Tom Schwartz is able to speak about “it” — however he is not anticipating you to really feel dangerous for him.
“This 12 months virtually broke me,” Schwartz tells Entrepreneur. “I am glad we persevered, [but] there was a second there I wasn’t positive if we had been going to.”
For these not well-versed within the Bravo universe, in March 2023, a romantic affair between “Vanderpump Guidelines” castmates Tom Sandoval (who was relationship longtime forged member Ariana Madix) and Raquel Leviss, changed into a popular culture phenomenon because the mendacity was uncovered in real-time (and on digital camera). It was dubbed “Scandoval.”
Schwartz & Sandy’s, a bar that Sandoval and Schwartz opened in November 2022, simply 4 months earlier than the drama unfolded, was publicly canceled within the fallout.
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It is estimated that Season 10 of “Vanderpump Guidelines” averaged 11.4 million complete viewers throughout all platforms, making it the most-watched cable collection in 2023 among the many 18-49 demographic. The primary a part of the season’s finale, which aired on Could 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 interval, per Nielsen.
“There have been instances in the course of the scandal on a Saturday night time when there have been 5 individuals within the bar. Two of these individuals had been me and Tom.”
Schwartz estimates that, at its lowest, “Scandoval” price him 80% of the bar’s complete enterprise.
“Our names are on the aspect of this constructing, which comes with a sure accountability,” Schwartz stated. “I’ve by no means skilled such a concentrated dose of negativity, particularly on-line. It was a spectacle.”
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Entrepreneur spoke completely with Schwartz and enterprise companion and veteran restauranteur, Greg Morris, concerning the fallout of “Scandoval” and the way they maintain their enterprise operating within the face of public scandal.
Entrepreneur: What was your expertise working in eating places earlier than you had been thrust into the world on-camera? Did you at all times wish to be in hospitality?
Tom Schwartz: I have been working within the trade since I used to be 15. My first job was at TGI Fridays! I really feel prefer it’s form of ingrained in my DNA. It was a dream of mine.
Do you are feeling like that early expertise helped put together you for making the leap to proudly owning your individual enterprise?
TS: Actually, nothing may have ready me for what it takes to open a bar or restaurant. However I feel it is essential to get in there and work each place no less than as soon as to have a greater feeling for the enterprise basically. I feel on some stage, the restaurant enterprise is overly romanticized. It is glamorous on the floor.
How so?
TS: With Tom Tom [Schwartz and Sandoval’s first bar with business partner Lisa Vanderpump], that was a good way to get my foot within the door. [Sandoval and I] had been minority stakeholders, I used to be an investor, and we received our arms soiled. However for probably the most half, it was clean crusing. We did the cocktail program, we had been the ambassadors, the promoters, traders. Schwartz & Sandy’s was the primary time getting in there — blood, sweat, tears, sacrifices, time, power, cash. That is the actual deal, you realize? It is intense.
Talking of intense, in the case of “Scandoval,” was it good or dangerous for enterprise? What had been the quick results of the real-time fallout?
Greg Morris: Following our opening in November 2022, the enterprise was doing a modest 60% of the revenues we had forecasted, nonetheless, because the weeks glided by we had been seeing a rise in these figures by 12-15% and had counted on being at our projected numbers inside six months. Instantly following “Scandoval,” although, we noticed a fast rise in enterprise, however it was short-lived. After experiencing a 30% enhance in our income numbers inside 4 to 5 weeks, we watched as our numbers declined precipitously. Week after week we watched the numbers tumble, generally down 50% per week. At our lowest, we dropped roughly 80% of our enterprise.
TS: I discovered from firsthand expertise that not all publicity is nice publicity. I do not know the place to start. Folks actually rallied in opposition to us. We mentioned rebranding or quickly shutting down.
Tom Schwartz and Tom Sandoval inside Schwartz & Sandy’s (Jon Premosch)
You had been actually prepared to drag the plug?
TS: I do know the dangers inherent on this enterprise. However it’s unlucky. We had nice evaluations on Yelp and Google earlier than, I feel we had 4.6 stars. And within the wake of that, I feel we had been down within the dumps to round 2.5 stars. It is actually detrimental to companies — cancel tradition and keyboard critics. It was such a bizarro world expertise to be in. Folks had been irate; they had been fired up. Issues received darkish and bizarre.
GM: After a month or so, it turned darkish. Folks had been blowing up our emails and telephone strains 24/7, generally making a hostile atmosphere for our workers with overzealous followers. There was no less than one night time the place we needed to shut as a result of individuals had been calling with dying threats. It is arduous sufficient to achieve success within the restaurant trade, however when you’ve got the actual world chanting your dying, it makes it just a little bit robust to come back in right here and put a smile in your face.
That will need to have been a jarring expertise on your workers. How did you deal with ensuring your staff felt protected?
GM: It was actually tough. Clients would are available in searching for gossip and when the worker did not have a solution, they might say issues like, ‘Nicely, your tip’s going to replicate on that.” And it actually did create a extremely form of excessive anxiousness, tense environment. Some individuals had been right here for the flawed causes, and we did not notice it then. We stripped down and went to a primary workers. Most of the workers now we have right here right this moment are individuals who had been with us by that.
What did you say to yourselves to maintain going amid the turmoil?
TS: That is my odyssey. For sure, from a enterprise standpoint, this has been probably the most harrowing expertise in my life. The bar enterprise, satirically, is without doubt one of the extra sobering companies. Possibly I had it too good earlier than this case. I used to be residing massive, you get just a little tender. Now I am again chiseling away on the statue inside, and I am stronger due to it. However it received tough for some time there. My confidence was shaken.
GM: There have been instances in the course of the scandal on a Saturday night time when there’d be 5 individuals within the bar and out of these 5 individuals, two had been me and Tom. There have been some very dismal, bleak nights.
How did you flip it round?
GM: [We] shortly adjusted our expectations and decreased operational prices. We withstood such an enormous lower in income, however [were able to] stabilize and to maintain the enterprise alive. [Now, we’re focusing] on one buyer at a time and have clawed our approach again from being “canceled” to watching the enterprise develop week to week. By our estimations, we’re about 70% again to the variety of pre-Scandoval.
Is Tom Sandoval nonetheless concerned?
TS: Tom [Sandoval] is again within the combine. He is on tour proper now, however he is again [with the business], now we have synergy now, and it is good to be a united entrance transferring ahead.
What’s subsequent for the enterprise?
TS: We’re engaged on new meals proper now, new drinks, and a brand new music program. We will do some delicate redesigns. I’ve a newfound sense of optimism and pleasure that I have never had in a very long time. We’re additionally engaged on one thing to tie all these [VPR] locations collectively. Folks name it the “Vandercrawl,” so we’re placing collectively just a little tour for Tom Tom, Jax’s Studio Metropolis (owned by former castmate Jax Taylor), and Schwartz and Sandy’s. It is in movement, and I feel individuals are going to essentially dig it. It is going to be particular.
GM: I feel greater than ever, we’re all on the identical web page. We’re rehiring or hiring new individuals, and we’re very optimistic about the way forward for the enterprise. Expertise, willpower, and the power to make essential choices shortly have given Schwartz & Sandy’s a second likelihood and one we intend to capitalize on.
This interview has been calmly edited and condensed for readability.
