One Richmond bar scores big and creates a legacy

Twenty-five years ago, one business man invested heavily in the future he saw on Main Street

Just two decades ago, sports bars weren’t very common. This is a community story for locals and sports fans, about one of Richmond’s first sports bars, the changing city landscape around VCU and the retirement of one well-respected business owner.

One Richmond bar scores big and creates a legacy

While the city hosts numerous restaurants and acclaimed cuisine, we also have an often overlooked local sports bar–not a big chain–that’s worthy of a boisterous hurrah.

Mulligans Sport’s Grille first swung open its doors in 1990 to reveal about 20 televisions inside–none of them flat screens–all broadcasting sports games and commentary.

Think about that novelty. The playing field for sports bars used to be fairly empty of any competition.

Harken back to the early 90s, if you can. The daily routine was sans internet, cable television was not a household standard–and it certainly did not supply the multiple sports networks available now. There was an audible welcome from sports fans–to the extent that the dream of three men multiplied into six restaurants.

Mulligan’s first opened in Short Pump, before the area was the bustling “suburban downtown” that so many city dwellers love to hate. Now home to Capital Ale House, the space is 12,000 square feet.

The first store was so successful that by its second year, the bouncers came to work before the waitstaff.  They were needed to control the the crowds who would try to push inside when the waitresses arrived, as to stake early claim to the best seats in the house. The Wednesday concert series brought thousands to Innsbrook, and hundreds would just camp out at Mulligans, many taking in the concert from the comfort of the patio.

John Sweeney, along with the Hurley brothers, Mark and Matt, were experimental business owners. They tried off-the-wall things like “cook your own steak” night, where hot grills stood ready for the sports aficionado to meet tong to meet steak.

The investors ran with their game plan, opening a total of six locations. After the Innsbrook location came Mulligans in Mechanicsville, Sixth Street Market Place, Southside, the Fan and then Farmville.

MULLIGAN’S PLAYS THE FIELD, RUNS BUSINESS DOWNTOWN

Sixth Street Market Place being the failed city investment that it was, Mulligans bailed ship and in 1996 docked at its current Fan location, at Harvie and Main Streets. Of the six locations this spot is one of the two Mulligan’s that remain.

Some might remember that the bar Coyotes was formerly housed in that spot. Some might also remember that until 1985, the legal age for consuming libations was but 19, which meant a bar scene could thrive around Virginia Commonwealth University–at that time it was a commuter school.

Those few students who did live on campus were young enough to drink. Many a neighborhood businesses dried up when the drinking age changed, said Sweeney and by 1996 there really weren’t any bars in the area around Mulligans.

In fact, Main Street ran through the VCU area without yielding many options at all. The VCU area pretty much ended a few blocks east of Mulligan’s, the main anchors of the area were 7-11 and Piccola’s Pizzeria, at Harrison Street. One big block west of the bar was the former Border Cafe (now Bellytimber), but the streets were mostly vacant and dim.

PASTELS SATURATE THE NEIGHBORHOOD IN HOPES OF BRIGHTER TIMES

Ed Eck, of Eck Enterprises, had a lot to do with the transformation of the dreary area.

In the late 80s, extensive remodeling and fresh pastel paint shined up a lot of the properties Eck had purchased along the long, two-block stretch of Main Street buildings.

Eck’s first business, supplying electrical materials, was near the Gold’s Gym off Harvie Street. When city businesses began an exodus over the county lines, Eck chose instead to invest in the Richmond area.

It took awhile though, and the area still doesn’t have the same sort of miniature Shockoe Bottom appeal like the area farther up at Main and Robinson Streets.

Style Weekly and Richmond.com once had headquarters in the strip around Mulligan’s, along with a handful of other businesses. Still, it wasn’t quite the mixed-use space it has slowly become.

Sweeney made the decision to touch down at that location because he thought it had a lot potential, the building was open and the place was already built out for a bar, with a kitchen. “We liked taking places that didn’t make it and turning them around,” he said.

He thinks the Fan area is a lot safer now. “Individual businesses and people added lights and safety, but the city really could step it up,” said Sweeney.

Eck also helped convert much of the dilapidated, boarded-up homes along Cary, starting at Meadow and heading east. The area was replaced with new buildings, businesses and renovated apartments. Lights came up and in moved people.

Also fueling the progress machine was the VCU transition over the the past decade, from commuter school to college university.

To understand how pivotal Eck has been in transforming this downtown stretch, take a quick glance at the business community he enabled: Little Mexico, Gold’s Gym, Uptown Color, PharrOut, Rev It Up!, City Dogs, Capitalmac, and Uptown Gallery–and that is not the entire list.

“The city’s vision was good but citizens had the vision and resources–and the desire to keep the architecture,” said Sweeney. “It was smart urban planning with the mixed-use retail.”

Video: Changes along Main Street brings foot traffic, residents and business.

EASY TO OPEN A SPORTS BAR NOW, HARDER TO STAY OPEN

Another thing that has changed over the years: television.

Mulligan’s in the fan now boasts around 70 of those boxes, about 50 more televisions than the flagship store had when it opened. People have more access to games, through cable and streaming internet at home.

“It’s easier to become a sports bar now,” said Sweeney. “Now you have to do more than just show a game.”

It might be easier to open a sports bar, but it takes a certain finesse to handle all the obstacles. Sports are obviously the bread and butter of the business, and with sports comes fair-weathered fans.

“You will notice that once you get to the midweeks in NFL,” Tray Vanneman, who has been with Mulligans 14 years, said. “A lot of people’s team start dropping off and they stop coming in because they only want to come out when their team is winning.”

But Mulligan’s hasn’t fumbled. Instead, inside the cavernous 8,000 square feet space you will find all the necessities to bring out the crowds.

There are video games, darts, billiards, ping pong, a outside deck, a covered outdoor patio, and a main smoking room. Patrons have lots of things to do besides just catch the games: poker, karaoke, trivia and keeping up with the elaborate, daily rotating happy hour menu.

SWEENEY AS COACH, STEADY DRIVE FOR THE WIN

Former owner toasts to 30 years in the restaurant business.

Sweeney moved to Richmond from Buffalo, NY in 1978 and started teaching at Freeman High School, in the Industrial Tech department. In the late 80s, he switched careers and went to work as a bartender at the Red River Rib company.

He thought he would get his MBA, but that never happened. In fact, he laughs at the thought now. “An MBA was unnecessary, you have to get out and work for someone else to learn the business.”

Perhaps Sweeney inherited a penchant for the restaurant business from his large Irish family. It’s clear he’s an extrovert and great conversationalist, as he sits comfortably chatting and answering questions for two hours. Topics delve in all directions; from city politics to best live concerts to current books and back to Richmond’s future.

As people tell it, that’s the same charisma he brought to the bar. Sweeney loved the daily interaction. “Of course it’s important to enjoy what you do, but you’ve definitely got to really enjoy the restaurant business.”

He attributes the success of Mulligan’s to “surrounding himself with good people.” He definitely built a team. Three employees have more than 12 years at the bar. Sweeney said the top manager has been there from the beginning and that the head bartender started as a bar back.

No one can say enough nice things about him as a person, or as his qualities as a dedicated, hands-on restaurant owner

“John will bend over backwards to take care of his people,” Vanneman said, and commented that Sweeney has seen more of his adult life then Vanneman’s own father. “You need help in your personal life, there’s John.”

“John is hands down the best boss I’ve ever had, period,” he added.

So one could imagine that the recent sale of Mulligans had the employees worried. Would the new owner employ Sweeney’s philosophies? Would their 10 plus year careers at Mulligan’s come to an end?

NEW COACH TAKES OVER THE PLAYBOOK

Like Sweeney, a fork in the career path steered Edward Dudley into the restaurant business.

Formerly employed with Verizon, until an unexpected layoff in 2009, Dudley bounced back from unemployment by investing in the franchise sports bar Wings, Pizza and Things, situated at Regency Square Mall.

Edward Dudley, now with 2 years in the business, loves the electricity of a busy night.

He signed right before the Michigan-based Taubman stopped making its mortgage payments on the property and many big name stores withdrew from the once bustling mall.

One night Dudley, needing a business with more foot traffic, came across the online sale listing for Mulligan’s. Four months later he was the new owner.

NCAA March Madness saw Mulligan’s scoring major points. Sweeney and the bar appeared on ESPN when national attention turned to VCU’s shocking Final Four success. Lines were out the door seven hours before game time.

No one had seen anything like it, and “what it did for business was unbelievable,” said Sweeney. “It covered a lot of past sins.”

It was a good time to sell, and Sweeney was ready for a vacation, one of the first in 20 years.  “The interest on the market was unbelievable,” Sweeney said.

Bandazian and Holden, a Richmond firm specializing in property management, commercial investment and business brokerage, negotiated the sale. In July, Dudley took over the court.

Vanneman said the crew’s initial fears and hesitations have disappeared. The transition has been smooth, and mostly unnoticeable by customers. The menu has been upgraded, and much-needed building repairs are underway. Otherwise, Dudley is hands-off and busy managing his other restaurant.

“I have taken a lot of things I learned here and implemented it there, and visa versa,” Dudley said.

Sweeney, already looking on the horizon for the next opportunity, said he really has no regrets. “In hind sight there are always some things you would do differently.”


New chapter for a Church Hill institution

St Johns Realty AND Bandazian & HoldenSt. John’s Realty has been in the property management business almost as long as we have here at Bandazian & Holden.  While I haven’t seen a record of what year they started, I’ve been told that they have been doing residential property management for somewhere between 20-30 years. (FYI – B&H was founded in 1974.)

With the passing last year of the founder and principal broker owner, Danny Athans [edited 3/23/10, per information from Church Hill People's News -- link to announcement here], the future of St. John’s Realty was unsure.  I am proud to announce that we at Bandazian & Holden have stepped up to take over the accounts, and all of the years of hard work by St. John’s Realty will not go to waste.

There are a lot of other details that will be forthcoming, but there is a lot of work that we are doing right now to get in touch with the property owners and tenants to alert them to the change, and to get all of the files in order.

We are very excited for the opportunity to serve this new group of property owners and tenants, and to expand our presence in Church Hill!


Richmond.com purchased by Media General

Combine
Per the Richmond Times Dispatch website, the local newspaper's parent company announced today the purchase of Richmond.com (see the article here).

And the backlash on the internet has been fierce so far.  For a sample of the general opinion, take a look at the comments on the very same article also released on Richmond.com.

It's a big move both for Media General expanding their influence online, and for Richmond.com being taken under the wing of a media giant.  Let's hope that the worst fears of the public don't become reality, and maybe the combination of the two businesses will see good results for everyone. 

It is unfortunate to see an independent news source get gobbled up by the majority player in the area, though.

(for more updates, here is what people are saying about the merger on Twitter)


Getting shorted on tips?

We’ve all seen the rants about customers that don’t tip, or the customers that are so cheap that they don’t tip properly.  This post isn’t about rehashing those same tired complaints, even as unfortunately on-the-mark as they are.  (Anyone that has been a waiter or bartender can attest to the truth of those anecdotes.)

This is about tipped employees getting their fair share of what they have worked so hard to earn, and about keeping yourself out of trouble if you are a restaurant owner.  Starbucks just learned a $100M lesson in California, and employers everywhere need to take note.

If there is a shared tip pool involved, then only certain employees can participate.  Here is the section on tip pooling from Fact Sheet #15 from the US Department of Labor:

Tip Pooling: The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders. Tipped employees may not be required to share their tips with employees who have not customarily and regularly participated in tip pooling arrangements, such as dishwashers, cooks, chefs, and janitors. Only those tips that are in excess of tips used for the tip credit may be taken for a pool. Tipped employees cannot be required to contribute a greater percentage of their tips than is customary and reasonable.

The basis of the argument in the Starbucks case in California was that shift-supervisors were sharing in the tip pool, which is against California labor law. 

In fact, a call to the Richmond District Office of the US Department of Labor verified that it is not California labor law that dictates this, but instead it is Federal law.  I was referred to the description quoted above, where only "waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders" can participate in tip pools.  That’s not to say that other employees can’t be tipped, but they cannot participate in a tip pool.

Employers, take the lesson to heart before it costs you both in back-pay and legal fees!  (I’d like to point out here that I am NOT an attorney, but that’s why I called the US Department of Labor to get their opinion.  There are always gray areas, and that’s why there was a court case over this.  Check with your attorney to make sure you’re covered.)


Fed up with health insurance premiums? Here’s what to do about them.

You’ll be hearing about this in the local news over the next couple of days, but there is a new player in the field of health insurance based right here in Richmond that is taking a new approach that is sure to keep costs lower both for companies and for employees.

Nhealth_logo_3
With impressive resumes including top positions at Anthem and The Medical Society of Virginia, the key executives of nHealth Inc. are bringing a fresh look at the way health insurance benefits are handled.  They are bringing to bear the power of Health Service Accounts, coupled with insurance to cover catastrophic medical events — and bringing a management/customer service aspect that will help employees as they manage their own healthcare.

The service works much like a 401k plan in the sense that there is more employee control over how the monies are handled.  This brings a sense of involvement by the individual, and should result in more responsible behavior.

Take a look at the U.S. Treasury Department’s website to get more details on Health Service Accounts.  The associated legislation was passed in 2003, but I haven’t seen a lot of information floating around about it.

Click here to bring up a document with more details on the concept of the company and on how it all works. 

I’ll leave most of it there for you to read, but I love that even John Snow, former Secretary of the Treasury for the United States (now living in Richmond), felt moved to support the new company by saying:

“I am proud to have been associated with passage of the
legislation creating Health Savings Accounts.  HSAs offer great promise to
empower individuals, families, and employers to slow down the growth of health
care costs and expand health insurance coverage.  HSAs aim to put American
consumers back in charge of their health care decisions.  They offer a
particularly good option for small-businesses to make affordable health
insurance coverage available to employees and their families.  For all
these reasons, I am so pleased to see nHealth bringing this important
healthcare innovation right here to Richmond.”

My fiance has been using an HSA program for a few years through her employer, and it seems to be very easy to use –  some of the drugstores even have a breakdown on their receipts of how much of each purchase can be used under the plan.  I can’t wait until I can get on the program myself.

What about you?  Have you had any experiences with HSAs — good, bad, neutral?  Do you think this will have any effect on premiums and healthcare costs?  Leave a comment with your thoughts.


Truth AND Consequences: Rolls-Royce comes to RVA

In some of the biggest news that Prince George County, Virginia, has seen in quite some time, Governor Tim Kaine announced on Tuesday that Rolls-Royce PLC has chosen to locate their new plant 25 miles south of Richmond City.  The facility will test and assemble engines for mid-size business jets, and will have the capacity "to produce components for the F136, an advanced fighter engine for the Department of Defense’s Joint Strike Fighter." (from "Turbine-Maker Rolls-Royce to open plant in Virginia" in The Beaufort Gazette)

Rolls-Royce PLC will employ 170 people when the plant opens in 2009, and may employ up to 500 with potential expansions.  The company has purchased 1,000 acres in the county, but the actual size of the facilities have yet to be determined.

Virginia won out over 7 other states that were under consideration for the plant site, and the state schools were cited emphatically as a driving factor behind the decision.  That’s a great endorsement not only for the economic environment in Virginia, but obviously a win for the schools as well.

A point of contention among some (see comments at the bottom of this RTD article) is the monetary incentive that the state of Virginia has promised to Rolls-Royce PLC to get their commitment to our area.  The cash value of all of the related incentives is $56.8M.  Of course, with a price-tag like that there is going to be some second-guessing on how appropriately it was handled.

One of the comments on the article suggested that the money would be better spent for incubating local businesses, rather than courting a large corporation.  Given my slant towards small, independent businesses, I was inclined to agree — at first.

At first glance, an investment of that magnitude could make a huge impact on many local businesses by itself, and here we are throwing it away on a large corporation that already has more money than they know how to handle.  On the other hand, the local presence of a world-class company will bring not only recognition to Virginia, but also business opportunities (large AND small) and increased educational opportunities (through interaction with the state schools).

Now, I have to agree that this should not become a habit, but sometimes it makes sense to pony up the incentives to bring an international company here. 

In this case, I think it makes perfect sense.  Good job, Virginia!

(see the official press release from Rolls-Royce PLC here)


Bandazian is in Style this week!

The current issue (1/17/07) of Style Weekly has an article in the Food & Drink section called "Fire in the Belly" that I suggest everyone should read.  Go ahead, read it and then come back here.  (come on, it’s not THAT long)

Every time there is an article about a business changing hands, usually restaurants, the business broker isn’t mentioned.  This isn’t an issue of vainity in wanting to get press coverage, but merely a business matter.  I have said for the past couple of months that every time a high-profile restaurant is reported as being sold and we are not mentioned, it just perpetuates the myth that most business sales are made without broker involvement.

The article is right on track about how this activity tends to happen
very quietly — discretion and confidentiality is almost always a
concern with businesses that are currently in operation.

I will be doing periodic press releases for completed business sales going forward, and will put these press releases up as posts here, as well.  This article is a great start!

There will be a follow-up posting here to go into some of the other details mentioned in the article, so keep an eye out for it!


Ukrop’s is NOT for sale

Greg Gilligan reported in this morning’s Richmond Times-Dispatch that the rumors that have been flying around about Ukrop’s grocery store chain being for sale are not true.

The rumors were squashed (or so the Ukrops hope) by both Robert S. Ukrop and James E. Ukrop denying flatly any truth to the rumors that have been flying around the River City over the past week.

There seems to be some confidence in the statements, but as a business broker I know that in order to keep business flowing and to maintain confidentiality, sometimes you have to deny sales negotiations even if the cat is out of the bag.


Lessons from “Five Guys”

Five Guys Famous Burgers and Fries is a 120-unit chain that is based out of Lorton, Virginia.  They have developed a great reputation for fresh burgers (nothing kept frozen) and fresh-cut fries.  There are 8 locations total in Henrico, Richmond, Chesterfield, and Mechanicsville.

Yesterday, Nation’s Restaurant News did an "Operational Spotlight" on the chain to highlight how they keep their health standards high.  A lot of it had to do with the open kitchen (no hiding anything) and the risks inherent in using only fresh ground beef.

I especially liked this quote, and I think that all businesses can benefit from the wisdom:

In fact, if a customer notices something awry in terms of food
safety and cleanliness, they are encouraged to speak up. "We really
look to our customers to be our first line of defense," says
Chamberlain. There are signs posted prominently listing the number to
call for customer comments.

This is not a new practice, but the sincerity behind it goes a long ways towards making it work the way it is supposed to.  The signs for this aren’t hidden in a corner of the drive-thru window.  They are hard to miss, in fact.

We all ask for feedback (or at least we all SHOULD be), but how many of us are brave enough to ask for customers to call us when they notice a problem.  I know there are some that do, but we need to be sure to ask for it — criticism and all.

In light of that — please give me feedback, especially if you see me missing something, or screwing something up (but be gentle!).


 


Walmart’s $4 prescriptions

Just a quick newsworthy blurb that I heard on NBC12 yesterday:

We’ve all heard of the plan that Walmart has to sell generic prescription drugs at the low, low price of $4.00.  Well, Virginia has now been added to the list of states running the new program.

(11/30/06 UPDATE:  deleted dead link from "blurb that I heard on NBC12 yesterday")