The Business of Butterworths, the Hottest New Restaurant in Washington DC | Odd Lots

Watch on YouTube ↗  |  January 02, 2026 at 09:01  |  57:11  |  Bloomberg Odd Lots
Speakers
Bart Hutchins — Chef-owner, Butterworths

Summary

Bart Hutchins, chef-owner of Butterworths in Washington DC, joins Odd Lots to discuss the restaurant business, from political branding and DC dining culture to ingredient sourcing, labor, and permitting. He explains why restaurants are tough financial investments and how post-Covid food and labor inflation continues to pressure margins. The conversation also highlights resilient luxury demand, elevated fryer-oil costs, the switch to beef tallow, and the operational challenges of running a high-end restaurant.

  • Butterworths became known as a MAGA hangout after drawing administration customers early on.
  • Bart argues restaurants are poor financial investments and that margins remain under pressure post-Covid.
  • He sources from Amish and Mennonite farms and changes the menu based on seasonal availability.
  • Elevated canola and fryer-oil costs led him to switch to beef tallow and direct whole-cow sourcing.
  • Labor remains tight, with cook and dishwasher wages around $26-$27 an hour and fewer trained workers.
  • Broad restaurant reservations and spending are down, but luxury demand is described as more resilient.
  • DC permitting and health-code processes make opening and operating restaurants slow and costly.
  • He discusses reservation scarcity, ambiance, and the stress of delivery-app orders.
Ideas
Bart Hutchins Chef-owner, Butterworths 10:14
Restaurants are bad investments.
Bart Hutchins says a restaurant is a terrible financial investment and warns that anyone seeking to make money should never invest in one. He describes restaurant margins as a joke, especially post-Covid, because food costs, labor costs, and rents are high; the appeal is mainly social and lifestyle access, not financial return. He also says industry reservations are down about 15% year over year and spending is down broadly, reinforcing weak sector demand.
Bart Hutchins Chef-owner, Butterworths 46:42
Beef tallow benefits from oil substitution.
Because canola and fryer oil prices stayed high, Bart Hutchins switched his fryers to beef tallow. He buys whole cows directly from a local farmer, which gives him a good price on the tallow and keeps the supply chain one-to-one. This is a specific substitution edge that supports beef tallow demand as a replacement for commodity fryer oils.
Bart Hutchins Chef-owner, Butterworths 46:55
Canola oil prices stay elevated.
Bart Hutchins says fryer oil and canola oil costs spiked during Covid and never came back down, with filling a fryer costing around $200 a night. He treats this as persistent cost inflation rather than a temporary supply-chain issue, implying canola and vegetable oil prices are sticky at elevated levels.
Bart Hutchins Chef-owner, Butterworths 48:16
Luxury demand stays resilient.
Bart Hutchins argues that luxury demand is more resilient than the broad restaurant market. While industry reservations and spending are down, he says his restaurant is insulated because it is a luxury item, citing that Hermes demand did not drop during Covid. He considers it fortunate to be in the luxury segment.
Up Next

This Bloomberg Odd Lots video, published January 02, 2026, features Bart Hutchins discussing Restaurants, Beef tallow, Canola oil, LUXU. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Bart Hutchins  · Tickers: Restaurants, Beef tallow, Canola oil, LUXU