Kevin Rathbun tells how to start a restaurant

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.

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