Joe Farruggio Of Il Canale, A Modo Mio, and 90 Second Pizza On How To Successfully Ride The Emotional Highs & Lows Of Being An Entrepreneur

An Interview With Jake Frankel

Consistent Exercise — I run marothons and during the last couple of months, I had a recent two months of increased stress, I had given up running and it really affected me.

Being a founder, entrepreneur, or a business owner can have many exciting and thrilling moments. But it is also punctuated with periods of doubt, slump, and anxiety. So how does one successfully and healthily ride the highs and lows of Entrepreneurship? In this series, called “How To Successfully Ride The Emotional Highs & Lows Of Being An Entrepreneur” we are talking to successful entrepreneurs who can share stories from their experiences. I had the pleasure of interviewing Joe Farruggio.

Award-winning restaurateur/pizzaiolo/chef Joe (Giuseppe) Farruggio was born and raised in beautiful Agrigento, Sicily. With more than 54 years of restaurant, entrepreneurial, and culinary experience, he is now the owner of the renowned Washington, DC landmark Il Canale (voted #40 in Yelp’s Top 100 Places to Eat 2022 and in Yelps Top 10 Places to Eat in DC 2023), as well as the rapidly expanding 90 Second Pizza Concept and A Modo Mio (Named one of the Top 50 Pizzas in the US by Top 50 Pizza) in Virginia.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

When I was young, I thought I would stay in Sicily and do what my parents did. Then when I came to America, I saw what others did. Since many Italians opened restaurants, and my aunt told me that there was money in the pizza business, I shifted my attention to restaurants. I started working when I was 17 and haven’t stopped since.

I opened my first place in Woodbridge, VA. At that time, it was a small town, and my customers told me that I should open other locations. I knew that if I went further north into the suburbs of DC, I could expand. That was when I could put my own ideas to the test.

What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?

I’ll talk about my three concepts.

Let’s start with Il Canale which came to be by mistake. I was a partner with an Italian company, and I was supposed to be an investor, but the deal didn’t work out. I realized that the concept that I invested in was an excellent one — authentic Neapolitan pizza with fresh buffalo milk mozzarella, salumi, and a few traditional pasta dishes. I already had a concept which was averaging much less money and I realized that I could earn a lot more with this style.

When it didn’t work out with my partners, I decided to move the concept forward by myself — we are located by the canal in Georgetown — so I translated the term “the canal” into Italian and called it Il Canale. I then hired a fantastic interior designer named Barbara Hawthorn and we launched Il Canale in 2010. There were some ups and downs, but we eventually got the right staff together. When you finally get the right employees to work in each of their respective positions, it really changes things. At the time, I only knew pizza — but I had to learn about fine dining, the dining room dynamics, and the world of wine. I learned from the right manager and the right chef. One of the chefs that I met was Antonio Biglietto and shortly after that, Il Canale started to take shape. Metaphorically speaking, the “canal” started to run. There were many ups and downs to get us to the level of success that we enjoy today. I had to liquidate some pension plans and take money from real estate that I owned so that I didn’t fail. Fortunately, everything worked out because I always believed in it.

Even when the restaurant wasn’t successful, I envisioned it the way it is now. I would close my eyes, imagine the business perfect, and then open them to see what was missing. Finally, it all came together, and Il Canale began to work like a well-oiled machine.

With my 90 Second Pizza Concept, there were also many ups and downs. It’s almost like a war every time I open a new concept because there are so many storms, but I believe that if you know where you’re going and what you’re doing, it will eventually work.

I shared the idea with my two managers, Giorgio and Matteo, and they both said, “Let’s do it!”

At the time I was 65 years old, and when I saw that the two guys were excited, I knew that I had the right combination. We opened, but at first it wasn’t making money, and one of the managing partners had to go back to Italy. I liquidated him and then the other one left as well. The place was still not profitable, so I had to jump in and make some fast changes. After a year we became profitable. Now it is very profitable, and we are consistently expanding.

A Modo Mio was originally my first concept that I opened with my brothers 45 years ago under the name Joe’s Place. We’ve been running it as a family business ever since. A Modo Mio now has a good management team and is also doing well.

In your opinion, were you a natural born entrepreneur or did you develop that aptitude later on? Can you explain what you mean?

When I was young, I didn’t know what an entrepreneur was, but I was independent and tried to earn money. I knew that I couldn’t get it from my parents, so I had to find different ways to earn. When I was young, I sold the vegetables that my family grew on the street. I was very comfortable selling, and I knew that if you could provide value you could earn more. When I came to America, I learned that people were making a lot of money. In some cases, I realized that they weren’t any smarter or more qualified than me, so I felt that I should be able to make even more than them.

I first went on my own in 1978 in Woodbridge, VA.

Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?

I’m constantly inspired by our customers, because they thought a lot of me and always believed in what I serve. Over the years, they’d give me constructive criticism along the way. Italians grow up with hospitality in our roots. I honed those skills by working in restaurants in the US as well. It was easy for me to offer good customer service, but thanks to the feedback of my customers early on, I learned that I needed to train my staff to do the same thing. Trial and error is really the best way.

What do you think makes your company stand out? Can you share a story?

I bring the best possible products that taste and look better than those which costs less. I do a lot of fighting behind the scenes for the customer. By that I mean that I negotiate with vendors, suppliers, and in other areas so that I can serve the customers better. A lot of other places cut quality or service to make more profits, I look for other areas to cut corners with the businesses’ own costs to help the customers with costs.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

1. I reinvent myself quickly

I may get discouraged but I find my way out. This may be because of my background, but I know today that this is natural to me. When things don’t work out for me, like in the story of Il Canale’s beginning, I find a way to make it adapt to my growth.

2. I have consistently grown

I’ve taken business courses, attended entrepreneurial meetings, and place a premium on personal and spiritual growth. As a result, I have a clearer understanding of who I am.

3. I always put the customer first. Everything has to run smoothly in the back of house, the comfort level and atmosphere of the restaurant are important to me. The quality of the food, service provided, and all other aspects are all part of the experience. I want customers to have a better experience than they would in another place.

Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?

Yes. One thing is that listening to myself can be the worst advice sometimes. I have found that when I run the ideas by other people, they are better. Sometimes we can be our own worst enemy. I’ve learned not to rely on instinct in business, but to think things through.

There are a lot of ways to reduce your expenses at the back of the house that you can use to bring the best experience to the table without raising costs:

• Washing front of store — sidewalk, windows, etc.
• Clean glass every hour.
• Clean bathroom every hour and make sure it is well stocked.
• Make sure that temperature is always right.
• Make sure that dishwashers are using dishwasher properly.
• Turn the fan off in the wintertime so that the heater doesn’t kick on.
• Turn heating down when you close so that you don’t waste energy.
• Press the trash down to accommodate more before replacing the bag.
• Make sure the filters are consistently cleaned so that the heater and coolers don’t break so that you don’t have to spend money on repairs.

In addition to payroll and food costs, these little things really add up. Be sure to negotiate a good lease from the beginning so that your costs aren’t always increasing.

Many times, my employees want to increase prices, but I feel that they should prepare themselves for more turnover. When the restaurant is slow, you should prepare the napkins, the table, the dishes, make sure that all the quantities are full. That way when you get busy you are covered. You must be ready for the business to come, get ready for big, and big will come. If you’re only ready for small, a crowd will knock you out and you then need more people to handle the situation. Instead, you need to think big.

Staying on top of technology can help you. In my business, new technology in cooking equipment, point of sale, etc. This helps both your back of house and the front of house to work more efficiently. It cuts down on costs and helps waiters to earn more money.

I believe that you should pay your employees, then your tax, then your rent, then your suppliers. Pay yourself last.

Which tips would you recommend to your colleagues in your industry to help them create a work culture in which employees thrive and do not “burn out” or get overwhelmed?

I believe that what I started at Il Canale is a business that I could make my family equal partners with me. When the family left the business, I realized that I made sure that my employees earned well and were treated like family so that they would be motivated to do well. This is the way in which I motivate my staff. In the beginning, I tried profit sharing with the manager and chef, but then I began doing it with all of the hourly and salaried employees, and it works very well. This way their bonus is based on merit and that helps people to put more passion into their work. I give quarterly or monthly profit-sharing payouts. If your team is happy, they will stay with you. I didn’t have this in restaurants before I owned my own.

I have people who have worked for me for many years, and when I speak to them, I speak as if they are partners, not as if they’re my employees. We’re working for the same purpose, to make customers happy and to make a profit. It’s a win-win for everyone.

I don’t allow managers to work more than 45–50 hours, because it becomes unproductive. I don’t think an owner should be in their own restaurant any more than that. A productive person is better than two which aren’t productive. Unfortunately, this is not the consensus in our industry today.

What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?

Many employers hire people for only the one job that they are trying to fill. I try to hire partners, or people who could potentially become one instead of hiring people to stay in assistant or managerial positions. I tell everyone that is my goal when I hire them, that they should plan on moving up. I don’t see my staff as labor, I see my staff as people who are part of our restaurant family and team. Often people go through a period of family diseases, sickness, etc. There can be a time when you lose a good employee because you don’t understand what they’re going through. It’s important to communicate with people so that you can understand them and help them out when times are tough.

Ok fantastic. Thank you for those excellent insights. Let’s now shift to the main focus of our interview about How to Successfully Ride The Emotional Highs & Lows Of Being An Entrepreneur. The journey of an entrepreneur is never easy, and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. This might be intuitive, but I think it will be very useful to specifically articulate it. Can you describe to our readers why no matter how successful you are as an entrepreneur, you will always have fairly dramatic highs and lows? Particularly, can you help explain why this is different from someone with a “regular job”?

It’s an excellent question because like someone who has been training to do a marathon (which I run), to be an entrepreneur you must train every day, forever. When you go a little bit above the crowd, it’s difficult to stay there. Once you succeed, you must make sure that everything you built doesn’t crash. Your infrastructure is people-based, you have to really take care of your people and pay attention to their needs. This can contribute to lows, but the happier you make your staff, the more you will succeed.

Do you feel comfortable sharing a story from your own experience about how you felt unusually high and excited as a result of your business? We would love to hear it.

I get very “high” and “excited” when I am about to start a new concept, hire a new manager, buy a new oven, am facelifting a restaurant, or even something when I do something small, like a new item on a menu. I also get excited when there’s a new election in DC, because when the administration changes we get more visitors and new residents. That gets me pumped up. A lot of times the excitement’s only in the mind, because other things might happen in reality, but it still helps to keep me going in a tough industry.

Do you feel comfortable sharing a story from your own experience about how you felt unusually low, and vulnerable as a result of your business? We would love to hear it.

When you trust an employee and treat them well, as I mentioned above, but for some reason they leave. That always hurts me — to lose an employee, not because of money, but because they decide to leave to move on with their life. With all my experience, I can honestly say that they usually come back. Then there are mixed feelings, I have to rebuild the professional relationship from scratch, but I might not find the same enthusiasm as before.

Based on your experience can you tell us what you did to bounce back?

With the things that come up daily, little fires, for example, of running the businesses, gratitude is key. Sometimes the inconveniences, whether it is money from waiting for a certificate or inspection while you’re opening a new concept is difficult and frustrating. There are people on payroll for a business which isn’t open yet. I try to look at the big picture and be grateful for what I have. I always look for what I can do better, but sometimes you must rely on institutions, and timing. It’s important to keep a positive mindset — and then the glass will be half full.

Ok super. Here is the main question of our interview. What are your “Five Things You Need To Successfully Ride The Emotional Highs & Lows Of Being An Entrepreneur”?

• Consistent Exercise — I run marothons and during the last couple of months, I had a recent two months of increased stress, I had given up running and it really affected me.
• Personal growth — I went through the 12-step program after a problem with alcohol.
• Spirituality — I go to church and seek inspiration in the spiritual sense.
• Community — I’m proud to be a member of a strong community in the places that I live in.
• Travel — I spend summers in Italy, winter in Florida. Being in Italy helps me reconnect to my roots and to my hometown. Being in Florida helps me to get a way and be in a warm environment.

We are living during challenging times and resilience is critical during times like these. How would you define resilience? What do you believe are the characteristics or traits of resilient people?

Resilience — is the ability to bounce back. I don’t think that I have those issues. I look at problem times as an opportunity to grow your business. In times like this, people lose their business, and there is an increased employee pool so you can hire more people. I’ve been in this business since 1978, despite the ups and downs, I can say that “the times” have never truly hurt me. In real estate, this is a time when you can make money. It is unfortunate for those who lose their business, but if you want to make money, you can do it at this time.

Did you have any experiences growing up that have contributed to building your resiliency? Would you mind sharing a story?

Yes, Sicilians are known for being resilient and resourceful. Since my parents weren’t wealthy, I knew from an early age that I had to rely on myself to earn money. That added to my resilience.

In your opinion, do you tend to keep a positive attitude during difficult situations? What helps you to do so?

I see only the positive side of things. I ask myself; what can you do now? I also remind myself, every time something bad happens, that “Something good will happen next.”

Can you help articulate why a leader’s positive attitude can have a positive impact both on their clients and their team? Please share a story or example if you can.

My positive experience was when an employee who was having a difficult time and everyone wanted to fire him. When I learned what he was going through in life, I increased his pay and nowadays he’s one of my best employees. He treats our customers beautifully, as if it’s his own restaurant. That’s the difference between my style and the style of someone who opens only to get rich without caring about employees.

Ok. Super. We are nearly done. What is your favorite inspirational quote that motivates you to pursue greatness? Can you share a story about how it was relevant to you in your own life?

“Go with God.”

Every time I’m going through a difficult time, and I need to meet with or have a discussion about important things, I invite God to be with me in the meeting and to direct me as to what to say and help me mediate the situation. When I do this, things get better. When I forget things get complicated. As I get older, I find myself getting closer to God because we realize that there are things that you can’t change and this provides a lot of inspiration.

How can our readers further follow you online?

My website: www.joefarruggio.com

Instagram: @joefarruggiodc @ilcanale @amodomiopizzzeria @90Secondpizza

YouTube: Joe Farruggio

Facebook: Joe Farruggio @ilcanale @amodomio @90secondpizza

This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!

Thank you for the opportunity! The same to you!