Building a $60M Restaurant Business Selling Tapas - Teleferique Founder Xavi Padrosa

Alan Li (00:02) Today's guest, Xavi Pedrosa, is the co-founder and CEO of Teleferique Barcelona, a restaurant group with nine locations and counting across Spain, California, and Arizona. Teleferique is focused on traditional Spanish cuisine, including tapas, pinchos, and lots of wine, of course. Many locations also have a gourmet market attached where you can buy many of the things that you tried at the restaurant. Today, we're going to hear from Xavi on how he took over the family business.

expanded to the United States and is casually an Ironman triathlete on the side. Xavi, thanks so much for joining the Opening Soon podcast.

Xavi Padrosa (00:42) Yeah, it's a pleasure to meet you, Alan, and it's another big pleasure to be part of this podcast.

Alan Li (00:49) Awesome. Okay, Xavi, well, I'm excited to dive into what you've built with Teleforyk, but, you know, if you can go back in time into how this all started, what you were doing when you first came to the U.S., I believe you were maybe playing tennis professionally on a scholarship and then walk me through the journey of how we got to when you actually brought Teleforyk to the U.S.

Xavi Padrosa (01:14) Yes. So basically I I used to play tennis semi-professionally. I knew I was not gonna be the next Rafa Nadal, so I had to change change paths. So you know I I I went to I went to the US when I was fifteen years old. I was in Miami for a year playing tennis and doing some tournaments and then I I went back to I moved to California.

for two years and I loved it so much that I just stayed there for college. I got a scholarship to study at a college and you know, I stayed I stayed there for the next four years going to school and yeah and then twenty years passed by and I was still there and now I decided to kind of like be mingling between California and Barcelona, Spain.

So I'm always going back and forth, but I've been over twenty two years in in the US until now. So

Alan Li (02:15) Okay. And then when you were in California and you were playing tennis semi-professionally and you stayed for college, what did you do or what did you study in college and then what did you do after you graduated?

Xavi Padrosa (02:30) So it was so basically when I when I I used to play tennis, semi professional as you were saying, and I got a researchery in Spain. And then, you know, I obviously I couldn't play at the same level, so I went and studied, you know, my career since I wasn't able to kind of like turn pro or anything like that. so you know, it was it was a a bad thing that happened to me, but I always say it was a really good thing because, you know, because of that I was able to

To have this opportunity of studying in the in the US. And yeah, I went there, did the school, you know, played tennis at the university, and you know, decided, saw that my parents, you know, they had a restaurant in Barcelona that they opened 33 years ago. And my sister and I, we kind of thought it was a very, very cool concept. You know, they were they were the first ones to bring the pinchos, which pinchos is a little tapa, you know, with some

With some toppings on top, very typical from the north of Spain. And they were the first ones to bring this to Barcelona because our roots, my parents are from the Basque country, from the north of Spain. So, you know, I mean living in the US, I always thought it was a very, very cool concept that maybe, you know, it would be a a dream come true to open something in in the US. So before

Alan Li (03:49) Hmm.

Xavi Padrosa (03:50) doing that with my sister, we said, okay, before like

Doing such a big thing, you know, because we were a very humble and very, you know, small family, you know, with not a lot of resources, not a lot of money. So, you know, we said, babe, before going abroad and and doing this in the US, let's just try it in an international city just to see how it works. And then we opened the first one in Barcelona around 15 years ago, and just

kind of like doing the same thing as my parents.

Alan Li (04:22) So the first location was in the Basque Country.

Xavi Padrosa (04:27) No, the the first location is it was in Barcelona, in

Alan Li (04:32) Okay.

Xavi Padrosa (04:32) a yeah, in a little suburb called San Cugat, like ten, fifteen minutes away from the city center. That's the location that my parents had. And then my sister and I, we decided to when we were like, Okay, let's bring this to the US, but first let's try something, you know, just just to see if we like it, because we w my sister was coming from the marketing industry, I was coming from the tennis industry, so you know, it was

We never touch a a a pen, you know, so we had to try

Alan Li (05:00) Yeah, of course.

Xavi Padrosa (05:01) it first. So when we tried it, we were in Barcelona. We tried it in Barcelona and you know, we opened the restaurant, like a very similar concept that what my parents had in in San Cugat, which is a a little town by Barcelona. And we loved it. You business was doing really good and we said, Okay, now maybe it's time to go to the US. So it

was it

Alan Li (05:22) I see.

Xavi Padrosa (05:22) was it's

It was a small world because Alan, like what happened, like one of one of the a big developer in Walnut Creek, he was in his honeymoon in Barcelona and he fell in love with our concept and he was developing a building in Walnut Creek and he said like my god, I would love to have this concept in Walnut Creek, blah blah blah. And you know, we end up, you know, talking and we ended up happening. So that was our first location in the US, the one that we opened in Walnut Creek.

Ten years ago, actually.

Alan Li (05:56) I see. Very, very serendipitous. And it seems like a recurring theme throughout your journey as a, as a restaurateur, which is nice. I,

Xavi Padrosa (06:05) Yeah.

Alan Li (06:05) I was in San Sebastian a couple of years ago and that was the first time trying pinchos, which is so fun and such a delight.

Xavi Padrosa (06:12) Right. Yeah.

Alan Li (06:15) and also, I don't know if I'm pronouncing it correctly, but chocolate, chocolate, the, the wine with some pinchos. yes.

Xavi Padrosa (06:20) Yeah, the dream, of course. Yeah. Yeah. Yeah.

Alan Li (06:24) So I'm glad that you brought this to the US so we can actually experience it here too, because I've been reminiscing about my time there ever since.

Xavi Padrosa (06:34) Yes. Yes. No, especially in the north region, like the best country like San Sebastian, Bilbao, that's where the pinchos were were initially raised, right? Many, many, many years ago. It was all about bar hopping, you like pincho hopping, right? So we were the first

Alan Li (06:47) Yes. So fun.

Xavi Padrosa (06:49) ones bringing this to Barcelona. So it's it's very it's a very unique concept. It's really cool. So

Alan Li (06:55) Okay. And then I want to touch briefly on the first location in Barcelona and just, you know, how much money did it take to actually start it? Did you have to raise money from family and friends or investors, or was it your own capital? You know, how big was the restaurant and how did it do?

Xavi Padrosa (07:17) Yeah, in but when when Maria, my sister, and I, we opened the first restaurant in Barcelona, you know, we we we come from a very again like very humble family with no resources. So obviously we couldn't open a big restaurant. It was a very tiny restaurant where we fit like 30 to 40 seats. And you know, it it it cost us mm like around hundred, hundred and fifty thousand approximately. I don't remember exactly the exact you know, but it it was very low.

So, you know, it was working out very well and and obviously, you know, when we went to the US just to see that location, you know, that that developer that I mentioned was offering us. For us it was like, you know, from a hundred K to like one million and a half, you know, built out restaurant, right? So for us was like there there's no way we can do that. We cannot afford it. We cannot it's it's it's very far from, you know, our our it's it's very unaccessible, right, from us.

But you know, we started talking with the landlord. The landlord really loved our concept and you know, we found some some partners as well, so we were able to to figure it out and and and we actually made it happen. So yeah.

Alan Li (08:30) So how far along were you with opening the first restaurant in Barcelona before the developer came and said you need to open Walnut Creek? How many years was that?

Xavi Padrosa (08:39) Like around a year and a half.

Alan Li (08:43) so pretty, pretty fast. So a year and a half in,

Xavi Padrosa (08:45) Yeah.

Alan Li (08:45) they discovered you and you

Xavi Padrosa (08:47) Yes.

Alan Li (08:48) were like, Hey, you need to bring this to Walnut Creek, but from

Xavi Padrosa (08:51) Yes.

Alan Li (08:51) a hundred K build out to a million build out is very different. and you said you had to

Xavi Padrosa (08:56) Hundred percent. Yeah.

Alan Li (08:58) bring on, you had to bring on investors to help with that transition.

Xavi Padrosa (09:02) Yes, that's right. Yeah. 'Cause for us, you know, not only for that, but also some of the local knowledge, you know, 'cause it's not the same living in the US than really opening a business in the US, right? You really need people that can advise you, that can help out, 'cause you can you can have, you know, great tapas, great payas, great sangrias, but at the end of the day and we realize that.

Like the paladars are very different, like an American to an Spanish paladar, you know, the food the potato tastes different, the milk tastes different, the water tastes different. So, you know, we came there with an idea of, you know, my god, people are gonna love our pinchos and tapas, and you know, after like two months everyone was asking about paellas and sangria. So we had to like adapt our

what we thought we were good at and really changed it because we had to adapt really to the American market and to the American paladin. So that's really what I think made us kind of successful, like having that ability of like not just serve what you want, but really listen to the customer and really like sell what they want, right? Instead of just

Alan Li (10:07) Yeah.

Xavi Padrosa (10:07) you being stubborn and saying, no, because I'm really good at doing this and you know my

My paillas are the best. No, you have to just really f the guests really want something and everyone is asking. You just gotta deliver deliver what they want and just deliver it, you know, at at very high standards. So that's that's

Alan Li (10:26) Yeah, well.

Xavi Padrosa (10:27) part of the adaptation.

Alan Li (10:30) Yeah, what gave you the confidence to do that? Because it's so far away, it's almost halfway across the world. Why not start another second restaurant in Barcelona or even in Madrid or somewhere else in the country or a third or fourth before you move all the way across and start in the US?

Xavi Padrosa (10:51) Yeah, because I I I love the American mentality, you know, in terms of it in Spain and I love my country and I'm more Spanish than anyone, but you know, in Spain it's hard to do things and we have two restaurants here and you know they do good. But you know, in if you really wanna grow, California obviously is not the best place to do it, but you know, people love it, you know, if if if you really wanna grow and like

do like replicate your business and escalate it, you know, to a very higher level, it's very easy. Why? Because w people really want to work, people really want to be an entrepreneur. And this does not happen in in Europe in Europe generally speaking. You know, obviously there's countries and countries, but you know, the the idea of like copy paste your concept and really scale it, you know, to to another level, the US really gives you if you're very humble and, you know, down to earth and

you really earn it and work hard. I think that's the beauty of of the US that really gives you that opportunity of, you know, if you do it right, like you are, you might be able to succeed, you know. Obviously you have to learn

Alan Li (11:54) I

Xavi Padrosa (11:55) and improve a lot of things, but that's that's a little bit the reason why we wanted to be in the US, because we really wanted to like scale the business and start opening locations. And I think it gives you the opportunity because everyone really wants to work. People that work for your company, they

Maybe tomorrow they're gonna wanna open their own restaurant and I think that's beautiful. You know, I think it's really unique

Alan Li (12:17) Yeah.

Xavi Padrosa (12:18) that, you know, it's it it's all about teamwork, you know, the American mentality. So I believe that.

Alan Li (12:21) Yeah. Okay. Yeah.

I mean, you obviously had spent quite a bit of time in the US already, so you were familiar a bit with the mentality and the environment. That makes sense. For your investors, how did you find them and how much did you have to raise for that initial round?

Xavi Padrosa (12:39) So for that initial r so I found them through the restaurant, you know. like

Alan Li (12:45) they were patrons of the restaurant.

Xavi Padrosa (12:47) yes, as well. So, you know, in a restaurant,

Alan Li (12:48) That's the best.

Xavi Padrosa (12:49) so many I always say that in a restaurant people think that they just come to eat, but so many things happen in one minute, you know. So you get to meet a lot of people and and and in and it's beautiful, you know, not not not

You don't take advantage of everything that happens in the restaurant, right? but you a lot of things happen and and and I think a lot of people comes to the restaurant with different intentions and I think you can get great relationship from a restaurant, meet a lot of cool and very great people. So, you know, that's that's pretty much where where everything happened and where we were able to to convince those investors. And for that initial round, Alan, I think was around

A million, a million and so and two, maybe. So we were able to we had just four partners and one of the partners were the was the landlord actually. so

Alan Li (13:44) great.

Xavi Padrosa (13:45) yeah. So actually it was very cool because that landlord never invested in any other business like food restaurant business, you know, but he loved our concept so much that he was like, okay, okay, I do believe a lot on what you guys are bringing. So if you guys execute well.

you know, I think could be it could be good. So they invested for that initial restaurant, but then all the next restaurants that we opened we we we did it my sister and I. So just with our, you know, own resources.

Alan Li (14:15) Okay, well, that's a big vote of confidence on the landlord. And that's also great to have your landlord be an investor because in the worst case, you know, they can be a little bit more flexible on the terms in case, you know, things don't things don't go as planned.

Xavi Padrosa (14:29) Totally, a hundred percent, yes.

Alan Li (14:30) Yeah.

Okay, great. And then, that was the only round you raised. And then the subsequent restaurants all were from either, you know, your resources or the cash flows from the existing restaurants. And you were able to fund the other locations yourselves.

Xavi Padrosa (14:45) Yeah, basically for the next one, which was Palo Alto, we we got a loan from the bank enabled for us to to open that location. So that's what we had to what we had to do. Yes.

Alan Li (14:59) Gotcha. Okay.

And then tell me about what you were doing day to day and what you and your sister were doing day to day in the Division of Responsibilities leading up to the Walnut Creek location opening and then what you had to do afterwards.

Xavi Padrosa (15:17) So before Wang Lu Creek, before the opening?

Alan Li (15:19) Yeah, before

Walnut Creek, what were you doing? Were you at the restaurant every day? Were you serving? Were you doing back office?

Xavi Padrosa (15:24) Yeah.

Alan Li (15:25) What was your sister doing? Walk me through your day to day.

Xavi Padrosa (15:29) Yes. So basically when we initially opened the first restaurant, like I was like serving tables, you know, talking to like hotels and you know, just really just being the PR, being the marketing person, just kind of like serving the tables, a little bit being at the bar, just just doing everything like the mom and pop type of restaurant that you know, you

Alan Li (15:51) Yeah.

Xavi Padrosa (15:51) are like hundred percent off the restaurant twenty-four-seven. So that's

That's what we're doing then and we did that for like four or five years. And my sister was more I was I've I've been always more on the operational side of it on the day to day. And my Maria has been more like she was more on on the finance, on the design, construction, you know, just making sure that the business was run well internally, right? So that's a little bit how we complemented each other.

Alan Li (16:22) I see. And then when you had to open the Walnut Creek location, I assume did you have to fly over frequently to check out the location, to spec it out? How do you even hire people here? Like, how long was the build out, you know?

Xavi Padrosa (16:38) Yes. So when I was in Barcelona, like I I opened the restaurant in Barcelona and I stayed there for two, three years. And then I moved over to Walnut Creek pretty much just full time for all the opening and all the next years to come. So yeah, that was a little bit the move that I had to to make and and especially at the beginning nothing really changed. I was doing the same thing I was doing in Barcelona, you know, just running tables.

talking to the guests, just, you know, hearing all these feedback, you know, that was able to were able to track and make the changes, you know, because obviously we're coming from a different culture and we really needed to like soak everything in and making sure that whatever we were serving was like what they were expecting. And obviously there were a lot of things that they kind of like did not like or could be better, right? On that aspect that

we had to change. So I always give that example. Like five years after we opened Wang Oak Creek, you couldn't you cannot even see one item on the menu that's the same. That's how much we were

Alan Li (17:43) Mm-mm.

Xavi Padrosa (17:43) like we needed to like make that evolution happen, right? 'Cause otherwise, you

Alan Li (17:48) I see.

Xavi Padrosa (17:49) die. And and this has happened a lot and you know, a lot of like European concept, like really cool concepts actually, they go to the US and they they do really good in Europe or other countries and they go to the US and and

they end up closing pretty soon because they I I just don't think they don't have that capability of really adapting your product to like the Americans, right? Just because it's it's at the end of the day you'll you'll you'll be selling all that to American people and what they're familiar with. So they have to like

Alan Li (18:21) Hmm.

Xavi Padrosa (18:22) your flavors and quantities and sauces and everything.

Alan Li (18:26) How do you balance that maybe dilemma with staying true to the authentic, know, pink joes of the North country? Because I imagine that's like something that goes on, especially in chefs minds, like, no, this is the right way to make it. We can't, you know, Americanize this. But then, you know, some other people are like, let's completely Americanize it. How do find that line?

Xavi Padrosa (18:52) So we we we always say that like we try to keep all the same dishes that we have in Spain having having them in the US, but just with different different sauces, different quantities. But you know, we every single dish you will find on the on the menu, you would be able to have it in Spain, right? And then in terms of the authenticity, you know, we always say that we're not better or worse than the rest, but we're very different.

And that comes down to the authenticity as you were saying, Alan. Because you know, all all all of our chefs from every single restaurant, we bring them from Spain. All the general managers, floor managers are from Spain. Most of the hostess from each restaurant are from Spain. So we kind of like have like an agreement with the with the American embassy that they're able to you know, to let us bring people with a very unique type of visa. So, you know, that really

makes our concept different from, you know, the rest. Just for, you know, you go to our restaurant, Alan, you've been to San Sebastian and you'll be able to talk to someone that's from San Sebastian or from Barcelona. You'll be able to share those moments you were in San Sebastian and they will like you're gonna feel like, you know, as if you're in San Sebastian right now as you're in a restaurant, right? That's why also our slogan is welcome to Teleféric Barcelona with no passport required, right? We we wanna make

We wanna make full we wanna make you feel as if you were in in Barcelona. So in all aspects. Yes.

Alan Li (20:25) Okay, okay,

that's great. So how did the Walnut Creek location do?

Xavi Padrosa (20:34) It did great. I mean up to today, it's been ten years and you know, we c we can talk about sales like on that location, I think first years you know, we were around four or five million on sales. And

Alan Li (20:50) Wow, first year.

Xavi Padrosa (20:52) yeah. Yeah, yeah, yeah. And and and

Alan Li (20:54) And then how did you get?

Xavi Padrosa (20:57) Yeah, we c we kind of

Alan Li (20:58) go ahead.

Xavi Padrosa (20:58) knew that because there was you know, people tells you, you're gonna get the honeymoon period at the beginning, everyone won one wanted you to try because ten years ago, with all the honesty, there were not much Spanish, you know, restaurants in the US, you know. So like i in all the press was talking about us coming to the US. So there was a lot, a lot of articles, not only in the Bay Area, but also you know, national.

So, you know, there was a lot of hype on that. So we kind of felt like, you know, obviously first we had to deliver, but second we were gonna get a lot of volume, you know, a lot of a lot of volume on sales. And then we kind of felt that it was gonna go down, but but it it it's been very very it's been one of these locations that it's been stable like all all along, like ten years after, which normally restaurants they don't last that long.

But but you know on the tenth year, like last year I think we tracked like around six point five seven million. So over the years we have also

Alan Li (22:00) Incredible.

Xavi Padrosa (22:01) increased. So yeah. Just always trying to renovate the restaurant, like you know, renovate your ideas, renovate your dishes. So I think you have to be always creative from when you start the day to the end. So always adding new things.

Alan Li (22:18) Wow,

that's awesome. And what do you attribute to that sex? Do you think it's because of the articles that were written about you or like the Spanish government you mentioned was like helping promote or yeah, or was the location just like a great location? There's a lot of foot traffic or everything.

Xavi Padrosa (22:40) Yeah, I think location was was important. But, you know, again, it there was a lot of hype. And you know, actually the building, the building where we are, we're on Main Street in Walnut Creek, so the location is pretty good. But we're on a second floor.

Alan Li (22:53) I see.

Xavi Padrosa (22:53) And second floor restaurants generally they don't do well, you know, 'cause it's hard to access.

Alan Li (22:58) Yeah.

Xavi Padrosa (22:58) And but you know, again, there was a lot of hype, a lot of marketing, PR, a lot of buzz that was created on the press. So, you know, that was great. And again,

You know, something that a lot of Americans say and and I kind of share that, it's all about three things, right? They say it's all about location, then location and also location, right? I think. It it's expensive to get a good location, but at the end of the day you'll have that float going.

Alan Li (23:28) Yeah, got it. Okay, and then how long was it until you opened the next location in Palo Alto? And I know you have quite a few more locations, so maybe you can just quickly go through the second location and then sort of where you are today as a business.

Xavi Padrosa (23:46) Yes. So we opened Walnut Creek ten years ago. Then two ye three years sorry, four or five years after, I'm I'm out of all my weaknesses, my memory's the worst. So I'm sorry about that, Alan. But but

Alan Li (24:04) It's okay.

Xavi Padrosa (24:06) but I think but I think around year four or five we opened Palo Alto.

Walnut Creek, once we kind of saw that everything was pretty established and you know, we're good to move on. Then we opened Palo Palo Alto four y four years after, and Palo Alto was doing really, really good. Up to today, we've been open for five years and you know it's a location that that's like around eleven to twelve million a year. It's it's it's the sales on that location are

Alan Li (24:36) Wow.

Xavi Padrosa (24:37) it's our yeah, it's our top per performer. You know, the location is also really good, but

You Palo Alto is also kind of like a very boring area, not a lot of cool things

Alan Li (24:47) Sure.

Xavi Padrosa (24:47) happening. So, you know, obviously we deliver something very different, but and a lot of energy, a lot of soul, Spanish soul on the restaurant. But but you know, we also do very well there. So two years after Palo Alto, then we open Los Gatos, which is b right by San Jose, kind of like a very wealthy area as well. And then we open

in that location, Los Gatos, kind of made us realize that a lot of people, you know, because we're not we're w we've never been in big cities, right? I never believed in being in big cities. Like you're not gonna find us in San Francisco or San Jose or even Los Angeles downtown. We always go to the little suburbs because kind of like people values a lot your concept. You know, a lot of you know when we open Walnut Creek, one of the main topics and main questions

that we were receiving is like, how come you're from Barcelona to Walnut Creek, right? What what brought you to Walnut Creek or what brought you to Palo Alto to Los Gatos, right? Back then. So Los Gatos, for example, is another top performer. Like Los Gatos is a very kind of dead town as well. And out of that location

Alan Li (25:55) Hmm.

Xavi Padrosa (25:55) we do nine, ten million, you know, which is I think the restaurant that does more volume in in the whole Los Gatos town.

But but you know, we were able to realize that a lot of people was coming from Santa Cruz, from San Jose, even from San Francisco, right? So so people was

Alan Li (26:13) Yeah.

Xavi Padrosa (26:13) driving, you know, far from from their location, from their homes or their offices to kind of try us out. So that kind of showed us that our strategy was kind of functioning on the right direction. So then we opened Los Gatos and after Los Gatos we opened LA in Brentwood. We opened on on

a really cool neighborhood called Brentwood, right by Santa Monica. And then we opened Brentwood, then kind of right after a year and a half, we opened Long Beach as well, at

Alan Li (26:46) Hmm.

Xavi Padrosa (26:47) Second and PCH Mall right by the marina, which is a really cool location. And then now we open in Arizona, which we change states. We open in Scottsdale, at a f at the Fashion Square.

pretty big mall right in downtown. And then we open we're opening in two weeks. We're opening La Jolla as well in at UTC. so that's a really, really cool spot. And then we are opening also Yes.

Alan Li (27:18) location. I

grew up in San Diego, so I'm familiar. Yeah.

Xavi Padrosa (27:23) you did? Beautiful.

Yeah, yeah, yeah. So yeah, we're opening there in La Jolla, then we're opening Newport Beach at Fashion Island. So as of today we'll have eleven locations in the company. So yeah, it's it's it's a big move. You know, within the last two years we've grown a lot. I think too much, you know, too fast. You know, I don't we were ready for this, but we well you're not ready until you're ready, right? So yeah, it's been

Alan Li (27:51) Sure.

Xavi Padrosa (27:52) A a lot of quick growth. So

Alan Li (27:57) So Xavi, mean, this is just like an incredible growth story because you're starting just a single 30 seater restaurant in Barcelona to now 11 locations, you know, doing north

of

Xavi Padrosa (28:10) Be like.

Alan Li (28:10) 40, 50 million dollars. I think I read online like what what are the like, how did you have to upskill yourself? How did you have to change? What things did you have to learn to be able to do this?

And like, what skills did you have to have to do? Cause a lot of our listeners, may own one location, maybe even two who are just starting out, but you how did they go from that to, know, where you are now?

Xavi Padrosa (28:37) Yes. So that's I think that's that's when that's the lit like the little tricky secret, right? That that in order to grow you gotta first you have to rely on really good professionals. First and I think that's the most important one. But the second one, which I think for me is the most important one, is that you know, like the mom and pop type of retail store or restaurant, you know.

We always and and we were thinking like that as well. Like we always think that if we're not there, their business is not gonna do as well. And it's true. You know, don't get me wrong. I kind of know that if I'm on that restaurant, the and if I'm in Palo Alto, maybe the sales will be better. Or if I'm in LA, the service and the food is gonna come out much better than the others, and it you know, we're gonna end up being s selling much more food or much more, you know. But at the end of the day, I rather wanna give in on that maybe

Ten or twenty percent, you know, of not having that much sales, but wasting my time on, you know, investing for the future locations and you know being able to move along on the strategic type of point of view on where are we gonna open, why are we gonna open, like teaching, you know, the teams, you know, how to work together and and again, everything comes on trusting and relying to others. And

We always know that nobody's gonna do it better than us. And and it's true because nobody knows the brand more than you do. But I think you have to give in at some point and and really understand that you're not gonna be able to be in ten, eleven, fifteen restaurants at once, right? You have to like give in something and and you'll gain on others, you know. Like some businesses, I was talking to a a friend, you know, that the other day that he was that he knew that they're stealing in the in his company, you know.

I'm not gonna say he's he's he's n he doesn't care because he cares, but he does not wanna go there and resolve it and fix it because that's gonna waste a lot of time, energy. You know, in his in his PNL he he he was telling me, you know, I have like a five-10% that it's loss and stealing and all this. But it's okay. It's part of the PL, right? So but I rather wanna invest all that time into, you know, the growth and obviously

He's not gonna just let it go just like that. He'll you know, he'll he'll get on it and he'll fix it. But it's not like, okay, now I have to be there because this is happening and I'm gonna spend my next six months, you know, in that restaurant or in that retail store, you know, just trying to fix this because otherwise it it it will always happen no matter what type of business you have. You're gonna see a lot of great things and a lot of things that you're not gonna like, but in some things you have to just

They're part of the process of growth and part of the process of business. Not everything is beautiful, you know. So I think it it it just comes down to that, on just relying on good professionals and just, you know, giving in on things that you know that they're gonna happen no matter you are there or they're not. So

Alan Li (31:36) Wow, that's such a great point and a mentality shift, I think, for a lot of small business owners or mom and pops. Because to your point of like, you know, something like your friend, if someone's stealing, you know, you would assume that, we have to drop everything, we have to go resolve this. But then they understand that sometimes that's cost of business. And it reminds me of, you know, like a grocery store, there's going to be cost of business, meaning some sort of theft and slippage.

few percent and as

Xavi Padrosa (32:07) yeah.

Alan Li (32:07) long as it doesn't become you know 20 percent it stays below the five percent you kind of just understand that's what happens and it will always happen.

Xavi Padrosa (32:16) Yes.

Alan Li (32:17) That's fascinating that you're treating it in the restaurant

Xavi Padrosa (32:19) Yeah.

Alan Li (32:20) concept too. I haven't heard it like that.

Xavi Padrosa (32:22) Yeah, that that's how I think about it. And obviously, you know, that's why the PNLs exist, you know, that's well if you have like all the inventories and everything, you know, well matched and well organized, you know, you'll be able to track all those things, you know, but it shouldn't take you, you know, you you have to count on your PNL that this is gonna happen, you know. So it's it's part of the process.

Alan Li (32:44) I

Xavi Padrosa (32:44) It's it's a different mentality, you know. I I I never say I I always say that

Nobody's better or worse than the rest. You know, it just everyone has a different type of mentality and approach of on how they do business. You know, there's some business, the mom and pop type of business that they do extremely well and they're there on the daily basis and maybe they really enjoy it, you know. But I, for example, I rather want to put my time doing some sports or training or just doing something than just, you know, focusing on that problem that we had, you know, because I know like just

going out there and running or biking or it's just gonna get my mind more fresher, you know, and it's gonna get

Alan Li (33:22) Yeah.

Xavi Padrosa (33:23) me to inspire to do better and new things, you know, than not just being closed minded and focusing on a problem. I I'm I'm always trying to stay on the positive side of it, you know.

Alan Li (33:34) Yeah, well, Xavi, so we know what you were doing when the restaurant opened first in Barcelona in Walnut Creek. You were there doing the mom and pop style, serving, checking, doing everything. Now, today, tell us what your day to day looks like.

Xavi Padrosa (33:51) Yeah, so so I always say that now that we've grown, you know, we are fifty-five, sixty million dollar company, you know, in terms of revenue a year, obviously. now we work less, you know, on the day-to-day, because obviously, you know, we have like six hundred and fifty employees as of today, so it's quite a lot. So you're able

to

Alan Li (34:13) Wow.

Xavi Padrosa (34:13) rely on good professionals, right? But

your the g you're not on the day-to-day operational like you know making sure this comes out perfectly or you know just really analyzing deep the PL type of thing. It's just more strategic. Like now people, you know, a lot of people and sorry to change kind of topics a little bit, but a lot of people tell you, my God, so many restaurants you might be like, how do you manage with your ironments and this and that? And it's very simple, you know, because

You really put your time and energy in what you really wanna do, right? And you feel like much more fresher in all aspects, right? Like you're

Alan Li (34:52) Hmm.

Xavi Padrosa (34:52) more on that tr on that strategic side of it, of the growth of analytics, but you're not on the day-to-day operation side of it, which obviously you kind of supervise it. And I go to the restaurants and I love being on the services. I I I really love like I go to the US and you're gonna see me like going to the

tables, delivering dishes, maybe going and and wash something on the dish room and you know, just because it's part of our culture and that's how we are, right? So we really love to do that. But but it's just more strategic as of today, Alan. And just just making sure that the whole business is right and and and in Spain unfortunately you unfortunately where we live life a lot, you know, we we're all about the siestas and napping and all that.

Alan Li (35:38) Okay. Yeah.

Xavi Padrosa (35:41) So, you know, we try to kind of like balance it out a little bit, you know, 'cause 'cause time flies, you know, and and and I don't wanna be seventy years old and just not having enjoy life, you know, as I as I would have liked, you know. So I you know, I I give in on

Alan Li (35:55) Sure. Well, it seems like you're really-

Xavi Padrosa (35:57) some business, so but to enjoy life

Alan Li (35:59) Yeah.

Xavi Padrosa (36:00) as well.

Alan Li (36:01) No, it seems like you're doing it right. And then, you know, I want to go into a little bit about your Iron Man, you know, triathlons and what you're doing. It doesn't seem like you're taking siestas. It seems like you're doing the opposite of siestas. But I...

Xavi Padrosa (36:15) Yeah. Yeah. Yes.

Alan Li (36:18) First, I want to touch quickly upon the team that you built and maybe the corporate team, because I think most people are familiar within a restaurant, you know, there's a general manager, there's the staff, front of staff, back of house chefs, et cetera. But do you also have that corporate team who is helping you with these strategic decisions or is it mainly just you?

Xavi Padrosa (36:39) Yeah, I know we have we have we have a big team, you know, on on in corp corporate at the corporate level, you know, you have your CFO, you have the COO, you have like, you know, the culinary chef, you know, that makes sure that everything comes out really sharp in all restaurants. We have a commissary kitchen as well, just to make sure that consistency of the food for each restaurant remains the same. So, you know, we have

Obviously, as you were saying, Alan, you know, we have like the restaurant managers, the floor managers on each restaurant, which you know, they make their own decisions, but everything comes to the corporate level as well. Depend more on the strategic side of it, because we really like like the restaurant managers to really own the restaurant, you know, even though we are we're not a really large chain, but you know, we are a multi location type of restaurant. But I think once people

appreciates you as a large chain, maybe you lose the value of it. And we always try to make sure that we're not a chain, that every restaurant has its own unique dynamics and its own soul, you know, because I th I think that's that's the most important thing. Just feeling very unique and very different. And you go there for lunch, for dinner, for happy hour, for whatever you w you go, and and just making sure that, you know, it it's like the mom and pop type of restaurant, because when you grow a lot,

You don't take that small restaurant. I always say that you should trade all the restaurants as if it was your little first one and you know, having like that attention to detail because otherwise everything starts, you know, adding up, adding up, adding up and and it can be a a little bit of a disaster. So it especially and and this has happened to us, like, you know, when you grow a lot, you forget about a lot of the details that are really important as well.

But you know, you have to treat every restaurant as if it was, you know, the mom and pop, that every single dollar that comes out and comes in, it's really, really crucial, you know, 'cause otherwise people, even employees can feel, it's a large chain. my god, they do so much revenue, it's okay, I can do this and that and and it sh I personally think it shouldn't be this way, you know. But

Alan Li (38:47) Yeah.

Xavi Padrosa (38:48) but that's when the control and when you have the finance team and all the operational just making sure you're able to control all that. So

Alan Li (38:56) Sure. And then, sometimes there's, you know, places that can do a lot of top line, but, you know, some of them are even unprofitable, even though they do

Xavi Padrosa (39:05) Yes, yes.

Alan Li (39:06) so much. And then I guess, are you able to share for Teleferique, you know, what the percentage, you know, profit margins generally are?

Xavi Padrosa (39:15) Yeah, normally on Evida for E V D A, sorry, Evida, no? you say

per location

Alan Li (39:20) Yeah, keep it up. Yeah, yeah, yeah.

Xavi Padrosa (39:21) Yeah, Evida. we're between twenty five and thirty five percent. So it's quite a lot, you know, for our for our restaurants.

Alan Li (39:28) that's great.

Xavi Padrosa (39:30) Yeah. Because we're able in terms of operational operation the commissary gives us you know, we make sure that we have like really, really good margins. you know, obviously without always

making sure that all the products are, you know, top of the line, the operation is top of the line, employees are very happy. But, you know, we make sure that we have a lot of attention to to all those details. And then at at the corporate level, we're like struggling a little bit, you know, like part of the growth again we're we we have grown so fast, you know, that we were not from the mom and pop type of restaurant all of a sudden in four years in four years from having

three, four restaurants, now we have eleven, right? So it's a it's a it's a huge difference. So we kind of like over dimension our structural and we're kind of like, you know, going over this, just making sure that every again, like every restaurant is treated as if it was a a very small company, just to make sure that everything is sharp. So yeah. So at the corporate level we're

Alan Li (40:33) Gotcha.

Xavi Padrosa (40:33) changing things up, you know, because the then the dynamics are changing, but yeah.

Alan Li (40:41) Well, Xavi, mean, it seems like it's been pretty smooth sailing of success after success, but I'd love to dive into maybe times where you really struggled with the restaurant or maybe on the corporate side or something else, because I'd love to hear the scars from doing this as well.

Xavi Padrosa (41:05) Yeah.

Yeah. Yeah, it's it's been it's been a very smooth selling, as you said. I I like that. But obviously, you know, you have your pros and cons, you know, there's a lot of things that you struggle a lot. I just cannot find a specific moment, but but for sure I I think one of the hardest moments has been like now all the growth, you know, from from

being able to operate kind of like locally, you know, where, you know, the chef is not coming today, okay, I have the other chef from the other restaurant that can go, you know, because everything was all in the Bay Area and it was kind of like under control. But then when you go to LA, when you go to Long Beach, when you go to Arizona, another state, when you start like going far from your home, right? Where every where you can micromanage everything, that's a struggle.

That's a struggle. And and it seems that it's the same state. Everything should be the same. But from the moment that you cannot grab your car and fix the problem, that's when you feel that the company has grown a lot, right? Because you really have you you have no sh no choice than relying to very good professionals, right? So we we that kind of was hard when we opened, you know, our LA locations and you know Arizona that we open now, but we're

We were able to surpass that and and kind of like start getting, you know, like good executives and because we were we were Maria and I were were handling the growth ourselves, you know. But it comes to a point where it's like, man, you like you're doing already thirty, thirty five million. You cannot just be micromanaging everything. You have to like

buy

Alan Li (42:48) Yeah, yeah.

Xavi Padrosa (42:49) start doing like the cheap, you know, getting hired, sorry,

Getting chips into the structure, you know, from financials, from you know, operationals, and kind of like making sure that everything grows organically, right? So we started like doing that, hiring very, very good professionals, people that has already done it, that has been there, done that, and obviously that that that gives you a growth that something for them that is normal for you is like, my god, this is out of hand, but for them they they have already been in

managing hundred locations that having five or ten locations, it's a joke, right? So that that was

Alan Li (43:28) You

Xavi Padrosa (43:28) really like that that that was like the step up and where we kind of struggle quite a lot, you know. But but yeah. we we kind of feel a lot of pressure because as of today, from being very, very small, as of today my sister and I we have no partners, we don't we don't have, you know, kind of loans. So it's been everything has been flown by ourselves, you know, and that's the

the thing that we're most proud of. so yeah, that's a little bit

Alan Li (43:56) Yeah.

Xavi Padrosa (43:58) you know. But obviously on on also answering that question, Alan, it's like you feel the pressure of the money, right? Each restaurant that you open it cost us like from 3.5 to like five million, right? We're opening La Jolla, that location it's costing us like around five million to open. So when you have no partners, when you have a private equity or

Alan Li (44:16) 5 million to open one restaurant.

Xavi Padrosa (44:19) what?

Alan Li (44:21) $5 million to open just one Lohe restaurant.

Xavi Padrosa (44:26) Yeah, yeah, yeah. No, they they are really

Alan Li (44:27) That's incredible.

Xavi Padrosa (44:28) expensive. Yeah, 'cause all the design, you know, the spaces are really big and if you look at the design and you know the inside space they're they're very cool. They're you know, they're they're very different. So so all also that cash flow is kind of like I'm not gonna say like like it it stresses you out in a way, but it but it does, you know, it it it really does. Even though you feel that the business does okay.

But you know, at the end of the day it's it's it's th these are loans, right? This is things that you could invest in your personal life. But you know, we really enjoy so much what we really do that that it's worth every single penny that we put in.

Alan Li (45:08) Yeah, I love that. And what are your goals for the next few years? Is it to continue opening and expanding across different states? Are you going to plan to go East Coast? Let me know what your plans are.

Xavi Padrosa (45:23) Yeah, we have we have a different ment mentality. And maybe I used to not have that mentality before. I was more like American. Let's go let's grow. Let's grow. Let's grow. But yeah, I'm I'm forty years old. I guess I'm getting a little older at this time. But but you know, I I I wanna a a balanced life, you know. Maybe c because I'm in s I'm Spanish and we love living life in a way, but you know, I I

I don't wanna open location just to open. I really, my sister and I, we really wanna make sure that everything we open, it's because we really enjoy the process, we're enjoying what we're doing. So for us, it's not about growth, it's about really enjoying the process. Because really time flies, Alan, and you know, from doing one to doing ten million or from doing one dollar to doing ten.

doesn't really change that much, you know what I'm saying? So but it does change your personal life. Some people get at sixty, seventy, I don't know what age and what have they done. Just work, work, work. So, you know, it's it's we which is totally understandable. it's about priorities that everyone has in their life. Like nothing nothing against it at all. But but you know it's just about for for for us it's just about enjoying the process. Really enjoy what you do and you know the moment that you don't enjoy.

Just sell it or just, you know, just find something else, you know, just do something else. But that's a little bit what we wanna make sure on the growth. So so answering

Alan Li (46:50) I see. No, that's.

Xavi Padrosa (46:51) your question, sorry, Alan, like maybe in two years we'll speak again and maybe we have a hundred locations, or maybe we'll have one more, you know, we'll have twelve, you know. I don't know. Just we go along with the flow, depending on what happens, right?

Alan Li (47:06) I like that. Well, it's kind of funny because I remember in the beginning of conversation, you know, when you're in Spain, you're like, we have to open in the US because I like the US mentality of working and growth. And then now you've opened successfully, you know, 10, nine locations in the US. You're like, well, you know, the Spanish lifestyle, the siesta, I also like that too. So now it's like, I'm not sure which one I'm going to do. that's it's.

Xavi Padrosa (47:24) Yeah. Yes. Yeah.

Totally. Totally. I think it's part of like when you are like twenty five, thirty years old, you're hungry, you are in the US,

Alan Li (47:38) Yes.

Xavi Padrosa (47:38) everyone tells you work, work, work, money, money, money, you know. And and I think it's great. It's it's I think every w single person should live the the experience of the US because it really makes you a person, you know, and it makes you grow and it makes you really be hungry. But

I think for me, you know, it comes a time where I've been there, done that, you know, so so I also want to enjoy some some of the things that I've done and keep growing as well, 'cause we're we're still hungry and we really want to enjoy this process, but but it's completely I completely agree, Alan. It's it's a different a different chabby fifteen mini years ago, you know, than than than now. It's it's a it's an evolution and I and I think that's it it's it's cool, you know.

Alan Li (48:21) beautiful. It's the evolution of life. So

Xavi Padrosa (48:24) Yeah, yeah.

Alan Li (48:25) tell me what are you doing on the lifestyle front outside of work and what is getting you excited?

Xavi Padrosa (48:33) So I do a lot of triathlons, a lot of ironmans. Yeah, I do I I play some golf, I love golfing, so yeah. But just you know, triathlon is one of the sports that I I I did not start it that long ago. I I've always done a lot of sports and I love, you know, sp the sport industry. But you know, with COVID I started, you know, one of my chec, you know, before I die, it was to do an iron man, to finish an ironman, you know, and I've never cycled or I never swam before.

And obviously I did run because of when I used to play tennis. But you know, I started training and I I was like, okay, let's just do this Iron Man and COVID hit so I was able to train at home and and anyways I did my first Iron Man in Barcelona. I trained for that and I thought I was gonna be okay. I checked that box, done.

But I love so much the process, Alan. Just the training, the discipline that that brought you, just waking up very early, making sure that you swam, that you went to the gym, that you ran, that you cycle. Obviously, not every day. But just that discipline really got me, got got into me. And since then I've been just training. Sometimes I don't have any races, but I still do the training because I I really love it. And I think it really disciplined me and organized me as a as a person. Before I was

When I first opened Walnut Creek, I was like like I had like a lot of weight on me, you know. I don't know how you say it. Like, you know, I was

kind of fat. Fat, yes.

Alan Li (50:03) You're fat? Yeah.

Xavi Padrosa (50:06) I was fat and you know, and as of today, you know, I eat very well, I do a lot of sports. If I if there's one day that I don't wake up and I don't do sports like my mind is just going crazy, I get upset. So it brought me a lot of discipline for sure.

a lot of discipline. So yeah, a lot of Iron Man, you know, done the world championship like twice. Actually this Sunday I have a the national championship here in Spain. So yeah, I try to to stay very active and and and I'm an animal competing so I love competing. So I try to do as best as I can.

Alan Li (50:44) Yeah, well, I'm not sure Ironman are everyone's idea of a relaxing time or a fun lifestyle, but I can see the process and the discipline, how that can be almost even meditative and something that calms the mind and spirit and body. And if you feel good physically, it also helps mentally as well. And I can understand that.

Xavi Padrosa (51:10) Yeah, yeah. Maybe Iron Man is too extreme, but just kind of like finding something that really keeps your head busy, that is so intense that doesn't let you think of work, I think that's really, really good. I remember Mark Zuckerberg, for example, he comes to a restaurant a lot, by the way.

and and he was saying, you know, that that he's doing I think he's doing jujitsu, right? Or or some type of stuff that

Alan Li (51:33) Yes, yes, jujitsu.

Xavi Padrosa (51:36) yeah, that he's

He loves it so much because it's so intense that it lets it it lets them not think of work, right? So I think just you don't have to do Iron Man or Jiu Jitsu, but just do something that's gonna keep you really, really busy and stress your mind so much that you're gonna be so exhausted, you know? That because for example, running, you go running and and you're running, but you're thinking on your work and this and that, but sometimes just on meditating as you were saying, just something that really

keeps you like for twenty, thirty minutes, one hour a day just completely disconnect from work so you can come like fresher. I think that that could be a a good approach. Yeah. But disconnecting is key.

Alan Li (52:17) No, I,

I I resonate with that a lot because, it's a big reason why I like swimming because, know, even with running, you have your phone with you. have the headphones and you're listening to a podcast or music, but when you're swimming, it's just you in the water doing laps and you know, you're

Xavi Padrosa (52:33) Yes. Yeah. Yes.

Alan Li (52:35) pretty focused. and it's the first time

Xavi Padrosa (52:38) Try on.

Alan Li (52:39) when I think of it, you're, you're fully present in what you're doing. You're just going through the motions of

Xavi Padrosa (52:43) Yes. Exactly.

Alan Li (52:45) going through the swim.

And it's harder to do nowadays because nowadays you're always distracted by whatever's going on and screen time and the phone

Xavi Padrosa (52:56) I don't know.

Alan Li (52:57) and everything. anything we can do to stay

Xavi Padrosa (52:59) And so.

Alan Li (53:00) present and be fully present, I love.

Xavi Padrosa (53:04) I agree a hundred

percent. Yes.

Alan Li (53:07) Awesome. Well, Zavi, you know, looking back on this journey of yours over the last 15 plus years of starting in Barcelona, coming to the U.S., opening so many successful locations and being back in Barcelona and having all the information that you do now, is there anything that you would have changed if you could go back to when you first started that 15 years ago?

Xavi Padrosa (53:33) Hmm. Good question, Alan. no. I mean, yes, but no. Cause I always say that everything happened for a reason. So sometimes, for example, you know, we we we did not have like, you know, with all the transparency, a good relationship with one of our investors, you know, we just did not speak the same language in terms of like operational. He thought very different about us and you know, things.

end up not being good in some terms. But but you know I I've always will be very appreciative, you know, to because of him, because everyone that was behind, you know, because of them, telefetic also, you know, it was part of, you know, that success that success that success on that specific location. So there's some things you always can change, but I think everything happened for a reason and I'm always also appreciative for everything that happened. And I think

When bad things happen, they make you think and react and you know, find a solution. So along the way, I'm sure many, many things can have happened, Alan, and a lot of things that we can improve or could have done better. But like I just think everything that has happened, it happened for a reason, and you just have to like stand up and just, you know, make sure that you take advantage out of that, you know, and and and again, like, you know, out of what happened with that person, for example.

Everything is very appreciative. Appreciative. You could be but he was a this and he was that and no, I mean he was just a guy that really invested a lot of money on the business and obviously he had

his

Alan Li (55:12) Yeah.

Xavi Padrosa (55:13) stress and it's it's normal, you know. So obviously, you know, a dream come true would have been to open your first location by yourself, never have partners, which as of today we don't have any partners because we were able to buy them out, but

But you know, it's it it's just part of the process. You know, it's part of the process, so it's it's it's good. Yeah.

Alan Li (55:32) makes sense. Yeah.

Awesome. Well, Xavi, thanks so much for sharing your story today. This has been a delightful conversation. If people want to follow along or get in touch, what's the best way for them to do so?

Xavi Padrosa (55:49) Yeah they can can they out out of the should I give my email or should I give my phone number or what can I say?

Alan Li (55:57) Yeah, mean, whatever you're comfortable

with, your Instagram or your email for people to reach out to, we can include those in the show notes so that people can do it easily.

Xavi Padrosa (56:05) okay. Yeah. Yeah. I'll I'll then should I just send you my email and my Instagram and they can follow me there or

Alan Li (56:12) sure yeah we can do that yeah

Xavi Padrosa (56:15) Okay. Okay. So I'll say I'll say yeah, they can they can I'd love, you know, to give advice or just anything that I can help, like I'd love to, you know, 'cause that's that's what I enjoy the most, helping people. N not helping, but just giving advices, you know. So yeah, they can reach me out on my email, my Instagram and, you know, love to love to help in any way that's possible for sure. So

Alan Li (56:40) Okay, great. Well, we'll include a link to all those in the show notes, but Xavi, thanks so much for taking the time again today. And I'm probably going to stop by the Brentwood location later this afternoon. So excited to try out some of the pinches.

Xavi Padrosa (56:55) Excellent Alan. Thank you very much. It's been a pleasure and congrats on your amazing podcast, really. Best of success

Alan Li (57:02) Thank you.

Xavi Padrosa (57:02) for you and for all your listeners. Muchas gracias.

Alan Li (57:05) Thank you.