He started out washing dishes, then busing tables, waiting on diners and mixing drinks. Now, Eddie Johnson is dreaming of riches, as well as thinking up new dishes.
He’s a managing partner of Atlanta-based C&M Gastronomy Group and co-founder of Publik Draft House (PDH), a restaurant in a pub (“gastropub”) next to the Fox Theater.
Johnson, a self-described military brat born in Tokyo, said an economics degree has helped him in business, as well as financial support from his life partner, Roy Corti.
Based on the number of alcoholic beverages and meals he sells, he thinks the economy is on the mend. In fact, Johnson, 46, and his business partners plan to franchise the PDH concept.
Q: Tell me about C&M Gastronomy Group. What’s it consist of?
A: Three restaurants, Publik Draft House, Baraonda and Fig Jam. I'm a managing partner and a co-owner of PDH.
Q: You started PDH in 2009 when the economy was struggling. Was that a good move?
A: Yes. But we had a good concept, a good location and a good reason. The PDH is located where the lounge Bazzaar was, right next to the Fox. The Bazzaar was more of a nightclub and it was hurt by the recession. It was owned by my friends and partners, Costanzo Astarita and Mario Maccarrone.
Q: So what happened?
A: I went to work at Baraonda in 2001 as a bartender and got to know the owners, who are now partners. In 2009, I presented them with a business plan to make Bazzaar a gastropub, and they went for it. So I bought in. I knew then that gastropubs were the wave of the future. They are big in Europe. And our plan is to make it a franchise business.
Q: What is a gastropub?
A: A gastro pub is a bar and restaurant that serves high-end beer and food.
Q: What was the revenue of PDH in 2012?
A: About $1.5 million.
Q: What’s the total for all three establishments?
A: About $4.9 million. It was $2.5 million at Baraonda, and $900,000 at Fig Jam.
Q: How many employees do you have?
A: We have 25 at PDH, 33 at Baraonda and 15 at Fig Jam.
Q: So you’ve risen from bartender to part-owner in a pretty short time?
A: Yes. PDH was previously a nightclub, a watering hole called Bazzaar. We knew we needed to reinvent ourselves. We came in and overhauled it, put up TVs, light systems, and made it a friendly place.
We are doing well because we’re in a high traffic area. This is an area where people eat lunch and want dinner. So I said this needs to be a lunch-dinner location, a meeting place where you can still have a late night drink.
Q: What about Baraonda and Fig Jam?
A: Baraonda has Naples-style pizza. It's an Italian restaurant and bar in the heart of Midtown.
Fig Jam is in south Buckhead, with classic fare with a modern twist.
Q: Are you part owner of those, too?
A: No. I do some consulting and meet with my partners about PDH and our plans to franchise.
Q: What do you do?
A: I do everything. I manage the kitchen at PDH. I will teach how to cook, and bartenders how to do proper pouring. A general manager has to do everything. I've been in the business for more than 30 years, so I have a lot of experience.
Q: Isn’t the restaurant business very risky?
A: It's risky. It takes a lot of money. You have got to be on your toes at all times, look at trends, baby it, repair it.
I see a lot of people giving up. But it’s a relationship game. You work on your relationships with customers and notice how they react and act. And you adjust.
Q: In pricing?
A: I studied economics. People react to prices. As the recession got worse, people bought wine by the glass, not bottles. People might not get an appetizer, or cut down on drinks. A lot of high-end restaurants went out of business.
So you have to pay attention and build relationships, friendships. You learn peoples’ names, about their families, what they like to eat and drink. When they come back, you talk about grandkids.
Also, in downturns, you don’t see big groups as much. Individuals might drink a little more in bad times. You might have to adjust prices. We have high-end cocktails and low-end cocktails.
Q: What are you starting a franchise business in a weak economy?
A: Things are getting better. Our customers are choosing to spend more, with higher ticket items being purchased. There is interest in our concept. We have two individuals really interested now. One is in Chattanooga and one in Cumming. We are working with a consulting group.
Q: What does your plan call for?
A: The franchise fee is $35,000. The minimum someone needs is $400,000 to get going. We are a comfortable place, somewhere people can go three or four times a week, watch TV and hang out.
Q: What are the benefits of franchising?
A: For prospective franchisees, the benefits of franchising include the ability to rely on the experience of the franchisor and its operating system, ongoing training and marketing support, advertising, efficiencies and a recognizable brand name with proven success.
Q: Are you going to try to franchise the other two restaurants?
A: At this time, we are only focused on franchising PDH. With the gastropub industry flourishing across the United States, we believe PDH is a concept that can transfer to multiple cities, including additional locations in the Atlanta market and other Southeast cities, such as Charlotte or Tampa.
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