Podcast Summary: The Money Mondays – Episode 129: "The Real Reason Most Restaurants Fail (He Beat the Odds Twice) | Michael Chernow🍽️"

Release Date: July 7, 2025
Host: Dan Fleyshman
Guest: Michael Chernow

1. Introduction

In this special episode of The Money Mondays, host Dan Fleyshman welcomes Michael Chernow, an accomplished entrepreneur with a remarkable track record in the restaurant industry and a passion for wellness. Recording from the W Hotel in Hollywood, the episode delves deep into Michael's entrepreneurial journey, insights on building successful businesses, and his current venture, Creatures of Habit.

2. Michael Chernow’s Entrepreneurial Journey

Background and Early Ventures: Michael begins by sharing his entrepreneurial spirit ignited 15 years ago with the launch of The Meatball Shop in New York City. Despite starting without prior experience, his passion drove the restaurant to rapid success.

[01:02] Michael Chernow: "I started my career about 15 years ago opening up a restaurant called The Meatball Shop in New York City. Had no idea what I was doing, but knew that I wanted to do something and I was in the restaurant business."

Scaling and Exiting: He successfully scaled The Meatball Shop to seven locations before exiting. Building on this success, Michael launched a second concept, Seymour’s, which mirrored the same growth and exit strategy.

[01:35] Michael Chernow: "Scaled it to seven stores, exited. That kept a little piece."

3. Transition to Wellness with Creatures of Habit

Pivot During the Pandemic: In early 2020, facing the challenges of the pandemic, Michael pivoted from restaurants to wellness, founding Creatures of Habit. This brand focuses on nutritional, healthy habits, starting with oatmeal as a cornerstone product.

[02:15] Michael Chernow: "The pandemic hit and as entrepreneurs, you know what we do, we pivot when we have to... So I pivoted and created Creatures of Habit, which is a wellness brand rooted in nutritional, healthy habits."

Investment and Scaling: Gary Vaynerchuk became the first investor, leading to significant scaling. Over three and a half years, Creatures of Habit steadily grew, emphasizing the importance of passion in product development.

[04:00] Dan Fleyshman: "Your passion for the product... that's really rare for an entrepreneur to actually be that passionate about their core product."

4. Overcoming Restaurant Industry Challenges

Authenticity and Storytelling: Michael attributes the success of his restaurants to authenticity and compelling storytelling, which resonated well with the media and customers alike.

[06:05] Michael Chernow: "Authenticity and story is ultimately what creates community and business... we had a story to tell and the story got told really well and the media loved it."

Financial Discipline: He emphasizes the importance of financial diligence, particularly managing Profit and Loss (P&L) statements, to navigate the slim margins of the restaurant industry.

[07:50] Michael Chernow: "Most restaurants fail because people don't know how to be diligent about a P and L in a restaurant."

Remarkable Success Metrics: The Meatball Shop achieved $4 million in revenue from a single 36-seat location, showcasing effective business strategies and market demand.

[08:19] Michael Chernow: "We projected to do a million dollars in that restaurant year one. And we did 4 million."

5. The Power of Branding

First Impressions and Emotional Connection: Michael discusses the critical role of branding in creating emotional connections with customers, making brands like Nike and Apple successful through evoking specific feelings.

[19:00] Michael Chernow: "Brand is what moves people, Brand is what moves needles."

Differentiation from Large Corporations: He highlights how small, passionate brands can compete with industry giants by focusing on community and unique brand experiences.

[20:38] Michael Chernow: "They don't have the time to think about community. They just don't... Build it to a place where it's viable and then knock on the door and say, yeah, we want you."

6. Building Community and Crowdfunding with Creatures of Habit

Community Engagement: Michael invests significant effort in building a strong community around Creatures of Habit, personally connecting with customers to understand their experiences and foster loyalty.

[31:57] Michael Chernow: "I spend a lot of time calling customers... to hear about their experience."

Crowdfunding Initiative: To scale further, Michael introduces a crowdfunding model, allowing the loyal community to become stakeholders in Creatures of Habit, aligning their success with that of the business.

[29:41] Michael Chernow: "Instead of going back to you guys and saying, hey, like, we're going to go raise a bunch of money, why don't I allow the community to become owners and creatures of habit, like, give the whole community that love this stuff that like, I mean..."

7. Commitment to Charity and Social Responsibility

Mission-Driven Business: Michael believes that businesses have a responsibility to give back. Creatures of Habit hosts an annual charity event, Will Wear the Weight, partnering with The Release Recovery Foundation to support addiction recovery.

[35:41] Michael Chernow: "Creatures of Habit... We have literally saved lives."

Personal Connection to Addiction Recovery: Drawing from his own experiences with addiction, Michael is deeply committed to supporting others through his business endeavors.

[36:10] Michael Chernow: "Our country is experiencing the worst addiction epidemic of all time... every business that I've ever launched has a responsibility component."

8. Personal Reflections and Future Plans

Philosophy on Success and Legacy: When prompted about legacy and wealth distribution, Michael reflects on the values that shaped his journey, emphasizing the importance of hard work and giving back over mere financial accumulation.

[39:45] Michael Chernow: "My dream and my goal would be that they see their dad and how their dad creates and how their dad builds, that they do the same thing."

Future Ventures: While Creatures of Habit is his current focus, Michael expresses a continued passion for the restaurant industry, particularly in nurturing businesses outside of New York City.

[16:59] Michael Chernow: "My superpower is connecting with human beings at scale... I know that that is the best place for that."

9. Conclusion and Call to Action

Dan and Michael wrap up the episode by encouraging listeners to engage with Creatures of Habit through their website and social media channels, emphasizing the importance of community and open discussions about money in personal and professional lives.

[44:46] Michael Chernow: "You can find Creatures of Habit@creaturesofhabit.com... It's a high protein overnight oatmeal... It changes, it really does change your morning."

Key Takeaways:

• Passion and Authenticity: Michael's genuine passion for his products and authentic storytelling were pivotal in building successful businesses.

• Financial Discipline: Rigorous management of financials, especially P&L statements, is essential in high-margin industries like restaurants.

• Community Building: Engaging directly with customers and fostering a strong community can drive brand loyalty and scalable growth.

• Branding: Creating an emotional connection through branding differentiates small businesses from industry giants.

• Social Responsibility: Integrating charity and social missions into business models not only benefits society but also enriches the company's legacy.

For more insights and to follow Michael Chernow’s journey, visit Creatures of Habit and follow them on social media at @creaturesofhabit.