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

Hi Chris , thanks for joining us today. Let’s jump right into the heart of things. Outsiders often think businesses or industries have much larger profit margins than they actually do – the reason is that outsiders are often unaware of the biggest challenges to profitability in various industries – what’s the biggest challenge to profitability in your industry?

Profitability in the restaurant industry has taken a hit in the past few years due to the following factors: Increased labor costs, increased food costs, increased rent and an overall increase in general other expenses. As a small business owner we are constantly trying to walk that fine line of profitability for the business vs charging the customer a fair price for the services we provide them.

Specifically, being located in California, we have seen pretty dramatic increases in labor costs and cost of goods. As minimum wage increases, it begins to also increase non-minimum wages as well. A server making $15.50 an hour plus tips will have the cook in the kitchen be asking for a increase in their wage as well. In addition, the delivery driver that brings the food may get a higher wage and that will increase the cost of the product we are buying from our supplier. The only option for any small business is to raise prices to the consumer, but when will prices become too high that the consumer will forgo additional purchases, this is what concerns me long term.

The cycle continues when the landlord begins to see higher sales from the business and raises the rent assuming higher sales correlates to higher profitability.

This is the cycle of the downfall of a small business. The goal is to actively manage costs, hire great employees, and serve quality products that customers want to continue to come back and enjoy. Give the consumer something great and they will return.

As always, we appreciate you sharing your insights and we’ve got a few more questions for you, but before we get to all of that can you take a minute to introduce yourself and give our readers some of your back background and context?

I graduated from USC from the business school and then got my MBA at Pepperdine University. After graduation I opened up my first small “cafe” inside of a car dealership with 4 total employees. Being able to learn how to put together a business from start to finish and lead employees was the perfect start for me.

A few years later I opened my first full service location in the South Bay. After a few years of additional “learning experiences” we were able to open our 2nd location of the same brand – The Rockefeller.
Then I was able to purchase a legendary seafood restaurant in Redondo Beach called Captain Kidds Fish Market that has been serving the freshest fish in the South Bay since 1976. Next up was our 3rd location for the Rockefeller, again in Redondo Beach, and our high end Italian restaurant in Torrance called – Primo Italia. Finally we recently purchased another legendary Mexican restaurant called Riviera Mexican Grill located in Redondo Beach. Six locations and 300 employees later we are continuing to grow.

Our success stems from hard work and GREAT EMPLOYEES.

Let’s move on to buying businesses – can you talk to us about your experience with business acquisitions?

The first business I bought was Captain Kidds Fish Market and Restaurant that has been in business since 1976. The owner’s father started the business and he was the face and soul of the restaurant. Running restaurants is not easy, and the owner was looking to sell the business.

I believe that restaurants have souls, and John was the soul of this restaurant. So instead of the full buyout I demanded that John stay on as a partial owner and continue to be the face of the business. He had so much expertise in our Fresh Fish and all the seafood from around the world that we ordered, it was integral for the business that he continued to do work that he was passionate about. This allowed me to able to spend the next year “fixing” the business to allow us to be in business another 40+ years!

I am a big believer in putting people in a position to succeed and that means putting people in the correct position that suits their skills.

What’s been the most effective strategy for growing your clientele?

Marketing is the most important aspect of almost any business, specifically restaurants. We are a volume business with small profit margins, so having high sales volumes is a must.

I consider many different things marketing and that includes items you may not consider, such as CLEANLINESS. Customers taking photos with their smartphone and posting on social media is a form of marketing that showcases the business. Email marketing is huge right now. Specific events such as live music or wine dinners. our website or 3rd party sites, again all forms of marketing to get customers in through the doors.

I would have to say that the most effective strategy for growing our clientele is providing our customers an amazing dining experience with great food and drinks, and of course first class customer service. To be successful you need customers to want to continue to come back and specifically for them to bring back their friends and family and let others know how great the restaurant is … WORD OF MOUTH.

Contact Info:

• Website: https://www.cbservicesmanagement.com/
• Instagram: @thebredesen