News

If you're looking for the secret to creating buzz, don't bother: There isn't one, say Hemant Bhagwani and Derek Valleau.

They should know. The restaurateurs opened upscale Amaya the Indian Room on Toronto's Bayview Avenue last summer. Ever since, they've been filling their 46-seat restaurant twice every night of the week. But the partners haven't taken out a single ad the entire time. "We just talked to as many people as we could," says Valleau. The pair reached out to the numerous contacts they'd amassed over 28 years in the restaurant business, and alerted potential diners by posting their menu on the front door of Amaya before it opened. "People are curious," says Valleau, "and they talk to each other." All that talking worked. Within weeks of opening, Toronto's major dailies, along with Toronto Life magazine, had given Amaya glowing reviews, and the restaurant was getting reservations from as far away as Los Angeles.

In July, Mr. Bhagwani and Mr. Valleau followed up on the success of Amaya, with Bread Bar, in North Toronto. Just as Amaya did last summer, Bread Bar has opened to rave reviews.

Amaya and Bread Bar may have both taken off overnight, but only after years of planning. To discuss that planning, and the pitfalls and profits that await aspiring restaurateurs, Mr. Bhagwani and Mr. Valleau are here now. To ask them a question or leave a comment about the challenges of the restaurant business, please click here . To read Globe and Mail writer Rasha Mourtada's article on Amaya in the latest issue of Report on [Small] Business Magazine, please click here . To read Chris Nuttall-Smith's review of Bread Bar please click here

Editor's Note: globeandmail.com editors will read and allow or reject each question/comment. Comments/questions may be edited for length or clarity. HTML is not allowed. We will not publish questions/comments that include personal attacks on participants in these discussions, that make false or unsubstantiated allegations, that purport to quote people or reports where the purported quote or fact cannot be easily verified, or questions/comments that include vulgar language or libellous statements. Preference will be given to readers who submit questions/comments using their full name and home town, rather than a pseudonym.

Noel Hulsman, Globeandmail.com, writes: Hi Hemant and Derek, thank you so much joining us today. I think there's a enormous romance around the notion of opening your own restaurant ... You get to eat wonderful food at your leisure, host your friends, mingle with the guests, etc. All entirely true, I'm sure, but I'm wondering if you can go into a little depth on some of the elements of the business that people tend to gloss over. What's the one thing you need to know before you sign that lease and start interviewing chefs?

Hemant and Derek write: It is true, restaurants are romantic! but what many people fail to see is the hours of preparationa nad planning that goes on before the doors open each and every day. Before you sign on the dotted line, one must have a sound, well researched business plan. Great location and an amazing chef doesn't spell success! Understanding demographics and a willingness to be flexible and adjust your beliefs is the key to success.

The most important thing before you start interviewing chefs? You really need to know your concept inside out, who your customers are going to be and if they are interested in eating your food! Your chef needs to be onboard with your concept and your agenda, not his/hers. It is your business and the chef works for you. That needs to be established from the get go.

Before signing the lease, does the location match your concept and can your customers get to you? Obviously negotiating skills are a must. Cut yourself the best deal, and ask for everything! All one can say is no, but if you don't ask, you don't get!

Abheek Nangia from Toronto writes: This question is for Mr Bhagwani. I understand that you have been in the restaurant business for a long time. I was wondering how did you decide on getting into the business. I do not have a restaurant background but am really passionate about getting into the business. What advice would you give someone who wants to get into the business?

Hemant writes: The restaurant business seems very glamourous and can be so too, however there is a lot of hard work involved, 14 hour days are normal. Many people make the mistake that it is easy to run this business, it requires a lot of passion and training is essential. Make sure you train in a restaurant first before you jump in and do it yourself.

I was always sure of where my passions lies and trained for this profession at Hotel school in Switzerland. I knew when I was quite young that I was destined for a career in the hospitality industry.

Alex Duchastel de Montrouge from Canada writes: How would you suggest a young chef with a limited cash flow go about opening his own restaurant. Banks in this day and age seems less then forthcoming with loans for the restaurant industry, and with no large assets to use as collateral and not a lot of personal money to invest, I seem to have come to a stalemate. Would you suggest trying the route of a co-signer, an outside investor or going on the fly and just trying to wing it with the limited finances I can get personally?

Hemant and Derek write: The banks in Canada are there to assist entrepreneurs, however you must have a sound business plan and roughly 40% of personal equity. When you go to the bank to speak with a manager, make sure you ask for a government guaranteed small business loan where there is not collateral needed. Please make sure you have the capital funds to sustain your business for a minimum of six months.

RP from Toronto writes: How do you get people to walk into a brand new restaurant? Specifically an ethnic restaurant? Does being an ethnic restaurant present any unique challenges or opportunities?

Hemant and Derek write: People are naturally curious and want to try new things. If in fact you are planning to open an ethnic restaurant, we believe the key to success is to present yourself in a manner that makes your establishment "user friendly". That encompasses decor, service, the format in which your menu is written. You must know your clients, give them what they understand.

Noel Hulsman writes: On Bayview Avenue in Toronto, you opened Amaya and Amaya Express simultaneously, one oriented to fine dining, the other focused more on the take out market. That's not an uncommon strategy, but do you not run the risk of one establishment cannibalizing the other? Do you have two entirely separate audiences in mind? Or is the idea that one drives traffic to the other?

Hemant and Derek write: Interesting question....with an upscale operation, the last thing we wanted was to compromise service in the fine dining restaurant, or to make customers feel uncomfortable walking into a restaurant casually dressed to pick up food. We made a decision to create two distinct entities. We have found that the two operations compliment each other. The neighbourhood is quite diverse, young families that may not want to go to a sit down restaurant, so we are offering a choice... it has been very successful thus far. The two operations are fulfilling two distinct needs, so they are not in competition.

Noel Hulsman writes: Last Saturday, Chris Nuttall-Smith, a highly respected Toronto restaurant reviewer, gave Bread Bar an extremely positive review in the Globe and Mail. I know a number of people who made the trip to the restaurant specifically because of Chris's review. But what if that review had been lukewarm, or worse, scathing? As restaurateurs, what do you do? Do you pour over the criticism and fix out how to fix the problems identified? Do you ignore, figuring the reviewer blew the call? What advice would give to someone who has just seen their restaurant panned in print?

Hemant and Derek write: For us, if this review had not been positive we would have gone back to the drawing board and reaccess our concept, menu, service, decor, pricing, etc. We realized that before opening Bread Bar, the spotlight was already on us because of Amaya. We knew that we had to be better than Amaya, that we would be under the microscope. We had to deliver an exceptional experience.

Criticism is a reality of life, both professionally and personally. This is a difficult queston to answer. Our recommendation is to stay focused and service the customers you have. You must win them over one guest at a time and learn from your mistakes. You also need to take a hard look from the customers point of view. Is the review accurate in anyway? Idenitfy the problems, fix it and move forward.

Noel Hulsman writes: How does the review process normally unfold? Generally speaking, do you know that the reviewers will come in the first couple of weeks? And then, once the reviews are out, do you avoid drawing any conclusions before everybody has weighed in?

On the issue of customer service, and connected to this, brand management ... How do you assess how your pleased people are? If you see the same faces coming back, that's obviously a good sign, but Canadians are notorious, I understand, for not complaining to the business, but instead telling all of their friends. How do you manage that? Or can you?

Hemant and Derek write: We don't know when a reviewer will visit. Once the review is out, positive or not, this is when the hard work begins. If it is positive, then expectations have been established and one must deliver the goods, so to speak. This is ongoing and boils down to a committed team who holds your beliefs and understands the importance of hospitality. This is not an easy task, be any means.

We try to address problems as they occur, not after the fact. Once the guest leaves the restaurant, it is very difficult to fix a poor experience unless that guest takes the time to voice their concerns in the form of a complaint. Customer service is our biggest challenge and it boils down to the people working the front lines... managers, servers, etc.

Return business is our best measure of how well we are doing.

Noel Hulsman writes: Hemant and Derek, thank you both very much for your time and insights today. It has been an extremely interesting and informative discussion. Best regards.