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Tom Schwartz is willing to talk about “it” but doesn’t expect you to be offended by him.
“I almost lost my heart this year,” Schwartz said. entrepreneur. “I’m glad I persevered, [but] For a moment, I didn’t know if it was really going to happen. ”
For those not familiar with the world of Bravo, in March 2023, “Vanderpump Rules” castmates Tom Sandoval (who was dating longtime cast member Ariana Madix) and Raquel Reavis’ romantic affair turned into a pop culture phenomenon because the lie was the truth. Published in real time (and on camera). It was called “Scandoval”.
Schwartz & Sandy’s, a bar that Sandoval and Schwartz opened in November 2022, just four months before the drama unfolded. Officially canceled with Fallout.
Related article: Lisa Vanderpump says if you want to run a business, get a thicker skin
It’s an estimate Season 10 of “Vanderpump Rules” averaged 11.4 million total viewers across all platforms; of Most-watched cable series in the 18-49 demographic in 2023. The first part of the season finale, which aired on May 24, 2023, was the most-watched episode in Bravo history, with an estimated 5.9 million viewers over 35 days. Nielsen.
“There was a time during Scandal on Saturday night when there were five people in the bar. Two of them were me and Tom.”
Schwartz estimates that at least 80 percent of the bar’s overall business has been lost to Scandoval.
“Our name is on the side of this building, but with that comes a certain responsibility,” Schwartz said. “I’ve never experienced such a concentrated barrage of negativity, especially online. It was spectacular.”
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entrepreneur We spoke exclusively with Schwartz and his business partner, veteran restaurateur Greg Morris, about the aftermath of Scandoval and how they’re staying in business in the face of public scandal. Ta.
Entrepreneur: What experience did you have working in a restaurant before you were thrown into the camera world? Did you always want to work in hospitality?
Tom Schwartz: I’ve been working in this industry since I was 15 years old. My first job was at TGI Fridays. I feel like it’s in my DNA. It was my dream.
Do you feel like that early experience helped prepare you for the jump to owning your own business?
TS: To be honest, I couldn’t prepare anything needed to open a bar or restaurant. But I think it’s important to go into the field at least once and work in all positions to get a better feel for the business in general. In some ways, I think the restaurant business is over-glorified. It looks gorgeous on the surface.
Why?
TS: tomtom and [Schwartz and Sandoval’s first bar with business partner Lisa Vanderpump]it was a great way for me to get my foot in the door. [Sandoval and I] They are a minority stakeholder, I am an investor, and we got our hands dirty. But for the most part, it was smooth sailing. We were in charge of the cocktail program, ambassadors, promoters and investors. Schwartz & Sandy’s was the first to get there, spending blood, sweat, tears, sacrifice, time, energy, and money. This is real, you understand? It’s intense.
Speaking of intensity, when it comes to Scandoval, was it good or bad from a business perspective? What are the immediate effects of real-time fallout?
Greg Morris: After opening in November 2022, the business’ revenue was a modest 60% of what we had predicted, but as the weeks have gone on, that number has increased by 12-15%, and we expected to reach the prediction. Numbers within half a year. However, immediately after ‘Scandoval’, business grew rapidly, but it did not last long. I observed a 30% increase in revenue over 4-5 weeks, followed by a sharp decline in revenue. Week after week, we watched the numbers drop, sometimes by 50% from week to week. At the low end, about 80% of business was down.
TS: I have learned from first-hand experience that not all publicity is good publicity. I don’t know where to start. People really rallied against us. We discussed rebranding and temporary closures.
Tom Schwartz and Tom Sandoval (John Premosh) in Schwartz & Sandy’s
Were you really ready to pull the plug?
TS: I know the risks inherent in this business. But it’s a shame. They previously had great reviews on Yelp and Google, I think 4.6 stars. I think that’s why I lowered the star rating to about 2.5 stars. It’s really harmful to business – cancel culture and keyboard critics. It was a very strange world experience. People were furious. They were in high spirits. Things got dark and weird.
GM: After about a month, it was completely dark. People bombed the email and phone lines 24/7, sometimes creating a hostile environment for staff with rabid fans. There was at least one night the store had to close because death threat calls came in. It’s hard enough to make it in the restaurant industry, but when you’re chanting death in the real world, it’s a little harder to come here and put a smile on your face.
It must have been an unpleasant experience for your staff. How did you ensure your employees felt safe?
GM: It was really difficult. Customers would come in looking for gossip, and when employees couldn’t answer, they’d say something like, “Well, your tip is going to reflect that.” And it really created some kind of very high anxiety and tense atmosphere. There were some people who came here for the wrong reasons, but that’s when we took off our clothes and went to the basic staff. I did.
What did you tell yourself to keep moving forward in the midst of chaos?
TS: This is my adventure. Without a doubt, from a business perspective, this was the most harrowing experience of my life. Ironically, the bar business is one of the most solemn businesses. Maybe you were in too good a shape before this situation happened. I lived big, you go a little soft. Now I’m chipping away at the internal statue again, and I’m stronger because of it. But things got rough there for a while. My confidence was shaken.
GM: There was a time during Scandal on Saturday night when there were five people in the bar, and two of those five were me and Tom. There were some very gloomy and dark nights.
How did you turn it around?
GM: [We] We quickly adjusted expectations and reduced operational costs. Despite enduring a significant decline in revenue, [were able to] Stabilize and sustain your business. [Now, we’re focusing] I went from taking one customer at a time and going from “cancelling” to seeing my business grow week by week. Our estimates are that we are about 70% back to pre-Scandoval numbers.
Is Tom Sandoval still involved?
TS: tom [Sandoval] I’m back in the mix.He’s on tour now, but he’s back [with the business]now we have synergy and it’s great to be able to move forward in unison.
What’s next for your business?
TS: We are currently working on new food, new drinks and new music programs. We will be doing a subtle redesign. I’m feeling a newfound optimism and excitement that I haven’t felt in a long time.We’re also working on an initiative that ties all of this together. [VPR] I’m with you. People call it “vander crawl.” So we’re organizing a small tour for Tom Tom, Jax’s Studio City (owned by former castmate Jax Taylor), and Schwartz and Sandy’s. It’s currently underway, and I think people are going to really dig it. It’s going to be something special.
GM: Now more than ever, I think we’re all on the same page. We are rehiring or making new hires and are very optimistic about the future of the business. With experience, determination, and the ability to make important decisions quickly, Schwartz & Sandys has been given a second chance, and we hope to take advantage of it.
This interview has been lightly edited and condensed for clarity.