- 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.
Challenge one: Finding a niche
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
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.”
Challenge three: Delivering a premium experience
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
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
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.
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Scaleup Learnings From Our Top Clients – What The Most Successful Entrepreneurs Do Right
So, how do our successful clients move through these constraints to scaling up? We see four key drivers of success, and they are: people, strategy, flawless execution and finance.
You’re out of your start-up boots, staff is increasing, your client base is growing, revenue is up and you’ve proven your case to the market. Now it’s time to scale up. The challenges of this vital growth phase are different and it’s a time that demands different mindsets and different actions. In a world littered with small business failures, it helps to be well-prepared for scaling up using a proven methodology. At Outsourced CFO, we get an inside look at the success factors of our clients who are mastering the transition.
On the one hand, scaling up is a really exciting phase; this is what moves you into real job creation and making an impactful contribution to economic growth. On the other hand, it is really hard to scale up successfully. We see three major constraints that limit companies’ transition from start-up to scale-up:
The business has to have the leadership that can take it to the next level. When you start scaling up, especially rapidly, the founders can no longer do everything themselves. The team must grow and include new leadership talent that can take charge and execute so that the founders are working on the business instead of in the business.
The processes, procedures, networks, systems and workflows of the business all need to be scalable. This is imperative when it comes to your infrastructure for the financial management of your business. You’re only ready for growth when your infrastructure can seamlessly keep pace.
Scaling up demands more innovative marketing and storytelling so that you can more easily connect and engage with the new employees, clients, network partners, investors and mentors that need to come along with you on your scale-up journey.
Businesses that build a market conversation and a compelling brand narrative during their start-up phase are better positioned to have this kind of market access when they need to scale up.
It is critical to have the right people on your team. Our successful entrepreneurs have what it takes to attract, inspire and retain top talent. A strong team of smart, ambitious and purpose-driven people who love the company and want to see it succeed contribute greatly to a world class company culture. They are adept at communicating a compelling vision and establishing core values that people can take on. These entrepreneurs are tuned into the aspirations of their people and focus on developing leaders in their teams who can in turn develop more leaders.
It is planning that ensures that the right things are happening at the right times. At successful scale-ups strategies and action plans are devised to ensure that the most important thing always remains the most important thing.
Strategy includes input from all team members and setting of good priorities for the short, medium and long term. Goals are clear and everyone always knows what they are working towards. The needle is continuously moved because 90-day action plans are implemented each quarter to achieve targets and goals that are over and above people doing their daily jobs.
Top entrepreneurs are not just focused on what operations need to achieve, but how the business operates. They have the right procedures, processes and tools in place so that everyone can deliver along the line on the company’s brand promise. Frequent, quick successive meetings ensure the rapid flow of effective communication. Problems are solved without drama. There is no chaos in the office environment. Everyone is empowered to execute flawlessly to an array of consistently happy clients.
Everyone knows that growth burns cash. A rapidly scaling business faces the challenge of needing a scalable financial infrastructure to keep the company healthy. Our successful entrepreneurs pay close attention to finance as the heartbeat of the business, ensuring that everything else functions. They look at the tech they are using for financial management and for the ways that their financial systems can be automated so that they can be brought rapidly to scale. The capital to grow is another vital finance issue.
The best way to finance a business is through paying clients on the shortest possible cash flow cycle. However, when you are scaling up and making heavier investments in the resources you need for growth, it is likely that you will need a workable plan for raising capital. Our scale-up clients know the value of accessing innovative financial management that provides high level services to drive their business growth.
Navigating the scale-up journey of a growing private company is one of the hardest but most rewarding of careers to pursue. Having people in your corner who have been through this journey before helps take a lot of pain out of the process. No growth journey looks the same, but there are tried and tested methods that will – if applied diligently – lead to definite success. Happy scaling!
That Time Jeff Bezos Was The Stupidest Person In The Room
Everyone can benefit from simple advice, no matter who they are.
When you think of Jeff Bezos, a lot of things probably come to your mind.
You likely think of Amazon.com, a company he founded more than twenty years ago, that’s completely disrupted retail and online commerce as we know it. You probably also think of his entrepreneurial genius. Or the immense wealth that he’s built for himself and others. You may also think of drones, Alexa and same-day delivery. Bezos is a visionary, an entrepreneur, a cutthroat competitor and a game changer. He’s unquestionably a very, very smart man. But sometimes, he can be…well…stupid, too.
Like that time back in 1995.
That was when Amazon was just a startup operating from a 2,000 square foot basement in Seattle. During that period, Bezos and most of the handful of employees working for him had other day jobs. They gathered in the office after hours to print and pack up the orders that their fast-growing bookselling site was receiving each day from around the world. It was tough, grueling work.
The company at the time, according to a speech Bezos gave, had no real organisation or distribution. Worse yet, the process of filling orders was physically demanding.
“We were packing on our hands and knees on a hard concrete floor,” Bezos recalled. “I said to the person next to me ‘this packing is killing me! My back hurts, it’s killing my knees’ and the person said ‘yeah, I know what you mean.'”
Bezos, our hero, the entrepreneurial genius, the CEO of a now 600,000-employee company that’s worth around a trillion dollars and one of the richest men in the world today then came up with what he thought was a brilliant idea. “You know what we need,” he said to the employee as they packed boxes together. “What we need is…kneepads!”
The employee (Nicholas Lovejoy, who worked at Amazon for three years before founding his own philanthropic organisation financed by the millions he made from the company’s stock) looked at Bezos like he was — in Bezos’ words — the “stupidest guy in the room.”
“What we need, Jeff,” Lovejoy said, “are a few packing tables.” Duh.
So the next day Bezos – after acknowledging Lovejoy’s brilliance – bought a few inexpensive packing tables. The result? An almost immediate doubling in productivity. In his speech, Bezos said that the story is just one of many examples how Amazon built its customer-centered service culture from the company’s very early days. Perhaps that’s true. Then again, it could mean something else.
It could mean that sometimes, just sometimes, those successful, smart, wealthy and powerful people may not be as brilliant as you may think. Nor do they always have the right answers. Sometimes, just sometimes, they may actually be the stupidest guy in the room. So keep that in mind the next time you’re doing business with an intimidating customer, supplier or partner who appears to know it all. You might be the one with the brilliant idea.
This article was originally posted here on Entrepreneur.com.
How Sureswipe Built Its Identity By Building A Strong Company Culture
Culture is unique to a business, it’s the reason why companies win or lose.
A company’s culture is its identity and personality. Since this is closely linked to its brand and how it wants to be viewed by its employees, customers, competitors and the outside world, culture is critical. The challenge is understanding that culture contains unwritten rules and that certain behaviours that align to the culture the company is nurturing should be valued and cherished more than others.
At Sureswipe, the core of our culture is that we value people and what they are capable of. We particularly value people who are engaged, get on with the job, take initiative, are happy to get stuck in beyond their formal job descriptions, and who sometimes have to suck up a bit of pain to get through a challenge.
We include culture in everything we do, so it’s a fundamental element in our recruitment process. In addition to a skills and experience interview, each candidate undergoes a culture fit in the form of a values interview. We look for top performers who echo our core values (collaboration, courage, taking initiative, fairness and personal responsibility) and have real conviction about making a difference in the lives of independent retailers. If we don’t believe a candidate will be a culture fit, we won’t hire them.
If we make a mistake in the recruitment process, we won’t retain culture killers, even if they are top performers. This is such a tough lesson to learn, but it liberates a company and often improves overall company performance.
Culture should be cultivated, constantly communicated and used when making decisions. At Sureswipe, we often talk about what it takes to win and have simplified winning into three key elements: A simple, yet inspirational vision; the right culture; and a clear and focused strategy. The first and third elements can be copied from organisation to organisation. Culture on the other hand is unique to every business and can be a great influencer in its success.
Catch phrases on the wall are not the definition of culture
A strong culture is purposeful and evolving. It’s what makes a company great, but also exposes its weakness. No company is perfect and it’s important to acknowledge the good and the bad. Without it, we cannot ensure that we are protecting and building on the good and reducing or eradicating the bad.
Mistakes happen. That’s okay. But we are very purposeful about how mistakes are handled. Culturally we’re allergic to things being covered up or deflected and have had great learning moments as individuals and as an organisation when bad news travels fast. It’s liberating to ‘tell it like it is’ and almost always, with a few more minds on the problem at hand, things can be rectified with minimal impact.
Culture should be built on values that resonate with you and that you want to excel at. In our case, some are lived daily and others are aspirational in that we’re still striving for them. In each case we genuinely believe in them and encourage each other to keep living them. This increases the level of trust within the team, as there is consistency in how people are treated and how we get things done.
We are always inspired when, after sitting in our reception area, nine out of ten visitors will comment on the friendliness of staff. We hear their remarks about how friendly the Sureswipe team is or a potential candidate will talk about the high level of energy and positivity they experience throughout the interview process.
These are indicators that our culture is alive and well. It’s these components of our culture — friendliness, helpfulness and positivity — that cascade into how we do business and how we treat our customers and people in general. Being able to describe your culture and support it with real life examples is a great way to communicate and promote the type of behaviour that is important and recognised within the organisation.
Culture doesn’t just happen
We are fortunate that culture has always been important to us, even if it wasn’t clearly defined in our early days. As we grew it became important to be more purposeful in the evolution of our culture. About four years ago, the senior leadership team and nominated cultural or values icons were mandated to relook all things cultural.
A facilitator said to us, “You really love it when people take the initiative, and get very frustrated when they don’t.” That accurate insight became core to our values. We love to see people proactively solve problems, take responsibility for their own growth, initiate spontaneous events, change their tactics or implement new ideas. It energises us and aligns to the way we do business.
We celebrate growth and love to see our staff getting promoted due to their hard work and perseverance. We recently had one of our earliest technicians get promoted to the Regional Manager of Limpopo. It was one of the best moments of 2018.
Be purposeful with culture, describe it, communicate it and use it in all aspects of business. Culture should change. Don’t allow phrases like ‘this is not how we do things,’ or, ‘the culture here is changing,’ to stifle the growth and development of your culture. When done correctly change is a good thing. Culture is driven from the top but at the end of the day it’s a company-wide initiative. Design it together with team members from different parts of the organisation to get the most from it. And then make sure everyone lives and breathes it.
The best ROI is achieved when you stop wasting money.
Peter Drucker once said that businesses have two main functions — marketing and innovation — that produce results. “All the rest are costs.”
If you agree, that means that the average business has a lot of fat to trim. Obviously you can go overboard trying to cut costs too. My philosophy has been to look at some of the general areas where you can add some efficiency but not at the expense of impairing your most valuable resource — your focus.
The following cost-cutting measures will do that. Think of these as adding value to your company, whether it’s time, creativity or a closer connection to your consumers.
Uncover inefficiencies in your process
This is where I begin. In fact, it was analysing the inefficiencies of legal communication and knowledge sharing that led me to create Foxwordy, the digital collaboration platform for lawyers. I noticed that attorneys in our clients’ legal departments were drafting new documents from scratch when they could pool their knowledge and save time by using language that a trusted colleague had employed in a similar document. Business is all about process. When you create a new process, or enhance an existing process, you will drive cost efficiency.
Refine your process, then automate
If existing processes are lacking, it is time to create process. If you have processes, but they are not driving efficiency, it’s time to redefine your process. Either way, a key second step is refining processes that are needed in your business. Only then can you go to automation, since automating without a process will result in chaos — and won’t save time or money. Similarly, automating a poor process is not going to give you the cost-saving results you are looking for.
Thanks to the Cloud, there are very accessible means of automating manual processes. For instance, you can automate bookkeeping functions with FreshBooks and use chatbots to interface with clients — for very basic information. If you’re a retailer, a chatbot on your site can explain your return policy or address other frequently asked questions. Automating such processes allows you to spend more time focusing on clients and customers. Technology alone isn’t a panacea for all business functions, but if you find something you’re doing manually that can be automated, take a look and consider how much time and process definition automation would save you.
Rethink your outreach
Marketing and outreach are usually big and important challenges for an organisation. In my experience, there are two main components to successful marketing — knowing your customers and using the most effective media to spread your message. For the first part, I recommend polling. There are various online survey services that offer an instant read on what your customers are thinking. You may think business is humming along, but a survey could reveal that while consumers like your product, a few tweaks would make it even better.
For the second part — marketing messaging — once you have a firm idea of your marketing messaging, Facebook is a great vehicle for outreach. The ability to granularly target customers and create Lookalike audiences (from around 1 000 consumers) can help grow your business.
Scrutinise your spend history
There are tools that can help you assess spend history and find cost-cutting opportunities. For example, you might be able to take advantage of rewards or loyalty programmes to reduce common business expenses, like travel, or consolidate vendors for a similar function. If you have a long-standing relationship with a vendor, negotiate better pricing.
The most important elements to keep in mind are resources that make your company special. Your company may be built on one person’s reputation and expertise. Guard against tarnishing that reputation with inappropriate messaging in advertising or social media. If your company’s special sauce is intellectual property, protect that too. But everything else — ranging from physical property to salary and benefits — are costs and should be considered negotiable. — Monica Zent