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Joe Rogan Experience #1583 - John Terzian & Craig Susser

John Terzian is co-founder and co-president of Los Angeles-based hospitality and lifestyle firm The h.wood Group. Craig Susser is the owner of the Los Angeles restaurant Craig's, and creator of the non-dairy ice cream brand Craig's Vegan.

John TerzianguestCraig SusserguestJoe Roganhost
Jun 27, 20241h 54mWatch on YouTube ↗

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  1. 0:000:14

    Intro

    1. JT

      (drumbeats) Joe Rogan podcast, check it out.

    2. NA

      The Joe Rogan Experience.

    3. CS

      Train by day, Joe Rogan podcast by night. All day. (instrumental music plays)

  2. 0:141:19

    Meet the guests: H.Wood Group nightlife and Craig’s Restaurant

    1. JR

      What up? What up, my brother? Uh, so gentlemen, why don't we, let's start, just introduce yourself. John, introduce yourself. Tell people what you do.

    2. JT

      I'm John Terzian. I own a company called H. Wood Group. So we have restaurants, nightclubs, Delilah, Nice Guy, Bootsy Bellows are some of them.

    3. JR

      And Craig?

    4. CS

      Uh, I'm Craig Susser. My God, I feel like such a slacker compared to that.

    5. JT

      Yeah? You should.

    6. CS

      Uh, I own a place called Craig's Restaurant-

    7. JT

      (laughs)

    8. CS

      ... and, uh, and a, uh, a vegan ice cream company called Craig's Vegan, which-

    9. JR

      A place called Craig's. Very modest. It's one of the best restaurants in LA.

    10. CS

      Yeah. Thank you.

    11. JR

      Very, uh, highly respected place.

    12. JT

      Yep.

    13. JR

      And we- we're here to talk about what the fuck is happening to the restaurant industry during this pandemic and how crazy it is. Um, you know, I- I, I've talked about this before but having you guys on, so you could say firsthand what it's been like to you, and what this experience has been like, and, uh, how poorly it's been handled. Just, I wanna give people a sense of this at home, what it's like from two men who have made their living in the hospitality and restaurant industry.

    14. JT

      Yeah. Yeah, I mean, you wanna start, Craig?

  3. 1:193:40

    “We followed every rule”—costly compliance and still getting shut down

    1. CS

      Well, no. It, it... The funny thing is, it's like w- we're the rule-followers.

    2. JR

      Yeah.

    3. CS

      We're the ones that are used to handling the health department. We're the ones that are used to, uh, you know, doing everything that, uh, you know, from a safety standpoint. Right? And now, we're the ones that are being crushed or being picked on, so to speak, by... But that's the way a lot of people in the industry feel, because we're the ones that are being shut down in a city, um, where a lot of other businesses are remaining open, like malls, distribution centers, markets.

    4. JR

      Stores.

    5. CS

      I mean, you, you can go to a mall and go shopping. You can go on an airplane from LA to, you know, New York, take your mask off, and eat, and that's okay. But you can't eat outdoors in a restaurant in LA that's following social distancing, all the health guidelines. I mean, we know our business. And so, it's been really hard since, what, it started March 15th. We-

    6. JR

      Yep.

    7. CS

      ... we shut down. Um, we were then told to put glass in between our, our booths, so we did that. We opened for about 10 days. Um, we did UV lights in the, in the, in the air-conditioning systems.

    8. JT

      Air filtration, all the stup- uh, everything.

    9. CS

      Absolutely. And then we built patios. Um, I've personally spent $250,000 abiding by the rules that were set forth by the state, by the county, by the governors, by, by everybody. And, and then to just kind of be shut down is really, really difficult. And it's not about me, and it's not about my restaurant, and it's not about John. It's not about... It's about the employees. It's about the dishwashers, and the busboys, and the servers that live day to day on the money that they make at the restaurant. It's their livelihood. It's how they feed their families. They send money back to the countries that they came from, you know? Th- this is a larger issue. And, and the reason it's a larger issue is, one little restaurant like Craig's, we have 90 employees. A furniture store might have five or six. So when you shut down an industry like that, it really has a huge economic impact. And then it has a social impact, because we all love to eat. It's the one thing we have in common.

    10. JR

      Yeah.

    11. CS

      We like to get together as people.

    12. JR

      I'm a, I'm a giant fan of restaurants. I mean-

    13. JT

      Yeah.

    14. JR

      ... it's one of my favorite things to do, is to go out to eat. And living in LA, it was so frustrating.

    15. JT

      Yeah.

  4. 3:404:56

    No communication from leadership: learning shutdowns from the news

    1. JR

      It was bi- it was bizarre. It di- it doesn't make sense. Now, when you guys get the orders, when they tell you what's shut down or what's open, is there anyone you communicate with? Is there anyone that's involved in government that you've had conversations with?

    2. JT

      No. No, that's the issue. That's the biggest issue that we have, is they, they refuse to communicate to any of us. And I can't quite figure out why. We hear about it on the news. We've, we've joined with about 40-

    3. JR

      Yeah.

    4. JT

      ... 30, 40 other, like, main owners, you know, that, that are all in the area. And I think it's the one thing that's kind of a, a silver lining in all this, is that we've all teamed up to kind of like try to figure out what's going on. But we find out about it from the news, and we have to just make these moves within 24 hours. It's, it's absolutely absurd. And we've reached out. I've reached out to Newsom, I've reached out to Garcetti, and they do nothing, you know? They, they put you on phony task force, they lie, you know? They, they, they have no idea how serious this is. And I commend you for having us on. No one else wants to speak about it. Everyone's too scared of backlash.

    5. JR

      But what backlash? What... I, I don't think they understand that-

    6. JT

      I, I think people are-

    7. JR

      ... LA is crumbling right now, right?

    8. CS

      Right.

    9. JT

      Yeah, I think people are thinking it's black and white. If you say anything somewhat negative, they view you as you're anti-COVID, you're, you're wanting to kill everybody. And that's not the case.

    10. JR

      You're a science-denier.

    11. JT

      Right. Yeah. That's not the case.

    12. JR

      You're cruel.

  5. 4:566:19

    A practical alternative: rapid testing as a path to staying open

    1. CS

      Yeah. Right, but that's, but that's not the issue. So, we're not denying that there's an issue. We're not denying that people are getting sick. We're not denying that there are... We all are in this together. So, how do you do it well? How do you do it smartly? Where should we be spending money? Um, a perfect example is, they're doing rapid testing in certain areas. So instead of losing all of this revenue, why don't they invest in smart technology that has rapid testing, that allows people to go to a restaurant, get a rapid test, you're positive or negative, and then you get to go into the restaurant?

    2. JR

      Like we did here today.

    3. JT

      Exactly.

    4. CS

      Exactly.

    5. JR

      We got rapid tested today.

    6. JT

      Exactly.

    7. JR

      Everyone's fine.

    8. JT

      Yeah.

    9. JR

      We can sit down, have a conversation, have no paranoia.

    10. JT

      Yeah.

    11. JR

      You could do that at a restaurant. You could have the... We were, I was telling you about Stubbs Barbecue here in, in Austin-

    12. JT

      Yeah.

    13. JR

      ... where Dave Chappelle and I have been doing shows.

    14. JT

      Great establishment.

    15. JR

      We do 400 seats. We test everyone. People get there way in advance. They test them.

    16. JT

      Yeah.

    17. JR

      They get a to- a COVID test, which gives them a nice peace of mind, like, "Oh, great, I don't have it."

    18. JT

      Yeah.

    19. JR

      Then you get to sit down and enjoy a show. And the place is packed. And so, the business is making money, everyone's having a good time. It's, it's possible.

    20. CS

      Well, that's what, that's what a lot of people are doing in LA, right? So they're having parties in LA, and a lot of them are doing rapid testing beforehand so everybody gets a wristband, then everybody in the party knows that everybody's negative.

    21. JR

      But isn't, isn't the mayor s- threatening to shut those kind of parties down?

    22. JT

      He's threatened to shut water off, like-

    23. JR

      Yeah.

    24. JT

      ... like, and by the way-

    25. JR

      And power.

    26. JT

      ... he- he's done it. Yeah, water-

    27. JR

      Yeah.

  6. 6:198:48

    LA’s broader decline: homelessness, enforcement, and ‘new power’ over industries

    1. JT

      ... and power, which we're living in like a dictatorship. I lit- I literally feel like LA's like a third-world country right now.... never seen anything like this.

    2. JR

      Well, if you go to Venice or you go to downtown LA and you see the encampments, it's fucking bananas.

    3. JT

      Yeah. S-

    4. JR

      I mean, third world countries wouldn't allow that shit.

    5. JT

      Right. But, but, but-

    6. JR

      It's worse.

    7. JT

      This is some sort of dictatorship happening that, uh, we, we... To me, is a bigger picture. If, if, if other, uh, governments, if o- if other states, counties, cities see that they can just shut an industry down so easily, get a name for themselves, get their name out there, what's stopping everyone else from doing this?

    8. JR

      Exactly. It's new power. So here's Venice Beach-

    9. JT

      Yeah.

    10. JR

      Look at this video. This is, uh, I mean, this is very mild in comparison to some of the videos that I've seen.

    11. JT

      Yeah.

    12. JR

      But, uh, there's one from downtown LA that literally sh- that's of Venice Beach, all the boardwalk, that whole area-

    13. JT

      Yeah.

    14. JR

      ... is now just encampments.

    15. CS

      Well, yeah, like Wilshire and Ven- Ve- uh, San Vicente?

    16. JT

      Mm-hmm.

    17. JR

      Yeah. Yeah.

    18. CS

      It's, it's pretty bad, right?

    19. JT

      Oh, yeah.

    20. JR

      It's terrible.

    21. JT

      Yeah, it's terrible.

    22. CS

      Very bad. Yeah, I've seen it.

    23. JT

      Yeah, I've seen it.

    24. JR

      Wilshire and San Vicente's bad. Downtown LA is absolutely the worst. Downtown LA is bananas. Thousands and thousands of tents. And I don't know how they're gonna put that genie back in the bottle. Now you've got... They're trying to clean up, 'cause they're trying to like, go, "Well, this is a health hazard." You've got, like, human shit in the streets. Like, how do we clean this? So they're trying to clean up.

    25. JT

      Right.

    26. JR

      And now activists are stopping them from cleaning up. They're like, "Your actions are violence." And they're-

    27. JT

      Yeah.

    28. JR

      ... holding hands and blocking-

    29. CS

      Right.

    30. JR

      ... cleanup crews. Like... (slaps desk)

  7. 8:4810:03

    Outdoor dining ban vs. the evidence: court challenge and ‘no nexus’ admission

    1. JR

      And there's no evidence that shows that outdoor dining is contributing significantly to the COVID spread. There's no evidence.

    2. JT

      They actually had to admit that finally, in the, in court. The county has no evidence of a nexus between any sort of outbreak, uh, with outdoor dining.

    3. JR

      And how do-

    4. CS

      Okay.

    5. JR

      So how do they make this arbitrary distin- distinction between outdoor dining and going to Walmart, or like what they're calling-

    6. CS

      They, th-

    7. JR

      ... essential?

    8. CS

      They don't. Th- th- it doesn't-

    9. JT

      It doesn't make any sense.

    10. CS

      Th- there isn't. So, so-

    11. JT

      There isn't.

    12. CS

      ... the county health officials shut us down, right? For three weeks, uh, right around, what was it? Thanksgiving?

    13. JT

      Yes.

    14. CS

      And, um, some friends of ours took them to court and said, uh, "You know, how can you just shut down an industry with no evidence?" And they said, "Oh, we have plenty of evidence. We have six studies and blah, blah, blah, blah, blah." And then they actually got to court, and they had nothing.

    15. JT

      Nothing.

    16. JR

      Nothing.

    17. JT

      All the evidence-

    18. CS

      Not-

    19. JT

      ... was from indoor dining.

    20. CS

      N- not one piece of paper.

    21. JT

      And they had to admit it.

    22. JR

      So when-

    23. CS

      And now-

    24. JR

      ... they admit it, then what happens?

    25. CS

      No, but now they're appealing it. (laughs)

    26. JR

      Why?

    27. CS

      Now they're appealing it. And by the way-

    28. JR

      But why?

    29. CS

      ... they've hired an outside counsel, so they're-

    30. JT

      And you think these people hu- have our-

  8. 10:0315:24

    Curfews, arbitrary rules, and zero industry input

    1. CS

      Okay. Here's the number one thing that boggles my mind. Y- you have a problem. We all agree there's an illness.

    2. JT

      Yes.

    3. CS

      Okay? Uh, uh, the rates of hospitalizations are going up, infections are going up, but the rates of death are going down. Okay. So, we have an issue. Why not get together as a community and say, "You know what? We're gonna grab a couple of restaurant people. We're gonna grab some doctors in the field."

    4. JT

      Have a committee.

    5. CS

      "And, and have people that have real world experience." Not PhDs, not theoretical people. People that have real experience in the industry. Grab them, grab a round table, and say, "Okay, we have this problem. How do we mitigate it and how do we move forward smartly?" I've never been asked. John's never been asked. No doctor that I know in the wide variety of people that I take care of has ever been asked their opinion by the county, state-

    6. JT

      Yep.

    7. CS

      ... on any level.

    8. JT

      He's right. It's, it's... Th- that's the problem. And I reached out directly. I have, uh, Garcetti's email. I email this mayor. Puts me on with some, some random person from the office, then puts me on with the county. And I say, "Hey, get us together. L- like, why don't you actually talk to real restaurant owners?" This is when they were thinking about... This is when they were gonna do the curfew, right? There was a 10:00 PM curfew. And I said, "Wh- where does the, where does the 10:00 PM curfew come from?" "Oh, well, when people get inebriated, they get looser, and then they're super-spreaders at, at restaurants."

    9. JR

      (laughs)

    10. CS

      And I'm like, "Okay. Why 10:00 PM?" He's like, "That's, that's the time when people really start, start getting inebriated." And I was like, "But you realize you could at least say, 'Hey, close up. Let people make sure they get out, get their check paid, and be out the door by midnight, 11:30,' whatever it might be, rather than everyone out the door by 10:00 PM." And he said, "Well, you can seat someone at 9:00 and then kick them out at 9:50." And I was like, "Wha- what... Are you, do you, do you have any understanding of the restaurant industry at all?" Not one. Had not contacted any, any restaurateur. They went to a 10:00 PM curfew. Three days later, shut it all down. They just said, "You know what? We're, we're just shutting everything down." By the way, they've never-

    11. JT

      For no reason.

    12. CS

      ... they've never heard no from any of us. You wanna do-

    13. JT

      Yeah.

    14. CS

      ... uh, six people or less? Okay.

    15. JT

      Yeah.

    16. CS

      You want tables six feet apart? Okay. You wanna do, uh, an 11:00 curfew? Okay. A 10:00 curfew? Okay. We- we've said yes to everything they've wanted, and yet they still find a way-

    17. JT

      Yep.

    18. CS

      ... to shut the industry down.

    19. JT

      Well, why?

    20. JR

      This is what I don't understand. Why? Who's making the decisions?

    21. JT

      I personally think... Again, I don't think Craig wants, wants to say this, but I personally think it is politicians trying to make a name for themselves. That is my-

    22. JR

      But how does it make a name for yourself-

    23. CS

      But, but I think it's fear-based.

    24. JR

      ... by destroying businesses?

    25. CS

      I honestly think it's fear.

    26. JR

      Wh- what?

    27. CS

      I think it's fear.... that they're gonna-

    28. JT

      I-

    29. CS

      ... that they're gonna be seen as not having done something-

    30. JT

      And people-

  9. 15:2441:44

    Retaliation and selective enforcement: inspections after speaking out

    1. JT

      I mean, I will say I've spoken out about him and we got targeted pretty hardcore, openly.

    2. JR

      They targeted you?

    3. JT

      They came, hea- health came every night when I finally called. "Where are the permits for al fresco? Where's this?" Every single night. I'm like, "You were here last night." "Well, you know, we- we were instructed to come every night." I said, "Okay, that makes sense."

    4. JR

      You were instructed every- to come every night-

    5. JT

      That's what this is-

    6. JR

      ... because you talked out against Garcetti?

    7. JT

      And Newsom, correct.

    8. JR

      Jesus fucking Christ.

    9. JT

      And- and my- my thing is, I agree, it's nothing personal. I- I- it's- it's their policies, their arbitrary policies. How does it make sense that, you know, there's a million people passing through TSA a day? I looked up all the stats. How does it make sense that we can fly here, for example, uh, any- anywhere, Austin, New York, wherever it might be, and go right back in the same day with zero- zero issues, zero checks, zero anything? Yet outdoor dining is completely shut down.

    10. CS

      By the way, this is the first time in nine months I've left LA.

    11. JT

      Yeah.

    12. CS

      And- and the only reason- the way I got down here through Jet Age, by the way, thank you for a great ride, and they were really cool.

    13. JT

      And private suite.

    14. CS

      And you guys are-

    15. JT

      The best.

    16. CS

      ... you should... You're a big baller, you should use Jet Edge. Um, but I'm flying back United tonight and- and, you know, it's the first time in nine months that I've left LA, um, and I'm not a science denier and I take precautions and I'm around a lot of people. When the- when the patio was open, I was around 150, 180 people a night. But you can go from LA to New York, you can take your mask down and eat. You can land in LA, you can go in a hotel, you can then go to a mall and go shopping, okay? You can grab some food to go. We could sit together and eat outdoors in the mall. But I can't go outdoor and eat at a restaurant at- that employs 90 to 100 people and keep a business afloat. We're not thriving. You know, outdoor dining doesn't- doesn't- it isn't blowing the doors off of the revenue. It allows us-

    17. JT

      Keeps people employed.

    18. CS

      ... to keep all of the people employed. It allows employees to make some money. We're paying payroll taxes, we're paying sales taxes, and we're just one little place. There's 30,000 restaurants in Los Angeles. Now, one of the reasons they cited for shutting it down was they found that 10% of the restaurants weren't abiding by the rules. So, well, I would say then- then why don't you go to those 10% of restaurants and shut them down or give them warnings to the point where they do come into line? So if they're not social distancing and they are not wearing masks and shields and they're not wearing gloves and they're not doing all the things that you've asked restaurants to do, well then, you can target them. But to shoot- to shut down an entire industry because you feel like you have a couple of bad actors makes no sense.

    19. JR

      None of this makes any sense, and this is the first time, we were talking about this before the show, that- that people are realizing how important it is who the mayor is-

    20. JT

      Oh, yeah.

    21. JR

      ... how important it is who the governor is.

    22. JT

      Yeah.

    23. JR

      And the fact that the mayor is actively targeting you guys 'cause you've spoken out against these fucking ridiculous, draconian restrictions-

    24. JT

      Yeah.

    25. JR

      ... that don't have any... There's no logic behind them. There's no studies. They're- they're obviously when you take them to court and they- they show that the studies are about indoor dining and not outdoor, that they're lying. So-

    26. JT

      Completely.

    27. JR

      ... and- and they're coming after you, like targeting you?

    28. JT

      Yeah.

    29. CS

      Well, we- we all know that the- the biggest predators are, right, the distribution centers? Construction for some reason, and I don't understand why, but construction is- is a really big-... um, number. So, I, I just, I didn't mean to cut you off-

    30. JR

      Okay.

  10. 41:4447:12

    Why delivery can’t save restaurants: margins, fees, and ‘stemming the bleeding’

    1. CS

      And then, and then they said, you know, the, the, they, the big thing John and I hear and, and, and yes, it does help a little bit, but at least we left you with, you know, uh, food to go and delivery.

    2. JT

      That does not help.

    3. JR

      Jesus Christ.

    4. JT

      That is complete BS.

    5. JR

      But that's, that's a lack of understanding about your business.

    6. JT

      God bless, Greg, for making money on it. You don't, you do not make money on delivery and to-go.

    7. JR

      It's a lack of understanding of the business.

    8. JT

      Completely.

    9. JR

      Yeah. Well, it's also a lack of understanding of the margins that a business operates on when it's a restaurant-

    10. JT

      Yeah.

    11. JR

      ... even if you're full every night.

    12. JT

      Yeah.

    13. CS

      Right. So, so if you, if you look at it-

    14. JT

      But, but the delivery services win.

    15. CS

      The... Oh, Postmates and DoorDash are winning?

    16. JT

      Yeah, Door... (laughs) Yeah.

    17. JR

      Definitely.

    18. CS

      So, so if you look at it, you've got 30% food cost, you've got 30% labor cost.

    19. JT

      Yeah.

    20. CS

      You've got 20% for rent, utilities, incidentals, insurance, all that other stuff. So at, at, at best with no mistakes, and everybody doing everything perfect, and the refrigerator not breaking, or the plumbing not breaking, or any of that stuff not happening, you might be at 15, 12% profit rate, right?

    21. JR

      Yeah.

    22. CS

      But then-

    23. JT

      Maybe.

    24. CS

      ... Postmates, DoorDash, they come in and they take their piece.

    25. JT

      18%.

    26. CS

      So you're losing on a good night.

    27. JT

      Yeah. There's no shot at-

    28. CS

      You're just-

    29. JT

      There's no shot at making money.

    30. CS

      You're just kinda stemming the bleeding.

  11. 47:121:10:14

    Cultural and mental-health costs: community, normalcy, and social division

    1. JR

      Yeah.

    2. CS

      ... Mike passed away f- from COVID early, back in March and April. So, it's hit me personally. That's why I'm not a denier. That's why I'm not saying that there isn't an issue to be dealt with. But is there a-

    3. JT

      Why would anybody say that?

    4. CS

      But is, but, well that's the whole point. So here, here's the point. If, if you make a case for opening up restaurants-

    5. JT

      Yeah. They're try-

    6. CS

      ... you're an idiot, you're a denier-

    7. JT

      Right.

    8. CS

      ... you don't understand the severity of the issue.

    9. JT

      Right.

    10. CS

      Instead of saying, "Isn't there a gray area somewhere here? Isn't there a way of doing this smartly? Why aren't we investing the billions of dollars we're losing in tax money into testing efficiently, so that these venues can open?"

    11. JT

      Yeah, test everywhere.

    12. CS

      But I think there ha- there has to be a consideration for the negative impact on these businesses and the, the health consequences of people being out of work, and the mental health consequences, the drug addiction-

    13. JR

      Yeah.

    14. CS

      ... all the things that go along with it. You can't just look at the, the impact of the numbers. You have to look at the impact on the community.

    15. JT

      Right.

    16. CS

      You have to look at the impact of the, what's the long term health of the culture? Like, you're destroying this i- it, an immense part of the city. Going out to dinner is a huge part of, of people's social life. They're like, "What do you wanna do? Let's go to a restaurant."

    17. JT

      100%.

    18. CS

      People love it. It's probably one of the number one things that people like to do, get together with some friends-

    19. JT

      Yeah.

    20. CS

      ... have some wine, have some food.

    21. JT

      Mm-hmm.

    22. CS

      By the way, it was about the only thing you could do in, you know, was it July, August, September, October, was about the only-

    23. JT

      Oh, towards, yeah.

    24. CS

      ... freedom you had is to get together with your friends and go out to dinners, about the only thing that was normal in life.

    25. JT

      Yeah.

    26. JR

      Yeah.

    27. CS

      I mean, you've got to miss all your comedy friends living down here in Austin. You've got to miss all your community back in LA.

    28. JR

      A lot of them are moving here.

    29. JT

      They're all coming.

    30. JR

      Yeah. (laughs) They're all coming.

Episode duration: 1:54:27

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