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									BOB THE CHEF’S: A Soul Food Experience

Prof. Ivor Morgan Management Division, Babson College, Babson Park, MA 02457 Tel: 781-239-5015; Fax: 781-239-5272; Email: morgan@babson.edu

Prof. Jay Rao (contact person) Management Division, Babson College, Babson Park, MA 02457 Tel: 781-239-4586; Fax: 781-239-5272; Email: raoj@babson.edu

BOB THE CHEF’S: A Soul Food Experience
It was late on a sunny Sunday morning in July (1996) and the many new and upgraded restaurants along Columbus Avenue in Boston’s South End were making visible preparations for lunch. Some of the restaurant fronts glistened in the sunlight and in front of a few, tables were being organized on the sidewalk. It was a comfortable affluent scene reminiscent of restaurant scenes in the warmer parts of Europe. Darryl Settles walked westwards along Columbus Avenue. The scene on both sides of the avenue had changed considerably since he took over the ownership of Bob the Chef’s Restaurant situated on the Avenue in Boston’s South End, just more than a block away from Massachusetts Avenue, a major Boston thoroughfare. Darryl had taken over Bob the Chef’s Restaurant only six years before when it stood almost alone on Columbus Avenue. While it was comforting to have fashionable restaurants as neighbors, the sparkle of the new arrivals presented a sharp contrast to Bob the Chef’s exterior. Even the sandwich shop, which also ranked as one of the few old timers in the neighborhood, had received a recent facelift. Darryl knew that the interior of his restaurant would suffer similarly in comparison to those of the newcomers. As Darryl thought further about the situation, he knew that the changes to Columbus Avenue were more than just superficial ones; they were affecting the nature of the people using the restaurants in the area, and perhaps requiring new thoughts about the very concept of the restaurant itself. He had long had a desire to add music to his food. He wondered if now was the time, and, if so, how he should approach the changes.

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History Bob the Chef’s restaurant was founded by Robert ―Bob‖ Morgan and his wife, Dottie, as a small scale evening counter service at Mud Kelly’s Big ―M‖ nightclub on Massachusetts Avenue in the late 1950s. The restaurant became Bob the Chef’s when it moved to Columbus Avenue in 1968. The restaurant prospered for over ten years but, in part due to failing health, the Morgans decided to sell the restaurant in the mid-1980s. The second owner worked enthusiastically to continue the southern cooking tradition that had been set by the Morgans but she ran into financial difficulties with Capitol Bank. Facing bankruptcy, and with the restaurant losing money, the second owner searched for a buyer and found Darryl Settles in March 1990. In 1990 Darryl Settles was only 27 years old. And it took Settles 13 months, the financial backing of a friend, creative loan structuring and real estate collateral to complete the deal. Darryl Settles Darryl Settles has been described as one of a new breed of entrepreneurs. Born and raised in Aiken, South Carolina, he graduated from Virginia Polytechnic Institute with a major in Industrial Engineering and Operations Research. He moved to the Boston area to join Digital Equipment Corporation as an engineer, and subsequently worked in sales. In 1989, he learned that Bob the Chef’s was for sale and, after determining that the restaurant had real business potential, he decided to buy it. The business lost $70,000 in its first year but Darryl Settles managed to turn around the 88-seat restaurant, which was seen by some as a ―soul food diner.‖ ―I’ve never thought about failing. I think it’s because of that I’ve always been successful,‖ Settles was quoted as saying

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while seated on one of the restaurant’s aqua vinyl booth seats. Darryl’s confident outgoing personality was much in evidence in the restaurant when he moved from table to table, greeting customers with a breezy familiarity, shaking hands with enthusiasm, and even sitting for short spells at the tables of some regulars. ―I don’t have any bounds,‖ said Darryl in an article on the inner city credit crunch. The article continued: ―Lenders are hungry to capture the Darryl Settles of the community: successful entrepreneurs with well-laid plans and personal financial backing. They are the best risks banks can find under their legal requirement to lend in areas where they take deposits.‖ Boston’s South End & Columbus Avenue A 1988 Boston Globe article 1 described the closing of Owens Barbershop with its old-fashioned barber pole spinning in front, at the same time La Difference beauty salon, featuring photos of new wave haircuts in its window, was opening just a few doors away on Columbus Avenue. The article described Columbus Avenue as ―a street that was once a vibrant center of Boston’s black community, that has been the port of entry for many of the city’s minority immigrants and that in recent years has been evolving into what many call ―the next Newbury Street.‖‖ (Newbury Street was the most fashionable street in Boston’s Back Bay with many expensive boutiques and up-market restaurants.) The article continued: ―Between its two end points, at Park Square and at Franklin Park, Columbus Avenue contains a diversity of race, economics and ethnicity matched by few other Boston streets. From condominiums selling for $500,000 or more behind Copley Place to the housing projects near Northeastern University; from $15 steaks in restaurants near Dartmouth Street to $2 Italian sausage ―grinders‖ at sandwich shops near Washington Street, Columbus

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Avenue has a little bit of everything.‖ A majority of the residents in this area are between the ages of 25 and 44 with an average annual household income of $46,000. In addition, over 50,000 people live and work in the nearby Copley Place area, with 33% of them having more than $50,000 in household income. They eat an average of 4.1 meals per week that are not prepared by someone in their household, and the most frequent meal purchased is ―lunch to go‖2. The history of Columbus Avenue was rich in diversity indeed and it had once been a prime entertainment district. However, by the late 1980s only a few vestiges of this period remained—among which was Bob the Chef’s; gone were the likes of the Hi-Hat jazz club which had showcased Charlie Parker, Sarah Vaughan and Sammy Davis Jr..3 In the minds of many, much of the South End had been progressively ―yuppified‖ in the 1970s and 1980s, and Columbus Avenue was slowly but surely undergoing the same process. One of the few landmarks that still stands today, rich in diversity and heritage, is the Piano Factory. The Piano Factory, located in the same block just behind Bob the Chef’s restaurant, is a massive 200-unit apartment complex that houses musicians and artists. Bob the Chef’s Restaurant Bob the Chef’s Restaurant had been preparing southern cuisine since its inception. The success of the food was behind the move of the ―southern soul food‖ concept to Columbus Avenue, and its success continued. Indeed, the recipes used in 1996 were largely the same ones that had been developed by Bob & Dottie Morgan in the 1950s, though the 1990s dishes were prepared with 100% vegetable oil and seasoned with smoked turkey flavor for a healthier zesty flavor (for a typical menu, see Exhibit 1).

1 2 3

Columbus Ave.: Mirror of Change by Diego Ribadeneira, Boston Globe, February 16, 1988 National Restaurant Association – 1997, Restaurant Industry Pocket Factbook Columbus Ave.: Mirror of Change by Diego Ribadeneira, Boston Globe, February 16, 1988
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However, under Darryl Settles ownership, many changes had been made. Becoming one of the first restaurants in the area to become smoke free, the restaurant had also added beer and wine, and a full range of catering services (a catering menu is shown in Exhibit 2). Bob’s regular catering clients included the Bank of Boston, BayBanks, M.I.T., Harvard University, the City of Boston, Polaroid, New England telephone, Brigham & Women’s Hospital, and the Children’s Museum. The restaurant also had a corporate contract with IBM for complete catering services for their Customer Service Center at Copley Place. Restaurant hours had been extended, with the restaurant open seven days a week from 8 a.m. to 9 p.m. but with evening hours to 11 p.m. on Fridays and Saturdays, and a brunch served on Sundays. A take-out menu was also offered and Mastercard and Visa both accepted in payment. A typical restaurant check was about $9. As the only southern soul food restaurant in the Boston area, Bob the Chef’s had received much attention, and had attracted visits of many famous people from show business and from the world of sports. Even Jesse Jackson had eaten there. Along with this attention, the restaurant had received many awards, and a flavor of these is given in Exhibit 3. The 88-seat restaurant was divided into two, essentially by a large staircase that gave access to the second floor of the building from the street. The main restaurant contained 53 seats in the shape of a long room along Northampton Street, which ran at right angles to Columbus Avenue. As clients entered the restaurant from Columbus Avenue, they walked between a serving bar which ran along the right hand side of the room and upholstered booths on the left hand side. Beyond the bar, the restaurant opened into a wider room with tables in the floor center and booths along the windows. The kitchen was located to the right of this wider room, and clients could see in through the open door to the stoves.

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The remaining 35 seats were in the Nelson Mandela Room. The walls of this room displayed work by local artists on its walls, giving it a different feel from the rest of the restaurant. It was used when the restaurant was busy or for special occasions and groups. Though this room had an easy connection through its rear wall—as seen from Columbus Avenue—to the kitchen, it formed a separate environment from the main restaurant. However, when live music was presented in the restaurant, the musicians were normally placed at the rear of the main restaurant, in a corner away from Columbus Avenue. Thus, music from a group would flow without interruption through the connecting door to the Nelson Mandela Room. Though the decor was not the same in the two rooms, both had the feel of a diner with plastic and vinyl being much in evidence. As Darryl Settles remarked, ―Our present decor presents us with a problem. Our customer mix is changing, and many of our new customers come to us because they have sampled our food at one of our catering events. They feel let down as soon as they see our present decor because it simply is not what they expect. They drive in from the more affluent areas from an evening’s experience, and feel let down when what they see is just like a diner.‖ Marketing Total expenditures for advertising and promotion in 1995 amounted to about 1.5% of sales or down from 2.4% sales in 1994. Most of the expenditures were on magazine and radio advertising. Bob the Chef’s advertisements appeared periodically in the Bay State Banner, South End News, Stuff Magazine, and Improper Bostonian. Only rarely would an advertisement appear in a Northeastern University newspaper or other community magazines. Radio advertising was mostly on African-American stations - WILD-WOW! AM radio, 99.5 the OASIS and 94.5

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JAMMIN. Such advertising had never been a consistent strategy, and was placed only in brief bursts. As with most stand-alone restaurants, Bob the Chef’s relied principally on word of mouth advertising to get the name of the restaurant out to its potential customers, and, of course, it hoped to get repeat visits from those who had eaten there. The catering service, in particular, had proved to be an important vehicle for disseminating information about Bob the Chef’s food. However, as noted by Darryl Settles, the nature of this market was not the traditional one because Bob the Chef’s had primarily served an Afro-American market including the residents of the Columbus Avenue area prior to the changes of the 1970s, 1980s & 1990s. The restaurant’s potential customers created by the catering service experience presented a number of problems among which were the restaurant’s atmosphere and decor, service standards, and parking. Of these, parking had always been a problem in the Columbus Avenue area but was a problem that had been much reduced in 1994 by the purchase by a local owner of the garage and empty lot across from Bob the Chef’s on Northampton Street. This facility could accommodate up to 100 cars, and offered up to two hours parking for $3.00 if the parking ticket were validated by Bob the Chef’s. The closeness of the parking meant that Bob the Chef’s could now offer its clientele valet parking with relative ease. Operations Service standards presented a problem for some. As remarked by one visitor, ―the recipes are not the only the things that have not changed since the 1950s, the old southern service was another.‖ Describing the service as casual, with the servers being quick to speak their minds, the food was nonetheless brought promptly once it had been ordered. ―However, once the food had been brought, that was the end of the attention from the server. There was no attentive server
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asking if the meal was to your satisfaction or if you would like something else. And when ready to leave, the time to get your check seemed an eternity.‖4 Bob the Chef’s Restaurant employed three cooks who were assisted by three dishwashers/cleaners with prepping work in the mornings. Most of these staff members had been with the restaurant for the past two years and were paid an average of $8 per hour. The restaurant was served by eight waiters/waitresses, three of whom were full-time and the other five were part-time. Two of the full-timers had been with Bob the Chef’s for the last 35 years. In spite of this, turnover among the front-line staff was a concern, and all of the part-timers had been with the restaurant for less than nine months. The wait staff received $2.55 per hour plus tips. On a normal weekday, the wait staff earned from $40 to $60, and on weekends they could earn as much as $100. In addition to the wait staff, four serving staff manned the steam table, and were paid $7.50 per hour. Both the serving staff members and the dishwashers expected tips from the wait staff at the end of each night’s work. The serving staff usually handled telephone calls. After Bob the Chef’s was awarded a liquor permit, the serving staff also ran the restaurant’s small bar. The increased workload often meant that the telephone could ring for as many as 15 to 20 times 5 before being answered. Darryl Settles’ office had a telephone equipped with an answering machine. Customers requesting catering jobs usually left a message on this machine, and Darryl would call them back later to book the catering order.6

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Bob the Chef’s did not have a Point-of-Sale (POS) system till Nov. 1993 Casewriters’ experience 6 One of the casewriters--by chance--talked to a potential catering customer who was furious that even after leaving two messages on two consecutive days there was no response from the restaurant management. Bob the Chef’s lost the business.
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Bob the Chef’s had one full-time manager and two part-time assistant managers. The assistant managers generally were in-charge of placing orders, checking deliveries, and routine opening and closing operations. The managers were not in charge of the workforce, the menu or the kitchen—Darryl handled these functions—and their tasks were of a very standard nature. Major decisions were left to Darryl Settles. The manager handled mostly the catering operations, with the help of anywhere from 3 to 20 catering staff, depending on the size of the contract. Five of the regular wait staff were trained to handle catering jobs, however the majority were temporary workers. All food was prepared in the main kitchen of the restaurant. Darryl Settles made a point of being at each of the catering functions in person. Bob the Chef’s Express: 1995 Expansion After two profitable years on Columbus Avenue, Darryl Settles was keen on expanding the Bob the Chef soul food concept into the surrounding communities. So in 1994, he investigated three possible schemes: an upscale restaurant in downtown Boston, an enlargement and renovation of the original restaurant, or a small take-out restaurant. He settled on the latter, and with the help of a team of students from a local business college, he developed a business plan for a location in Dudley Square in Boston. The new concept was to be a kiosk-sized restaurant that could be expanded to a chain of kiosks if successful. The new kiosk would be a test of the acceptance of the Bob the Chef soul food beyond its Columbus Avenue base. And it had the advantage of being a satellite operation requiring few resources and low maintenance, since much would be supplied from its Columbus Avenue base. Based on projections (Exhibit 4) made by the student team assisting him, Darryl

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obtained a loan and opened the Bob the Chef-Express at the Dudley Station Bus Terminal in late 1994. The site chosen for the kiosk unit—Dudley Station in Roxbury—was one of the most active bus terminals in the Boston area with 21 routes flowing into it. In 1992 this area had a racial population profile of 41% African American, 41% Caucasian, 13% Hispanic and 6% others. The total population within 1 mile of the station was 81232 (average household size = 2.19) and the average household income was $29620. The Bob the Chef kiosk was located in the food court in the middle of the bus terminal. Bob the Chef-Express planned to cater to the employees of the local businesses (Police Station, WILD Radio station, Bank of Boston, Fire Station, YMCA, Tropical foods, Walmart, Shawmut Bank, New England Telephone), passengers passing through the bus terminal, and about 3000 Madison Park High School students. The competition was mostly local Mom and Pop restaurants serving hamburgers and sandwiches. One corner of the food court was occupied by a Dunkin’ Donuts and the other by a pizza restaurant. The other occupants of the food court were a hot dog and an ice cream establishment. A McDonald’s was located 1.5 miles away. Bob the Chef’s served breakfast, lunch and dinner from the new location. The breakfast menu was limited and the lunch and dinner menus were simplified by adding ―Value Meals‖ (Exhibit 5). But some popular fast-food items like French fries, onion rings, sandwiches and salads were added. Pre-cooking and preparation of the food was completed at the main restaurant on Columbus Avenue and the cooking was completed at the Express location. The food was delivered nightly to the new location. The average check for the Express location was estimated to be around $6 for both lunch and dinner. The local businesses
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had the option of faxing or calling in an order before 10:30 am for ten or more people to have their lunch delivered. The new restaurant opened in January of 1995 with twelve seats for a quick eat-in meal for some. In addition to opening a new restaurant, Darryl Settles decided to stabilize his hold on the building on Columbus Avenue in which Bob the Chef’s Restaurant was housed. So he bought the building and converted the space—unused for ten years—into six large residential units: three 3-bedroom, three 2-bedroom, and all over 1000 square feet in area. Problems and Opportunities By 1996, Darryl Settles knew that he had come a long way. His entrepreneurial nature had taken hold of him and he was running several businesses: Bob the Chef’s Restaurant, Bob the Chef’s Express, a take-out business from the original restaurant, a catering service, and a real estate business. For all of this he was responsible, the chief motivator, and primary decision-maker. In addition, he often worked as a fashion model. By nature Darryl could never say no to anybody. He was very actively involved in community development. He regularly allowed community non-profit organizations to hold meetings in the Nelson Mandela room. He also volunteered his time to serve on a business mentor program of a nearby university. Something had to be done because business problems piling up as the world changed around Bob the Chef’s. He knew that he needed a different manager to take over the food side of the business. This would mean giving the purchasing and control of the food, the menu, and the staff to a seasoned manager. Darryl had never been a chef and relied on his employees to a large extent in running the restaurant operations, and he knew that it was not just the matter of buying the food

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that offered improvements, but control of what was cooked and when would reduce the amount of wastage in the kitchen. The restaurant operation was not the only pressing matter, the Express service had run into difficulties from the start, and some difficult decisions had to be made about its future. Meanwhile, he had started facing common tenant problems that most landlords face (e.g., enforcing no-pet rules, petty tenant squabbles, maintenance, etc.). And even Bob the Chef’s main restaurant itself needed a new look, Darryl felt. For this he had developed a plan but he was not sure if this was ambitious enough or too ambitious (see Appendix A). On the financial side, Darryl could see that the trends presented some problems for him (see Exhibit 6). Though the three major parts of the restaurant business had been steady at about one-third of revenues each, in the past year, the eat-in segment had declined in volume. These trends strengthened Darryl’s resolve to take action. At least the real estate business and the catering side did not appear to present problems though the pricing of the latter was tied to whatever was done for Bob the Chef’s itself. Darryl Settles: ―My feeling is that we shall have to upgrade the main restaurant, and it is my dream to incorporate live music into the new concept. The jazz club idea fits well with our soul food but this will mean a further shift in our market base away from the locals. This may also mean some changes to the service levels within the restaurant, and it may mean hiring an executive chef to bring a professional level to our kitchen. ―I also think we should change the hours of operation to cut out breakfasts. This may not sit well with some of the locals either but starting early always adds operational complexity; at present I get here when the restaurant opens even if we have been doing a catering job late the previous evening. It’s tough finding time to sleep at the moment.‖
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The New Manager Darryl was clear in his goal of bringing a new manager on board. ―I think I have found just the person. He is enthusiastic about food and has had a lot of really good experience in the industry. He is a kind of turn-around artist.‖ When the case-writers met Romeo—the new manager—he explained that he had worked mostly in night-clubs for the last 10 years of his life, and he wasted no time in updating them about his latest turnaround feat. He was open with his views about the need for action. The day after he was hired by Darryl, he had drawn up a comprehensive menu for each meal of the day and each day of the week. Most of the recipes to be used were his own. He was very proud of his grand-mother’s BBQ sauce and even thought that Bob the Chef could be bottling his BBQ sauce and putting it on grocery shelves. Prior to Romeo’s hiring, Darryl had planned to conduct a survey using the collection of nearly 800 business cards he had accumulated which had been converted into a database. Darryl felt it necessary to get feedback from his existing and prospective clients before making any drastic changes to the physical form of Bob the Chef or its approach to service. Romeo, however, was convinced that a customer survey was unnecessary. ―It’s all planned in my head,‖ he said, ―and most of it is already on paper. I have been in this field for nearly ten years and have learned to rely on my instincts. You should never ask how much they are willing to spend, anyway; they can never tell you correctly.‖ Romeo also had a very clear view regarding the new look he wanted for Bob the Chef. ―The vinyl has to go. And we need to bring a new look to our staff.‖

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The casewriters walked along Columbus Avenue and looked back to Bob the Chef’s Restaurant. Darryl Settles had many decisions to make, and the year ahead was destined to bring more changes to this part of the Avenue. What would they do if they were in Darryl’s shoes? Bob the Chef was no longer just a restaurant. It was a series of related businesses. How could the whole enterprise be made larger than the sum of its parts? And if a restaurant renovation was to be undertaken, how should the new look be priced and serviced? Would this be just another part of the old Columbus Avenue that would be lost to the locals?

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Exhibit 1 Bob the Chef’s Menu

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Exhibit 1 (continued) Bob the Chef’s Menu

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Exhibit 1 (continued) Bob the Chef’s Menu

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Exhibit 2 Bob the Chef’s Catering Menu

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Exhibit 3 Awards

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Exhibit 4 Student Team’s Projections for BTC Express

Profit and Loss Statement for Year Ending 7/31/95
Aug Sep 40,000 12,400 27,600 Oct 45,000 13,950 31,050 Nov 50,000 15,500 34,500 Dec 52,000 16,120 35,880 Jan 47,000 14,570 32,430 Feb 47,000 14,570 32,430 Mar 47,000 14,570 32,430 Apr 47,000 14,570 32,430 May 52,000 16,120 35,880 Jun 52,000 16,120 35,880 Jul 52,000 16,120 35,880 Total 566,000 175,460 390,540

Revenues
Cost of Goods Sold Gross Margin

35,000 10,850 24,150

Expenses
Salaries Payroll Taxes Rent Utilities Insurance Interest Expense Social Security Taxes Telephone Waste Removal Licensing and Permits Janitorial Cleaning Uniforms and Laundry Repairs and Mainteneance Automobile Accounting and Legal Printing and Copying Protective Service Miscellaneous Depreciation Amortization of Start-up Costs Sub-total 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 8,426 843 1,138 6,446 10,850 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 11,876 1,188 1,603 9,085 12,400 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 15,326 1,533 2,069 11,724 13,950 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 18,776 1,878 2,535 14,364 15,500 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 20,156 2,016 2,721 15,419 16,120 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 16,706 1,671 2,255 12,780 14,570 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 16,706 1,671 2,255 12,780 14,570 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 16,706 1,671 2,255 12,780 14,570 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 16,706 1,671 2,255 12,780 14,570 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 20,156 2,016 2,721 15,419 16,120 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 20,156 2,016 2,721 15,419 16,120 6,211 217 1,902 1,500 513 263 238 150 200 150 400 100 250 450 300 100 100 250 1,230 1,200 15,724 20,156 2,016 2,721 15,419 16,120 74,532 2,604 22,824 18,000 6,156 3,156 2,856 1,800 2,400 1,800 4,800 1,200 3,000 5,400 3,600 1,200 1,200 3,000 14,760 14,400 188,688 201,852 20,185 27,250 154,417

Net Profit before Tax
State Income Tax Federal Income Tax Net Profit after Tax

Memo
Inventory Purchases 175,460

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Exhibit 5 BTC Express Menu Breakfast: Egg & cheese biscuits (bacon, sausage, or ham) Side orders: English muffins, hot bread, grits, home fries, fresh fruit Lunch and Dinner: Value meal 1 - rotisserie chicken, macaroni & cheese, collard greens, corn bread and medium soft drink. Value meal 2 - BBQ ribs, potato salad, onion rings, corn bread, and medium soft drink. Value meal 3 - fried chicken, potato salad, red beans & rice, corn bread, and medium soft drink. Value meal 4 - chicken & rib combo, sweet potatoes, corn bre4 and medium soft drink. Value meal 5 - southern cheeseburger, curly fries, and medium soft drink. (These value meals will alternate side dishes weekly to create variety. Substituting side dishes will incur additional fee.) Sandwiches: rib sandwich fried filet sandwich chicken filet sandwich smoked turkey roast beef honey baked ham chicken salad Beverages: coffee soda tonics orange juice milk This and That: chicken nuggets chicken / buffalo wings curly flies onion rings Side dishes: collard greens macaroni and cheese corn and green beans red beans and rice sweet potatoes potato salad

Deserts: sweet potato pie apple pie pecan pie peach cobbler assorted cakes

Salads: garden pasta

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Exhibit 6 BTC’s Selected Financial Data Sales Sit Down - Food Sit Down - Beverages Take Out Catering Total COGS - Food COGS - Beverages Salaries and Wages Employee Benefits Direct Operating Expenses Music and Entertainment3 Marketing3 Utility Services & Utilities Restaurant Occupancy Costs Repairs and Maintenance General and Administration Corporate Overhead Interest Other Operating Expense/(Income) Other4 Income Before Income Taxes 1 2 3 4 1992 1993 1994 1995 Ind. Avg.1 XPRESS2 86.2 13.8

328024 308806 321210 290657 42264 43050 57086 68128

243917 267689 291103 300457 100498 187865 267032 288713 714703 807410 936431 947955 274756 309710 325687 338150 20516 21025 20689 24321 100 29 360552 168875

3.5 inc. above 29.6 4.8 6.3 0.3 2.8 3.1 5.7 1.8 3.3 2.1 0.6 2.1 0.3 4.70 100072 12229 18222 0 0 23573 39353 986 1082 0 14022 0 71013 -88875

224435 276095 299973 310840 29972 18845 0 0 27181 27140 6572 756 0 21881 -1396 49648 14397 43105 14998 0 0 26136 27842 16854 1267 0 20897 -494 47254 2721 42097 25046 0 0 29437 31200 20641 4029 0 22512 -310 72581 42849 49933 20438 0 0 29224 34800 5674 5160 0 23735 -1705 86888 20497

The Restaurant Industry Dollar - For full service restaurants with average check less than $10 per person. National Restaurant Association, 1995Bob's Express Ltd. figures are from Jan. 1995 - May 1996 Music, Marketing and Entertainment is included in Direct Operating Expenses Includes Shareholder's payroll, professional fees, insurance, amortization, depreciation expense, telephone In 1994 the shareholder's payroll was $46,400;in 1995 it was 25,800 from BTC and 16,500 from Express

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Appendix A Bob the Chef’s Restaurant Makeover Project Key Success Activities  New Phone System  New Trained / Smaller Staff  Limited Menu for Quality Consistency and Less Labor  Shorter Hours  Active Bar with increased Revenue  Attractive Appetizer List  Quarterly Focused Groups  Attractive Uniform Code for Staff  Valet Parking as Needed  Waitstaff (hire Actors/Actresses vs. Directors)  Manage by the Numbers (Overhead & Food Costs)  Utilize Data Base for Direct Marketing (Up Front Mrktg.)  Late Hours till 1 a.m. w/ Limited Menu after 11 p.m.  Possibility of Adding ―Dining In‖ Services and Revenue  Increases Ability to Sell High End Wines / Beers / Champagnes Limited Competition  Scullers, Top of the Hub, Connolly’s, Dick’s Last Resort, House of Blues, Regatta Bar, Turner Fisheries, Wally’s, Wonder Bar, Ryles Best Managed Restaurants  Salamander, Grill 23, Top of the Hub, Jae’s Café, Chez Henri, Providence, Biba’s, Ambrosia, Legal Seafood’s, Rialto’s, Elephant Walk, Les Zygomates Major Construction Changes/Items  Relocate Front Hood and Cooking Line  New Bar  New Take-Out Section  New Signage  New Windows  Upgrade Basement Cooking Facility  Exposed Brick Walls  Handicapped Accessible (Ramp and Bathroom)  New Higher Ceiling  New Wiring and Plumbing
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 HVAC Maximized  New Lighting  New Bathrooms  New Flooring  New Sound System  New Performance Area w/ Appropriate Lighting Nightly Entertainment Format (not final):  Sundays - (2) Gospel Shows (11 a.m. & 2 p.m.) - Live Jazz at Night  Mondays - Soft R&B  Tuesdays - Caribbean (Reggae)  Wednesdays - Blues  Thurs. - Sat. - Jazz Cost Breakdown  Construction 95K**  Architect 9K  Accountant 5K  Exterior Sign 5K  ADA 2K  Equipment 20K  Furnishings 10K  Basement 10K  Sound System 2.5K  Baby Grand Piano 7.5K  Advertising/Marketing 10K  Working Capital 30K Total $ 206K ** Note: Includes complete sprinkler system and fire alarm system Benefits  A historical business (40 years) stays in the Community  Able to keep 25+ jobs in the Community  Able to attract more middle class Afr. Americans and provide them with a place they are proud of  Able to provide fundraisers for non-profits within the community via quality facility and possible ―guest‖ chefs and waitstaff

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