Past Winner Stories
Scholars Inn
www.scholarsinn.com
Friends of Lyle and Kerry Feigenbaum had just a few words of advice when the couple started talking about their dream of opening a New York-style restaurant in Bloomington, Ind., more than 10 years ago.
“Everyone said, ‘Don’t do it. You’re crazy,’’ recalls Lyle Feigenbaum. “They pointed out that Bloomington is a college town… everybody wants hot dogs and hamburgers.”
However, the Feigenbaums stuck to their instincts and purchased a 150-year-old mansion which led to the opening of The Scholars Inn Bed & Breakfast in Bloomington. Within the next 10 years, the Feigenbaums had opened two Scholars Inn Gourmet Café and Wine Bars and three Scholars Inn Bakehouses, with locations in both Bloomington and Indianapolis. Earlier this year, the couple opened a 10,000-square-foot production facility with a small retail shop. Through its acquisition of a baking facility, the company sells a variety of breads, cakes, pastries and bagels to various hotels, groceries and corporations.
The various operations generate $8.5 million in sales annually.
The Feigenbaums know that their success as independent owners is not typical in the restaurant industry because of stiff competition from chain restaurants and the high failure rate among restaurant enterprises.
Those factors are constantly on Feigenbaum’s mind, which, in turn, helps Scholars Inn to keep a competitive strategy, he says. “I think about it every day, and every day I say we’ve got to get better,” Feigenbaum says. “We’ve got to improve our service.”
He believes that the large number of chain restaurants can work to the advantage of independent restaurants. “I think of it as an opportunity for us,” Feigenbaum says of the large number of chain restaurants in the Midwest. “The more chains that come in, the more special our restaurant becomes. We pride ourselves on having quality ingredients, which makes our restaurant far more unique.”
Other ingredients that led to the success of the Scholars Inn enterprises are grounded in several factors. “You have to have a passion for what you do and you’ve got to have good people,” Feigenbaum says.
It’s also extremely important to be financially astute. “The biggest key is to have a sound financial background. It is a business,” Feigenbaum points out. “You need to focus on putting out the best product you can while being responsible to the financials.”
One of the most strategic decisions the Feigenbaums made was to purchase a bakehouse which had, as they put it, produced “the best bread we’ve ever tasted.” That 2001 purchase proved to be an investment with a great payoff. With more than 70 wholesale customers, including Indiana University, DePauw University, Eli Lilly, Marsh and O’Malia’s, the baking facility generates 25 to 30 percent of the company’s business.
“We bought the bakehouse to compliment the existing restaurant,” Feigenbaum explains. “In the restaurant business, the competition is just constant. That’s why we got into the bakehouse business. Our bread is very difficult to recreate. Anyone can open up a restaurant.”
At the end of the day, Feigenbaum says, he is proud of what the Scholars Inn team accomplishes. “We are pleased with our success within this extremely competitive industry. The quality of our products are head over heels above any of the chains.”
“Everyone said, ‘Don’t do it. You’re crazy,’’ recalls Lyle Feigenbaum. “They pointed out that Bloomington is a college town… everybody wants hot dogs and hamburgers.”
However, the Feigenbaums stuck to their instincts and purchased a 150-year-old mansion which led to the opening of The Scholars Inn Bed & Breakfast in Bloomington. Within the next 10 years, the Feigenbaums had opened two Scholars Inn Gourmet Café and Wine Bars and three Scholars Inn Bakehouses, with locations in both Bloomington and Indianapolis. Earlier this year, the couple opened a 10,000-square-foot production facility with a small retail shop. Through its acquisition of a baking facility, the company sells a variety of breads, cakes, pastries and bagels to various hotels, groceries and corporations.
The various operations generate $8.5 million in sales annually.
The Feigenbaums know that their success as independent owners is not typical in the restaurant industry because of stiff competition from chain restaurants and the high failure rate among restaurant enterprises.
Those factors are constantly on Feigenbaum’s mind, which, in turn, helps Scholars Inn to keep a competitive strategy, he says. “I think about it every day, and every day I say we’ve got to get better,” Feigenbaum says. “We’ve got to improve our service.”
He believes that the large number of chain restaurants can work to the advantage of independent restaurants. “I think of it as an opportunity for us,” Feigenbaum says of the large number of chain restaurants in the Midwest. “The more chains that come in, the more special our restaurant becomes. We pride ourselves on having quality ingredients, which makes our restaurant far more unique.”
Other ingredients that led to the success of the Scholars Inn enterprises are grounded in several factors. “You have to have a passion for what you do and you’ve got to have good people,” Feigenbaum says.
It’s also extremely important to be financially astute. “The biggest key is to have a sound financial background. It is a business,” Feigenbaum points out. “You need to focus on putting out the best product you can while being responsible to the financials.”
One of the most strategic decisions the Feigenbaums made was to purchase a bakehouse which had, as they put it, produced “the best bread we’ve ever tasted.” That 2001 purchase proved to be an investment with a great payoff. With more than 70 wholesale customers, including Indiana University, DePauw University, Eli Lilly, Marsh and O’Malia’s, the baking facility generates 25 to 30 percent of the company’s business.
“We bought the bakehouse to compliment the existing restaurant,” Feigenbaum explains. “In the restaurant business, the competition is just constant. That’s why we got into the bakehouse business. Our bread is very difficult to recreate. Anyone can open up a restaurant.”
At the end of the day, Feigenbaum says, he is proud of what the Scholars Inn team accomplishes. “We are pleased with our success within this extremely competitive industry. The quality of our products are head over heels above any of the chains.”