Why did I sell Beach N' Boba?

Hey guys! I know a lot of people have been wondering why I sold Beach N' Boba when it was doing particularly well. A lot of loyal customers were devastated at the news and I wanted to definitely explain myself to all of the BnB loyalists.

First of all, BnB was almost exactly what I wanted it to become. It was a place to do homework on slow nights, a place to hang out with friends and grab some food/drinks on the way to the beach or after a long week of school and work. The customer support was amazing and the staff always went above and beyond which will always be appreciated.

So what led me to sell? I was exploring the option after the new year when I had bought out my business partner; I threw it out there and there were a few takers. I continued to run the business while talking with potential suitors who were amazed at what we had done with the property within a little over a year. If you didn't know what was there before, it was a Chinese American diner that was doing a miniscule amount of business. We took over the property and made it into a destination spot all the way in the Outer Sunset far away from most other businesses. We built a brand in a very short time and our customer support and loyalty never wavered.

So onto the list of reasons to sell:

1. Price: I was offered a very good price and it was a win-win proposition for both of the parties with regards to the payout structure.

2. Cost: Even though Beach N' Boba was making a fair amount of money, costs were continuously growing. The minimum wage hit hard...the first month of the wage going from 11.05-->12.25 I paid about 15-20% more in wages! Not only that, the increased cost of rent, insurance and inventory was slowly decreasing the amount of money I was making every month.

3. Space: Honestly, I felt like the amount of space I needed to make BnB exactly what I wanted. I wanted an actual walkway for customers to get to the cash register and then have a space to wait for their to-go drinks. I wanted many more tables that would allow as many people to play cards and board games as long as they wanted to stay. I wanted more space for my employees to be able to work and be able to walk and talk with my customers. The limited amount of space definitely hampered my ability to make BnB what I wanted it to be on an even larger scale.

4. Time: When I opened my business, what I wanted to do was eventually establish a place that would produce residual income for me without me worrying about it. Even when I got to a point where BnB was almost completely running itself during our open hours and I rarely worked, I always had to do behind-the-scene things. I still went to buy inventory twice a week, manage and handle paychecks and staffing, deal with government things relating to taxes among many other annoyances. I still dedicated many hours to BnB even though I may have rarely stepped foot inside. You may ask, why didn't you hire someone to do those things? It again reverts to cost. If I had paid someone to do all the things that I did in the background, I would probably not be taking any money home, especially after the minimum wage went up.

5. Growth Ceiling: What I mean by ceiling is the ability to continually make money while other costs increase. In terms of price point, I was already very close to the maximum that I was going to be able to charge for my drinks and food. While the prices were pretty reasonable, I didn't believe that continually raising prices on items was a sufficient nor feasible way to continue to run the business. It would drive loyal customers away while turning new customers away as well.

Overall a lot of very important factors played a role in my decision. I am so happy that Beach N' Boba inspired such strong loyalty and played such an integral role in the community. I couldn't have asked for a more dedicated staff or a more devoted clientele. I will try to continually write in this blog and I would love everyone to continue following my thoughts and ideas here!

-Wilson

Lesson 1: Winners make markets

Sorry that I have not posted in such a long time. I have been super busy and this blog fell by the wayside. I feel like this is an important place for me to write down stuff throughout my experience and through reading books on economic psychology that are awesome to share and pass around. I will try to write in this once a week from now on.

Before I begin today's post, I am reading a book called Uncommon Sense, Common Nonsense Jules Goddard and Tony Eccles. The book is broken down into very small chapters (3-5 pages each) about many different topics. The first important one that I want to talk about winners make markets.

The books says that success rests on intellectual courage to resist the most obvious strategy. What it means by this is that conformity does not make you a winner. You have to be different and stand out from the crowd.

Establishing your own niche in business is hard to do. Most business try to conform to the "winning strategy". They see certain places and think man that is a winning strategy and we should follow suit. But what happens is this: everyone new places that only tries to replicate old success is either going to find it really hard to steal the old retailer's customers, or find that they are serving the same population of people as the established retailer.

Beach N' Boba was meant to be different. I wanted it to be more of a sit down place so that you can actually take time and enjoy your drinks, so with that we paired an awesome snack menu that would go well with boba drinks. I wanted to provide quality customer service and quality drinks in order for our customers to become so loyal that returning to BnB becomes engrained in them. I don't imagine that many other places receive "love notes" from their customers or has a crowd that makes such a strong connection with the staff.

It is hard sometimes to think about how to differentiate yourself. I think the long term goals of a place are really important to look at. This leads on to what I am going to talk about next post but basically, places that are in it for purely financial goals are destined to fail because in the end, it is the customer centered objectives that keep people coming back.

Feel free to leave your comments below.
-Wilson

Long post coming! Lots of updates!

I have been wanting to write a blog post for a long time now but have failed to find the time. Fortunately today is a slower day and I will basically write about everything I remember doing since the last post I wrote. So this post will be a lot of paragraphs that don't really cohere to any theme. Apologies in advance! *side note* In my previous posts, I realized that I was spending a lot of time going over and changing sentences to make them sound better. But starting with this post, I feel like I am going to leave the sentences how I originally wrote them. My reasoning is because I want it to sound more authentic to myself, and not changed up to sound more formal. I want this to be a place for me to put down my ideas and not really censor nor correct myself (which we are all taught to do)!

Also none of these things come in chronological order, but enjoy anyways!

A good friend of mine, Vincent Ng, had a free day a few weeks back so he generously used half of his day to come out and talk to us about business plans and also to see and give ideas for the interior of the cafe. He loved the location, being two blocks from the beach with major bus lines running across and having a big enough dining area. He recommended a few things during the time we had together. First, he knew that we were trying to cater to the teen-young twenties crowd and encouraged us to make the interior match that population group. Basically he told us that the current interior seemed more fit for a regular cafe, but not fit for the young, hip crowd that we were looking to capture. With his ideas, I changed the interior paint, added LED lights, found some awesome artwork to put on the walls, and make it seem more fitting for the "hangout spot" name. Another thing he talked about was branding. I had read about it before but didn't think how to fully put it into effect for a restaurant/cafe. How I took branding is that I am "branding" this location as a "hang out" spot. Basically people want to know WHY I am here. What is my purpose of opening this place? I am opening this place as a hangout spot for young people because there is a lack of places like this in the city.  Branding is important because it is something your name is associated with whether it be true or not. Apple is 'hip" and "popular". Mcdonalds is "cheap" but "unhealthy". When people say Beach N' Boba, I want them to associate it with "cool" or "THE hangout spot". I am very thankful to Vince for all the advice he gave me that day. It is always helpful having a mentor who has been through this before.

Hired another waitress today. She has experience, is good looking, speaks three languages, AND can work nights. Need more like her!

The renovations are coming together smoothly. The last layer of paint is going up, we are going to move in the equipment Monday and start cleaning the carpet and all of the dishes and cups and such soon after. The last week of October will be used to start cooking in the kitchen and making sure all our recipes translate into the "big" kitchen. 

Was taking pictures near Ghiradelli Square and talked to a photographer who set up a booth there. She takes such awesome pictures that I asked her if we could work something out with my artist's corner and her giving me photos to put up in exchange for giving her exposure and her name and info up on the wall. I would even help her sell them if necessary! So we are still in talks with that.

The business cards came in today and they look great! The t-shirts will come in next week and we are finishing the storefront logo tomorrow and getting that made right away!

Living at home saves me money but at the same time, I need to move out ASAP once I get the business settled. It is a very stressful environment for me. I know that my family loves me and that they really care but the way they talk to me is just so degrading. I know how to take out the trash, I do not need you to teach me how to wipe the table... weird things. I am frustrated by how they still treat me like a little kid. I was living away from home for 6 years and I'm still alive. I'm sure if they just stood back and looked, they would see I can handle things (if I am starting my own business, you would think they know I can handle things) but they insist on "babying" me on almost everything.

Finally got into contact with the main supplier in Northern California. He is actually in San Francisco and delivers to the location which is awesome.

 I think I am hitting the end of this post so I will continue tomorrow.

Restaurant updates

We have had a few setbacks in the renovations in the restaurant. The first contractors we hired to do everything else with the restaurant don't know how to cut out the stove/3 burner that is connected to the wall and other appliances. This will probably delay us at least another few days as we search for someone who knows how to do this.

With that being said, I have done a lot in this time. I have interviewed a few people who all seem to fit what I would like in employees. The ones that have experience are going to be helpful because they know how to converse with customers, how to work as a team, and work in the kitchen. The ones that are younger and do not have that experience are friendly and charismatic and willing and wanting to learn.

We have been working on the menu and decided on grilled banana s'mores as a clever way of delivering the tasty beach snack in a different light. We are also thinking of other ways to make bacon cinnamon rolls. The current way takes 25-30 minutes and we need to somehow make it quicker but just as good. Thoughts?


Hopefully we will get the bank loan for the equipment we are seeking to purchase. Without it, we will be a lot tighter on capital than I feel comfortable with.

-Wilson

Updates

Let's update our status!

Menu:
Still working on some food and dessert items. The drink items are largely accounted for but we are still tinkering with food items that are sure to be a hit. How does sweet and spicy chicken wings sound? You want some pizza fries with that? How about some stoner tots? Bring on the smore dessert rolls! Any suggestions?

Location:
The old restaurant has finally moved out, so after the long weekend, the contractors will come and work on setting up the grease traps and then we can also get the place thoroughly cleaned and the back repainted and redone.

Staff:
Still trying to find a few more part-time waitresses/servers.

Paperwork:
Need to finish licenses, permits and other things but can't file fictitious business name yet because the old place hasn't officially "closed down" with the city.

Further updates soon!

Why am I doing this?

There is always a reason to start your own business. Independence, being your own boss, financial gains.
I agree that all of these are important rationales in wanting to own a business.

The main reason I want to be successful is to be able to take care of my family, my current and future one. My parents have taken care of me through now and I want to build something in order for me to take care of them as they get older. They think I am gambling my future away. I'm not. I trust in my business sense, my intuition, and myself. But even if I were, I'd wish they would realize that for them, it's worth it.

The worst thing my mother ever said to me was this. "How can I trust you to take care of me when I'm old"? Yes this is a rough translation from Chinese and she said it in the heat of an argument. But I don't think she realized how hurtful this one sentence was to me. I flipped a table, smashed my TV, and just broke down and cried. How could she say something like that to me? She came up to apologize, realizing what she had said. But it hurt so badly. I think about it to this day. Maybe she didn't really mean it but if she had that in her mind to actually say it out loud... what kind of son am I that the thought of not taking care of her ever crossed her mind? I actually tear up every time I reread this. Everything I do is for my family. Making money off yu-gi-oh and nursing so my parents don't have to worry about me. Putting money away for my car so my parents wouldn't have to chip in. Saving here and there to give some cash to my sister so my parents don't have to.

I am doing this for my family. I want to be able to make enough money at something I enjoy so that I can live a long life while being able to take care of my family. Working as a nurse in Southern California did not make me happy, almost depressed even, and it certainly didn't allow me to save money fast enough to take care of my family in the next 5 years. With my sister's college tuition and car needs mounting, and my parents' retirement age impending, I feel like this is a calculated and necessary risk that I must take on for the greater well-being of my family. Maybe this sounds altruistic. Who doesn't want to make money for themselves to spend? But the truth of the matter is that no amount of money can make up for my family and starting this business can allow me to hopefully have the best of both: money to take care of me and my family, doing something I thoroughly enjoy.

-Wilson

Does service matter?

 Start where you are. Use what you have.  Do what you can. –Arthur Ashe

Wow, it has been almost been two weeks where I haven't posted. I have been very busy at work (and also took a few days off to celebrate my birthday!) and now I can finally write about a topic I think is very important. SERVICE.

When I ask my friend's opinion, most of them say this. I come here for the good food and/or cheap prices. That's it. They also think that good service equates to higher prices. Why? Why do people think that good service has to go hand in hand with high prices? Why do I have to put up with the waiters who don't give a rat's ass at a local establishment just to get decent food? Why do most only expect great service at an expensive sit down hoity-toity French restaurant? I think that great service should be had at any level of eatery, regardless of price and location.

 How many times have you had a chance to go into another restaurant or cafe but end up going to your usual spot? There are plenty of reasons but one is service. They greet you with a cheery "good morning!" They remember your name and your usual order. They make you feel comfortable and at home. This is a great feeling and definitely something that should be done more of.

I think there are a few reasons that there is a lack of service in certain places.

1. Under compensated employees: It's hard to have your staff be very friendly and enjoy working if you do not pay them enough. If they are overworked and underpaid, then you will not get the best out of them. This also leads to high turnover which in the long run means higher expenses related to more training and decreased customer service.

2. Ineffective management: First it's important for the management to look for employees who are the right fit for their job. You should not look for great quality service from a very quiet person who you hired to be a waitress. It's not in her nature to be cheery and talkative with the customers. Maybe she can change, but with all that work and talk, you might as well have hired someone else who fits your needs in the first place.
Secondly, a lack of proper training and discipline by management can lead to future breakdowns in service. That is why companies should have a strict service goal to make sure that all employees know how to treat and interact with customers.
 
I think great customer service plays a major role in returning customers. It makes the environment more pleasant for everyone. Another side note I want to talk about is the importance of the staff getting along. It is important that the staff treats each other with respect and dignity because this leads to teamwork and strong flow in the restaurant. Having that sense of family and comradery leads to more effective work and improves morale, which indirectly leads to better customer service. A happy employee is one that will do their work more effectively and efficiently while treating customers well.

Without the employee, the store owner has nothing. That is a point that many people seem to lose track of but I will always remember.

-Wilson