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SAVING KENNY B'S
By Chef Gregory Branham
Not all ideas are good ideas. When you step on the field with the big
boys you'd better know what they know. If you don't you'd better get
somebody who does.
This commentary is in regard to the sad closing of Kenny B's the popular
BBQ restaurant in the Gaslamp Quarter. As a businessman in the
restaurant industry, I am responding to Kenny B's request for support.
The support that Kenny B should have had before he thought about opening
the restaurant, and getting financing and so forth is critical to the
success of any business. This is particularly true in the restaurant
industry. 98% of the restaurants that open, close down in the first
year. They never make it to the second year. Sometimes it is because
they do not have adequate financing, but more often it is because of
other majors issues involved. Throwing money into a business,
(especially a restaurant) and hoping for the best is not the way to
establish a business.
With my 30 years experience as a Chef in the field, opening many top
restaurants in San Diego, Los Angeles and San Francisco, I am happy to
share the following elements critical to my successes in the industry.
I have taken the time to go to Culinary school and learning the finer
points, including but not limited to:
Design, concept, thought process, restaurant analysis, business
management, menu planning, marketing creating teams, long term planning,
crisis avoidance, etc..
These things must be done on paper first before you even consider moving
forward to your opening day.
Kenny B admits he had poor marketing. Why? Because he did not know he
had to have marketing until it was too late.
Let me give an example. I have opened a restaurant for Arab investors
who had $100,000 for their opening. They opening was a grand success.
However, they refused to follow sound business and restaurant advice and
closed within the first year. Within months, another investor/chef came
along at the same location, same property, re-opened the restaurant based
on sound culinary and business practice. Their business plan included
forecasting, marketing, purchasing and planning techniques. They are
still there today.
For anyone who has the same good idea as Kenny B but do not want to
follow in his footsteps, the first step is to consult with a Professional
Restaurant Consulting Firm who specializes in the planning and opening of
restaurants. It is true this will cost you a little money, but opening
and then closing will cost you a great deal more.
Unfortunately it is too late for Kenny B. As a courtesy, I did go by and
give him my card. But he never chose to call.
I had gone by Kenny B's location when he was in business. The food was
great, but, sadly, the tables were often empty.
Clearly it takes more than great food, and a great location to be a
success.
He DID have great food, and location, but not enough marketing and
planning and perhaps enough money and possibly an inadequate budget.
Many investors come to my Chef Consulting Service wanting to open their
dream restaurant. They have visions of sitting in their popular
establishment, eating well, working moderately hard, inviting friends to
share good times and raking in the cash.
I usually talk them out of their dream restaurant. A quick analysis of
the top 10 reasons restaurants succeed will show you why. For example:
people who are beginning often do not have the correct amount of cash
reserves to last for the necessary float time to get through the hard
times. Furthermore, in my cursory analysis, Kenny B did not have enough
associates and alliances involved. He did not have sufficient
long-term relationships with his bankers, and his vendors; his landlords
did not have a personal vested interest in his success. The landlord's
family did not eat dinner there. You have to make contact and build
alliances as protection against the tough times. You have to have helped
others when you were strong, so they can help you when you need their
help.
Often a the problem I observe with Afro-American business is this: they
have no reserve capital. It's all one shot on the table. They have no
significant cash reserves. They have not prepared in advance with a
consultant for when times get tough to ask key questions such as: "What
can I do to build my customers base ? How can I get more capital ? Where
should I adapt my type of marketing strategies? In news papers?
Half-off Coupons?" etc. If you have never have had to think of these
type of things how could you know ? That is why it is critical to the
aspiring restaurant owner and investor to seek out people who know and
can advise how to plan for the good, to plan to avoid the pitfalls, and
have coping strategies in place for the tough times.
Consultant companies aren't free. But the successful businesses know
they are critical to long-term success. Fortunately, now you have the
information and you know enough to call a professional consulting
company while the idea of your Dream Restaurant is still a gleam in your
eye.
Go to the website for a list of the 10 most important things you need to
know before you consider opening a restaurant. Or call me and I will
fax them to you.
Here's one more hint I will give you for free: In my experience I have
observed a valuable trend among the wealthy. Educated people, who are
thinking of opening a restaurant as savvy investment, often send a family
member to culinary school. They build a management team with a daughter,
a son, a cousin, father or uncle, etc. These successful restaurateurs
realize that just because you are a good cook does not mean you can own
and operate and mange your business well.
And I say to you wonderful at home cooks who want to go professional with
your dream: If you think you want to open a business, go back to the
school and get a business back ground to compliment your cooking skills.
You don't need to say, "I didn't know I needed to market" as you sadly
watch your dream collapse years later.
Failed restaurateurs often come to me too late to save their restaurants.
They say their girl friends or wives have left them because of the
stresses of their business and the failure. People come to me who have
opened a restaurant and they complain that they are never home, they are
stressed.
They thought if they opened the doors, money would flow in and they'd be
working 40 hours weeks. It's not true. Any successful restaurateur will
tell you: it is 7 days a week, 16 hours a day. If you're not up for
this, just don't do it. And if you've never done it, find somebody who
has.
There was a restaurant called Just Cooking Southern Food. Well, she was
"just cookin'" for 8 months. Apparently she was "just cookin" and
didn't know how to run the business part of a restaurant. Don't do the
same.
If you do not plan to go back to school for two years to school to learn
the business, talk with a professional today.
A well rounded series of experiences in the industry is critical to your
success For example: I've opened and run restaurant for Black Angus,
Tony Room's, Palominos, Sheraton Harbor and other restaurants from San
Diego to San Francisco. I have a significant culinary and business
education, and global understanding along with 30 years of experience.
I know what it takes to open and run a successful restaurant operations.
If you are planning to be in business next year, this it he background
you should have.
If you're not prepared to do the work, to get the education, or create a
planning and management team with the education and experience, find
another business to get in to.
My heart goes out to Kenny B, to him and his family. Unfortunately this
scenario could have been easily predicted and probably avoided with the
proper planning with a reputable Restaurant consulting management team. I
strongly urge all want to be restaurateurs, to contact Chef Consulting
Services. We can save you from the heartbreak of opening and closing and
losing your restaurant.
Those of you restaurateurs who will be one of the successful 2% of
restaurants in business next year, I know you will be talking to me at
Chef Consulting Services or some other reputable restaurant management
Team. I look forward to eating a wonderful meal with you!
My name is Gregory E. Branham CEO and Executive Chef of CHEF CONSULTING
SERVICES
You can contact me at 619, 652-1601 or write me at P.O BOX 12007 San
Diego CA. 92112
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