June, 2006

The Concept of Sugar’s Ribs

Just as they do from their backyard barbeque grills, consumers like the “just cooked” taste of barbeque when they dine at restaurants. We have taken this in mind with the concept of Sugar’s Ribs. Our barbeque will be defined by its “just cooked” taste in a highly consistent manner. We plan to perfect this concept at the King’s Lodge location, and we anticipate adding a new unit within three years.

No particular cooking technique, rub, marinating method or sauce will determine the success of a barbeque restaurant, in my opinion. Customer taste preferences vary, but they share one common element, and that is the “just cooked” taste. The backyard barbeque preparation process is simple, and numerous cookbook instructions can help you make savory at home. The main obstacle, though, is the amount of time required to make exceptional barbeque.

At most barbeque restaurants, it is rare to get that perfect barbeque on consecutive visits. So why is that the case? Producing “just cooked” taste on a consistent basis demands dedicated management and devoted employees who are focused and committed. These traits are what you will find at our Boathouse and Canyon Grill restaurants.

How are we going to be different? Where does the competition fall short?

• Fresh versus Frozen. “Fresh” produces a better product, but it requires a quality supplier (which costs more), proper storage and rotation (coordinated by management and employees), and effective inventory control (spearheaded by management).
• Warm holding times. “Just cooked” taste means just that. The taste doesn’t doesn’t get better later. Cooking in the smallest batches that will meet demand most of the time is the first priority. This is too costly for most restaurants, thus the reason they don’t implement the practice. Another key decision is determining when to chill the barbeque and when to hold it warm (a decision spearheaded by management).
• Proper processing. This element is obvious, and is directly related to the quality of people and their training process.

At most restaurants, some compromises must be made and most are related to cost. Chain barbeque restaurants use frozen meats and chicken, and most store the product in bags that are reheated in hot water or steamers. This delivery system takes days, and not hours. Management is stretched, and most of their work hours are absorbed in the physical work due to employees who do not show up for work, or in training because of high turnover. Since there are so many menu items, the product does not move rapidly, which complicates the holding times and the volume of decisions required of management. Several restaurants have found a market for this lower quality product, but we firmly believe that there is an expansive market for high quality barbeque.

Our strategy is to give the customer a high quality barbeque product. At Canyon Grill and the Boathouse, we have a high employee retention rate because of the salaries, benefits and work environment we offer. We look for people who are committed and devoted, not those who are looking for a short-term job. This strategy is critical in producing exceptional cuisine on a consistent basis, and we attribute this to our success at both restaurants.

Also, we have discovered that there is a market for a high quality product even if the price is higher. If this quality creates more volume, the higher labor cost per worked hour does not substantially increase the labor percentage cost. We believe that, by keeping the menu small, we can produce a quality level our competition will have a difficult time matching. There is a market of barbeque purists that will pay more in an environment where they can experience authentic barbeque.

Easy access and abundant parking are necessary for take-out and home delivery. We have selected the Kings Lodge location for these reasons. This spot is also low cost and offers the second best view from a restaurant in Chattanooga.

We have deliberately structured Sugar’s for slow growth. This reflects our commitment for consistent delivery of exceptional cuisine. It takes time to build a fine-tuned staff, a management team is best created by internal development. Initially, we plan to spread the word about Sugar’s through public relations and grassroots marketing. We do not plan to advertise. If the staff and management team develops faster than anticipated, we may advertise to accelerate growth. Currently, we plan to open only lunch from Wednesday to Sunday, with a blues and soul band on Saturday and Sunday. We will open for lunch seven days a week in the second quarter. In the third quarter, we will be open during the evenings, and schedule bands on off days.

Restaurants have one of the highest failure rates of all businesses. Four out five fail in the first five years. The most common reason is undercapitalization. Another reason is underestimating the numerous pieces necessary to become and remain a success. Backyard barbeque enthusiasts don’t understand the complexities of operating a sit-down restaurant. There must be a reasonable budget and a backup plan if more money is needed. The construction must cope with the severe wear and tear of restaurant services. The work environment must be comfortable and appropriate. The work area must have the right flow and quality labor saving equipment. Every duty must be detailed, checked off and reviewed daily. Training for every job should follow the five steps of I tell, I show, He tells, He shows and supervision. Also, it is crucial that the accounting system gets the money to the bank. If you have a decent concept and can meet these requirements, you have a good chance of making money as a restaurateur.

As a veteran restaurateur and a barbeque expert and enthusiast, I understand the ingredients to make a thriving barbeque restaurant – as I have described above.

Kings Lodge is ideal for the first Sugar’s location because of the view, easy access, low cost, and its position bordering a great residential market for barbeque take-out products. These appeals reduce some of the usual risks. This gives us the opportunity to perfect our game plan for expansion of the concept and generate a high return on the investment. The initial investors will have the option of taking a proportional percentage of future units.

article by:

Lawton Haygood