Today is Wednesday, July 8, the first official day of Tales of the Cocktail here at the Monteleone Hotel in the French Quarter. I got here early to get the lay of the land, pick up my credentials then discover all the nooks and crannies and event locations in the hotel.
While standing in line for my creds there were a couple of guys talking. They looked like they had tied on a fine one last night. They had that air and face about them.
“Told myself last night I was going to get to bed at a decent hour.”
“Me, too.”
“Didn’t happen.”
“Me either.”
“I went into the Carousel Bar for a quick one and three hours went by.”
“That’s funny. I was there! Didn’t see you.”
“Well, I suspect that’s how this whole week is going to be.”
I’m suspectin’ the same.
We’ve got a smokin’ media room on the roof: The Vieux Carré Room. The view is tremendous. Tremendous! You can see the entire city laid out beneath you. The river. The Steamboat Natchez like a toy. There are tasting rooms. Industry personalities everywhere.
The first day of Tales is The Professional Series, sponsored by Nightclub & Bar Magazine. Officially: The Nightclub & Bar Professional Series. It’s just like it sounds. This is the day for the professionals to share the expertise with their peers. I’m presently sitting in the East Ballroom on the Mezzanine waiting for the seminar, The Bittersweet Truth About Starting A Bar, to begin. The room is full.
Some of you out there might have aspirations about opening your own bar business. There’s no substitute for being here, but hope this helps. In fact, Casey and C.J.—this one’s for you.
The panel consists of four people, all heavyweights in the bar profession. The moderator is H. Joseph Ehrman. If you are interested in what goes down here, I highly suggest you click on these cat’s names and see who is giving you advice. To cut to the chase(r), however, H. is the owner of Elixir, a restored saloon in San Francisco mentioned in the 2008 Esquire Magazine's "Best Bars in America".
The panelists are Eric Alperin, Ricki Kline, and Cedd Moses. They are all associated with the real estate development company, 213, in Los Angeles, California. It focuses on nightlife, entertainment and hospitality in downtown Los Angeles. 213 is the area code there. They have opened 14 bars.
What follows is a blow-by blow of each one speaking. They focused tremendously on the importance of a business plan and sticking with that business plan. Vision, placing your signature on your establishment, location and real estate. They spoke about these philosophies, as well as gave concrete numbers regarding some aspects of a business plan. Their advice was heartfelt and, no doubt, comes from experience. Managing staff and purchasing costs were on the agenda but time ran out. The seminar lasted an hour and a half.
If there are any perceived errors here, the fault lies with me.
H: The business side of owning a bar needs to be shared. I had many difficulties getting info when I tried to open my bar. There are many stereotypes. Who wants to own a bar? Who wants to go through this? I was a bartender for years. Got my MBA in business and actually owning and operating a business is different from thinking about it. Just because you are a great bartender doesn’t mean you are fit to own a business. I recommend ‘The E-Myth Revisited,’ by Michael Gerber.
(If interested, here is the exact title: The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber)
Eric then took a poll: Who’s a bartender? Who owns a bar? Who’s in the process of opening a bar? Hands were raised in all instances.
Cedd: The key to opening your own bar - taking care of people.
H: The key to moving on to new projects (NOTE: many of these guys have their hand in several related pies) is the first three years of being there every day. You need systems. Even how the ashtray is taken away and emptied. Write it down. Share with staff. Creates a signature of your brand. You might say to a new bartender: You make a great Bloody Mary, but now you’re going to make MY Bloody Mary.
Eric: The kung fu of bartending: hard work that looks graceful. I agree, the little things are ‘deadly important.” These are the things that create your signature on your bar.
H: When you put these systems in place , make sure you have good reason for them. Inspire your staff!
Eric: it’s your bar. Make it the way YOU want it. My specificity allows the staff to shine. They need to know why. Always figure out a way to inspire your staff. They are going to be there every day. They are the face on your business.
H: when you are a bartender, keep a notebook with all your ideas, and then when your day comes to open your own bar, open up that book.
Ricki: I’m a construction guy. Choosing someone to design and build your bar can make or break you. Some architects have an axe to grind. Their vision may not be your vision. It can make or break your heart. Don’t leave it up to the designer to create your under bar or your back bar. Everyone works differently. Who’s going to work there? Talk with them.
Eric: True. Any old set up sucks. I hate going behind other people’s bars now. You gotta fight for what you want. Yes, you will have to compromise, but together it creates a greater whole.
Ricki: the bar is your point of sale. If it is efficient and it works for you, you will make more money.
H: I am going on Bar #2. I Got my starting capital from my credit card. Will be paid off next year. Did not have an architect or a builder. I did everything myself. Business plan. Everything. Had all those concepts conceived of at different times—they were all in that notebook. There are free business plans online. They are a roadmap. You will constantly update it as time goes on. Very important. The business plan is a living document.
(This whole time there has been a bartender at the back of the room. He is shaking drinks. Shaking and shaking. They arrive in a small plastic Tales of the Cocktail cup. They are a light cherry color with a sprig of a green herb laying on top of the froth.)
H: This is my Winter Sour. A take on a Campari Sour with Rosemary syrup.
(The Winter Sour is a keeper. Almost literally Bittersweet, like the seminar subject. But smooth with a lovely flavor.)
The panelists talked with the audience and listened to their quick anecdotes on opening a bar.
Cedd: With a business plan you have projections. If one budget goes over you can balance others to meet those projections.
Eric: Get your finances in order! Yeah, it’a all fun but in the end it is a business. It will make the show shine when your finances are in order.
H: You must take a business course. You must understand that it is a game of pennies. The business, the math is the bitter. The success is the sweet. There will be surprises. Keep your eye on the vision. Don’t stray. The classic example is overpouring. This adds up over 365 days in a year. (He does some quick, fun calculations.)
Ricki: Location. Renovations. $200 a square foot is a solid number. It’s a good target.
H: The number wiggles.
Cedd: But that is a solid number, in Los Angeles, anyway, for a well built bar.
Ricki: That includes ALL IN. Everything. Except purchasing. The business plan is what makes this happen.
H: Banks will NOT lend you money. They won’t. It’s too risky. You have to have your plan and raise the capitol yourself. Friends and family, neighbors. Any connections. But bars are recession proof. To a degree they are recession proof. Helps to support your cause.
Cedd: Pay for a good attourney. IMPORTANT. Make most investors silent. Money only. Too many investors can kill a bar.
Ricki: Regarding property: be honest with yourself. If it’s not going to work right away, there’s another piece of property around the corner.
H:knowing what you want to do is important to arriving there. Choose your location, the real estate that will fulfill your vision with your clientele.
Cedd: Your lease or mortgage should be less than 6% of your sales. Or you are in trouble. If you can buy the real estate—it’s a great way to go. Make a lease contingent on getting a liqueur license.
The panel then fielded some questions and H., in particular, throughout the whole session, really, talked about how he created and built his bar on his own, as well as with the sweat equity of friends and the selling of shares to friends in $5,000.00 increments. There were questions about this. Levels of shares, etc. Those who take more risk with their investment are honored with more reward—a higher rate of return.
I found the dynamic interesting between H. and 213. Both have very successful models but H. has a more grass roots approach – as stated above –while 213 appears to be more traditional in that they use many resources, talents and vendors to create their vision.
Thanks for the comment, Tina. Happy that you like it. It was pretty informative! Great to have met you, as well.
+0
... written by Tina S.,
July 13, 2009
VERY nice coverage, Brian! I thought this particular seminar was the most useful of Tales by far, so it's great to have your transcript version - was also great to meet you this week. Ciao!
Today is Wednesday, July 8, the first official day of Tales of the Cocktail here at the Monteleone Hotel in the French Quarter. I got here early to get the lay of the land, pick up my credentials then discover all the nooks and crannies and event locations in the hotel.
We’ve got a smokin’ media room on the roof: The Vieux Carré Room. The view is tremendous. Tremendous! You can see the entire city laid out beneath you. The river. The Steamboat Natchez like a toy. There are tasting rooms. Industry personalities everywhere.
The panelists are Eric Alperin, Ricki Kline, and Cedd Moses. They are all associated with the real estate development company, 213, in Los Angeles, California. It focuses on nightlife, entertainment and hospitality in downtown Los Angeles. 213 is the area code there. They have opened 14 bars.
H: The key to moving on to new projects (NOTE: many of these guys have their hand in several related pies) is the first three years of being there every day. You need systems. Even how the ashtray is taken away and emptied. Write it down. Share with staff. Creates a signature of your brand. You might say to a new bartender: You make a great Bloody Mary, but now you’re going to make MY Bloody Mary.
