New York Times: Restaurant Business Presents Unique Challenges for Small Business Owners

Barbara Taylor wrote a piece in the New York Times' small business blog this week titled, "There's No Business Like the Restaurant Business." It's a very insightful and compelling piece, and I couldn't agree with Barbara more. I contributed a comment to Barbara's post, which serves as the basis for my blog post today.

Why do professionals from all walks of life think they can run a restaurant business? In my case, I wanted to start a business that was as far away from my high-tech job as possible. As someone who enjoyed eating out and cooking and entertaining at home, I thought starting a restaurant fit my skills and interests best. I, too, had years of business experience and an MBA, figuring that at its core, as Barbara noted, a restaurant has one of the simplest, most basic business models in the world: You buy ingredients and turn them into delectable menu items which people pay you to prepare. You get a liquor license, purchase wine and spirits, and sell them at a great mark-up. You deliver fabulous service in a great location where people seek you out because you have the hippest place in town. We all go out to eat and have a pretty good feel for how it works. Could it really be that hard?

Well, I learned after four and a half years of "slugging it out" in the restaurant business that it is "really that hard" and harder! Yes, I, too, experienced the "drama" with my employees, including ones who stole from me, and even had to bring a lawsuit against one who owed the business money. I learned the hard way that no one cares about your business as much as you do. And I certainly could have used a lot more capital to ensure that when times got tough, I had more room to breathe.

At the same time, I think it's even more difficult if you're running an owner-operated restaurant in the suburbs, where the "chain game" dominates and has an enormous advantage in terms of money, marketing, and muscle. I took on that fast-food culture and provided an alternative that was local, sensible, and superior. I led a lonely "one-woman parade" on the front end of a trend to bring more downtown sophistication to my suburban community and convince Beaverton's residents to get out and explore, discover new and exciting places, and make it a point to support local businesses. In addition, my market research demonstrated that the tide was turning and suburban customers had taste, appreciated culture, and wanted cool and exciting businesses that added local flavor to this community.

While the bad economy and financial crisis ultimately led my restaurant's demise, it started with my inability to convince enough potential customers of the "go-local" value proposition. I had an award-winning establishment that was successful in gaining recognition and building a loyal, supportive, and appreciative customer base. However, I couldn't get enough share of voice in the marketplace to influence the greater number of people who proved to be content with fueling the stereotypes and misperceptions about suburbanites lining up for hours at the Cheesecake Factory and Five Guys, waiting several cars deep in drive-through lines at McDonald's, and hanging out on patios at Starbucks. Adding insult to injury would be the customers who would wait two hours for a table at a chain restaurant but complained bitterly about a 10-minute wait at my small place. Or the email I received from a customer who shared his disappointment with paying $8 for our signature Valrhona dark-chocolate torte because he could "see the bottom of the plate." Never mind it was probably the best chocolate he ever had in his life, but because it wasn't some huge monstrosity of a dessert, he thought he wasn't getting his money's worth...

In the U.S., the corporate chains have convinced a broad swath of the public that "bigger is better" and having mediocre, mass-produced food overflowing from your plate is somehow better than going to your locally-owned restaurant that's trying to make a name for itself with high-quality food, great service, and a focus on giving back to our communities. Despite the trends of "buying local" and being more conscious and aware of the sources of food and methods of production, the vast majority of consumers still want their food big, fast, and cheap.

I was a pioneer in my local community with my concept, which means that while my restaurant didn't survive, others are sure to follow my example and build on my foundation. Also, I'm convinced that the long-term trends are in our favor as thought leaders like Michael Pollan continue to educate the public about the food industry, the White House vegetable garden serves as an example for healthy living, and other high-profile people in the restaurant business strive for change.

While I'm sad that I closed my business last summer, I'm happy and proud of my legacy in raising this community's consciousness and giving other business owners the inspiration to build on what I started.