Podcast Summary: How to Work 5 Hours a Week Restaurant Strategy with Chip Klose | Released March 24, 2025

Introduction to the Episode

In the episode titled “How to Work 5 Hours a Week,” Chip Klose delves into a transformative approach for independent restaurant owners seeking to maximize profitability while minimizing personal time investment. Klose challenges the conventional notion that restaurant owners must be perpetually involved in daily operations, advocating instead for a streamlined model where the business effectively runs itself with minimal owner intervention.

The Concept of Working 5 Hours a Week

Klose introduces the central thesis: restaurant owners should aim to limit their direct involvement to a maximum of five hours per week. He states, “I think the best restaurants out there succeed when they only need very little from the owner; when there are operators in place to actually execute on everything that needs to be done” ([00:01]). This philosophy draws inspiration from successful large-scale companies where founders like Steve Jobs set the vision but did not oversee daily operations, allowing the business to thrive independently of their constant presence.

The Importance of Delegation and Outsourcing

A significant portion of the discussion emphasizes the necessity of delegating and outsourcing tasks. Klose explains, “The more valuable you are to your business, the less valuable your business actually is” ([03:15]). He warns against owners becoming bottlenecks by handling every aspect of the restaurant, which can impede growth and create vulnerabilities, such as dependency on the owner’s availability.

Redefining the Owner's Relationship with the Restaurant

Klose encourages owners to redefine their relationship with their restaurant. Instead of being entrenched in roles like cooking or seating guests, owners should focus on higher-level functions that truly add value. He suggests, “If you just want to be there, then great. I want you, but I don't. I want to get to the place where the restaurant doesn't need you there” ([05:45]). This shift allows owners to engage with their business in ways that align with their passions, whether that's menu development, staff training, or customer relations.

Practical Steps to Implement the 5-Hour Model

Klose outlines a structured approach to reducing owner involvement to five hours a week:

1. Manager Meetings (1 Hour Weekly):

   • Conduct efficient meetings with the management team to oversee operations and profitability.
   • Quote: “One hour every week with your entire management team together, I think that's an important one hour” ([10:30]).

2. On-the-Floor and Kitchen Time (2 Hours Weekly):

   • Spend dedicated time overseeing both front-of-house (FOH) and back-of-house (BOH) operations.
   • Quote: “One hour on the floor, one hour in the kitchen” ([12:00]).

3. Staff Development (2 Hours Weekly):

   • Allocate time for developing both FOH and BOH teams, enhancing their skills and efficiency.
   • Quote: “One hour should be spent on development of your front of house team... and one hour should be spent on development of your back of house team” ([14:20]).

Additionally, a monthly Books Meeting (1 Hour) with accountants to review financials is recommended ([16:45]).

Scaling Up for Multiple Locations

For restaurant owners managing multiple locations, Klose advises leveraging layers of leadership. Instead of dedicating five hours per location, owners should interact with regional managers who oversee individual sites. This hierarchical structure ensures consistent operations across all establishments without the owner’s direct involvement in each one.

Transitioning from 55 Hours to 5 Hours: The Process

Klose outlines a three-step process to reduce owner involvement:

1. List Tasks for Delegation or Outsourcing:

   • Create two lists: one for tasks that can be delegated or outsourced, and another for tasks that only the owner can perform or that they are passionate about.

2. Delegate and Outsource:

   • Begin assigning delegated tasks to competent team members or external services, starting with menial tasks like inventory management and payroll.

3. Provide Oversight and Build Trust:

   • Shift from performing tasks to overseeing them, ensuring they are executed correctly without micromanagement.
   • Quote: “25 to 5 requires trust. It’s a little bit like jumping off a cliff, but that's where the real magic happens” ([22:10]).

Klose emphasizes that this transition requires patience and a mindset shift, as owners learn to trust their teams with increased responsibilities.

Building Trust and Empowering the Team

Trust is the cornerstone of the 5-hour model. Klose asserts, “Danny's not in the weeds anymore in his restaurants... because he realized he's of greater value to the organization, thinking through higher value, higher leverage tasks” ([24:50]). Empowering teams not only enhances operational efficiency but also fosters a sense of ownership among employees, leading to sustained business success.

Conclusion and Final Insights

Chip Klose wraps up the episode by reiterating the benefits of the 5-hour workweek model for restaurant owners:

• Enhanced Profitability: By focusing on high-leverage tasks and ensuring operational efficiency, restaurants can achieve consistent profitability.
• Personal Freedom: Owners gain the time and space to pursue personal interests, family life, or even expand their business ventures without being tethered to daily operations.
• Sustainable Growth: With a strong, empowered team, restaurants can scale effectively, maintaining quality and profitability across multiple locations.

Klose concludes, “I want all of you to have wildly profitable restaurants, restaurants that pay you really well and give you the time and space you need to go enjoy that money” ([26:30]). He encourages listeners to adopt this strategic approach to achieve both business success and personal fulfillment.

Notable Quotes with Timestamps:

• “I think the best restaurants out there succeed when they only need very little from the owner” ([00:01]).
• “The more valuable you are to your business, the less valuable your business actually is” ([03:15]).
• “One hour every week with your entire management team together, I think that's an important one hour” ([10:30]).
• “One hour on the floor, one hour in the kitchen” ([12:00]).
• “25 to 5 requires trust. It’s a little bit like jumping off a cliff, but that's where the real magic happens” ([22:10]).
• “Danny's not in the weeds anymore in his restaurants... because he realized he's of greater value to the organization” ([24:50]).
• “I want all of you to have wildly profitable restaurants, restaurants that pay you really well and give you the time and space you need to go enjoy that money” ([26:30]).

This episode serves as a compelling guide for restaurant owners aiming to optimize their operations, enhance profitability, and reclaim their personal time. By embracing delegation, empowering teams, and strategically managing their involvement, owners can create sustainable and thriving businesses that offer both financial rewards and personal freedom.