More about the change at Gravitas...from Scott Tycer

Scott Tycer (Textile website)

This morning I received a call from Scott Tycer who was docked at Warnemünde, a northern German port, as he has been traveling as part of a Food & Wine-sponsored program on a cruise of the Baltic.  He had read what I had written from Jason Gould's interview with Cleverley on Saturday afternoon regarding his announced departure from Gravitas, and had wanted to add more to the story.

In a thirty minute-plus conversation, he did not really refute any of Gould's comments, "not really the other side of the story" as he put it, but wanted to complete the picture.  Tycer told me that when Gravitas got its start in 2005, it was seeded with money, totaling $1.2 million, both from a "limited partnership" of outside investors and a Small Business Administration (SBA) loan, to be signed by the "general partnership" (or the operating partnership), which was to consist of Tycer and Gould as equal partners.  As part of federal government program, this SBA loan could not be co-signed by Gould because he was not a US citizen at the time, nor could Gould officially be part of this "general partnership."  Tycer proceeded alone in obtaining the SBA funding.  Gould then signed an employment contract as Executive Chef that included the provision that when he received his US citizenship he would then receive a 50% stake in the "general partnership."  Gould was able to co-sign the lease of the property at 807 Taft, though. 

Thus, upscale bistro Gravitas began to considerable success and accolades that was punctuated with the acclamation by Texas Monthly of it being the best new restaurant in the state several months after its opening.  During the next few years, Gravitas was able to make distributions from its profits to the investors, of the portion that was due to the "general partnership," Tycer said that he and Gould split these equally from the start, though Gould was not officially or legally an equity partner.

This July, after nearly four years as Executive Chef, Gould approached Tycer about buying out Tycer's stake, and, I believe, the other investors.  Tycer was surprised, but thought it was "quite understandable" that Gould "wanted to be his own man, and rightfully so."  But, with Gravitas being a proven and very productive asset, Tycer, understandably, did not want to sell.  Gould had secured some investors and he and Tycer's wife, the business head of the couple and a McKinsey consultant, negotiated options, but it ended with Gould's decision to resign, which he announced on August 8 via Twitter. 

Tycer told me that he wanted to make clear that he “did not terminate” Gould, and said that he is welcome to rescind his resignation and stay with the contract in place.  But, once he departs he cannot return, and this contract and the clause regarding an equity stake in the "general partnership" will be voided.  Tycer admitted that his relationship with Gould "had been strained," but he still considers him "a friend," and "wishes him the best" if does depart, and a "hope that he finds some investors" to open his own place.  Upon Gould's expected departure on August 27, Tycer will take a more active role in Gravitas, putting more of his touches on the menu, and will be the Executive Chef at both the fine-dining Textile and Gravitas.  A current chef at Gravitas will be promoted to chef de cuisine to handle more of the day-to-day responsibilities.

Though some might be disappointed in the lack of juicy information in this story, which turned out to be my first foray into business reporting, the events are simply a business decision, or rather, two business decisions, which are each very understandable.  It is to be expected that a talented and highly respected executive chef such as Gould would want to strike out on his own at some point, and that an owner of successful business is under no obligation to sell.

The one item that is not entirely clear to me concerns Gould’s status as an equity partner.  During the recent interview with Cleverley, Gould mentioned that had married an American citizen, and seemed to imply that this fulfilled the contractual obligations regarding his right to half an interest in the "general partnership."  Tycer said he has "never been shown anything" in regards to this, a change in Gould’s citizenship status, and so, a right to equity in Gravitas.  My speculation is that Gould might indeed qualify for the equity portion, but did not want to assume the associated liabilities that came with the SBA loan unless he could raise enough money to successfully purchase full control of the restaurant; after four years, not wanting to remain as something other than the main partner, he decided to leave.

As a diner and a fan of both men's cooking, I hope that Gravitas retains its high standards and the Gould does open a successful restaurant of his own in town in the not-too-distant future, or at least is heading another kitchen very soon. 

If you want to hear more, Scott Tycer might be calling in from Europe to Cleverley's show this Saturday at noon on CNN 650AM (the reception is typically much better via the Internet).