Skip to content
The Joe Rogan ExperienceThe Joe Rogan Experience

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 ↗

EVERY SPOKEN WORD

  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 restaurateurs: H. Wood Group 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

    Rule-followers getting crushed: costs, retrofits, and employee fallout

    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, last-minute orders, and fear of speaking out

    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. 4:566:12

    Rapid testing as a workable alternative (restaurants, shows, private events)

    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.

  6. 6:128:48

    LA’s broader deterioration: homelessness, encampments, and enforcement threats

    1. JR

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

    2. JT

      He's threatened to shut water off, like-

    3. JR

      Yeah.

    4. JT

      ... like, and by the way-

    5. JR

      And power.

    6. JT

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

    7. JR

      Yeah.

    8. 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.

    9. JR

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

    10. JT

      Yeah. S-

    11. JR

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

    12. JT

      Right. But, but, but-

    13. JR

      It's worse.

    14. 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?

    15. JR

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

    16. JT

      Yeah.

    17. 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.

    18. JT

      Yeah.

    19. JR

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

    20. JT

      Yeah.

    21. JR

      ... is now just encampments.

    22. CS

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

    23. JT

      Mm-hmm.

    24. JR

      Yeah. Yeah.

    25. CS

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

    26. JT

      Oh, yeah.

    27. JR

      It's terrible.

    28. JT

      Yeah, it's terrible.

    29. CS

      Very bad. Yeah, I've seen it.

    30. JT

      Yeah, I've seen it.

  7. 8:4810:03

    Outdoor dining shutdowns and the courtroom: “no evidence” and the appeal

    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. 10:0313:17

    Bad policymaking mechanics: curfews, committees, and real-world expertise ignored

    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. 13:1733:41

    Lobbyists, big chains, and unequal treatment (Chipotle, film production, unions)

    1. JT

      restaurants, not franchise. We have no representation. We had no lobbyists. The rep- the- the representation for the restaurant community is driven by big fast food chains. Well, they have no incentive to help independent restaurants. You know, McDonald's and all these people, which God bless them, but they're thriving in COVID. So we just get bullied around essentially because there's no lobbyists. And so we're kind of like sitting ducks in this situation, and- and I kind of feel like we're somewhat trying to be a voice here for the independent restaurant world.

    2. CS

      And it's not just LA. I mean, think- think about-

    3. JT

      It's much bigger.

    4. CS

      ... I mean, New York and LA were- we- trendsetters, right? The country watched what happened in LA and New York and they followed, and now LA and New York have just completely dropped the ball and everybody else is kind of rising up.

    5. JR

      Well, they're examples of government overreach. They're examples-

    6. JT

      100%.

    7. JR

      ... of government overreach without any thought whatsoever to these independent businesses.

    8. JT

      It's a slippery slope.

    9. JR

      Yeah.

    10. JT

      How- how much more is that gonna happen? That is a big fear.

    11. JR

      Well, it's also a slippery slope 'cause what happens if it doesn't come back?

    12. JT

      Yeah.

    13. JR

      What happens if you drive down Melrose and those things stay boarded up? What happens if downtown LA-

    14. JT

      Yep.

    15. JR

      ... stays filled with tents?

    16. JT

      Yep.

    17. JR

      What do you do?

    18. CS

      Well, how many- how many restaurants are gonna be able to come back? I mean, like I said-

    19. JR

      Right.

    20. CS

      ... before, we're- we'll- we'll manage. We'll figure out a way. And- and- and (laughs) to John's point, like, Governor Newsom actually did help with something. I was trying to get, you know, a back patio done and there were a couple of health department rules and- and his office did step in and said, "That's ridiculous. You should allow that and make that happen." Then they changed a rule, um, that- that benefited not just my restaurant, but all restaurants.

    21. JT

      Big Newsom fan over here.

    22. CS

      No, no. I'm just trying to, like-

    23. JT

      (laughs)

    24. CS

      ... I'm trying to sp- I'm trying to-

    25. JR

      He's trying to balance it out.

    26. CS

      ... split the difference.

    27. JR

      Yeah, I understand.

    28. CS

      Like I want- I want it to be an honest conversation of, "I think your policies are wrong. I don't dislike you as a person." Right? That there's a big distinction.

    29. JT

      Sure.

    30. CS

      Okay? So that's- that's all I'm trying to say. But I will say that, uh, you know, on the reservation list, um, somebody's named that rhymes with spaghetti will not get a reservation, okay? We'll do... I'll- I'll- I'll- I'll do that.

  10. 33:4141:44

    Hypocrisy and political credibility: French Laundry, officials dining out, ‘do as I say’

    1. JT

      I guarantee he k- the amount of, uh, the required amount of recall numbers to recall Newsom is gonna happen and nothing's gonna happen to him. That's how rigged I think everything is.

    2. JR

      Well, they did... They recalled Gray in 2... Was it 2003 when Schwarzenegger became the governor?

    3. JT

      Yes.

    4. JR

      I mean, it can happen. And if things keep deteriorating, it can happen. People have lost all faith in him after that French Laundry incident.

    5. JT

      The French Laundry thing sh- uh... I think people are laughing about it and it's, it's funny, but it's also... That's... He just got caught doing that.

    6. JR

      One time.

    7. JT

      How ma- yeah. How many other times?

    8. JR

      Yeah.

    9. JT

      We all know his winery is open. Miraculously, wineries are an exception to restaurants and-

    10. JR

      Well, in his county, in the area where his winery is, it's open.

    11. JT

      Sure. Sure.

    12. JR

      Yeah.

    13. JT

      How's, how's that fair?

    14. JR

      Yeah. Doesn't make any sense.

    15. JT

      You know? I mean, just... It makes no sense, but-

    16. CS

      Well, they're gonna, they're gonna say that, that the transmission rates and the, the incidence of infections there are low.

    17. JR

      Yeah.

    18. CS

      Right? So...

    19. JT

      Sure.

    20. JR

      But that's what he tried to say about the French Laundry, that it's a low impact area.

    21. JT

      He also said he was outside of French Laundry.

    22. JR

      But there's a fucking chandelier-

    23. JT

      Clearly. (laughs) Clearly there's a chandelier above his head.

    24. JR

      Outside means stars-

    25. JT

      (laughs)

    26. JR

      ... above your head.

    27. JT

      (laughs)

    28. JR

      That's what outside means.

    29. JT

      Yeah.

    30. JR

      Outside doesn't mean a fucking chandelier.

  11. 41:4447:12

    Economic reality of restaurants: thin margins, delivery app fees, and ‘to-go’ myths

    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.

  12. 47:121:10:14

    Mental health and social fabric: isolation, addiction, and loss of communal spaces

    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

Install uListen for AI-powered chat & search across the full episode — Get Full Transcript

Transcript of episode d-XBVk1tE3w

Get more out of YouTube videos.

High quality summaries for YouTube videos. Accurate transcripts to search & find moments. Powered by ChatGPT & Claude AI.