an mba ventures forth

Thursday, October 22, 2009

And now I am a search funder.

Woah act two went by fast.

(act two -- two years as a Stanford Graduate School of Business student, that is.)

Now, MBA diploma stashed away somewhere in my parents' apartment, I venture forth to create my act three: restaurateur. This blog will chronicle the triumphs and trials of being a search funder focusing on the multi-unit restaurant space.

What does this mean. For starters, it means I want to make this stage of my career about running chain restaurants. I'm a fan of many chains, including the oft-demonized McDonald's. I especially like Taco Bell and KFC (though the latter's Original recipe in China is tasting better and better than the domestic version these days). Olive Garden's spaghetti and meatballs with Bolognese sauce is pretty damn good -- though the pasta isn't quite as al dente as I would like -- and oh, the bottomless salad!

Chain restaurants provide reliable, widespread meal options for hungry people across a wide geography. They're what's for breakfast, lunch, and dinner for millions of Americans every day. Moreover, these much maligned chain restaurants can provide some tasty stuff. But don't take my word for it. As my old boss, the CEO of a large and widely respected chain restaurant used to say, "people vote with their feet." And by that measure, most Americans agree: chain restaurants are in.

That's not to say that there isn't room for growth. Of course there is. (Why would an MBA care to get into something that doesn't look like a growth vehicle?) Growth in quality, of course, but also in quantity -- some can be downsized, some upsized. Some brands are overextended, some are underextended. Some promise too much, some undersell themselves. Some are too complicated, some could take on a lot more. There's a lot of potential out there. And that's why my business partner and I are setting forth to make our mark on this decidedly unsexy, un-MBAesque corner of the restaurant world.

Please wish us luck.

3 comments:

  1. You will always have by best luck wishes! :)

    ReplyDelete
  2. your keys will be:

    1. high volume of sales
    2. word of mouth advertising
    3. investing in a new / clean building - rents could be high
    4. it will be low margin, but keeping the customers coming in will be key
    5. upselling / beverage sales are important
    6. labor costs could be an issue
    7. maybe look into a buffalo wild wings franchise, none around here

    ReplyDelete
  3. thanks! you seem to know a lot about this.

    ReplyDelete

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