix. He's on tour now, but he's back (with the business), we have synergy now and it's good to be a united front moving forward.
What's next for business?
TS: We are working on new food now, new drinks and a new music program. We will be doing some subtle redesigns. I have a newfound sense of optimism and excitement that I haven't had in a long time. We're also working on something to tie it all together (VPR) places together. People call it the Vandercrawl, so we're doing a little tour together of Tom Tom, Jax's Studio City (owned by ex-actor friend Jax Taylor), and Schwartz and Sandy's. It's on the go and I think people are going to really dig it. It will be special.
GM: I think more than ever, we're all on the same page. We are rehiring or hiring new people and are very optimistic about the future of the business. Experience, determination and the ability to make decisive decisions quickly have given Schwartz & Sandy's a second chance and one we intend to take.
This interview has been lightly edited and condensed for clarity.