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How tashas Built A Recession Proof Business

When tashas was started in 2005, it had all the makings of a trendy yet unremarkable lifestyle business. Founder Natasha Sideris had no grand ambitions – she simply wanted to create a cosy lunchtime café that would cater to a neglected market. Short on cash, she even had to borrow from loansharks, because her lack of experience ruled out other funding options. So how did she turn a simple café into a brand that not only attracted the interest of a listed company, but is now also going global and is often referred to in Famous Brands circles as recession-proof?

GG van Rooyen

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Natasha-Sideris

Vital Stats

  • Player: Natasha Sideris
  • Brand: tashas
  • Established: 2005
  • Visit: tashascafe.com

Natasha Sideris is not a chef. Nor does she have any desire to be one. She is an entrepreneur. More particularly, she is a restauranteur. Sadly, in the age of the celebrity chef, the crucial (and challenging) role of the restauranteur is often overlooked. Running a restaurant is incredibly hard. At its core, a restaurant is a business — one in which exceptional customer service and constant innovation is crucial — which is why so many new restaurants fail.

Sideris has overcome the challenges associated with starting a restaurant to create a brand that is utterly unique. Like many successful franchises, tashas grew from a small sole operation into a large organisation, but unlike many other brands, it has retained its soul. tashas Is not your typical franchise. In many ways, a tashas restaurant has as much in common with an independent operation as it does with a franchise.

How did Sideris manage it — how did she create a franchise that feels unique and offers a surprisingly intimate experience, but has also proven itself to be scalable and globally appealing? The journey hasn’t been easy, but it has been rewarding.

Related: Sigma Capital Is Built On Not Settling For Less

Challenge one: Finding a niche

tashas-restaurant-layout

The restaurant industry is an incredibly crowded one, which means it can be difficult to establish a new operation. There are foodies out there who enjoy testing new restaurants, but the average customer isn’t terribly adventurous. Very often, customers stick to what they know. This, at least, is a popular opinion within the industry, and one that causes many new restauranteurs to resort to a franchise business, as opposed to an independent operation.

The franchise option makes sense. It offers a proven business model that brings with it a built-in customer base, which is why franchises in general tend to fail with less frequency than independent operations.

But Sideris doesn’t agree that franchising is necessarily the only option. Sure, franchising makes sense, but there is space for independent operations as well.

“More than ever, I think there is a desire for restaurants that offer unique experiences,” says Sideris. “People in general are more knowledgeable about food and hospitality trends today than they were in the past, and they are now always on the lookout for a place that offers something new and innovative. Franchises will always be popular, but I do think the modern dining landscape leaves a lot of space for independent operations.”

Despite owning a franchise restaurant at the time (a Nino’s), Sideris started tashas in 2005 because she identified a gap in the market that no franchise operation — or independent operation, for that matter — was filling.

“I saw that there was a demand for a lunchtime restaurant that offered exquisite food, a trendy environment and great service,” says Sideris. “No one was really catering to that market at the time, and I knew there was a promising business there.”

Challenge two: A lack of funding

tashas-restaurant

Identifying a business opportunity is one thing, getting hold of the funding necessary to pursue that opportunity is quite another. Most lending institutions will only consider a start-up loan if the entrepreneur has considerable assets that could be offered up as collateral. Franchises, meanwhile, typically demand that franchisees provide 50% of the required start-up capital in the form of unencumbered funds. The reason is simple: Access to funds matters. Under-capitalisation is one of the main reasons many businesses fail.

So where does that leave entrepreneurs who don’t have adequate funds? Sideris — desperate to realise her dream but without the money needed — was forced to resort to extreme measures. She approached what might be charitably referred to as ‘unofficial lending institutions’, but could more accurately be described as loan sharks.

With no bank willing to look at her, it was a strategy that she was forced to resort to no less than three times: First when she opened her original Nino’s restaurant in Bedfordview, then when she opened her first tashas in Athol in 2005, and finally when she converted her Nino’s into the second tashas in 2007.

It is a ‘solution’ with obvious risks, and not one that she would recommend. “The first tashas was under-financed by about R1,8 million. By the time it opened, I was in a very deep hole. Clawing myself out of it required incredibly hard work. Fourteen-hour days were the norm,” she says.

However, she doesn’t believe that a lack of funding should deter entrepreneurs from pursuing their dreams.

“Money helps, but you can get very far with hard work, tenacity and ingenuity. Don’t let money put you off. Too many entrepreneurs feel that they can’t pursue their dreams because they don’t have money. That’s just not true. If you’re willing to work extremely hard, you can make it happen.”

Related: Copeland Stables – Charné Gerber The Friesian Horse Breeder

Challenge three: Delivering a premium experience

tashas-founder

Right from the outset, Sideris knew that tashas should offer a premium dining experience — yet another reason she needed a lot of capital to get the restaurant going. As mentioned, she wanted the food, setting and service to all be of the highest quality. Accomplishing this required a fanatical attention to detail.

“Even today, I test and greenlight every single dish before it finds its way onto a tashas menu,” she says. “I also demand that only the best ingredients be used, and that absolutely everything be freshly prepared once ordered. Nothing is pre-made.”

This is an approach that one would hardly imagine lends itself to franchising, but the strategy went unchanged even when tashas was partially purchased by Famous Brands in 2008.

Sideris has maintained the same level of quality by selecting franchisees very carefully, and by offering far more training than you’ll find in the average franchise operation.

“With most franchises, head office will typically spend about a week in a store once it opens. We spend no less than six weeks in the business. When a tashas was opened in Dubai in 2014, I spent three months there. If you want people to really adopt your way of doing things, you need to expose them to it consistently. Once you’ve trained someone to do something in a particular way for six weeks, they’ll keep doing it once you’re gone.”

Of course, providing a premium product or service is expensive, which brings with it its own set of challenges. Rising costs and the weakening of the rand in particular is currently placing a lot of pressure on local restaurants.

“Not that long ago, an avocado cost R6. Today, a top-quality one costs about R22. If a restaurant charges a customer R60 for it, it might seem as if that offers a good chunk of profit. However, once you subtract labour costs, rent, furnishings, electricity and water, you’re not left with very much. The fact of the matter is, many restaurants are struggling to make ends meet,” says Sideris.

What are the options? The first is to up prices, and the second is to compromise on quality. Compromising the tashas experience is not something that Sideris is willing to do, which means that she has been forced to increase prices.

“We’ve upped prices recently,” says Sideris. “But you can’t pass all price increases on to the consumer. Over the last few months, our suppliers have increased prices twice, while we’ve only done it once. Like most businesses, we’ve been forced to absorb a significant amount of the costs.”

If you’re going to increase prices, you also need to be cognisant of the fact that customers will become increasingly demanding.

“If you’re going to increase prices, you need to provide an even better service and experience than before. You can’t ask more and then let the product take a dip in quality. Customers rightfully won’t stand for that.”

Challenge four: Franchising the business

tashas-franchise-business

When Sideris started tashas, she had no intention of ever franchising the business. In truth, franchising never even seemed like a possibility. An upmarket lunchtime café had little in common with the restaurants and fast-food operations that were typically franchised.

But fate intervened in the form of Kevin Hedderwick, CEO of Famous Brands. “I had known Kevin since about 2001,” says Sideris. “He was a regular customer at my Nino’s in Bedfordview, which I later converted into a tashas. When my second restaurant had been up and running for about a year, he approached me and asked me what my plans for the future were. I wasn’t sure what to say, and in any case, I didn’t think that a listed company would ever be interested in a small operation like mine.”

But Hedderwick was serious. Famous Brands was very interested in partnering tashas. Sideris, however, was reluctant.

“I didn’t want to franchise. I couldn’t imagine giving up control of the food and design of the restaurants,” says Sideris.

She struggled with the decision for no less than eight months. “Famous Brands was very patient with me,” Sideris laughs. “I was so afraid to make a decision.”

In the end, though, Sideris did agree to sell a majority stake in tashas to Famous Brands. The company acquired a 51% share in the brand, but she retained her two stores as a franchisee. Immediately, Sideris was in the unique position of being both franchisor and franchisee. It was clear that this would not be your typical franchise operation.

“Having my own stores has been very useful,” says Sideris. “It helps me to understand the challenges that franchisees deal with.”

Read more on Famous Brands: Kevin Hedderwick here.

Why did she finally agree to sell?

“It all came down to my belief in Kevin. He had a vision, and I knew that I could trust him. I knew he would allow me to retain the kind of control I was looking for,” she says.

Challenge five: Growing the brand

tashas-logo-nicolway

The approach that Sideris has taken to growing the tashas brand is very different from that typically used with franchise restaurants and fast-food outlets.

While she demands consistency in the quality of the food and the level of service, each of the locations is unique, while at the same time retaining the DNA of the tashas brand. This is mostly shown through the tashas design elements that inform both the interior design and the ‘Inspired By’ menu.

“If every tashas was exactly like the next one, I think people would get bored. Customers want unique experiences. I always compare the tashas restaurants to a group of close friends — they’re similar but still unique,” she says.

With this in mind, tashas makes use of a 30/70 rule, whereby 30% of the food and design of each store has to be the same as the other restaurants, but 70% can be different.

“I came up with the idea of giving each restaurant its own unique look and feel that would appeal to the local clientele. So, tashas Melrose, which is situated in the very upmarket Melrose Arch, is inspired by salmon, champagne and oysters. tashas Brooklyn in Pretoria has a Dutch Huguenot vibe, while tashas Hyde Park has a Parisian feel.”

While most franchise operations tend to operate under the belief that more is better, Sideris and Famous Brands have made the surprising decision to limit the number of local locations to the relatively small number of 15.

“I don’t think the local market can really support more tashas restaurants. There is a limit to the number of suitable locations,” says Sideris. “tashas isn’t like other franchise operations where success lies in scaling as quickly as possible. tashas has fewer locations, but higher turnover.”

Where does that leave the future of the brand? The answer lies in heading overseas. “We made the decision a few years ago to expand the brand internationally. We looked at two markets in particular: Australia and Dubai,” says Sideris. “At first glance, Australia seemed like a great idea, since it is very similar to South Africa.”

What gave Sideris pause, however, was the long distances and time differences involved. “I was worried about the logistics of setting up a restaurant so far from home. The time difference would make it hard to communicate, and, should there be a sudden emergency, getting there wouldn’t be easy,” she says. “Because of this, Dubai made more sense. There’s no great time difference and it’s only eight hours away.”

Also, Dubai proved to be surprisingly similar to South Africa in many ways. It had the same mall and restaurant culture that South Africa is famous for.

tashas Dubai opened in 2014 and was an instant success. “We were blown away by how well tashas was received in Dubai,” says Sideris. “It showed us that we have a brand that has international appeal.”

What’s next for the brand? More restaurants are already in the works for Dubai. After that, opening tashas in Australia and the UK seems like an inevitability.

Read Next: Work Smarter Says Matsi Modise

GG van Rooyen is the deputy editor for Entrepreneur Magazine South Africa. Follow him on Twitter.

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10 Gary Vaynerchuk-Approved Success Strategies

The VaynerMedia founder gets real about drive and ambition.

Nina Zipkin

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Gary Vaynerchuk

Perhaps the best way to describe Gary Vaynerchuk is “nonstop.” The founder of VaynerMedia, VaynerSports and Vayner/RSE is also an author, host and vlogger who records just about everything he does.

He is known for being relentless in his pursuit of the hustle and has a loyal audience of millions (2.4 million on Instagram, 1.58 million on Twitter and 2.3 million on Facebook) who take his advice to heart.

We took a deep dive into his blog archive to find some of his best tips and advice for making it as an entrepreneur.

1. On why failure shouldn’t scare you

“It’s the lack of fear of failing that has allowed me to make decisions so quick. People don’t make decisions because they are scared to lose. I make decisions because I want to know what’s going to happen, and then I use that information to help advise what I do next,” Vaynerchuk writes.

“The one thing I know for sure, is the outcome of what happens if you don’t decide. If you never make a decision, or deliberate for too long, all the upside or potential opportunity could be lost.”

Related: 5 Vital Keys To Success From The Likes Of Tony Robbins And Gary Vaynerchuk

2. On the value of patience

“The game is LONG. There’s so much opportunity. Optimism is the secret to capitalizing on this opportunity and that’s where you need to live. You need to figure out how good it really is and how much opportunity you have,” Vaynerchuk writes.

“Patience is practical. I push patience because I know life is long. Everybody around here is running around like it’s not. 24 year-olds running around like it ends tomorrow. Like they need it now. What’s wrong with being 26 or 41 or 73?”

3. On why age has nothing to do with ability

gary-vaynerchuk-entrepreneur

“The youth are the future of everything. They are the future of business, of society, of law and of government. We better pay attention, and empower them to be the best that they can be,” Vaynerchuk writes.

“My hope is that we lose the sentiment of age makes a difference in skill. There are plenty of 22 and 24 and 26 year olds in my office right now that work harder and smarter than some of the 50 year olds I know. It’s just the truth and we are going to continue to see this trend adopted in the marketplace. You can’t deny results.”

4. On how to build a lasting legacy

“I think my actions map to my ambitions. Because my ambition is to have legacy. I treat it that way. I treat everybody I interact with, with kindness and respect. These days, as my notoriety has grown, I still treat people just the same. I look them dead in the face and I’m just in it with them for that one minute or two or three or 10, and really care about they have to say! Because I am very appreciative and humbled for their attention. I will never get over it. I will never get over the fact that people actually care.”

Related: 8 Pieces Of Sage Advice From Ernest Corbett of Tintswalo Safari Lodges

5. On the importance of an open door policy

“I don’t think one can win in business without having the proper teammates and empowering them to play their role. Ideas can come from anywhere but the fact of the matter is you need an offensive line, you need a receiver, you need a quarterback, you need them all and I think any leader that doesn’t recognise that will ultimately not succeed in the long term. Obviously you can have a company that runs for six months and you sell it but over a 10, 20, 40 year period, there is no other strategy that will actually work.”

6. On why you need to prioritise your own happiness

“To truly be selfless, you have to give without expectation. It’s the mindset of giving with expectation, which kills everything. It just doesn’t work at all. Being selfish is the gateway to selflessness, because you learn to take care of your own personal needs first in order to use that as collateral later so that you can really, truly help.”

7. On why you shouldn’t think about how things “should be”

gary-vaynerchuk-entrepreneur-quote

“Navigating our society and our lives with the hope of how it ‘should be’ versus the way it actually is, is the quickest and least practical way to create success. This is something I say to myself every single day,” Vaynerchuk writes.

“I am in control of my destiny. Nobody else. I get to decide how I react and how I respond, and the greatest motivator to inspire perspective is the simple statement ‘What’s the alternative?’”

8. On why you must value the perspective you bring to the table

“Why are you taking somebody else’s opinion about yourself greater than your opinion about yourself? It’s the single greatest mistake that will keep you from finding happiness and confidence in who you are,” Vaynerchuk writes.

“And it’s not that their opinions don’t matter. You have to have an equal amount of respect for yourself as for others. It’s a democratic society and everyone gets a vote. So beyond the thought leaders, and politicians and school systems you have to have respect for yourself. You need to put yourself on your own pedestal and then start weighing the opinions of others proportionately to how you actually feel about yourself.”

9. On why the competition doesn’t matter

“I am and always have been consumer focused. The reason I don’t pay attention to my ‘competition’ is not because I’m brash or cool. It’s because it doesn’t matter when you’re obsessed with the end consumer,” Vaynerchuk writes.

“Because it starts and it ends with the end consumer and where the attention actually is. I will always do actions that bring you the most value because then I get value in return.”

10. On why your goal should be to keep working

“I didn’t need to get mine at 25. Heck, I don’t even need to ‘get mine’ at 41. This is the long, long game. I’m driven by the climb. It could be because I’m an immigrant and I just have this chip on my shoulder. Or maybe it’s in my DNA. I don’t like winning. I like losing. I like the struggle. I like people telling me that I can’t,” Vaynerchuk writes. “I don’t give a shit if my payday comes tomorrow. I want the game. The game is my life. There will never be a moment to quit. There’s no dollar amount. Nothing you can do to make me stop.”

This article was originally posted here on Entrepreneur.com.

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7 Motivational Habits That Drive Millionaires

Habits seem to rule us. They can hold you back, or you can adapt the right habits and prosper.

John Rampton

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wealthy-people

Have you ever been awed by the motivation of a successful entrepreneur, leader or athlete? I have. It’s not jealousy, either. Far from it. It’s respect for how motivated they are. Even though I consider myself fairly motivated, their examples encourage me to become even more focused and driven.

The good news is that by adopting the following seven habits, anyone can become more motivated:

1. Find your why

“Highly motivated people start with their WHY. WHY do you do what you do?” asks J.D. Meier in an article for Time.

“If you climb a mountain simply because it’s there, that’s probably not enough to keep you going when the going gets tough. If you know WHY you do what you do, and it matters deeply to you, then you will find your strength in any situation,” adds Meier.

Why do you want to start a workout regiment? Because it was suggested by your doctor? Did your spouse mutter a comment? Are you tired of feeling lethargic? Once you find your why, you can use that to motivate you to follow through with exercising.

2. Get your morning started on the right foot

sleeping-habits

One of the easiest and most powerful habits that drive motivation is kicking off your day correctly by having a morning routine. Think about it. Getting your day started on the right foot makes it a lot easier to stay motivated throughout the entire day.

To ensure that you wake up on the right side of the bed, try these tips:

  • Have a reason to get out of bed. It could be anything from walking your dog, making sure your kids are off to school, or squeezing in a workout before work.
  • Stretch and breathe deep. This gets the blood and oxygen flowing to your brain, and helps you get up.
  • Do something simple to start the day. I make my bed immediately once I’m up. It’s not because I want the bedroom to look presentable. It’s because it’s an easy task that makes me feel like I’ve already accomplished something — even though I’ve only been awake for a couple of minutes!
  • Create rote tasks. As explained by Due’s Miranda Marquit, “Look for ways you can make mornings easier by creating rote tasks that are easy to accomplish. We don’t like to face a day that starts hard. Do what you can to make it easier. Once you’re up and moving, you’ll feel better and eventually be awake enough to tackle the
    hard stuff.”
  • Set goals for the day. This doesn’t have to be lengthy. Just list your top priorities for the day.

Related: 20 Things Millionaires Aren’t Sharing With You

3. Change it up

There’s an old saying: Variety is the spice of life. Variety keeps you motivated to meet goals when you haven’t yet made much progress and risk falling into a rut.

Changing things up is like your workout routine. You can’t just work on your legs. Other parts of your body need some loving too. Keep doing the same exercises and you’ll soon plateau.

The same is true for any aspect of your life. Changing things up gives you a chance to break up the monotony, try out new skills, and have new experiences that can lead to new ideas or develop a new passion.

4. Chart your progress

This is a simple way for you to see how far you’ve come along. Sounds simple, but think about when you set a reading goal. Maybe you want to read more books. Your initial goal is to read for just five minutes a day, but once you start you’re reading for ten minutes and then 30 minutes and soon you’re flying through books.

If you can do 30 minutes, then why not bump up to 40? Just imagine all the books you’ll be able to read. Mark this on your calendar each and every day.

5. Create environmental anchors

working-environment

This is simply writing your goals or inspiring quotes on a Post-it or 3×5 card and placing it on the wall of your office, the inside of your car, bathroom mirror or calendar. A daily reminder of your goal will push you to accomplish it.

6. Develop gratitude

Just by identifying the one thing every day that you’re grateful for is powerful enough in helping you achieve both mini-goals and your big goals, since it develops the ability to look for a daily opportunity that you can grow from.

For example, if you’re grateful that you just landed a new client today, use that feeling and experience to secure two new clients tomorrow.

Related: The One Habit of Self-Made Millionaires

7. Discover your passion

Obsession can be an extremely powerful motivator since it creates its own motivational might. In fact, the most successful individuals are those who chased their passion and are doing what they love to do.

When you become passionate, whether it’s at work, exercising, or volunteering, it no longer becomes laborious. It becomes something that you enjoy, look forward to, and want to get better at.

This article was originally posted here on Entrepreneur.com.

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From Local To Global: Bruce Mackenzie CA(SA) Shares Top Tips On Being A Successful Entrepreneur

Managing Director of W.Consulting, Bruce Mackenzie CA(SA), has done exactly that and shares his top tips.

SAICA

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How do you grow your own SME into a global consultancy? Managing Director of W.Consulting, Bruce Mackenzie CA(SA), has done exactly that and shares his top tips.

“I started W.Consulting with the aim of providing an independent, high-quality alternative for corporates and audit firms looking for advice on International Financial Reporting Standards (IFRS). The business has grown substantially to more than 40 people working globally, providing advisory services on IFRS, audit risk and corporate finance, training and IT product development.” These are Bruce’s five top tips for achieving growth.

1. Take the risk as soon as possible

It was a nerve-wracking decision to go on my own, as CAs(SA) are taught to be risk-averse. It’s very tough to throw away a CV, but rather than spend a life regretting not taking a chance, if you have thoughts of running your own business, do so sooner rather than later, as the decision only gets tougher with each passing year.

Related: Better Thinking For A Better World

flights-to-london-long-day2. Work hard and persevere

One point seldom emphasised enough when talking of entrepreneurs is that it is very hard work and requires a great deal of energy and perseverance. I attribute my success in large measure to high energy levels. You need that.

It’s exhausting — long days, early flights to London to deliver training, and sometimes back again the same day. So, yes, you need a surplus of energy.

3. Know how to sell yourself and your business

You also need a predisposition towards selling, as any business requires sales in order to expand. Selling is something that’s in my DNA.

Especially when selling advice, it requires persistence because I know that a potential client will at some point need services like ours, so I make sure W.Consulting is top of mind when that day comes. I achieve this by keeping up the relationship, sending new ideas with no sales angle connected, mailing interesting books, and checking on how things are with the client. It’s a matter of having genuine interest. 

4. Hire trustworthy people who share your passion

There are many risks in establishing your own business and one of the first challenges stems from the need to expand beyond a one-man operation. There’s a certain comfort in doing all the work and seeing all the cash in the business as yours, but it puts a fairly low ceiling on the business’s prospects and potential income.

The decision to expand and hire your first employee is both a big decision in itself and important as to the individual you select. It’s the biggest single decision most entrepreneurs have to make — and one that most don’t make early enough. You need to scale up a business to release resources at the top. That process never really ends — whatever you’re currently doing, you have to continually ask yourself: “Could this be done down the line?”

In an SME, each hire, but especially your first, has to be somebody you can trust, someone with the same objectives as you. Instead of having 9 to 5 people, rather employ someone who will do whatever is necessary, regardless of what time of day it is.

My philosophy is to hire people with passion and who preferably know what they’re doing, and then pay well to get them.

Related: 10 Things Successful People Tell Themselves Every Day

5. Continue to innovate

Most businesses fail not for want of an entrepreneurial idea, but because of management and accounting basics like cash flow. CAs(SA) already understand these basics and so arguably can concentrate on the actual operations of the business. However, because CAs(SA) can earn good money in the corporate world, most opt for the easy route in the corporate environment.

The future and success of any business is to keep on doing what it’s doing well. Bruce attributes the success of the business to its culture of continuous innovation: “It’s easier to sell something new,”  he concludes.

Visit www.saica.co.za

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