The new CNBC show “Restaurant Startup” aims to be the “Shark Tank” for eateries. But instead of just pitching the business plan, the contestants are expected to put money where their customer’s mouth is.
Each week a team with a winning business plan will get $7,500 and 36 hours to create a pop-up — a process overseen by one of the rock stars of the Los Angeles culinary scene, Waylynn Lucas.
“The biggest mistake I see is that people think that if they can create something that tastes good, that they can create a business,” Lucas tells me during an interview at her popular Fōnuts(pronounced faux-nuts) shop.
It’s no secret that the majority of entrepreneurs who get into the restaurant business fail within their first year. Lucas says it’s just as important to know percentages and margins as it is to know your way around a kitchen.
“Knowledge is power,” says Lucas. “If you want to get into the business, get into it.”
Lucas just might be the perfect personality to guide neophyte food entrepreneurs along. After spending years as a pastry chef for high-profile Los Angeles eateries such as Bazaar by Jose Andres and Patina, Lucas was feeling exhausted and unfulfilled.
“I’d been working 80-hour work weeks,” Lucas recalls.
At the time, Lucas’ neighbor, voice-over actress Nancy Truman, was testing out baked good recipes to fit her gluten-free lifestyle. Truman hit on a winning taste and decided to sell her wares at the local farmers market. Thinking that she wouldn’t be able to sell whole loaves, Truman turned the treats into doughnut shapes. She sold out. Fōnuts were born.
If you haven’t heard, cupcakes are out and doughnuts are taking over as the sinful treat of choice. But Fōnuts are a healthier twist on the pastry. They’re baked, not fried, and many are gluten-free and/or vegan. But it’s the exotic flavors such as strawberry buttermilk, blueberry Earl Grey and maple bacon that have helped Lucas and Truman build repeat business. Right now the modern spin on the coffee and doughnut shop is an L.A. favorite, but don’t expect them to stay a local secret for long.
Lucas knew Truman was onto something, and the two started to have conversations about building a brand. When a retail space opened up in the heart of West Hollywood’s Third Street dining scene, Lucas jumped on it.
“It was January when we started having the conversation, and by August we were up and running,” says Lucas of the 2011 opening.
But budding entrepreneurs should not expect such quick results. Lucas credits having built a solid reputation in Los Angeles for her quick launch.
“I don’t think I would have taken the risk if I didn’t have a fanbase,” says Lucas. “I knew people would be interested in what I was doing.”
Lucas notes that she had a career’s worth of contacts and poured every last cent of her savings into the endeavor. She was a seasoned pro. And still, there was a steep learning curve.
“I put every last cent of my own savings into it,” says Lucas. “But the hardest part was having to wear all the hats as a business owner.”
Negotiating the lease, sourcing the interior design materials, painting the space and trademarking the logo were all tasks Lucas had to take on — all far outside her comfort zone as a pastry chef.
“It’s impossible for a human being to know everything. It was a learn-as-you-go process,” Lucas recalls.
One of the best moves she made was to hire a PR firm for the first year, she says. Because of that, she was able to take press trips to New York City and received positive publicity from outlets such as InStyle and Oprah Magazine.
“I tell people that PR is going to be a lot of money, but it’s going to be worth every single penny,” she says.
Surprisingly, once she opened her doors, it wasn’t just foodies who flocked to the space, but Hollywood. You may recognize Lucas from the recent Bravo reality show “Eat, Drink, Love,” which followed Lucas and four other women working in the Los Angeles food scene. In true Bravo fashion, it wound up focusing more on the manufactured drama than the food.
“Television wasn’t anything I sought out,” says Lucas. “I had been approached for a lot of shows and that show was about my life, but for me it was a business decision.”
To her credit, Lucas came across as the most level-headed character on the program. While it exposed a bit of her dating life, she wasn’t the one in tears or catfights. And the exposure earned her extra business.
“I saw sales at Fōnuts increase 40 to 50 percent during the run of the show,” says Lucas. “And we’ve kept an increase of 30 to 35 percent since then.”
Lucas hopes to impart some of the lessons she’s learned on to the aspiring entrepreneurs on “Restaurant Startup,” which you can catch on Tuesdays at 10 p.m. on CNBC. In addition to Lucas, the show will feature restaurateur Joe Bastianich and Texas chef Tim Love, who may back the contestants’ startups if they prove successful.
“What I love about our show is that it helps someone and we get to watch their dreams come true,” Lucas says.
For more from Bizwomen.com, sign up for our free email newsletter.
