Notes from Alex Smith's Presentation

Introduction

• Speaker: Alex Smith
• Role: President of Atlas Restaurant Group
• Age: 39
• Projected Revenue: Over $200 million this year

Challenges in Restaurant Management

• Scaling Up:
  • Difficulty in being present in multiple locations (50 units operating).
  • Loss of control is a challenge for larger restaurant corporations.
• Major Expenses:
  • Labor Costs: Largest expense in the restaurant business.
  • Food Costs: Second largest expense; inflation has increased these costs.
• Thin Margins:
  • Owner-operators face thin margins, passing costs onto consumers.

Operational Strategies

• Resource Sharing:
  • Shared marketing, HR, finance resources among units.
  • Group buying for procurement to lower costs (same ingredients used across units).
• Hands-On Experience:
  • Started with a small ice cream store next to a movie theater at age 20.
  • Learned various aspects of running a business (payroll, inventory, marketing, operations).

Key Learning Points

• Importance of Second and Third Locations:
  • Critical for success; failure can lead to losing investments.
• Community Needs:
  • Identified demand for daytime lunch; involved in operations extensively.
• Building a Team:
  • Hired skilled people in the community to enhance operations.

Personal Business Philosophy

• Involvement:
  • Actively involved in all aspects (pricing, menu changes, guest interaction).
• Learning from Failure:
  • Experienced a location mistake in South Florida; viewed as a learning opportunity.

Current Structure of Atlas Restaurant Group

• Corporate Structure:
  • Approximately 40 corporate employees in various departments: procurement, HR, entertainment, design and branding, marketing, operations.
• Leadership Role:
  • Involved in conceptualizing new projects, menu design, and overall operations.
• Expansion Strategy:
  • Rehoboth (Delaware) as a strategic location due to proximity and brand synergy.

Closing Thoughts

• Community Commitment:
  • Desire to leave a positive impact on the community of Baltimore.