Have you ever found yourself flipping through the channels on your television, landing on a cooking show, and becoming mesmerized by food preparation? Or tuning in to one of those reality “contest” programs like Top Chef, Chef’s Table, or Good Eats and thinking, “I could do that…easy!” If you have, you’re not alone. Probably millions of wanna-be chefs and really great cooks have taken the bold step into the world of restaurant ownership without thinking it through. Before you get in line and find yourself in the next TV version of Hell’s Kitchen, you might want to listen to someone who has been pretty successful at running an eating establishment and has lived to tell the tale.
Owning a restaurant wasn’t at the top of the list of career choices for Don O’Byrne. In fact, “It wasn’t even on the list after leaving Los Angeles and catering to that capricious crowd,” Don said. Don left Shreveport mid-college not knowing what he wanted to do with his life. He worked various jobs in restaurants, five-star hotels, and in sales in Los Angeles, Newport Beach, Atlanta, and Dallas before he decided to return to Louisiana and finish his degree in Political Science. In 2002, after experiencing corporate “layoffs” one too many times, Don began laying the groundwork for opening a restaurant that would feature authentic coastal Baja cuisine. While working odd jobs to fill in the gap, he looked for investors, a location, and a bank that would help him get his dream off the ground. It was after multiple denials by banks and investors that Don finally secured an SBA loan from a small local bank and with everything he had in his savings, he poured it into Don Juanz. He eventually filed and secured a registered US trademark for his creation.
As with anything worth doing, it took hard work, lots of mistakes, and numerous bumps in the road but finally, Don Juanz was opened in Bossier City. It was the first fast-casual restaurant in Bossier City, and it took a while to train his guests on the menu and the concept. Don is proud to say that 85% of the original menu items are still being served today. “Every year we keep doing the same thing and we just keep getting better at it,” He says.
In 2016, Don opened a second location in Shreveport and is currently finalizing a third location in Tyler, Texas. He and his wife, Amy, and their son, Bailey (who will be handling the Tyler Don Juanz) are the perfect examples of working smart and with purpose to achieve success. Don is quick to say that in the restaurant business, you get something different every day. “It’s like opening a Pandora’s Box,” he said. “You can start the day with an agenda and as soon as you walk through the door, you get a new agenda handed to you.”
It’s a fact that operating a restaurant is one of the toughest businesses to be in. According to the National Restaurant Association, about 60% of restaurants fail in their first year, and 80% fail within the first five years. But television and movies that use a restaurant as a backdrop make it look so easy, right? Behind the scenes are high operational costs, an inventory that can and will spoil (leading to waste), and there’s always a struggle with maintaining and managing a workforce. Then there are the strict food safety and hygiene standards and strict regulations that have to be followed. Not to mention, a competitive market filled with customers who have high expectations and cameras on their phones with apps linked to review sites.
Still want to open a restaurant? If so, then take a couple of pages from Don O’Byrne’s playbook.
First, Don suggests you heed the warning of Warren Buffet, “Never invest in a business you cannot understand.” Next, be prepared to drive the car you built. In other words, you should have the ability to do everything that is done under your roof because one day, you will have to do it. How long can you go without getting paid? Cash flowing an owner’s salary often gets put on hold until all debt and expenses are paid and sometimes it can be a long time before that happens. Know who your demographic is. Don’t count anyone you know as part of this demographic. Look for economic indicators to ensure there’s enough of your demographic to support your efforts without a competing restaurant closing to do so. Changing customers’ palettes takes time.
You shouldn’t rely on anyone but yourself to be with you long-term until they’ve worked with you for at least five years. Build a strong team that wants to work with you. Be their role model by showing a willingness to step in to help them do their job and achieve success. You can’t do this if you’re only throwing money into it and hoping it’ll pay off. Learn the culture of your employees, otherwise, you could end up working in somebody else’s business and learning their culture. Don has been lucky to have quite a few long-term employees, which is rare in this industry.
“Watch your flock. If you can’t count sheep, you surely won’t be able to count your inventory twice a day to remain profitable in this business”, said Don. Your operational setup should start in a good location, which can significantly impact a restaurant’s success. It should also be immaculately clean and comfortable so that your guests will want to return again and again. Don’t try to be everything to everyone. Stick to a menu that you know and do it well. Advertise where you think your demographic grazes.
Lastly, Don warns that owning a restaurant is not for the faint of heart. It’s a huge sacrifice and a test of your physical prowess. Undertaking a restaurant launch can be hard on personal relationships because you will be putting in long hours and time away from family. It can be scandalous. In the first month of opening his Shreveport location, Don and Don Juanz was a target of social media libel filled with obscene and insidious comments that were directed at injuring the business’s reputation. The “ghost writer” even attempted to libel Don’s family which led Don to seek legal assistance from a detective and an attorney. “We learned that the “ghost writer” used nine different online IP addresses that were tracked to a certain geographical area that led us to who we think the “ghost writer “was. Then it stopped abruptly,” said Don. You must be willing to persevere and overcome catastrophes such as this and unforeseen events like COVID-19 or the stock market collapse in 2008. “We’ve overcome so much adversity just to do business here that I thank God I’m still here”, said Don. Covid set Don Juanz’s expansion plans into Texas back by four years, but with perseverance, Don has managed to expand his restaurant brand at a time when many others are shuttering their doors.
Are there benefits to owning a restaurant? Absolutely. You are your own boss. You can pride yourself on your product and your ability to boost the local economy by providing jobs that, in turn, deepens your involvement in your community. There is also the potential for a pretty good financial gain if you work smart and are willing to learn and adapt as you go.
