Restaurant Unstoppable Ep. 1254: Sarah Heard, Chef/Co-Owner of Foreign & Domestic

Date: February 19, 2026
Host: Eric Cacciatore
Guest: Sarah Heard

Episode Overview

In this episode, Eric sits down for a second in-depth conversation with Sarah Heard, Chef and Co-Owner of Foreign & Domestic (Austin, TX) and Commerce Cafe (Lockhart, TX). Eight years after her first feature on the podcast, Sarah provides an honest account of the challenges, growth, and evolutions that have defined her journey in the restaurant industry. The discussion centers around company culture, adapting through the pandemic, technology shifts, financial transparency, self-care, leadership lessons, and the crucial importance of industry collaboration and vulnerability.

Key Themes & Discussion Points

1. People-Centric Leadership & Company Culture

• Mantra: "People come first. Without a team that has the same goal that you do, you're not going to go anywhere fast." – Sarah ([05:28])
• Goal: Sarah strives to create a restaurant environment where people feel comfortable, crave hospitality, and desire to return.
• Evolution: Initial leadership was strict and traditional ("the chef way"), but has evolved toward high expectations with empathy—a "disappointed mom" approach.
• Culture Shift: From top-down pressure to an atmosphere of tolerance, grace, and support, where staff help each other manage stress and tough shifts.

Notable Quotes

• "I've learned everyone responds differently. More disappointed mom approach to corrections — 'I know you can do better.'" ([13:08])
• "If your server is genuinely happy at work... that's a different feeling than a server who's having their job held over their head." ([15:27])

2. Adapting & Surviving: The Pandemic and Beyond

• Business Impact: Foreign & Domestic celebrated its 15th anniversary in 2025. Commerce Cafe, launched during COVID (May 2020), started with counter service before shifting to full service.
  • Foreign & Domestic: ~1.2 million revenue in 2025, 6% profit.
  • Commerce Cafe: ~$600,000/year, mostly breaking even.
• COVID Adjustments:
  • Focused on takeout-friendly menu items and packaging.
  • Shifted sick policies—realizing the necessity and possibility of coverage when short-staffed.
  • Increased flexibility and support among staff, prioritizing well-being over martyr-like management.

Notable Quotes

• "We learned it is possible to work without a person, to cover when people are sick—so that's been a big one." ([17:40])
• "If you mess up, you're fired. That's the world we came up in. Now, we try to give grace and space." ([13:54])

3. Financial Transparency & Industry Realities

• Profitability: Open discussion of profits and struggle—losses in previous years, changes that brought Foreign & Domestic back into the black.
• Surcharges & Backlash: Added a 3% health insurance surcharge, offering Blue Cross to staff, but faced public controversy.
  • "Death threats over three pennies on a dollar... fear of another national blow up." ([26:09])
• Consumers' (and industry’s) ignorance:
  • "People want us to pay staff more, have benefits for staff, but don't want to pay more for the burger." ([22:39])
  • "We're so generous… it’s also our biggest weakness." ([27:47])

4. Tech Stack Evolution

• Adoption of Toast POS: Switched from Breadcrumb to Toast for reliability and catering integration.
  • Toast's catering and handheld features save time, reduce bottlenecks, and offer real-time menu 86 tracking.
  • Uses ExtraChef for inventory, acknowledging some limitations.
• OpenTable vs. Resy: Stayed with OpenTable due to legacy pricing and a helpful, relationship-driven rep, despite earlier high costs. OpenTable's updated features make reservations simpler, especially remotely.
• AI Integration: Uses Google Slang AI for basic phone queries and reservation booking, freeing up hosts' time but sometimes frustrating guests.
• Other Integrations: Collaboration with US Foods, attracted by personal touch and cost savings.

Notable Quotes

• "Our greatest strength in this industry is also our biggest weakness… we're warm, generous and almost too generous." ([27:47])
• "We went with OpenTable because our rep—it's hospitality from them, too." ([41:06])
• "Integrating AI for phone answering helps, but some guests get frustrated not talking to a human." ([53:03])

5. Ownership, Collaboration, and Real Estate Strategy

• Building Real Estate Portfolio: Sarah sees restaurant real estate as her retirement plan—she owns the Commerce Cafe property, two rentals, her own home, and is flipping houses.
• Advice: Start with a homestead, convert to rental, keep rents saved for more down payments, and do as much renovation yourself as possible.
• Collaboration Over Competition: Early rivalry between Lockhart businesses is dissolving in favor of mutual support—a text thread for sharing resources, tips about inspectors, cross-promotion, and community culture-building.

Notable Quotes

• "Building the culture in the restaurant is like building culture among restaurant owners." ([72:29])
• "Every person that walks through the door is a potential sale. So having the farmer's market here is people coming in." ([74:04])

6. Self-Care, Burnout, and Leadership Evolution

• Burnout Disclosure: Sarah is candid about cycles of burnout, their link to physical health (migraines, stress), and her journey to mitigate it.
• Self-Care Tools: Regular exercise, foraging, and setting boundaries (not responding to work alerts at home).
• Goal for the Future: Shift out of daily kitchen operations to focus on developing staff, marketing, and building more freedom for herself.

Notable Quotes

• "You have to ascend—if you're not moving up, you're dying. Remove yourself from the business, create opportunities for others to ascend." ([102:03])
• "You have to give yourself grace. What can I accomplish today that feels good? What needs to be pushed till tomorrow?" ([103:59])
• "I sacrificed being a mom... trying to do everything and being unreasonable. There's no need to be there for every regular's visit." ([95:59])

7. Team Structure and Partnership

• Sarah and business partner Nathan are both chefs—a rarity.
  • They “alternate burnout stages," supporting each other through the stresses of running two restaurants.

8. Tip Pooling & Staff Incentives

• Both kitchen and front-of-house staff participate in tip pools, creating more collective accountability and engagement.
  • "It's really incentivized the kitchen to take an active role in hospitality." ([84:46])

9. Advice for Aspiring Restaurateurs

• Flexibility is Key: The biggest asset is the ability to adjust to what the restaurant and community need, not what you want as an owner.
• Fire Fast, Hire Slow: Address toxic culture quickly, offer tools and redirection, but move on if someone’s not a fit.
• Be Unapologetically Transparent: Share real numbers, struggles, and solutions.

Notable Quotes & Memorable Moments (with Timestamps)

• On culture: "I was scared shitless to have a bad service. We understand people have lives and things are more difficult. We've learned to give grace and space." ([13:54])
• On leadership: "Everybody responds to different methods of management… more disappointed mom approach: 'I know you can do better.'" ([13:08])
• On consumer pushback: "We ended up on Fox News… death threats over three pennies on a dollar." ([26:09])
• On burnout: "I finally… started going to the gym. Just taking that little break from work where I'm not thinking about work allowed me, when I am at work, to feel more invigorated." ([61:47])
• On industry collaboration: "There's a text thread—all the restaurant owners on the square… health inspector’s on the square, we all know immediately." ([71:26])
• On leadership legacy: "Transition from the doer role into the wisdom and teacher role—ascending… just part of growing." ([105:20])
• Sarah’s wisdom: "Embrace humility. Learn everything you possibly can. And be a part of something." ([107:05])

Timestamps for Important Segments

• [05:28] – Sarah’s Leadership Mantra: People come first
• [11:01] – Culture evolution: From strict to empathetic leadership
• [17:40] – Post-pandemic business and menu pivots
• [20:14] – Health insurance surcharge controversy
• [29:06] – Transition to Toast POS
• [42:50] – Value of real human connections with tech providers (US Foods/OT)
• [53:02] – AI phone answering pros/cons
• [56:50] – Partnership balancing: alternating burnout
• [58:54] – Migraine struggles & stress management
• [67:20] – Foraging as restorative and food system commentary
• [76:04] – Collaboration replacing rivalry in Lockhart
• [90:50] – Firing quickly to protect culture
• [92:17] – Roughest year (2024): lessons in boundaries, self-care
• [103:12] – Industry needs less ego, more grace
• [104:21] – Book recommendations: "Leaders Eat Last," "From Strength to Strength"
• [105:59] – Ability to adjust = unstoppable
• [106:44] – Most proud: empathy

Book Recommendations

• Leaders Eat Last by Simon Sinek ([104:21])
• From Strength to Strength by Arthur Brooks ([105:20])
• A Brief History of Everything by Ken Wilber (referenced by Eric)

Final Thoughts & Closing Reflections

Sarah exemplifies the new era of restaurant leadership: empathetic, transparent, adaptable, and collaborative. She doesn't shy away from revealing the harder truths—burnout, financial pressures, community critique—while pushing for a more connected and resilient industry. Her vision for the future is not ego-driven growth but a sustainable life for herself, her team, and her community.

Contact:

• Instagram: @chefherd ([108:53])
• Foreign & Domestic / Commerce Cafe (Austin/Lockhart, TX)

Next Steps

To join the community and connect live with Sarah and other industry leaders, check out Restaurant Unstoppable Network and join 'Coffee with Eric.'

Summary prepared for those seeking actionable insight, honest storytelling, and current best practices in independent restaurant leadership.