How Learning from Past Mistakes Helped Richard Melman Launch Lettuce Entertain You

Richard Melman never set out to create one of the restaurant industry’s most recognized and talked about ownership groups. But by tapping into an underserved segment of consumers and catering to their demands, that’s exactly what Lettuce Entertain You has done. What started out as one burger joint in Chicago has turned into a network of more than 100 restaurants nationwide. And as Lettuce Entertain You nears its 50th anniversary, the company is more committed to experimentation and innovation than ever before.  

Restaurants have always been a part of Melman’s DNA—his first job was working at a soda fountain. And as he was growing up, he continued to work for various restaurants and fast food chains to make money. But it wasn’t until after he realized that he wasn’t cut out for college that he considered turning his side job into a full-time career.

Unable to convince his father that he should be made a partner in their family business, Melman decided to branch out on his own. Together with Jerry Orzoff, Melman opened his first restaurant in 1971: R.J. Grunts. The burger joint quickly became one of the top trending restaurants in Chicago, sparking the idea for the concept that’s now known as Lettuce Entertain You.

“I got into the restaurant business because it was all that I knew. By the time I entered my late 20s, I had gained enough experience through a series of jobs at other restaurant chains that I decided I could do it on my own,” said Melman. “I wasn’t knowledgeable or sophisticated in terms of marketing, by any means. I just did what I thought was right and created a restaurant with the elements that I was looking for when I went out to eat. And that really resonated with other people in Chicago, which caused the concept to  take off and opened up the door to a much wider market than I was initially looking for.”

As Melman continued to add more restaurants to his roster, that market only got bigger. He realized that there was a whole segment of consumers out there who, much like himself, were looking for something different in their daily dining experiences. That willingness to break the traditional mold is what fueled Lettuce Entertain You’s success as it started to grow.

Melman says those expansion efforts ended up being a direct representation of his personal growth. As he got older and started liking different things, so did his customer base.

“There wasn’t one big move or change that took Lettuce Entertain You to the next level. The business evolved as I continued to grow personally. Our restaurants started out simple, but they eventually evolved to become more complex and sophisticated with time—as did I,” Melman said.

However, Lettuce Entertain You’s new restaurants weren’t always an instant hit. The group—like many other restaurant owners—was forced to leave some projects behind that weren’t performing well. But at the end of the day, it was those mistakes that ultimately taught Melman which direction was best for the brand as a whole.

“Our first few restaurants were incredibly successful right off the bat. But as we opened the next five or six, I started to lose control of the business. I needed to take the time to really figure out how I wanted to run Lettuce Entertain You as we continued to grow,” said Melman. “It took a couple of years to hire the right people and build the right systems to find the operations that worked best for us. It’s one thing to have people in your restaurant, but it’s another thing entirely to make money off of it. That was a big lesson that I needed to learn, but it was also a great one.”

It’s clear that Melman took those critical lessons to heart—since launching Lettuce Entertain you over four decades ago, the brand has successfully grown outside of its hometown in Chicago to establish a presence in the Twin Cities, Minnesota; Las Vegas, Nevada; Scottsdale, Arizona; Washington, D.C. and Southern California. That success is far from random—Melman has nailed down the factors that have a proven track record of making restaurateurs successful.

“You need two things in order to be successful in the restaurant industry: experience and financing. Without either one of those things, it’s incredibly difficult to get a business off the ground,” Melman said. “Beyond that, you have to make sure that you love what you’re doing. The importance of walking into your restaurant with a passion for the business can’t be overlooked.”

That passion is something Melman looks for when deciding who to grow the Lettuce Entertain You brand with. He hasn’t built the business on his own—right now, Melman has around 70 working partners that manage different parts of Lettuce Entertain You and its restaurants. Those partners are all instrumental in ensuring the company’s future success, which is why Melman doesn’t take those relationships lightly.

While Melman has always relied on his instincts when it comes to selecting people to partner with, he has also always been aware of what he isn’t good at. That’s why he actively tries to team up with partners who fill in those gaps.

“As the leader of this company, it’s my job to make sure that my partners are successful. I don’t ever want to be embarrassed about what I do—that’s huge for me. It’s all about having fun and making sure that my partners are doing well,” Melman said.

With successful restaurants operating nationwide and a loyal customer following, it seems like Lettuce Entertain You is at the peak of its popularity. But Melman plans to build on that success—the brand plans to continue paving the way in the restaurant industry by adding new restaurants to its system and staying ahead of the curve when it comes to the latest trends. In fact, Melman says to be on the lookout for new Lettuce Entertain You projects throughout 2017.

“Lettuce Entertain You has passed some incredible milestones, and we’re already looking forward to reaching the next. We’re turning 50 in four years, and we have some new things coming up that are leading up to it,” said Melman. “I believe that I’m not just in the restaurant industry—I’m part artist, part businessman. We’re always experimenting and moving forward, which is integral to the continued success of the Lettuce Entertain You brand.”