Volume 27• Issue 5 The News and Information Source for Restaurants and the Foodservice Industry June/July 2016 www.foodservicenews.net Third Year’s a Charm Nontraditional Kyatchi mixes Japanese cuisine and hot dogs in near-perfect harmony

Dennis Monroe

Editor’s note: Each month, Dennis Monroe reviews a new restaurant’s business proposition, based on his years of being active in the restaurant industry both as a business attorney, an owner and operator.

HERE’S MORE THAN ONE reason hot dogs are on the Tmenu at a Japanese sushi restaurant on Nicollet Avenue in Minneapolis. One, they’re a welcome item on the kids’ menu; two, Chef The Yakisoba Dog with fried soba noodles, onion and red ginger, Hide Tozawa, who traveled on the served with a side of Japanese potato salad. road as personal chef for former Twins player Tsuyoshi Nishioka is an avid fan; and three, they are on the three occasions I dined there, Revenue: Owner Sam Peterson deliciously nontraditional, including which was smart because there are didn’t have the table-turn numbers one topped with fried soba noodles lines out the door on the weekends, at his fingertips when we talked, but and red ginger. which can add up to a 45-minute wait. said Kyatchi feeds about 700 people The at Kyatchi, an authentic Kyatchi’s menu has a European a week. The check average is $25 Japanese restaurant, is that it only feel to it with Japanese flavors. to $35. It’s a small space with 48 features certified, sustainable fish. It Only about one-third of its menu is seats inside, including a bar and sushi was conceived for the Kingfield and sushi. The extensive menu includes bar, and 18 to 20 on the street-side Lyndale neighborhoods, a new mecca soup and salad, small plates, rice, patio. Outdoor seating is a must in for foodies, by Kim Bartmann, Sarah noodles, kushimono (grilled skewers), this neighborhood. It adds valuable Peterson, Sam Peterson, Tozawa and a hot dog section with four different seats and attracts people who might Anne Saxton (who just opened The versions, as well as a long sushi menu. otherwise go somewhere else to Draft Horse in NE Minneapolis). The On the beverage side, there’s a saki enjoy a good meal and the sunshine. website says Tozawa is the “curator” selection, about 14 beers on tap and Peterson said they’re “not too far from of the restaurant, a nice thought. a reasonable wine selection (mostly [being] a $1 million restaurant.” As I continue my reviews of whites). During our visits, guests Rating: I give 2 out of 4 stars. I only neighborhood restaurants, it’s ranged from a 6-year-old eating tofu give this lower number because it is a interesting to note that Kyatchi had with chopsticks to young couples to tough proposition to make money at a slow opening and, now in its third families and older people. a restaurant doing $1 million or less year, has taken off. I made reservations Here’s how my formula pans out: in revenue.

Reprinted with the permission of Foodservice News, June/July 2016 Ambiance and Capital Investment: personnel may be needed. There’s a need for less protein in rice and noodle Kyatchi has a fun ambiance, and you can prominent statement in the menu about dishes. For instance, the ramen noodle see Kim Bartmann’s influence. Bartmann pursuing a sustainability strategy as a dish (which are a staple of the Japanese (Bryant-Lake Bowl, Tiny Diner et al.) is a partner with Monterey Bay Aquarium and diet) is $12, with six pieces of pork. This master at doing big things with minimal its program, Seafood Watch. Weekends has to benefit food costs. They have a capital improvements to spaces. A large, require three sushi chefs to keep up with generous happy hour, where you can get wall-size mural incorporates the Japanese the demand, Peterson says. Although, a number of items in the $5 to $7 range. theme with pictures of fish and repeat taking reservations is a pain, Peterson says Rating: 3 out of 4 stars. images of Babe Ruth’s bat replaced with they need to offer that service to reward Overall rating: 3 out 4 stars. Because a paper parasole. One big bolster wraps their loyal customers. Plus, he adds, a the restaurant has already survived two around half of the seating area in the reservation is a guaranteed sale. Labor years of climbing sales to become a , back. Since the location was previously costs about 34 to 35 percent, because I anticipate it will be around for the long a restaurant space, the investment was experienced servers are required and term, nine innings or more. After all, they quite a bit less than it appears—around “sushi chefs are expensive,” he says. seem to have circled all the bases to serve $200,000, according to Peterson. Rating: 3 out of 4 stars given the memorable Japanese food. Rating: 4 out of 4 stars, because of effectiveness of the table turns and Dennis L. Monroe is a shareholder and Chairman the capital investment. The ambiance is everyone is working in multi-faceted rolls. of Monroe Moxness Berg PA, a Minneapolis- clever and fun, perfect for a neighborhood Food Costs: For a neighborhood based law firm specializing in multi-unit franchise restaurant. restaurant that serves sushi and such, finance, mergers and acquisitions, and taxation. In addition to this column, he writes a monthly Service: Kyatchi’s service is excellent. Kyatchi seems to have higher menu prices column for the Restaurant Finance Monitor and The times I dined there it seemed they than most Japanese restaurants in the is often quoted in industry publications. He were a little heavy on the servers (but I Twin Cities. But that’s been explained by was CEO of Parasole Restaurant Holdings from 2009 to 2011. You can reach him at dmonroe@ was there before the crowds). Because the higher priced fish required. Peterson mmblawfirm.com. one of the missions of the restaurant is to says food costs are about 25 percent. educate diners on sustainability, additional Balancing that higher cost of fish is the