Jasper's Restaurants: Breaking the Mold
Featured Spotlights
Written by Ashley McGown   
Wednesday, 01 July 2009
Jasper’s Restaurants: Breaking the Mold
With a unique model, this restaurant became an instant success when it was established nearly three decades ago. Fred Rosenthal explains how far it has come since.




Premier Business Partners:

Industrial Steam Clean
Sodibar
Most business ventures are, by nature, a gamble. Immediately post launch, before an appropriate gestation period has passed, most operate as mediocre enterprises, and a fair amount implode. However, there are a small amount of ventures that prove to be an instant success, far exceeding any established expectations, and this minority is what makes the gamble so alluring for a number of people.

When Fred Rosenthal and Berk Motley opened their first restaurant in Greenbelt, Md. in 1981, they developed their first annual budget based on a projected revenue of $1.5 million. Although neither of the two had experience developing or owning a restaurant, the business flourished during its first year, generating just over $3 million revenue—more than double what was expected.

“It was really anybody’s guess because we had developed a unique concept, breaking away from the traditional dinner house that was popular at the time,” said Rosenthal, president of Jasper’s Restaurants, which now has four locations in the Maryland area.

Jasper’s Restaurants: Breaking the Mold
Fred Rosenthal, president
The co-founder added that much of the restaurant’s success that first year, and even now, is due to the unique experience it provided to customers. “The design of the building created much more open space than other dining establishments offered at the time, we offered dancing at night, and we installed an all-day extended menu,” Rosenthal said.

He added that Motley’s late wife, Rhonda, who worked as a dietician at University of Maryland, was recruited to develop the original menu and work toward progressing it in the following years. Because of her experience in the food industry, she proved to be one of the team’s greatest assets.

Constant evolution
With 425 employees and $17 million annual revenue, Jasper’s has certainly grown since its inception, but Rosenthal and Motley have always been conservative in regard to growth and don’t plan to veer from that style of expansion any time soon.

Over the last 28 years, the company has opened additional locations similar to its first, and when the team established its newest branch in 2007, it decided to pilot a new model as well, hoping to target a market less saturated than the traditional casual dining scene.

“Right now, the trend is toward fresh products and fewer menu options,” Rosenthal said. The new restaurant’s name, Jasper’s American Grille, differs only slightly from its sister locations, which differentiates it but allows customers familiar with the brand to make the connection.

Moving forward, the team at Jasper’s plans to dedicate an equal amount of effort to both restaurant styles, and because the two compete in different markets, Rosenthal and Motley believe it will allow them to target a broader assortment of customers.

In addition to the four locations it owns and operates, the team at Jasper’s manages a number of restaurants. According to Rosenthal, the management arm of the company first blossomed 12 years go, when Robert Johnson, who owned Black Entertainment Television (BET) at the time, showed interest in the team’s talents.

“He wanted to get into the restaurant business, and he approached us to develop a concept that paralleled the TV station,” Rosenthal said. Soon after, Jasper’s signed an agreement with BET to develop the restaurant and the menu and supervise the renovation process.

After the restaurant proved successful, additional locations were established. The relationship came to an end after seven years, when BET was sold, but Jasper’s is still involved with managing properties and developing concepts for other companies today.

Overcoming adversity
Today’s economic climate is proving to be a challenge for nearly every organization in the US, but few industries have been hit as hard as the restaurant business. Because dining out is typically not seen as a priority, many Americans have chosen to do so less often in recent months.

“The first hit we noticed happened when gas prices escalated dramatically, but we saw that as a short-term issue and were able to implement short-term solutions to counteract it,” Rosenthal said.

“When the economy tanked last fall, it was something no one had anticipated,” he continued. “We did not see it coming, and we didn’t have any idea how long it would last. On top of that, we were facing the highest commodity costs we’d seen in two decades, and this all occurred during September and October, which are typically the slowest months to begin with.”

The ensuing situation was less than ideal; for the first time in its nearly 30-year history, Jasper’s began to lose money, but the company’s team didn’t panic. Since its inception, the organization has maintained a high level of retention among its employee base, and as a result, a sense of mutual loyalty permeates it.

When forced with the decision of which operational costs to cut, the team at Jasper’s worked with employees to form a plan that best suited all involved. Employee salaries were capped for the year, and funding for the 401k plans was cut. In return, Rosenthal and Motley promised employees that once business was back up, they would see a share of the rewards.

“We sat down with our team and made them partners in the fix,” Rosenthal said. “They understand that the plan is necessary for the company’s survival, and they know that when we turn the corner, they’ll benefit from their hard work. The good news is our plan is working.”
 
< Prev   Next >