Business
Business

Kevin Rathbun tells how to start a restaurant

By Matt Kempner
March 14, 2014

Kevin Rathbun, 51, is the owner of a string of intown Atlanta restaurants: Rathbun’s, Krog Bar, Kevin Rathbun Steak and KR SteakBar. His business, a decade old this spring, garners nearly $10 million in annual sales, he says.

Rathbun’s advice on starting a restaurant:

  • Customers come second. Employees come first. If they aren't happy, the customer won't be.
  • Hire nice people. You can train up on other skills, but you can't train nice.
  • Keep combined rent, taxes and utility costs under 10 percent (preferably under 6 percent) of projected revenue.
  • Negotiate lower escalators in your lease (the automatic percentage that the rent increases annually). Keep it to 3 percent or less. Understand the escalator's impact or you'll be out of business.

About the Author

Matt Kempner is an award-winning journalist who seeks out intriguing twists about people and subjects beyond what the AJC might typically cover. A former columnist and editor, his past assignments have included business investigations, energy, the economy, entrepreneurs, big business, consumer spending, politics, government and the environment.

Follow Matt Kempner on facebookFollow Matt Kempner on twitter
More Stories

Keep Reading

The median sales price in metro Atlanta was $390,000 in October, down more than 2% from the same month a year ago. (Hyosub Shin/AJC)

Credit: HYOSUB SHIN / AJC

Atlanta area home prices fell in October with steep declines in some places

Metro Atlanta's median sales prices dropped in October as more inventory is on the market.

1h ago

This Atlanta startup helps restaurants accept payments. It just raised $21M.

Sunday, a digital payment platform for restaurants, is looking to expand across the U.S. with its latest funding.

After Democrats’ wins, groups ask PSC to delay key Georgia Power vote

Environmental groups have asked the PSC to delay a vote on whether to allow Georgia Power to undertake a historic expansion until after newly elected Democrats are seated.

The Latest

Automatic emergency braking, lane-keeping assist, blind-spot monitoring, and adaptive cruise control were once luxury options. Now, these Advanced Driver-Assistance Systems, also known as ADAS, are commonplace in newer vehicles, working so smoothly that many of us rely on them without a second thought. Photo courtesy of iStock.

Credit: SPECIAL

Why your car’s safety tech needs maintenance, too

OPINION

Saying goodbye to the Porsche 718 Cayman — for now

OPINION

2026 Nissan Leaf: Simple to live with and priced right

Featured

University of Georgia students are seen entering and leaving the main Library on the Athens campus on Monday, Sept. 8, 2025. (Miguel Martinez/AJC)

Credit: Miguel Martinez-Jimenez

UGA to pay $100K H-1B visa fee only ‘in exceptional circumstances’

The University of Georgia could soon limit the number of foreign workers it employs, a result of the $100,000 fee imposed on some H-1B visas.

Georgia judges deal blow to ICE’s new mandatory detention policy

The ruling is a first-of-its-kind to come out of Georgia’s Middle District.

At the Cobb jail, a new kind of rehabilitation starts at the horse barn

Joshua Arp is one of two Cobb County jail detainees taking part of the sheriff’s office new equine therapy program meant to help him stay out of jail.