Under Pressure

This section starts with a reflection from Balaji S. Srinivasan (45), a tech entrepreneur with a solid reputation in Silicon Valley, born in New York to Indian parents.

In 2013, he gave a course at Stanford on how to build startups. It was part of a broader initiative shaped as a practical extension of polarizing Peter Thiel’s original CS183 class.

He claimed that most small businesses are not companies — they are traps. They promise freedom, but deliver fragility. No scale. No leverage. No safety net. Just exposure.

Restaurants are the clearest example. Everyone eats, so everyone thinks they could run one. But the numbers say otherwise. Margins are tight. Paperwork is heavy. Regulation is constant.

What begins legal often slides into grey — or black — just to stay afloat. Owners don’t optimize — they survive. Not with strategy, but with compromise.

This is our postulate. We use this lens to expose the grey mechanics behind kitchen life.
The next lines focus on structure, pressure, and the quiet tactics that emerge under pressure.

Cartons déchirés, bouteilles vides et déchets au sol derrière un restaurant

Four fixed fronts: rent, labor, ingredients, tax. Each alone is enough to sink a restaurant. Together, they guarantee that honesty becomes unviable before profitability becomes possible. The restaurateur isn’t dishonest — he’s just cornered.

Too many people start restaurants because it’s what they know — not because it’s scalable or defensible. Most restaurants end up competing locally, with no moat.”
(Peter Thiel - Forbes, 2015)

Culture of Fraud

Low Margins

In Sweden, restaurants typically turn over between SEK 5 and 15 million a year, with net margins between 2% and 8%, with harsh seasonal swings… A 15% margin is often held up as the Golden Rule: 25% rent, 25% staff, 35% ingredients, 15% net.

Steakhouse Lilla Torg AB reached SEK 13.2 million in revenue with 7.2% margin. Bastard Burgers posted SEK 979 million revenue with 9.5% net margin in 2023. Carlsberg followed with 14.7% on SEK 111.87 billion.

Personalkollen posted a margin of 38.7% on SEK 78 million. Balder, which leases space to Elite Hotel Esplanade where Quan operates, secured a margin of 25.7% on SEK 12.88 billion. Google posted 15.4% on SEK 9.1 trillion.

Damaged and half-open locker with name written in marker

Half-open staff locker, handwritten marker, fall 2023.

Heavy Regulation

So we have the tax added to everything the customer pays (12%), the tax the restaurateur pays on top of every salary (31.42%), the tax on company profits (20.6%), and the tax the owner pays again to take money out of their own business (20%).

In 1950, restaurateurs kept around 75% of their profits. By 1980, under Olof Palme, that dropped to 25%. Since then, caught in one tax cascade after another, they end up with 50%in line with other Swedish entrepreneurs, but far from Dubai’s 91%.

In Sweden, 9.2% of adults are entrepreneurs — and only 1.8% of them are restaurant owners. Yet 8.4% of the national income comes from business taxation, 17.3% from individual income taxes, and 22.4% from consumption taxes. As both business operators and everyday consumers, entrepreneurs contribute across all three pillars.

During the Covid-19 crisis, Swedish businesses could defer tax payments (including VAT, employer fees, and payroll taxes) to preserve short-term liquidity. The restaurant sector is now repaying SEK 1.6B across 1,700 businesses, under monthly installments.

Damaged and half-open locker with name written in marker

Half-open staff locker, handwritten marker, fall 2023.

Rent Trap

The Lilla Torg Effect — a form of vitrine rent — leaves restaurateurs exposed to an ultraliberal asymmetry, where rent levels follow pure supply-demand logic.

Rigid contracts force tenants to finance all renovations themselves, locking them into a structure that— unlike most of Europe—offers no cushion when margins collapse.

Since 2024, as Sweden joined NATO, the war in Ukraine coincided with rising commercial rents — +18 % between 2021–2023 — now locked in via indexed contracts.

Robert Lundgren reported +550 % volatility in electricity costs over a few months, stating: “It’s difficult to run a business depending on whether it’s windy or not.”

Damaged and half-open locker with name written in marker

Half-open staff locker, handwritten marker, fall 2023.

Intense Labor

In this sector, the job extends far beyond schedules or payroll. You become a part-time psychiatrist, decoding silences, de-escalating tension, 'and absorbing instability. The hardest part is not the work — it's the humans.'

Staffing eats 25–35% of revenue, yet salaries remain modest. The job requires long hours, unpredictable shifts, and multitasking under pressure. The real cost isn’t just payroll — it’s turnover, burnout, and absenteeism. Labor flexibility becomes both a strategy and a symptom.

In my third month in Stockholm (Dec 2023), I logged 225 hours and received 28,653 SEK — but no payslip. It came months later, handed in an envelope, printed on an inkjet printer, on a sheet sliced with a ruler, likely from a downloadable Excel payslip template.

One email later — after an explicit request — the same slip file appeared, sent by an accounting firm. It showed the same 3 lines only: tips, hours, vacation — no OB1/OB2, no deductions, no bonuses. No breakdowns, no audit trail — a flattened sum, legally silent, strategically opaque.

Damaged and half-open locker with name written in marker

Half-open staff locker, handwritten marker, fall 2023.

Fragile Supply Chain

Ingredient costs spike weekly: salmon, oil, herbs, even flour. Delays disrupt menu logic. Storage is limited, and waste accumulates fast. Seasonal menus offer no protection. You absorb the volatility — or you fake consistency.

Between 2021 and 2023, ingredient prices rose 46%, while average menu prices only rose 20%. Raw costs outpaced income. Restaurants absorbed the gap — shrinking portions, trimming staff, or rewriting menus.

Stacked crates in dirty tiled corner

Norm-compliant surface, real-life saturation.

He doesn’t scale, he absorbs. He doesn’t fight, he adapts. He cuts where he can’t grow. He bends where he can’t escape. The question is not whether he cheats — but where he starts compromising, and how long before it becomes permanent.

This is not an exception. It’s not a moral failure. It’s the normalization of deviation under impossible pressure. What begins as flexibility becomes structure. What begins as avoidance becomes operating mode.

First infraction: undeclared staff. Too expensive, too unstable, too easy to justify. “It’s just a trial.” “He’s only here for the weekend.” “We’ll declare him next month.” But the truth is simpler: there’s no room in the numbers. So he disappears from the books.

Second infraction: hybrid contracts. Half fixed, half variable. Clauses never applied, hours never counted. Cooks sign for 20 but work 60. The owner knows. The staff knows. No one complains — everyone hopes it won’t last. It always lasts.

Third infraction: invisible overtime. Prep starts 45 minutes before clock-in. Cleanup ends 30 minutes after shift-out. Lunch break skipped, split shifts extended. “It’s how the job is.” Everyone accepts, no one logs it. Time disappears. And with it, the evidence.

Over time, these infractions stop looking like infractions. They’re baked into pricing, scheduling, margin projections. You can’t remove them — you’d have to raise prices, cut hours, or shut down. So they stay. And everyone stays silent.

This isn’t an industry that defrauds by ambition. It’s a system that trains people to survive through evasion. That’s the real culture: not criminal intent, but institutionalized adaptation. What survives is what bends.

Financial Discrepancies

Over time, I noticed not everyone was paid the same way. Some had full schedules, but reported little on paper. Others had side arrangements. This created invisible hierarchies. The more dependent someone was, the more toxic their behavior. One colleague, particularly abusive, remained untouchable.

Culture of Alcoholism

After one month and three weeks at Da Peppe Due, suspicions about my sobriety emerged. Three colleagues: a 25-year-old unofficial floor manager; a 63-year-old chef; and a third, Muslim waiter around 40, subtly influential. The more I deflected, the more suspicion I drew.

As an athlete, I drank often — in sips — from a insulated Camelbak flask filled with custom blends: hemp protein, sparkling water, or filmjölk with cinnamon, ginger, glutamine. It stood out — especially in a place where people struggled with a single staircase.

Camelbak flask on the table at Da Peppe Due

Ironically, the 25-year-old who raised suspicions had back pain and often asked me to lift for him. Yet he served alcohol daily. Being labeled by him felt obscene. So I proposed a challenge: fail a breath test, and I’d pay 50 SEK or run 10 km at 10 km/h.

Later, I learned "Tutti" — an Indonesian server in her 50s, very kind — drank regularly after her shift. Colleagues tolerated it, sometimes serving her directly. On Saturdays, she asked me to escort her to the train; most other days, she used a different station. It had always struck me as odd.

I proposed a breath-test challenge: fail and I’d pay 50 SEK or run 10 km at 10 km/h. The owner left the group instantly. Only later did I realize: he used his personal breathalyzer 2–3 times a week — before driving.

When I joked, he replied, “Patrice, you can’t take a joke.” But I’ve seen addiction up close. I only drink red wine, never more than 3 glasses, and never without red meat, cheese, or charcuterie. Beer tastes like piss to me. Bear Testline Piece.

2. First Glimpse: The Dishwasher Job in Hamburg (2012)

In April–May 2017, I worked as a dishwasher at Das Strandrestaurant, in the Rostock coastal region. The place served 75 guests a day. I cleaned the machine area and took initiative to restore the back facade and staff zone.

Nobody said a word. No warnings, no frowns. It was routine. And yet this man was giving orders, shaping service, barking instructions at the staff. When I told the owner, her only response was, “I’ll talk to him.” Nothing changed.

3. Ex-Girlfriend Waitress Saw 3 Alcoholic Chefs in 6 Years in Australia

Later, my partner—who had spent six years as a waitress in Australia—confirmed what I’d seen. She recalled cooks getting drunk mid-shift, treating it like a badge of honour. I began to see a broader pattern: kitchens where alcohol wasn’t hidden but normalized.

This wasn’t just about indulgence. It was about silence. A culture where denial, tolerance, and complicity formed a triangle of dysfunction. I’ve been the odd one out my whole life—the guy at the club drinking soda. When I spoke out, I was met with disbelief, deflection, and sometimes outright hostility.

Culture of Permissiveness

The Loyalty Contract

When someone trusts you, feeds you, listens to you—you want to give back. I filled in when needed. I cleaned more than asked. That mutual understanding kept everything running. Even if unspoken.

In some restaurants, leniency is not a managerial style — it’s a shield. Employers allow small rule-bending in exchange for loyalty and silence. You get to snack, check your phone, stay a little loose — as long as you don't destabilize the structure or speak too much.

Loyalty Through Trust

My manager never interrogated my movements. That kind of restraint earns you loyalty. And I gave it. Even now, I struggle to criticize him publicly—not because everything was flawless, but because his human decency was real.

Systemic Tolerance of Toxicity

The staff was mostly Turkish. A long-time Greek cook—loud, degrading, and borderline cruel—was tolerated. Management stayed silent, waiting for him to leave on his own terms. Silence was easier than confrontation.

Culture of Silence

Unspoken Rules and Invisible Limits

The freedoms were real. No one clock-watched. I could vanish for 45 minutes, take breaks as I wished, even start shifts two hours before any activity. Presence only mattered when it mattered. But beneath that liberty was silent monitoring.

Dishwashing shifts ran in flexible pairs. If one didn’t show, the other adapted—no explanations needed. It was a workplace built on trust—but bounded by silence.

The Line I Never Crossed

And because of that, I can’t betray him. I’ve seen things—but I won’t speak of them here. He gave me space. He gave me dignity.

Everyone knows what not to say. Complaints stay inside. Problems get absorbed by the team — not solved. The silence is not passive; it's a strategic, distributed defense. If no one speaks, no one gets exposed.

Silent Control

At Da Peppe Due, the system was more polished. Nothing was explicit—but everything was controlled. The manager never raised his voice. He didn’t micromanage. His mere presence shaped how people behaved. It wasn’t fear—it was calibration.

What struck me most wasn’t discipline—it was generosity. From day one, I was paid properly, allowed to eat premium meals, and encouraged to ask for raises. This kindness created an invisible contract: enjoy everything, as long as you don’t cross a line.

Quiet Generosity

Despite the flaws, generosity flowed. Former staff, kids, and friends of the owner often ate for free. No announcement, no posters—just an unspoken rule of belonging.

I was paid fully and on time. Once, after a delay, I received a bank transfer within hours. He listened to me. He offered more than I asked. And I refused his Facebook request—not out of spite, but to maintain boundaries. He wasn’t trying to impress anyone. He was just kind.

Trust as Compensation: What Makes a Rule-Bending Workplace Acceptable

Culture of Secrecy

My restaurant background spans roughly two years, with the longest stretch—14 months—spent at Da Peppe Due in Stockholm. This job coincided with a moment where I became more observant of what made a kitchen thrive—or quietly rot.

One of my first shocks came during a trial shift at RIPIG. I offered to work two unpaid hours. The owner panicked and ordered me to clock in immediately. Her tone revealed a deep-seated fear: legality here meant invisibility, not compliance. That moment marked my first encounter with the sector's unwritten rules.

Resentment of Vitality

In a kitchen running on fatigue and inertia, my energy—fueled by sleep, nutrition, and training—became suspicious. I moved fast, lifted heavy, stayed alert. Others resented that. It felt absurd to be whispered about simply for being alive.

Culture of Evasion

Evasion doesn’t scream. It whispers. Contracts unsigned, slips delayed, trails erased. Everything is there — just never all at once.

1. Missing documents, missing responsibilities. No onboarding papers. Payslips delayed, partial, or absent. When pressure comes, nothing formal can be held.

2. Accounting opacity as method. External accounting firms issue neutral slips — 3 lines, no context. Details fade: no overtime, no tax logic, no breakdowns. Visibility is optional.

3. Bankruptcy as exit strategy. When claims rise, structures collapse. Companies fold, partners vanish, and no one stays accountable. It’s not disappearance — it’s a reset.

4. Hidden ownership, offshore instincts. Ownership passes through wives, brothers, or ghost firms. Sometimes offshore, always unnamed. Secrecy isn’t the tactic — it’s the framework.

Standing My Ground

In the early months, a server tried to boss me around. I drew a line: I belonged to the kitchen, not the floor. The manager pulled me aside—not to shout, but to warn. I adapted. I learned the hierarchy. And I stayed 14 months.

Quan's Failure Was Not Structural—It Was Personal

Closing Note: Contextual Shielding