Alright – so today we’ve got the honor of introducing you to Annie Johnston. We think you’ll enjoy our conversation, we’ve shared it below.

Annie, appreciate you joining us today. What’s the backstory behind how you came up with the idea for your business?

In my 20s, I launched an online company. There’s a whole story there, and I learned a lot, but after a little over a year, I realized I didn’t want to work at a computer all day.

One of my favorite parts of running this online company was that I often got to work remotely, usually in cafes with my laptop. I tried all the local spots. I developed a love for coffee that I had always had, but had until now never followed intentionally. Whenever I traveled, I stopped in the local cafes to see what they were like and what made them work or not work. There were aspects I admired at several local cafes – at some it was the coffee, at some the employees, at some the ambiance. But no local cafes had what I envisioned as the ideal combination of all of the key factors. So I decided there was space in my city for the cafe I envisioned.

I also decided that there was an intangible piece – I call it the “energy” – that was the most important variable in any cafe. The “energy” is the primary factor driving how customers feel when they are at a given coffee shop.

I studied how different coffee shops made me feel and why. And when I was ready to leave behind my online startup, I went out and got a job at the local cafe that I thought had the best “energy,” to learn more from the inside.

I offered to help the owner with everything from marketing to brewing in exchange for learning more about the business. I began collecting lists of what I wanted to achieve and avoid in my own cafe. A welcoming feel, genuine and friendly employees, and consistently great coffee topped the list. I also learned from actual experience just how important culture is. I saw the direct link between internal culture and how customers felt when they walk in a cafe. I also learned that how the owner or manager behaved really set the tone for the energy of the entire cafe, and that simply showing that you are happy to be there and see customers goes a long long way.

With a background in entrepreneurship and innovation, I also searched for new ways to let customers experience coffee. I wanted something tangible that was unique to my cafe. I eventually discovered a coffee shop in Austin, TX serving nitrogen-infused cold brew coffee. At the time in 2014, this was a brand new concept and nitro coffee wasn’t available anywhere in my area. It went on my list and I started figuring out how to make it at home.

Once I had the concept built out – from ambiance to innovative products to how to create that magic “energy” – I began looking for a space. About a year later I found a spot that seemed perfect, and didn’t hesitate.

So in the journey of building my vision, my perspective was first shaped as a customer, and then as an employee in the industry. I saw pieces of what I liked at different places, and my goal was to bring these pieces together at one place – excellent products, warm employees and culture, beautiful and welcoming space, and a commitment to creating community. I also saw cafe owners’ pain points and operational areas that could be issues without proper systems. It was putting all the pieces together that led to the final concept of my cafe, La Vita Dolce. And the years spent studying and working in a cafe were invaluable in making that first year of business smooth and successful.

Annie, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?

My history is a bit all over the place, and I certainly didn’t follow a traditional career trajectory.

As a kid, I was always interested in cafes and restaurants. As a teenager, I worked in restaurants in a variety of front of house positions. I loved serving guests and providing the best experience possible for them. I was also always curious and trying to learn about the behind the scenes operations.

When I went to college, I left hospitality. I ended up switching majors several times in the first couple of years. From Neuroscience to Economics, I was interested in so many different things. After a couple of years, I decided to take a break from college to figure out what I really wanted to do.

I still had an interest in restaurants and hospitality, but I told myself that this wasn’t the path to ultimate business “success,” and looked for a job elsewhere.

I fell into working with a retired insurance executive to help with his due diligence firm. I worked long hours, tackled every task I could, and eventually worked my way up to COO at the firm.
This experience led me to realize that what I love is creating, growing, and differentiating businesses. But I also knew that the due diligence industry was not what I wanted to be in forever.

Eventually, after soaking up a lot of knowledge and experience, I went back to school to finish my Economics degree, and picked up a minor in Entrepreneurship. Through the Entrepreneurship program, I became interested in high growth companies, particularly in software and technology.

I was still very interested in running a coffee shop, but again I set this idea aside. I told myself that brick and mortar wasn’t the “smart” move – an online business could be launched with less capital and had faster growth potential. So that’s what I did.

A project in an Entrepreneurship class paired with a grant competition gave me the opportunity to launch an online company. This was the first business I founded and owned, and while it was a great experience, I eventually realized I wasn’t really doing what I loved. I loved business, but not sitting at a computer all day.

Finally, after several turns in the road, I didn’t set aside the idea of opening a cafe! I had enough experience trying to do what I thought would be the most lucrative and only considering businesses that would bring groundbreaking innovation to the market. I wanted to do what I loved.

Today I have a cafe, La Vita Dolce, and a restaurant, Market and Moss. The cafe came first, and I think the single most important thing that makes La Vita Dolce successful is our culture and people.

When I first took over an existing cafe, I spent every day working behind the bar. I wanted to show our baristas, who had been operating under fear of the former owner and management, that this business was all about connection. There was nothing to fear and they could be themselves – and should be themselves. Customers felt this change in energy. Of course the coffee, ambiance, etc also changed, but I think this shift in culture and to a more welcoming environment for staff – and in turn for guests – is what really made the difference, and continues to set us apart to this day.

I kept this priority when I opened my restaurant, Market and Moss. Everyone is treated with respect, and we are here to do something we love. Guests tell us all the time that they love how our staff makes them feel. And in a very difficult labor market for restaurants, having a positive culture has been invaluable in helping us retain exceptional cooks and Servers.

At both businesses, what I am most proud of is how we make people feel. It starts with employees and spills over onto guests. There are some checcklists and formulas I follow, but more important is hiring people who love the work we do, are motivated by a purpose of creating great experiences, and providing an environment that lets them shine.

Let’s talk about resilience next – do you have a story you can share with us?

In 2019, I signed the lease for a restaurant suite where I would open Market and Moss, a seasonal contemporary American restaurant. We were scheduled to open in April 2020…you might see where this is going!

In March 2020, the Covid pandemic hit, causing delays in renovation of the restaurant space. Several other things with the building went wrong, and we weren’t ready to open until October of 2020. By this time, I had realized that this pandemic wasn’t something that would be over quickly. I also knew that it was devastating the restaurant industry. I had no idea how long the repercussions would last, though. Looking back, my naivete was probably what allowed me to push ahead with such confidence.

The first year open, we stayed as agile as possible as the environment changed. We were closed inside, then open with limited capacity, we offered family takeout meals and cocktails to go. We tried everything we could think of.

While no restaurant fared well during this time, it was particularly difficult at Market and Moss for two reasons: 1) Market and Moss is a restaurant designed to provide an elevated experience (rather than curbside takeout), and 2) we were brand new!

That first 6 months that a new restaurant is open is when the community gets excited and everyone comes out to give it a try. But many, if not most people in our town didn’t go out to eat for months during that time. So after a year of being open, so many people hadn’t even come to dine with us one time – but at the same time we were no longer new. So we lost a lot of that momentum that restaurants depend on to get going.

The hardest part was how long the pandemic affected us and the impact it had on everyone’s morale. Rising food costs, being constantly under staffed, changing Chefs multiple times, and so many slow nights despite great feedback from guests. We tried new things that didn’t work after we had put so much into them. And perhaps worst of all for morale was that we didn’t have a history or baseline of what things would be like when the pandemic was over. Since we were new there were no historical metrics we could reference to assure ourselves.

I learned personal work-life lessons, too. Not getting the growth as quickly as I had planned for, I became consumed with work. I’ve always enjoyed my work and regularly put in extra time for my businesses, but it completely took over. I essentially didn’t allow myself to think about anything except work. And it took its toll. It was harder to focus and I felt like I was in a rut. I eventually learned that I have to have a life outside of work in order to give my best to my work. Sometimes, I have to force myself to set work aside to avoid heading back in that direction. While I still struggle with this, it’s better today.

How I got through this time? I just kept going. Most of the time, I focused on thinking and doing and didn’t look at how it was all affecting my mental or emotional health. While this probably wasn’t the healthiest of ways to deal with it, it did allow me to get through. The only option was forward in my mind. There were nights when the full weight of the difficulties the restaurant was facing would hit me and I would break down. But the next day, it was back to business and keeping the hope alive for staff. Having to show up for our people kept me going. And eventually, things got better.

I often joke that nothing else that happens at Market and Moss could be worse than the pandemic. There is some truth in that. I’m almost far enough out from the experience that I can say I’m grateful for it…or at least I’m sure I will be one day!

Can you talk to us about your experience with buying businesses?

I bought a cafe called La Vita Dolce. It was a coffee and gelato cafe in a mixed use neighborhood in my home town. I had been looking to open my own coffee shop when I realized that this one was closing. So rather than start from cold shell space, I decided to just re-invent this existing cafe.

I chose this business because I thought it had a lot of unrealized potential. While there was a lot to change, I knew exactly what to change to turn it into my vision. The factors I couldn’t change – the location, the building – were great as they were, and it had all the equipment I needed. Purchasing the full package of equipment and furniture from an existing business is usually less costly than buying it all yourself, and this was the case here.

In addition, this was the first cafe I had ever run, so starting with everything already set up saved me a lot of work (and money). I opened immediately to keep customers coming in and changed the most important things first, and less important (or more costly) things a bit down the road.

The acquisition process was nerve racking. There was another purchaser also interested, which of course made me feel pressure to move quickly. Having an attorney I really trusted was invaluable in the process. He made me slow down and not act impulsively. I looked at the books, studied the inventory, tasted all the food and beverages, and he handled making sure things like debt or unpaid sales taxes wouldn’t cause me trouble down the road.

Contact Info:

• Website: www.marketandmoss.com, www.lavitadolcecafe.com
• Instagram: @marketandmoss @lavitadolcesv