Past Winner Stories
Scotty's Brewhouse
www.scottysbrewhouse.com
How has Scotty's Brewhouse flourished where others fail? The first hurdle for any new restaurant is the concept. What will define and differentiate the business, and why will customers care? The next obstacle, an ongoing struggle for any restaurateur, is employee retention. The third, and latest, issue facing Scotty's Brewhouse is expansion. How will the restaurant maintain its reputation and an independent “neighborhood” feel as it enters new markets? In order to tackle these challenges, Wise remembers something his father used to say, “Every problem is really an opportunity.”
Wise says the concept for the original Scotty's Brewhouse was born out of his love for “wings, cold beer, sports and blues. If I wasn't passionate about these things, if I didn't love this industry and going to work every day, it wouldn't have gotten off the ground.”
With the success of the first Scotty's Brewhouse came operational challenges. As many a restaurant owner will attest, the high turnover rate among managers and staff can create logistical and cost nightmares. Wise notes, “At Scotty's, we hire good people, train them well and allow our managers to make decisions. I've learned to delegate, trust and not micro-manage.” According to Wise, “Hiring and training a new manager costs $10,000 to $15,000 and it is $2,500 per staff member.”
Traditionally, in the restaurant industry managers work six days, 60 hours per week. To combat burnout and turnover, Scotty's managers are given two days in a row off per week and enjoy a three-day break once a month. Recently, Scotty's Brewhouse implemented a scholarship program. Two $500 scholarships will be awarded each January to current students who have worked at Scotty's for at least one year.
Recognition is also a cornerstone of the Scotty's employee retention plan. Staffers receive handwritten anniversary letters from the owner. Wise believes in "praising publicly, and reprimanding privately." Managers handle all staff issues, and an attitude of respect comes from the top. Wise explains, “Treat managers right and they're more likely to treat the staff right.”
The third issue — and opportunity — for Scotty's Brewhouse is expansion. Scotty's currently has locations in Muncie, West Lafayette, Bloomington and Indianapolis. In order to avoid “feeling like a chain” and to maintain Scotty's independence, Wise has implemented several strategies. A critical component of Scotty's expansion plan is the corporate team. This group of directors handles daily operations, allowing Wise to focus on opportunities in other markets.
As Scotty's Brewhouse looks at new markets, Wise is careful not to over saturate any area. Each store will be an hour away from any other. Restaurants will be developed in “pockets” (i.e., East Coast, West Coast the Southwest) each with its own regional director. The concept will be tweaked for each new market, depending on demographic characteristics and other factors such as “big-city” versus “college town” restaurants. While slight modifications will occur, the fundamentals will remain consistent: same training and incentive system, same menu, same exposed-brick decor.
Consistent service is key across all restaurants. Scotty's doesn't advertise. Rather, resources are allocated to staff training, resulting in an excellent dining experience. Scotty's will maintain a personal touch. Every e-mail complaint or comment sent through www.scottysbrewhouse.com goes directly to Wise. He personally replies to every one. Wise says, “It's an opportunity to make things right, and, potentially, gain a customer for life.”
As Scotty's Brewhouse expands to new markets the family-friendly neighborhood sports bar will continue to draw upon its strengths: treating people right, having fun and loving every minute of it.
According to Business Week, one in four restaurants closes or changes ownership within its first year of business. Over three years, that number rises to three in five. Scotty's Brewhouse, a family-friendly sports bar, has managed to buck this trend, having expanded from one restaurant in 1996 near the Ball State University campus to four locations. With no plans of slowing down, owner Scott Wise and his corporate team are now looking at new opportunities in other markets around the nation.
How has Scotty's Brewhouse flourished where others fail? The first hurdle for any new restaurant is the concept. What will define and differentiate the business, and why will customers care? The next obstacle, an ongoing struggle for any restaurateur, is employee retention. The third, and latest, issue facing Scotty's Brewhouse is expansion. How will the restaurant maintain its reputation and an independent “neighborhood” feel as it enters new markets? In order to tackle these challenges, Wise remembers something his father used to say, “Every problem is really an opportunity.”
Wise says the concept for the original Scotty's Brewhouse was born out of his love for “wings, cold beer, sports and blues. If I wasn't passionate about these things, if I didn't love this industry and going to work every day, it wouldn't have gotten off the ground.”
With the success of the first Scotty's Brewhouse came operational challenges. As many a restaurant owner will attest, the high turnover rate among managers and staff can create logistical and cost nightmares. Wise notes, “At Scotty's, we hire good people, train them well and allow our managers to make decisions. I've learned to delegate, trust and not micro-manage.” According to Wise, “Hiring and training a new manager costs $10,000 to $15,000 and it is $2,500 per staff member.”
Traditionally, in the restaurant industry managers work six days, 60 hours per week. To combat burnout and turnover, Scotty's managers are given two days in a row off per week and enjoy a three-day break once a month. Recently, Scotty's Brewhouse implemented a scholarship program. Two $500 scholarships will be awarded each January to current students who have worked at Scotty's for at least one year.
Recognition is also a cornerstone of the Scotty's employee retention plan. Staffers receive handwritten anniversary letters from the owner. Wise believes in "praising publicly, and reprimanding privately." Managers handle all staff issues, and an attitude of respect comes from the top. Wise explains, “Treat managers right and they're more likely to treat the staff right.”
The third issue — and opportunity — for Scotty's Brewhouse is expansion. Scotty's currently has locations in Muncie, West Lafayette, Bloomington and Indianapolis. In order to avoid “feeling like a chain” and to maintain Scotty's independence, Wise has implemented several strategies. A critical component of Scotty's expansion plan is the corporate team. This group of directors handles daily operations, allowing Wise to focus on opportunities in other markets.
As Scotty's Brewhouse looks at new markets, Wise is careful not to over saturate any area. Each store will be an hour away from any other. Restaurants will be developed in “pockets” (i.e., East Coast, West Coast the Southwest) each with its own regional director. The concept will be tweaked for each new market, depending on demographic characteristics and other factors such as “big-city” versus “college town” restaurants. While slight modifications will occur, the fundamentals will remain consistent: same training and incentive system, same menu, same exposed-brick decor.
Consistent service is key across all restaurants. Scotty's doesn't advertise. Rather, resources are allocated to staff training, resulting in an excellent dining experience. Scotty's will maintain a personal touch. Every e-mail complaint or comment sent through www.scottysbrewhouse.com goes directly to Wise. He personally replies to every one. Wise says, “It's an opportunity to make things right, and, potentially, gain a customer for life.”
As Scotty's Brewhouse expands to new markets the family-friendly neighborhood sports bar will continue to draw upon its strengths: treating people right, having fun and loving every minute of it.