nick.kokonas

Ducphat... to answer your questions in order: 1) The cost of planning the business plan was largely Grant's and my time -- and there was a lot of that involved. In raw dollars it was probably under $1000, though at that point in time I was largely doing this on spec, so I wasn't keeping close tabs. The architect and the designer were willing to explore the possiblity of taking on this project with us without charge largely because I had worked with both of them on prior projects. Their fees for the actual project work were agreed on later. 2) That is not committed... and is unkown. It all depends what our cash flow looks like and what are reservation book looks like. Ideally yes, we will return a portion of that money within a short time frame... but there will always be some reserve on hand. 3) Officially there was a minimum, but in practice we didn't need it. We were able to raise the money needed between a small, committed group of investors. I had worked with all but one person previously, so the investors understood the way I work and understood the business plan well. The money raise, thankfully, was one of the least painful parts of this process. I am lucky to have such a great core group of business associates who appreciate a good plan -- and fine dining!

I had an exceptional meal at Avenues last Thursday. After having a small sample of Chef Bowles cuisine at the Aspen Food and Wine Classic, and after spending some time with Chef B., my wife and I were very excited by the news that he was coming to Chicago. Our meal met our very high expectations. I will not give a dish by dish preview... but we had the chef's tasting and it was excellent. Avenues has kept its seafood focus -- with an exceptional scallop dish being my personal favorite -- but there was also an excellent and unique Wagyu preparation as well. The meal was also very inventive without crossing the line into experimental. These were focussed and well presented dishes. It was also nice to see the dining room nearly full on a Thursday. I fully expect that as Chef B. grows comfortable in his new surroundings and gains some freedom within the hotel setting, he will be making some of the finest food in Chicago -- and place in the top 3-4 restaurants in the city -- if it is not there already (which it may well be). Kudos and welcome to Chicago. I will be a frequent diner.

I will let ChefG comment on the efficiency of the kitchen. But it should be stated that the idea for the dining rooms from the very beginning was to make sure that tables had a great deal of space between them, thus ensuring a feeling of luxury for diners. There is nothing I hate more than going to a fine restaurant and then feeling like they have packed me in. So where the gross sq. feet of FOH to BOH ratio may look like 2-1, in reality we could have squeezed the same number of tables into a smaller area and achieved the 1-1 ratio.

The restaurant is approximately 5,600 square feet over two floors and spread among 4 dining areas. There is also a 1,500 sq. ft. basement which will be finished out and will hold wine storage and offices. There will be a second floor service area of good size, but all prep will be done in the kitchen proper. Chef Achatz is preparing a significant post on the kitchen layout, and we will also have a topic devoted to the design of the restaurant space -- and which will likely include commentary by the architect and designer.

I had a really good dinner at Trio Atelier a few weeks ago, and one of the highlights is that Trio's wine cellar is intact. The best part is that a great number of wines are offered by the glass, and in half pours if you desire, at very reasonable prices. We were able, with the help of our server Trinna, to sample 6 or 7 different wines that paired well with our food. Don't go to T.A. expecting the old Trio -- but do go, and go with an open mind. I very much enjoyed everything we had, the portions were perfect, and the service remains excellent. I will be a frequent diner, and I might even bring my kids along sometime. Joe Catterson will indeed be the GM and the Wine Director at Alinea. But as Alinea will not open until early next year he is still working with T.A. -- at least to my knowledge. In any event, I fully expect that T.A. will keep up an exciting wine program and it is safe to say that your wine experience will be excellent.

yes.... and a few different versions at that. In Europe it seems as though quite a few things are named Alinea -- furniture design shop (which is very much in our sensibility), graphic design shop, a few consultancy type businesses -- since the word is in more common use there.

In this regard Alinea is fortunate to have a unique owner in Chef Achatz. Grant has been involved in the industry since he was a teenager, has worked closely with several inspirational chefs, and has run his own top-notch kitchen for years. Due to his experience and reputation he regularly receives applications from chefs and service personnel who are eager to work with him. He also has a reputation as someone who is a good leader and is good to work for -- from what I have seen he inspires a great degree of loyalty in his staff. All of the staffing requirements were determined by Chef Achatz. In addition, we have Joe Catterson as our GM, and service will be run by Joe and Grant. I am sure that it will be their combined effort that determines our front of house staff.

Very off topic, but here it is anyways: I became interested in wine before fine dining and cooking. I read a number of wine related books. I also very much enjoy travel essays, and that led me to the Peregrinations of an Epicure (mentioned in the opening Alinea piece)...and that and a few others like it led me to open up to fine dining. Some time ago I read Michael Ruhlman's The Making of a Chef, followed a few days later by, The Soul of a Chef. Those books as much as anything had the right blend of travel essay and food essay. They were very inspirational and made me rethink my own approach to cooking. It is ironic that Chef G makes an appearance in The Soul... Who doesn't enjoy reading Steingarten? My wife and I both enjoy cooking and entertaining, so we have a myriad of great cookbooks. Too many good ones to mention, really. I haven't cooked anything but casual lunches for Chef G.... and the first one was nerve wracking, but for no good reason -- you can't try to compete, right? The second one I forgot to salt -- at all -- and great chefs love their salt. So at that point, I just didn't care anymore... it wasn't going to get worse. My wife quipped that she spent 10 minutes making sure the foam was beautiful on his cappucino -- since we were so used to being well treated, it is hard not to want to return the favor. But before long, it was carry-out pizza time... though we usually drink good wine.

Personal motivations are often difficult to discern -- but here is a shot at it: I believed after dining at Trio a number of times that Chef Achatz was producing the best cuisine I had ever had. Not only was it highly creative and highly experimental, but it tasted fantastic -- as in, that was the best "xyz" I have ever had. I have been fortunate enough to eat at some of the best restaurants around the world, and I was truly shocked at the level at which he consistently performed. Given his age, it was likely to get even better as he grew in experience. It also seemed like a given that someday soon he would have the opportunity to run his own restaurant. The opportunity to be associated with a person that operates at a high level is always exciting and professionally fulfilling. My best experiences in business (or in life in general) have been with people who were exceedingly committed to their endeavors, and that committment goes hand in hand ultimately with success. When I mention to people that I am involved in "building a restaurant" I usually get one of two reactions, or both: 1) I am naively entering a business where someone has duped me into investing money only to see it vanish within a short time; or 2) it is a vanity project to stroke my own ego or feel the 'buzz' that you mention. Meeting with Grant the person, not "Chef Grant", let me know that he was savvy about the business side of restaurants -- he was involved far more than a typical chef. In fact, he was pragmatic and willing to listen to business considerations. I would not have begun this project with him, or allowed it to go this far, if I did not consider this a solid investment money wise. In addition, there is no way that I would pitch this to investors if I did not feel confident myself. I am solidly in the same position that they are. Though the other investors very much believe in Grant's vision and enjoy his cuisine, ultimately they would not have invested if they did not believe in the business plan. So, I guess I am a true believer on both fronts: the business and the art. But this is not akin to me buying a painting, or even commissioning one. I have spent, and continue to spend, a majority of my waking hours working on many aspects of Alinea. I have not actually eaten a bite of Grant's cooking since May 4th (an investor's dinner) -- so it has not gotten me any special "access to the art", with the exception of some shared take-out pizzas. He has had to endure my cooking more than I have enjoyed his. But it continues to be a very fulfilling project and one that I enjoy working on immensely. As for the risk involved: A good friend told me that he looked at his business risks this way.... if you feel fine when you go to sleep and wake up, you are not taking enough risk. If you are throwing up consistently, you are taking too much risk. A nice, even nausea most of the time is just right. Generally speaking, this risk feels just about right.

The interior design of the building has been given a tremendous amount of thought and will entail its own topic section.... likely to begin in a few weeks. Safe to say that the same level of detailed planning is being applied to the bathrooms as to the rest of the building.

Yes. It is all of those things.... I think those questions are exactly the type of response it was meant to provoke.

An Alinea is a paragraph symbol, also called a pilcrow. It means, "the beginning of a new train of thought." It has an interesting history.

I ate such a meal a few years ago -- designed around "the elements" and sight, sound etc. -- at L'Auberge Du Soleil in Napa Valley. Not all of the dishes presented were in that theme, but they were going in that direction and it was pointed out to us. The design of these service pieces is very different conceptually from that. Most often, Chef Achatz has a particular course that is ill suited for traditional serviceware -- or could be presented more effectively through non-conventional means. That leads to the creation of the service piece.... not the other way around. As Chef Achatz said in his post, if the food does not taste good -- in fact, taste excellent -- then the process degenerates to mere showboating or gimickry. The diner is left thinking that someone is trying to be clever. That in turn, leads to the type of cynicism that Fat Guy warns about. And in that case, I think it is justified. I think the critical distinction here is one that Martin pointed out on another thread -- "We aren’t trying to make a gesture just for the sake of being interesting" -- it must contribute to the food that is being presented. In all aspects of the Alinea design that thought is being kept in the fore.

I do not wish to comment on that specifically in dollar terms. Joe Catterson is the Wine Director and will be charged with building the cellar. Due to the nature of Chef Achatz' cuisine and the tasting menu, or degustation, format, Alinea will offer wine flights to pair with particular dishes. In my opinion, Joe is a master at doing this and it was always my experience that this was the best way to approach a meal prepared by Grant. In addition, we may offer "reserve" flights if patrons want that option. That said, Alinea will have a unique and broad selection of wines by the bottle, and we intend to make allowances to let a diner "insert" a chosen bottle off of the list into the flight if they so choose. That way, the diner can get the best of both worlds: the flight and the list. I am sure that at some point in the future Mr. Catterson will address this board in detail about wine selection, pairings, and building the cellar....

All staffing will be handled by Chef Achatz and our GM, Joe Catterson. We have received quite a few inquiries already, but are not yet accepting any applications. When we are closer to the opening we will post employment information on our web site. Until then, thanks for the interest....!

To answer Holly Moore's Questions: 1) We budgeted everything at the high end of what we could expect. For example (and these are hypothetical numbers), we put $50 per square foot for a 5,000 square foot space into our plan, realizing that it was likely that we would pay somewhat less. Some known numbers we budgeted exactly, but others I assumed would cost 20-30% more than expected. On the whole, we have margin for error, though with each expenditure, potential return to investors is diminished. We are operating as smart and tight as is possible. 2) We have set aside a cash reserve in the ballpark of 10-15% of our money raise. We believe that this will be sufficient given the cash flow and fixed costs. Really, we only need to make the fixed costs in order to survive, so those are the outoing dollars I concerned myself with when setting the reserve. If all goes well, we will return that reserve to investors in a relatively short time. 3) That is impossible to say! We are hoping for the best and anticipate doing well.... we are confident that the end result will be an experience that diners will enjoy and want to experience. That said, we are tempering our expectations and planning for the worst... just in case. Regarding KatieLoeb's question: I think I am the CFO... though I hate business titles! At the very least, I will be fulfilling those duties personally.

As you stated, much of the information you requested is confidential and private. But I can answer you generally and still give a decent answer to your questions. Chef Achatz had already drawn up a general business plan before we began discussing the possibility of working together. I read that plan thoroughly to help me understand the scope of the project and type of restaurant Chef Achatz wanted to build. Chef Achatz and I spent many hours discussing his vision for what ultimately became known as Alinea. From there, I outlined the type of information we would need to adequately estimate the amount of start-up capital needed. Some of that information was easy to find but time consuming to execute. For example, Chef Achatz prepared several spreadsheets outlining all of the necessary front-of-house and back-of-house purchase requirements in detail -- literally down to the "13 Cambro Red Lids at $2 each = $26" level. That was hundreds of line items. Again, that was the easy, known information. Then we began to survey real estate pricing in the likely areas we would want to locate a restaurant. This was done at the gross -sq.-ft level, and we already knew roughly how many square feet we would need. So that became another series of price ranges. We then met with architects and designers to ballpark building costs given various types of construction. On and on. Payroll, professional fees, legal work, etc. This entailed hundreds of emails between us, and 3-4 months of work. Ultimately, we arrived at a point where we felt confident that we had gathered all of the "build-out" information we could. There were many unknowns and many estimates, but all were based on realistic goals and researched information. This was then presented as a business plan. The plan consisted of approximately 10 spreadsheets, one long written piece detailing the vision of the restaurant and a timeline and description of methods of executing the plan. This being Grant and a high end restaurant, we packaged the plan in a beautiful box on hand made paper, along with a digital copy of the plan, press kit, etc. etc. And of course, a miniature 4 course tasting menu in small vials consisting of a dry martini, lamb, and desserts! I have started several businesses and invested in others, so I had a group of people who knew and trusted my work -- and I would be investing a substantial amount personally. In addition, the investors were highly appreciative of Grant's cuisine and believed that he would ultimately be successful. The money raise was done with a small group of committed investors who believe in Alinea both as a business and as Grant's vision. It is important to us that Alinea works as both a grand restaurant, and as an investment for the backers who believe in our work. Generally speaking, arranging financing in the sense that you mean is not possible for a business like this. Alinea is to be built from scratch, and as such has no credit history and no cash-flow history. Unless personally gauranteed, no bank on earth would loan money to such a start-up. I do not wish to discuss the type of business structure we created or how management is compensated. I will say that I relied more on my experience with private equity raises in the technology and real estate areas than I spent time trying to figure out what a restaurant "usually" would do. Nor do I expect that there is such a thing as a "standard" restaurant deal. As with all such business deals, the resulting agreements are longer and more complicated than one would expect at first glance. I do think that our plan differs significantly in that we are a totally chef driven restaurant... we will live or die by the work, cuisine, and vision of Chef Achatz. I feel very strongly that nearly every fincancial investment one can make is an investment in the people involved, and in this case that fact is more evident and obvious than in other investments. In that regard, the investors are active only on the business side of the restaurant. All are professionals in their fields and have extensive business experience -- it would be foolish to not get thier input. But no one is "walking into" the kitchen to tell Grant to make sure a creme brulee hits the menu! There is no point in investing in Chef Achatz, and then getting in his way. For the most part, my work will be 97% done when Alinea opens its doors. ----- On a personal note, I am very excited to be involved with this eGullet project and am excited for Alinea to embrace the online "foodie" community. I will try to answer any questions as quickly as possible.