CEOSURFER
After losing a fortune in the 1990s, Randy Schoch of Ruth’s Chris rebounds as the owner of a growing restaurant empire. Randy Schoch disdains labels. Don’t call him the “Rambo” of fine
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Del.icio.uswell, and you start to think you’re invincible and that you’re above any kind of setback.”
But the fact is that business is good these days, especially at the Hawaii operations.
“I was nervous because people are crying the blues on the Mainland,” Schoch says. “But we’re up about 10 percent in our sales, and we’re very bullish on 2008. We have a good plan, good people in place, and we’re doing the right things. Every day I thank God and hold my breath that it continues.
“We’re being aggressive and concentrating on marketing efforts at the grassroots level as well as in group sales. We’re also very much into connecting with our guests, offering things like our Prime Time special for early evening that’s driving a lot of traffic.
“We’ve learned from the hard times. Prestige buys caused the collapse of the ‘90s. Today, real capital is investing in Hawaii. I don’t think we’ll lag behind the Mainland. I’m hoping we miss the speed bump (recession).”
He adds, “It’s a quick-moving market. High-end restaurants are doing well. Casual dining seems to be suffering, but I don’t think it’s as bad as the stock market indicates it is. Traffic might be down in some restaurants but it will all come back.”
What’s next for Schoch? The restaurant wizard is developing a franchise concept for his popular Ling and Louie Asian Bar & Grill chain, which is a hit in several Western states. Sales are thriving at the franchises in Scottsdale and Denver. Another Denver location (downtown) is expected to open later this summer, and Chandler, Ariz., in the new Wild Horse Pass Casino, is slated to open in early 2009. Other locations are in the pipeline.
“We’ll probably do four or five this year and 10 to 15 next year,” he states.
Ling and Louie is a fun, Asian-cuisine concept that’s suitable for smaller restaurants serving entrees between $9 and $12. It targets a segment of diners who seek something interesting and fun. Its tagline is “Not for boring people.”
“But it wouldn’t make sense in Hawaii, where we would compete with the best Asian chefs in the world,” he says. “They’re way, way too good, and they’re all my friends.”
What about the art of the deal? What should one consider before going into the restaurant business?
“First of all, you must have a great concept,” Schoch says. “It must make sense economically and be in a location that fits your concept. Know the costs to build it and have enough capital so you’re not so highly leveraged. Bring in experts to assess key factors like labor, supplies, logistics, seasonality and even the cost of power. Power on the Big Island, for instance, is 30-40 percent higher than on other islands. That’s a lot of money. Honolulu is as different from the Big Island as Honolulu is different from L.A. It takes experience, mistakes and some luck.
“Restaurant investment is a kind of recreation. It’s fun, you get free meals and you can bring your buddies in and say I’m a partner here. That’s what it’s all about. You don’t invest a lot of capital and risk your life savings on a restaurant deal. It’s not something you do to finance your retirement. Reality is, if you can get your money back in two to three years, a nice 10-15 percent return, you’re doing well.”
And if you want to be a CEO in the business, like Schoch, be prepared to dedicate your heart and mind to it 24/7.
“A great CEO is charming and charismatic with customers, but behind closed doors, he’s an ass-kicker.”
We find that dichotomy hard to believe as we wind up our interview with the personable surfer-entrepreneur. But as we’ve learned, Schoch doesn’t believe his own press anyway.
There’s only one luxury that eludes him and all he still wants to accomplish.
He concludes, “You can always make more money, but you can’t make more time.”
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