Galileo files Chapter 11, keeps cooking

[iamthestretch]

Dispute over back taxes forces move. The restaurant will stay open for now.

"Oh my God," patron Joe Heflin said upon hearing the news. "I just can't rave and scream and burp enough. This is just such a shame."

(Edited to add: I'm not ragging on you, Joe, it's just a great quote. You made that reporter's day.)

Edited August 21, 2004 by iamthestretch (log)

[Joe H]

I learned a lesson, too! He and I talked for fifteen minutes and I thought the quote that he was going to use was something like"Roberto was a gift to the city of D. C." not that which I said flippantly at the very end of the conversation to try to lighten what was otherwise rather sad. Also, I have been ten times or so but over the years. When I saw the article this morning I winced. I really should have known better!

[iamthestretch]

Experience is hard earned, right? I'm afraid it is a general rule that a reporter, when reviewing notes of an interview, will almost always select the single pithiest quote provided, whether or not it is one that best reflects the finely-nuanced point the subject spent half an hour trying to make. This is why so many of our public figures have perfected the art of speaking for long periods of time without saying anything remotely memorable. (I'm looking at you, Greenspan.) It is also why many people who have actually worked as reporters themselves adopt a simple and rigid strategy if they're ever caught on the wrong end of a TV camera or radio mike or telephone. It's called: "No. Piss off." And it works like a charm.

End digression.

Edited August 21, 2004 by iamthestretch (log)

[Schneier]

Reporters invariably use the one sentence you wish you said, which is why I always say something like "please don't use that" if I say something that, upon reflection, I wish I hadn't.

But honestly, if they spell your name right consider it a win. And if they get your quote right, and in context, well...I don't know what you should do.

Bruce

[Schneier]

Bad news about the restaurant, though. I hope Donna manages to weather this and remain open. I'm hoping for a Laboratorio dinner in December.

Bruce

[Steve Klc]

Reading that article, my heart couldn't help going out to the current restaurant staff working for their low hourly wages, who likely have had taxes witheld from their checks all along, servers who have had tips witheld and likely used for other purposes, staff who are just hoping they'll still get a paycheck next week let alone in December so they can pay their own bills. Rather than select that quote from an admitted "Roberto groupie" like Joe, I wish the reporter found space to mention the staff behind this "culinary star" with a $2.4 million debt--the dishwashers, servers, line cooks, the (perhaps) 50 or 60+ people most directly affected by this, who now have to face and fear an increasing likelihood that their paychecks could stop on any day.

Celebrity and talent are, of course, interesting to assess and certainly much easier to worship than business-sense, a litany of past failed restaurants and by now countless lost jobs, loyalty to staff and the intertwined responsibilities all these represent. Professional cooking is still largely feudal, so let's keep the serfs foremost in our minds. My hope is Donna comes through for his most important resource, which is not the $500,000 wine cellar, but his current staff--his professional family.

It is "such a shame," as Joe says, and also "sad," just on other, much more immediate and personal levels than the article by Griff Witte, or the quotes he selected, imply.

[mnebergall]

I think the point of JoeH's remark over on the"oldest DC Restaurant"' thread from yesterday is that just because one is a creative and talented chef, it does not necessarily mean that one is the most astute businessman (woman).

According to the article, there is a $1 million shortfall in sales tax remittences to DC and that the debt built up over several years. This has been festering for some time.

When cash runs short, collected taxes such as sales taxes and payroll taxes become a tempting source of liquidity. Folks need to keep in mind that those collected taxes are held in trust for the government and if they are used to pay other creditors, the persons who made the decision to use the funds to pay other creditors can become personally liable. The owners and managers can't hide behind the "corporation" to protect their personal assets (house, car, bank account, brokerage). (There's your free legal advice for the day. Remember you get what you pay for).

[Joe H]

Several brief thoughts: my sister a number of years ago had one of D. C.'s better restaurants (Phyllis recognized her as one of D. C.'s 50 best one year.) She had her own experience with reorganization as many professionals have. Today she still works 70+ hours per week with her catering business despite her 60+ years. I DO understand what she and her employees then went through. In part, because of this, I for several years but that was something VERY different.) But he has been a very real gift to this city. I went to Romeo and Juliet soon after he started there about twenty years ago. At the time Cantina d'Italia and Tiberio were the best this city had. Later Roberto opened on P street then moved to his present location. He and Francesco Ricchi together took D. C. Italian to another level. Later he rose above this with Laboratorio. I honestly believe in large part because of him we have been exposed to a level of Italian cuisine that is rare even in Italy. He has helped raise all of our standards.

Still, this is a very tough industry, a very fickle one. To stay on top in any restaurant is remarkable; to last for so long is almost unheard of. I sincerely hope that for himself and those who work with him and for those of us who appreciate what he gives us he pulls this out.

For me Roberto cannot be replaced.

[morela]

Reading that article, my heart couldn't help going out to the current restaurant staff working for their low hourly wages, who likely have had taxes witheld from their checks all along, servers who have had tips witheld and used for other purposes, staff who are just hoping they'll still get a paycheck next week let alone in December so they can pay their own bills.  Rather than select that quote from an admitted "Roberto groupie" like Joe, I wish the reporter found space to mention the staff behind this "culinary star" with a $2.4 million debt--the dishwashers, servers, line cooks, the (perhaps) 50 or 60+ people most directly affected by this, who now have to face and fear an increasing likelihood that their paychecks could stop on any day. 

Celebrity and talent are, of course, interesting to assess and certainly much easier to worship than business-sense, a litany of past failed restaurants and by now countless lost jobs, loyalty to staff and the intertwined responsibilities all these represent. Professional cooking is still largely feudal, so let's keep the serfs foremost in our minds.  My hope is Donna comes through for his most important resource, which is not the $500,000 wine cellar, but his current staff--his professional family. 

It is "such a shame," as Joe says, and also "sad," just on other, much more immediate and personal levels than the article by Griff Witte, or the quotes he selected, imply.

You are wise. I talked to servers who knew what was going on way before any of us, or at least in a legal sense...and I remember thinking how awful it would be to waiting for a paycheck that techinically didn't exist. Not taking a hit on the treasured establishment. Just know the feeling of being dependent on what you think you have.

[KatieLoeb]

Reading that article, my heart couldn't help going out to the current restaurant staff working for their low hourly wages, who likely have had taxes witheld from their checks all along, servers who have had tips witheld and used for other purposes, staff who are just hoping they'll still get a paycheck next week let alone in December so they can pay their own bills.  Rather than select that quote from an admitted "Roberto groupie" like Joe, I wish the reporter found space to mention the staff behind the "culinary star" with a $2.4 million debt--the dishwashers, servers, line cooks, the (perhaps) 50 or 60+ people most directly affected by this, who now have to face and fear an increasing likelihood that their paychecks could stop on any day. 

Celebrity and talent are, of course, interesting to assess and certainly much easier to worship than business-sense, a litany of past failed restaurants and by now countless lost jobs, loyalty to staff and the intertwined responsibilities all these represent. Professional cooking is still largely feudal, so let's keep the serfs foremost in our minds.  My hope is Donna comes through for his most important resource, which is not the $500,000 wine cellar, but his current staff--his professional family. 

It is "such a shame," as Joe says, and also "sad," just on other, much more immediate and personal levels than the article by Griff Witte, or the quotes he selected, imply.

Very well put Steve. And speaking as one of those serfs myself, whose current job includes making sure that the court ordered creditor payment schedule is met monthly, I really get what you're saying.

It's a shame when employees get stiffed and the owner has been collecting payroll taxes all along, of if the restaurant shuts down even though the customers have been contributing their part of the sales/liquor taxes. One of the best operational tricks I've learned is to have separate bank accounts for each of the taxes and your payroll, and to sequester those funds every single week based on the previous weeks sales and credit card tips due to the employees. God forbid if a restaurant ever had to shut down on short notice, you wouldn't get stuck with your pants down and be accussed of fiscal malfeasance.

[stovetop]

One of the best operational tricks I've learned is to have separate bank accounts for each of the taxes and your payroll, and to sequester those funds every single week based on the previous weeks sales and credit card tips due to the employees

Great advice Katie Loeb, I once used all the tax money to pay all the small wholesalers, and have one debtor the government, they did not like that too much, but the auditor is free, so he saved me about 300 bucks from going to an accountant, he had his software and it took him like an hour and he had all the source deduction I owed, then it was about 3 years of watching different gov departments fight over the money, I did pay them all back though, the right hand does not know what the left is doing.

steve

[tjaehnigen]

It's unfortunate that this is happening, but I suspect that Roberto Donna will weather this storm. What really stinks is that this company/organization/whatever-else-his-restaurant-empire-is-organized-as is stiffing the government of justifiable taxes. This ends up costing the rest of us more, even in collections costs alone.

I'd really like to know if this is Roberto Donna's doing or one of his business/money people's doing.