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Showing posts with label sba. Show all posts
Showing posts with label sba. Show all posts

Tuesday, October 15, 2013

Reimbursable Employee Training


Interview with Pedro Suarez
NYC Business Solutions

By Kathryn Gordon


Food Startup Help recently met Pedro when he attended one of our “How to Start a Successful Bakery Related Business” classes at ICE (Institute of Culinary Education), and we followed up by turning the tables and interviewing him!

Kathryn:  Pedro, what is the mandate of NYC Business Solutions?

Pedro:  We serve NY State businesses, and specifically help small businesses operate and expand in NYC. 

Kathryn:  What’s your specific focus within the organization? 

Pedro:  I primarily work with restaurants.  I analyze the needs of their market, and work with business owners to help achieve their growth potential on a one-on-one basis.  So I am constantly addressing the needs of the restaurant industry to the best of my ability.  That’s why I was interested in attending your class at ICE, to make sure I am covering all of my client needs!

Kathryn:  Do you work with small businesses such as new restaurants or bakeries at any stage of the process?

Pedro:  Primarily I happen to work with them in the beginning stages, early on when their needs are greatest and when they need some direction working with SBA (Small Business Association) lenders, investors or possibly finding business partners.  Our agency can help develop cash flow projections – we also have financing and account managers who review business plans.

Kathryn:  So you can help small restaurant businesses navigate the bureaucracy of other city and state agencies?  That often seems daunting to our clients, especially if they’ve never opened a business before.

Pedro:  Yes, I know the governmental leaders.  I help businesses work with the appropriate city agencies, and get through the licensing and permit process. We offer a free 1 ½ hour restaurant management boot camp for opening a bakery and getting through licensing and permits.

Kathryn:  And how do new restaurant or bakery owners “find you?”  Does the city’s 311 system lead to you?

Pedro:  Yes, but a lot is word of mouth throughout the neighborhood.  I work primarily in one location, and can also reach out directly to local businesses.  I’ve been working in the Washington Heights/Inwood area for over 10 years, and have relationships with a lot of local chefs.  Of course we also have relationships with other business solution centers, like if someone needs a manufacturing facility for a product.

Kathryn:  How did you get into this line of work?

Pedro:  I was a political science major, and worked on local campaigns before working for a local paper in the advertising department.  Through those local connections, I met the NYC Business Solutions people, and was offered a position.

Kathryn:  What should entrepreneurs such as our clients who are outside the Inwood area know about NYC Business Solutions services?  Can they also be helped?

Pedro:  NYC Business Solutions has a very useful program in which we identify customized training solutions for employees.  70% of the employer’s cost is reimbursable.  That can greatly help in training and retaining qualified food service employees, thereby minimizing staff turnover in a costly business.  For example, we helped a business who needed an employee to be trained on wine.  So we facilitated that, and the employer is only responsible for 30% of the out-of-pocket costs.

Kathryn:  What a great savings for a startup. Thank you Pedro. We’ll keep in touch to learn other ways that you can help small business startups.

Monday, August 26, 2013

Do Not Fall In Love With Any Particular Space


Interview at Langosta Lounge, Asbury Park, NJ
with Marilyn Schlossbach, owner

By Kathryn Gordon, Food Startup Help

Editor’s Note: Marilyn Schlossbach is a successful restaurateur whose multiple restaurants were damaged by Hurricane Sandy.

Kathryn:  Hi Marilyn, I wanted to come talk to you about the process of reopening numerous restaurants at once after Hurricane Sandy. 

Marilyn:  You have to make decisions on the fly, and based on the money situation each week.  It was a process.  You know what you need to get done, but with everyone in the area needing help as well, the people who were available to do the work – things don’t always line up together like a perfect storm.    

It takes time to get up and running, and the timeframe for reopening was never set in stone.  Our finances weren’t completely in line before the storm because we had started a construction project at Langosta.  It was very difficult to know when to say we would be opening, and when to be able to hire and start training staff again.   We got an SBA interest-bearing loan in the end, and now I’m applying for a state grant for additional funding.

Editor’s Note:  a commercial establishment is not covered under FEMA

Kathryn:  How did you go about finding replacement staff?  I imagine you didn’t keep many on board during the 7 month rebuilding hiatus. 

Marilyn:   We basically opened the weekend before Memorial Day with all new staff.  I bought into different website restaurant career sites, like “Good Food” jobs (www.goodfoodjobs.com), and did some recruiting at career schools and through Craig’s List. 

Not all people can handle our volume.  It can be a monster, depending on the shows open at The Stone Pony (right outside our door), festivals, etc. and the weather.  It’s a tough dichotomy.

Finding back of house staff (the chefs) was very difficult.  Everyone in Asbury Park along the beach reopened at the same time.  Unfortunately, New Jersey labor laws are not conducive for hiring “seasonal” employees versus year round staff.  Paying overtime when we are at our peak season becomes a financial drain on the employer.  But there’s a 12-16 week window in a seasonal situation in which everyone has to be open in order to make their money to allow them to remain open for the year.

Kathryn:  What exactly was the damage here at Langosta Lounge from the storm?  It’s located right on the boardwalk (1000 Ocean Avenue, Asbury Park, NJ).

Marilyn:  There was 8 foot of water in the basement.  All the windows got blown out.  I had to replace the kitchen equipment, chairs and moldy walls.  We had a $100,000 electric bill for rewiring – and even now, something new happens that was an effect of the storm, like a computer dying (and the inside turns out to be filled with sand). 


                                                                       Photo from Event Planners Guide to The Jersey Shore

Kathryn:  How has business been since you reopened in May? 

Marilyn:  The weekends are great.  Jersey Shore business is all driven by visitors.  We need people to come, visit and eat!

Kathryn:  I see that you now have a new sushi area?

Marilyn:  That’s the construction project I’d started before the hurricane.  We’d decided to have a new format, bringing it up to over 300 seats.  The sushi bar area can either serve sushi or we can transition it to a private dining room – with a view of the ocean.

Kathryn:  I love how all your places and menus have different themes!

Marilyn:  I try to create a fun place.  I want a vacation atmosphere – and allow people to “go away from life” while they are here.

Kathryn:  To me, you’ve always been very good at self promotion.  I know you always have posters up of events at your various restaurants up and down the Jersey Shore, and postcards to mail to your customer list…  In fact, we did a macaron class and hot chocolate tasting here in February to help raise money for beach restoration and Kula Café, and you made up some fabulous postcards for that event!  

Editor’s Note:  only one of Marilyn’s restaurants and stores stayed open after Hurricane Sandy, the Dauphin Grille in the Berkeley Hotel.

Marilyn:  Early on I started collecting customer email addresses.   Word of mouth is the best PR!  So I built a grass roots database, to allow me to reach my customers.  

Kathryn:  What do you think of social media, or sites like Yelp?

Marilyn:  I prefer to display the postcards in the restaurants, and send them directly in mailings, because the people who post on review sites – the majority had a negative experience and there’s no “balance” in the reviews, and they’re superficial.  If you have a fabulous dining experience, you’re just happy.  You’re not driven to go home, open up the computer and post something on Yelp. 

Kathryn:  Can you talk about your community outreach efforts?  I know you’re very active in the local community, philanthropy, and helped found Kula Café (a community café with a youth job training program in an economically deprived area): www.kulacafe.org

Marilyn:  To me, you have to love what you do and not pursue it for the financial end.  Community based businesses support a lot of people, not just residents who need to eat.  They are the core of a community in providing a “sense of normalcy.” 

I’m financially responsible to over 100 employees.  I also believe in supporting local farmers.  We have a farm-to-table special at Langosta on Thursdays tied with cocktails.  Every Thursday evening, I started a 4:30 to sunset farm market in the old carousal in Asbury Park and encourage residents, and other restaurants, to buy local produce.


Kathryn:  You’re certainly busy!  How often do you visit each of your restaurants, since they’re scattered north and south on a 25 mile or so corridor?

Marilyn:  I try to visit each restaurant at least once a week.  The biggest storm hit was at Labrador Lounge (located in Normandy Beach, about the narrowest part of NJ with the ocean on one side and the bay on the other), so I spend most of my week at Labrador at the moment.  My staff there had on average been with me over 10 years.  Luckily, since it was a seasonal business – a lot of those employees came back, and have other jobs the rest of the year…


My husband and brother are also involved, as primary investors and managers.  And we need great, talented people to run these places and be the best they can be.

Kathryn:  What’s the biggest lesson you’ve learned, running multiple establishments?

Marilyn:  For any business venture, understand your demographics and have a firm business plan.  Do not “fall in love” with any particular space.  You need a reality check.  If there’s no foot traffic – a location is not perfect.  And be receptive to change – you always have to look ahead and see what you need to do to make things better.

Kathryn:  What’s next for you?  You seem to have no shortage of ideas!

Marilyn:  Our biggest hurdle for ourselves is we are full of ideas.   My husband looks at me and I get a certain look on my face, and he says “oh no…”  But you have to be as good an operator as an idea person to succeed.

We are reopening our retail outlets, and the Asbury Park Yacht Club (APYC) surf bar.  Pop’s Garage (in Asbury) will be open year round.  Opportunities always come my way – if they’re perfect, then I’ll decide.

We need support from everyone.  When people’s routines disappear, it adds to the general sadness and frustration regarding what happened with the hurricane, losing mementos that will never be replaced.  Come help everyone and come visit!
Wood cat that drifted into Langosta Lounge in the storm, on display -- hoping its owner comes to eat at the restaurant one day and claims the cat to take it home






Sunday, September 9, 2012

eBay Is An Option



eBay Is An Option

Interview with Thierry Aujard
Sweet Prosperity Bakery
Valley Forge, Pennsylvania

By Jeff Yoskowitz, Jessie Riley and Kathryn Gordon

Kathryn:  Hi Thierry!  Jessie and I have known you for years through the World Pastry Forum and Championships.  It’s great to visit you here in Pennsylvania, and see this amazing space you’re constructing.  How big is it?

Thierry:  We have 7,000 square feet.  It was formerly a chocolate production facility so there was already flooring and some useable walls.  We just got the space 2 weeks ago and we are in the middle of everything;  electric, sheet rock, adding washable wall surfaces, washable ceiling tiles, building a storage facility with a giant fork-lift and also adding a large walk-in freezer on the loading dock.

Digging under the concrete for the freezer walk-in insulation at the loading dock 

Jessie:  I thought that you had wanted to open a retail “corner” bakery? How did this project evolve instead?

Thierry:  I was working at another wholesale bakery in the area, and had taken over as pastry chef.   I worked with the recipes and procedures to make the process more efficient, and the clients liked my work.

Three clients from that bakery approached me to produce their product for them.   They came with me to the bank and supported me through the SBA loan process, verifying they would transfer their business to me when I am open in production.  They gave me a letter of intent to do business with them, and their past year’s sales data and projected 3 years.  The production levels are quite high, one of the clients already has an operational contract with Costco.

Jeff:  How are you financing building your own manufacturing facility?

Thierry:  We have taken an SBA loan and put our home up as collateral, and I had to put in some of my own savings (per SBA rules).   The bank gave us a loan and a line of credit for one-third of the total loan value.

Kathryn:  The whole process is amazing.  It’s like it all fell into place.  When did you start the process, and when are you hoping to open?

Thierry:  We just took possession of the space a few weeks ago, but I started working on the business plan for the loan application in May.  I’m hoping to open for production mid August.   We are in the construction phase now and equipment is coming in.
One of 3 depositors (never used) purchased through eBay 

Since I started to write the business plan, 4 additional companies and QVC (which is in the region) contacted me to ask if I would manufacture products for other businesses.  I said yes, because it is difficult for companies to find a co-producer with small production runs. I also now have my own contract with QVC for 3 of my own products to be launched at the end of the year.

Kathryn:  You wrote the business plan and you got your funding very quickly! 

Thierry:  It took a month and a half to put the business plan together, which is kind of stressful with everyone rushing you.  The SBA pressures you for the business plan, and the clients wanted to leave their existing manufacturing facility.

The SBA money came thru via our bank. The lender was organized by SCORE, who were awesome and helped identify 4-5 potential lenders.  My wife Cherie went to meet them with a few of our contracted clients, and that make a huge difference; the numbers were not coming from the sky, but were based on reality.

In 2-3 weeks, the lender came back with their underwriting.  So it was very fast and I finalized the paperwork last week.

A dishwasher that will accommodate washing a full speedrack!!! 
Jessie:  It’s amazing that you already have a strong relationship with your clients.

Thierry:  One even helped me find the production space, and a builder to do the construction.  I got this space the very first morning it was put on the market at 25 cents per square foot.

Kathryn:  How about your staff ? Are you ready to go with production in a month from a staff perspective?

Thierry:  I have my managers in place.  They are coming with me from the prior production facility.  Therefore they are already trained on producing these formulas.  We just have to get used to new equipment.


Jeff:  There was no equipment here, right?  You are bringing in everything?  How are you making the decisions regarding purchasing “new” versus “refurbished” equipment?

One of new the double rack rotating ovens 
Thierry:  I have a mix of new and used equipment.  If the equipment is essential to the “life of the bakery,” I am buying it new.  In other words, I cannot lose someone’s product while it is stored on our palets in the freezer.  I cannot risk that it is not baked correctly,  so the freezers/compressors/condensors and ovens are all new.  

Thierry:  We are fortunate to be located in the area near the largest equipment refurbisher in the United States, in case I need help.  I have gotten a lot of my equipment on eBay, and from as far away as Florida.  Through eBay, you pay for shipping but you can get some very good deals (like on the mixers and depositors).  


Jeff:  You know what equipment you need, and you are already experienced with manufacturing this product for these clients. Has anything been a surprise to you? 

Thierry:  Yes, the range of price quotes for the installation of the walk-in refrigerators and freezers with compressors and condensors.  The high end quote varied by as much as 5X more than we are currently paying for our installation.  Shop around!   
Two 120-quart refurbished mixers 
Calm before the storm?  Production facility in construction phase 


Kathryn:  Thank you Thierry, we look forward to visiting you again once you’re up and running!



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