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Sarah McIntosh is the chef-owner of epicerie in Austin, open on Hancock Drive since 2012 and running 450 covers on a busy Saturday. She came out of Louisiana, cooked at Bouchon and Ad Hoc, and has spent 20 years in and out of the Austin industry. Last year she flew to Argentina to cook alongside Francis Mallmann. None of that is why this conversation matters. She is one of the only chefs in the country who has worked out how to own the dirt under the restaurant instead of renting it.
In 2008 she bought a house on the east side of Austin for around $219,000 at under four percent interest. Her payment was $600 a month, less than the apartment she had been renting. She still lives in it. It is paid off. During the pandemic it crossed a million dollars. That single piece of math is why she now structures deals where she owns the property and the business, and why when a developer offered her a percentage to recruit tenants for a project down the street from her restaurant, she turned it down and asked for ownership in the development instead.
- The ownership structure she learned from Sam Hellman-Mass: buy the property, borrow against it to build, and the investor's money is protected by an asset that outlives the restaurant
- What to actually look for in a lease, in her words: MEP, tenant improvement money, triple net, CAM, percentage rent, and why a landlord covering mechanical, electrical and plumbing is the signal that a deal is real
- How she writes a proforma on purpose at 60 to 70 percent of what she thinks she will do, in three versions, with someone hired to pick it apart