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Jun. 21, 2005
Copyright © Las Vegas Review-Journal


Solutions dished out for restaurant failure rate

By JENNIFER ROBISON
REVIEW-JOURNAL





Kep Sweeney, founder of a hospitality consulting company, stresses team, concept, real estate and investment as the keys to success.
Photo by John Locher.

Local restaurant consultant Kep Sweeney said he believes the success rate in his industry doesn't have to be so low. He estimated that nine of 10 eateries fail, and said becoming the "tenth entrepreneur" -- the one who succeeds -- is possible with solid guidance.

So Sweeney, founder of the Acceleron Group, a hospitality consulting company, launched his Restaurant Entrepreneur Seminar Series to help new operators understand the basics of the restaurant business, and to help experienced operators hone their skills.

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"We want guests to leave being aware of the four elements to starting a restaurant: team, concept, real estate and investment," Sweeney said. "You have to know how to develop your team and your concept. You have to know how to attract investors, and you have to know how to identify the proper location and negotiate a lease for your restaurant. We want people to leave being aware of how to negotiate. We want them to understand what agreements to sign with investors and the five key things landlords are worried about."

Sweeney said about 300 people enrolled in the series' first all-day annual seminar, which was held Monday at the MGM Grand Conference Center.

Guest speakers included Franco Harris, a Pro Football Hall of Famer who played with the Pittsburgh Steelers and now operates a food marketing and distribution company.

Sweeney himself has restaurant-sector experience.

He began as a chef in the early 1990s, cooking for restaurants in Washington, D.C., and San Francisco, among other markets. He opened a restaurant in Boulder, Colo., to rave reviews on the cuisine side. But the food was virtually the only thing that went right, Sweeney said.

"It's a pretty classic story. I wanted to concentrate on the food and the service. I didn't really want to concentrate on analyzing revenue streams and expenses. I was basically flying blind. I got lucky and got out of it without any damage, really."

So Sweeney returned to school, earned his master's in business administration and joined Solomon Bros. as a restaurant analyst. Two years ago, he started Acceleron, and last year, he published "The New Restaurant Entrepreneur," a how-to guide for opening an eatery. He wouldn't divulge the names of the clients he consults for, but said they include national chains and celebrity chefs.

Sweeney said casino executives signed up for the restaurant seminar, as did representatives from the University of Nevada, Las Vegas' food and beverage management and hotel management schools. In addition, chefs and managers from established restaurants attended.

Seasoned restaurateurs will learn "a clear and easy way to identify the strengths and weaknesses in their company, and to then know where they should be focusing and what they can do better than anyone else in the world."

Sonny Ahuja, owner of the 6-month-old Bleu Gourmet near West Charleston and Rampart Boulevards, said he wanted to attend the seminar to learn new ideas for his business.

"I'm very new in the restaurant business, and I've never worked for a corporate restaurant," said Ahuja, who owned a wine store before opening Bleu Gourmet. "I think I have a good grasp on it, but I know only the way I see things. I've never seen other people's philosophies, and I've never learned from an organization that was already up and running. Hopefully, I'll get insight from successful people."

Ahuja said employee retention and allotting marketing dollars are two operational issues that have been more problematic than he expected.

Sweeney said helping restaurateurs like Ahuja is his "crusade."

"Every day, I meet with dynamic people who don't need to go through the pain they're going through," said Sweeney, who said he'll add a retail seminar this fall. "I've walked in their shoes. I've had to decide whether I pay my mortgage or buy chickens for the restaurant. I know what it means to not make payroll. I think we can all be stronger together by imparting some of the things we've learned over the years."




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