REACHING OUT BENEFITS MATTER In a virtual world, Companies looking for personal contact savings should be careful takes on added when cutting benefits. meaning. STRATEGIES CONNIE GLASER IDEAS FOR GROWING BUSINESS HOW TO 44A 45A December 11-17, 2009 Page 43A

Entrepreneur’s burger joint brings sizzle to The daily grind revitalization

By Michael Hunter Greensboro, N.C., food purveyor to provide STAFF WRITER a very specific, custom ground meat. omething about the historic Brounstein also offers turkey burgers and a Sweet Auburn Curb Market black bean and quinoa veggie burger. An sparked Alex Brounstein’s award-winning chili recipe, good quality imagination. bacon and fresh ingredients for the side Fresh off a trip to items round out the menu. Burgers can be California, the real estate ordered in five styles or customized professional saw similarities according to a customer’s taste. between the market and the Using his expertise in brand marketing, Sfamed Farmers Market in Los Angeles he designed a sleek, stripped-down look located at the corner of Third and Fairfax. for the logo and menu graphics and out- He pieced together a development plan, fitted the space in white subway tile with the ultimate result of which was black and red accents. In homage to the Grindhouse Killer Burgers, which style of cinema that shares its name, Broustein opened Sept. 14 and is intro- B-movie action flicks are projected on the ducing a younger crowd to the 85-year-old tiles above the bar. curb market in downtown . Marketing by way of the Internet and Grindhouse is part of the hamburger social media played a big role in the restau- renaissance taking place around Atlanta. rant’s early success. A chance conversation In 2007, a Wall Street Journal article with a food blogger in a local restaurant led declared the Ghetto Burger at Ann’s Snack to mentions on several Atlanta food blogs, Bar in Kirkwood the “Best Burger in whetting the appetites of burger fans for America” and Atlanta a premier city for Brounstein’s opening day — the status of hamburgers. Brounstein, a former senior which was constantly updated on the restau- associate at real estate company Robert rant’s Facebook page. When that day Charles Lesser & Co. (RCLCO), was arrived, there were long lines and favorable driving around Atlanta on a Saturday reviews from the city’s food critics. scouting under-used properties when he “It just snowballed,” Brounstein said of drove by the curb market. He went in, the impact of social media on the restau- looked around and saw potential. rant’s success. “I thought maybe we would “I had recently been on a trip to Los get one review and then all these reviews Angeles and had seen their Farmers came in. It’s the story of the market that Market in [the] Fairfax [district],” he said. makes it interesting.” Interest piqued, he did some research Brounstein’s marketing and discovered a mutual friend was on the effort’s continue to have a do- board of directors of the Municipal Market it-yourself flavor. He and Maria Company, which oversees the market for Moore Riggs, the owner of a the city of Atlanta. He did some market new coffee shop in the market, analysis and developed a business plan Café Campesino, recently took wherein he would serve as the developer of it upon themselves to paint the the market, overseeing the revitalization Sweet Auburn Curb Market and seeking out a large investor to fund the name on the side of the improvements. He crunched the numbers, building. New signage, to put together a PowerPoint presentation and replace signs lost in the tor- made a pitch to the board. nado of March 2008, is in the “He came to us at a time when we were works but could be months off working on concepts,” said Cooper and Brounstein has customers Holland, the president of the board and to attract who don’t know senior projects manager at Central Atlanta where the Curb Market is. Progress. Among the concepts the board PHOTOS/BYRON E. SMALL Riggs said she and was pursuing was a Community Burger dreams: “I had always wanted my own little business, so this was a great Brounstein would continue to Development Block Grant from the city, opportunity to test an idea I had for this burger place,” said Alex Brounstein. partner on marketing, particularly to which had received funding from federal State University students. stimulus money. “It’s a natural; our customer base over- Although the board determined Market on a much more personal level. co-owner of a family bakery and gourmet laps,” she said. Although she was aware Brounstein’s plan wasn’t the direction they “I thought, ‘The market’s going to be grocery business in Boca Raton, Fla. that Alex’s burger restaurant was coming intended to pursue, they were pleased improving, so why don’t I get in on the “I had always wanted my own little busi- when she signed her lease, Riggs says the when he decided to take a different ground floor,’ ” said Brounstein. ness, so this was a great opportunity to test biggest selling point on the decision to approach and become a tenant of the He negotiated a lease on a space that was an idea I had for this burger place,” he said. locate in the curb market was Market market. Ultimately, the city awarded the already largely built-out, a former restau- According to Brounstein, the secret of Manager Pam Joiner. market $725,000, which will be spent on a rant called Red’s. While his background is Grindhouse’s success is in the meat itself. “She has taken this on as a project to much-needed new roof, improving energy in brand marketing and real estate law, He originally planned on grinding the meat return it to its former glory,” said Riggs. efficiency and infrastructure repairs such Brounstein had always had a culinary bent, on the premises but was dissuaded. “She’s got the vision to turn this place into as new restrooms. working as a short-order cook on Martha’s “It’s a headache to grind meat,” he said. a true public market.” Brounstein, having been laid off from Vineyard during his college years and also “It’s better to leave that to the pros who Joiner, a New Orleans native, came to RCLCO in December of 2008, decided to behind the stove at Terra Grille in do it.” the market in 2005 to audit the Market’s get involved in the Sweet Auburn Curb Brookhaven. He had also served as He partnered with Southern Foods, a ➤ See THE DAILY GRIND, 46A Page 46A • December 11-17, 2009 STRATEGIES ATLANTA BUSINESS CHRONICLE Homework crucial step when buying a business By Julie Bird the business, visiting customers and sup- some of the early risk. Revenue often drops AMERICAN CITY BUSINESS JOURNALS pliers and going over the books, says Bo Keys to making under new ownership, especially if the pre- iovanni Coratolo has bought a lot Fishback, vice president for entrepreneur- vious owner was highly identifiable as the of businesses over the years. Now, ship at the nonprofit Kauffman Foundation an acquisition face of the business. as executive director of small and in Kansas City, Mo. “It’s a little like dating ◗ Don’t fall in love with the idea of A 5 percent to 10 percent loss in the cus- G midmarket business councils at the someone before you marry them,” he says. owning your own business and let tomer base is typical, Fishback says. That U.S. Chamber of Commerce, his advice is Coratolo at the U.S. Chamber says a pro- that blind you to the challenges. loss can be reduced if the original owner simple: Do your homework. spective buyer also needs to understand ◗ stays for a while. “Preparation, preparation, preparation” why the owner is selling the business. Thoroughly research the company Financing the purchase is especially is the key to striking a good deal, he says. “There are always two reasons — one you want to buy to understand its challenging in the current economic envi- Enlist the help of trusted legal and finan- he’ll tell you and one he won’t,” he says. financial position, earnings potential, ronment, Daugherty says. Banks remain cial advisers to carefully research the That means it’s important to check for and place in the market. Enlist the reluctant to extend credit. A lender also business, its health and its potential. any hidden liabilities. Is anything lurking help of professionals for due dili- may discount the value of assets being “You can’t afford not to do due dili- that could taint the company’s brand name, gence. used to collateralize the loan, he says, gence,” Coratolo says. “It doesn’t have such as a problem with a product or fraud ◗ Take advantage of business counsel- reducing the size of a loan. to be high-priced legal help. It all depends by a principal? ing and entrepreneurship resources It’s also important to factor in how on the scale of the business.” And, Coratolo says, make sure you know such as the Association of Small another year of a lagging economy could Herb Engert, Ernst and Young LLP’s whether the fundamentals of the business impact the buyer’s ability to sustain the Business Development Centers strategic growth markets leader for the are strong enough to support the business, he adds. mid-Atlantic region, recommends using a investment. (www.asbdc-us.org) and SCORE, the That said, observers say buying a busi- cross-functional team well-versed in tax “Are you entering into an industry that’s Service Corps of Retired Executives ness may be less expensive and risky than and human resources matters. in transition?” Coratolo asks. “How will (www.score.org). starting one from scratch. The business One key factor to look for is the quality technology eliminate your competitive has established a track record that a smart of earnings. Are earnings and cash flow edge? You don’t want to buy into an old buyer can leverage. projections realistic, sustainable and based technology.” on a reasonable financial model? “It’s a Such a “marketplace audit” is critical in industry standards. And software similar reality check on the forecast and the determining the potential for growth, says to what banks use can rate the strength of How will you grow your assumptions built into it,” Engert says. Karen Kerrigan, president and CEO at the a company based on financial documents, business in 2010? Businesses often look less profitable Small Business and Entrepreneurship he says. Tell us about it. because of tax-minimizing accounting Council in Oakton, Va. A buyer also needs to determine if he practices, says Scott Daugherty, executive “The owners may want to sell when the will have enough cash to run the acquired director of the Small Business and business has peaked,” she says. “Look at business. “The biggest thing that sinks Technology Development Center in the competitors. Are they a threat? How most people going into business is being Raleigh, N.C. Daugherty advises looking can you differentiate yourself in the global undercapitalized,” Coratolo says. “One at several years of tax returns as well as marketplace? Can you survive the market little bump in the road and you’re stuck.” financial reports. Even the smallest of trends and any regulatory changes? It can be important to develop a close businesses often use QuickBooks or other What’s the client customer base, and are relationship with the seller. Fishback says accounting software with detailed income they happy?” some sellers will issue a note that defers

and expense data. Daugherty says trade associations often some of the purchase payment over time. CONTACT If possible, spend several weeks or have detailed data that can help you mea- The seller, if retained after the purchase, THE EDITOR THORNTON KENNEDY months with the current owner learning sure a company’s performance against can also ease the transition and mitigate (404) 249-1059 [email protected]

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'PDVT BYRON E. SMALL The daily grind Sweet Auburn Curb Market 8IFOZPVSFUSZJOHUPSFBDIPVUUPBDFSUBJOJOEVTUSZ UIFSFTOP Continued from 43A Founded: May 1924 CFUUFSXBZUPHFUZPVSNFTTBHFJOGSPOUPGUIBUJOEVTUSZTMFBEFST finances and was asked by the board to Tenants: 26 active tenants, including BOEEFDJTJPONBLFSTUIBOUPBEWFSUJTFJO"UMBOUB#VTJOFTT stay on as day-to-day manager. fresh meat/seafood, produce, baked $ISPOJDMFT'PDVTTFDUJPOT Of Brounstein, she says, “He’s abso- goods, coffee shop and 11 restaurants lutely brilliant as a marketing person. Alex being here has started people talking Size: 50,000 square feet, with 24,000 $POUBDU&NJMZ#PZMF square feet of rentable space qFCPZMF!CJ[KPVSOBMTDPN about the market.” The next challenge she said, is “how do we get Alex’s customers to walk around the market and stop at the bakery?” Joiner said the new roof should be on in farmer’s market featuring Georgia pro- 61$0.*/('0$644&$5*0/4 the next 60 days and the renovations paid duce will make its debut at a special event $PNNFSDJBM3FBM&TUBUF#VJMEJOH8IPT8IP'PSFDBTU for by the grant money will be completed on Saturday, Dec. 19. It’s important for the 4QBDF%FBEMJOF%FD during the next year. “The revitalization of market to support and maintain its the market will be somewhat of an organic current customer base, while reaching .BUFSJBMT%VF%FD process,” she said. “This is something that out to new customers, GSU students and myself and a lot of people have been tourists, she said. -BX"DDPVOUJOH working on for a long time.” Brounstein estimates the median 4QBDF%FBEMJOF%FD She pegs the beginning of the revitaliza- income in the area surrounding the .BUFSJBMT%VF%FD tion as the arrival of DiRienzo’s Deli, an market has tripled in the last 10 years. Italian deli that opened in 2005. In addition “It’s the right time. I don’t think the to the arrival of recent tenants like Curb Market could have been revitalized Grindhouse, Café Campesino and the 10 years ago. The first step was just getting Sweet Auburn Bakery, a Christmas tree new people in here. The market is a fun vendor was added this year to an unused place to come and explore.” 8IFSFMPDBMCVTJOFTTDPNFTçSTU outdoor area of the market and an indoor Reach Hunter a [email protected].