American Gonzo’s Founders on L.A.’s Restaurant Scene, Expansion, and More

L.A.’s dining scene has evolved so much in the last few years. What have you seen over time, and what’s your take on the state of the restaurant industry here right now? 

Paul Hibler: I’ve seen so many things [laughs]. Over the last 20 years or so, we’ve had the golden age with young chefs, we’ve learned how social media affects businesses, and we’ve seen the emergence of quality, quick-casual concepts that have come out of L.A. — I think Pitfire is one of those, along with places like Lemonade and Mendocino Farms. 

Now I feel like we’re waiting to see how everything’s going to shake out, because it’s not super clear. As someone who came up in Los Angeles and is a huge fan of so many people in this town, I have to say I’m concerned. I feel like restaurants were already on our heels before the wildfires — a lot of places were closing, or just barely hanging on. Right now, we’re at odds with a lot of things in this business — the price of goods, the cost of labor, high rents, and landlords that aren’t really coming to the table. 

Jeff Goodman: The Hollywood strikes threw the city for a loop, and the fires have been a secondary challenge. Paul is touching on price and inflation. It’s a lot to digest and difficult to try to navigate. Many companies are facing a big struggle, and we are as well. But we tend to own and operate restaurants that serve a small community in a very deep and profound way — most of our restaurants are in Silver Lake, Venice, Pasadena, and so on, and although we saw a bit of a dip with the fires, most of our neighborhood-oriented restaurants have recovered and are doing the same or better sales than last year. And of course, we feel very fortunate to be able to say that. 

Are there things you’re doing to attract customers?

Goodman: An economic downturn is definitely a moment of uncertainty. It’s hard to figure out exactly what’s going on right now, but I do think that value is still key. Vibes are important, sure, but what we spend most of our developmental and operational energies on is trying to create an experience that gives guests more than what they pay for. 

The Win~Dow burger is still only $4.30 for a chef-driven product with integrity. At American Beauty, we’re trying to position that as a high-low steakhouse experience — if you want a crazy baller meal with a $165 porterhouse and a bottle of Barolo, you’re absolutely welcome, but if you want to come in and have a thick steakhouse burger and a glass of house wine for $10, you can do that, too. We feel like we’re positioned to be consistently successful because we’re thoughtful about value; giving guests a little more than what they’ve come to expect. 

With the number of restaurants you have, you’ve got a really unique bird’s eye view into the dining habits of the city. What do you see when it comes to diner behavior right now?

Hibler: Here’s one news flash: People don’t drink as much as they used to. So, that’s something to reimagine as we go forward. The bar has been a major part of a lot of great restaurant companies’ business, and I don’t think that alcohol is being consumed — especially by younger people — the way it once was. 

Goodman: And there’s more of a move towards early dining. That 5 and 5:30 booking was always a challenge. Now, getting that third turn later has become the challenge. As a diner, that was always my way of getting into hot restaurants — going to eat at 5:30. Now, everyone is willing to. It may be that that third seating, the 9:30 and 10 p.m. reservations were more nightlife-oriented and boozy, or maybe it’s just a push in the direction of healthfulness and people wanting a little bit of time to digest before they get a full night’s sleep. 

You recently opened a Superba Food + Bread in Calabasas, which isn’t necessarily known for its abundance of great restaurants. Why there? What other areas do you think are up-and-coming dining neighborhoods? 

Hibler: Calabasas is an underserved neighborhood in terms of restaurants. We’re putting a lot of energy into this site, making it relevant to the Calabasas diner who is looking for something to do and somewhere to go. It’s kind of disruptive, it’s exciting. We worked with the Klein Agency to design everything in the space to make it feel more like something you’d see in Berlin or Amsterdam — it doesn’t feel like a cookie-cutter restaurant in the suburbs.  

In terms of other areas, we’re excited to be opening a new Win~Dow in Santa Barbara in a vintage 1958 hamburger stand, and we’re big fans of the opportunities in Orange County, where Jeff has a lot of experience. 

You also recently opened a new American Beauty in The Grove. Why does this concept work in multiple locations and how do you tailor each to the neighborhood it’s in?

Goodman: We don’t build any restaurant the same way twice. I think that in order to be a successful, community-based neighborhood kind of company, you have to build what looks and feels appropriate to the neighborhood. Venice and the Grove are obviously significantly different. We built the original in Venice to reflect that community, and to build a more contemporary steakhouse that reflects how people like to eat now, which is smaller, healthier portions, and way more vegetables. We’ve tried to translate the best of those aspects to the Grove, but also give that location a sense of place as well, with its design and menu.  

You have a track record of successfully expanding concepts. What factors go into the decision to open another Superba or Pitfire, for example, and how do you maintain quality as the quantity increases? 

Hibler: A lot of companies have had opportunities to grow, and some of them go too fast. A lot of investors put pressure on expansion and growth. We have the luxury of time and experience. I mean, Pitfire is 28 years old. We’re pretty careful. We go as fast as we can, as long as it makes sense for right now. It’s hard, because you have to build a culture along the way.

Goodman: Our mission is that there aren’t diminishing returns, conceptually and for the guests, as we get bigger. It does inform every decision that we make, and also the commitments that we make to all the people on our team who are out there ensuring that product quality is high and the design stays as intended. I get 10 texts a day from people who are tasting our food and providing feedback, to make sure that the burger at Win~Dow number six is as good as the burger at the Win~Dow in Venice, and the Pitfire Carlsbad pizza is exactly like the pizza in North Hollywood, and so on.

Hibler: One of the things I’m most proud of is the people that help us run our business. They’re the unseen heroes. There are people on the front lines and there are people supporting all of those people. And without that discipline, we wouldn’t be able to do this.

What’s next for American Gonzo? Anything you’ve always dreamed of opening? 

Hibler: We have a couple of things on our wish list, but we have plenty to do before then. We’re still recovering from the fires, and then you have the World Cup and the Olympics — it’s going to be action-packed in Los Angeles for the next few years, to say the least. I don’t know what’s going to happen. We’re just keeping our heads down and doing good work for now.

Goodman: L.A. is an amazing restaurant town. I’ve lived in Chicago, I’ve lived in New York, Denver, and Dallas — and L.A. is where it’s at. And although I couldn’t tell you exactly how we’re going to innovate, this city is just a petri dish of restaurant innovation, and I know we’re going to be a part of it. So we’re excited for the future and look forward to figuring out the next couple of really interesting years.

Jamie Feldmar is Resy’s Los Angeles editor and a five-time cookbook author. Follow her on Instagram. Follow Resy, too.