Theodore Xenohristos14:21
So you know we we didn't have any money. You're right about that. We just had the will to to want to do something different. And I remember, you know, Dimmitri got a call from one of his distributors who said there there's this uh Russian bakery going out of business and this is probably 40 45 minutes outside of Washington DC uh in Rockville, Maryland. And we went up and we looked at the spot and I mean this shopping center was just barren. There was no cars in it. Uh we went into this kind of Russian bakery. It looked like a um looked like a subway if I could best describe it, you know. And so we offered to buy the business and I remember it was I don't know I think it was like $10 $15,000 and the agreement would would be that we would pay that over time and in buying the business you would buy the you weren't buying like the brand name or anything. What were you buying? Just all the equipment. Yeah. Just the equipment and everything inside. Uh which I later came to find out was you know worthless because we couldn't use any of it. But uh so when we met with the landlord, the landlord actually said no because some of the same things we ran into in the past. Our finances weren't there. We didn't have the personal guarantees. We didn't have any cars or homes to put up. So he didn't want to give us the space. We were 26, 27 years old. He just didn't want to do it. So we eventually we come up um with this plan. We had found out through conversations with the woman who owned the Russian bakery that she owed back rent. And so we went to the landlord and we said, 'Well, what if we paid her back rent? Would you give us the space then?' And I'm sure as many of your listeners will will know already is that money talks. And he immediately said, 'Yeah, I can do that.' So then the question was, 'Where are we going to find this money now?' We offered something that we didn't have. And by the way, how much was the rent per month? I'm not sure what the actual rent was per month, but I knew that she owed about $20,000. And so, what where are we going to find this $20,000, right? None of us had 20 bucks in our pocket. So, um I think I always preface it with like this is this is what you shouldn't do when you start a business, but we took all our credit cards, our personal credit cards, and we just pulled money off them. Withdrew cash. Uh we basically maxed them out. Uh, and we were able to come up with that that money to pay the landlord off like like you what you like walked in with like a suitcase of cash. I think we turned it all into a cashier's check, but the story would probably be much better if we did walk in with a suitcase of cash. It felt like that. It did feel like that. Hand numbered bills. Yeah. So, and and what was the concept that you were thinking of? It was I mean, this was a Russian bakery that you were taking over. Tell me what it was going to be. So, the idea was that we would do uh mezz, which uh many people know as tapas or small plates, shared plates, because that's how they eat in Greece when you go Yeah. you order a bunch of these plates and you kind of share them. So, the idea was that we would create these these dishes. Zadziki, we had um crazy feta, which was feta infused with jalapenos and shallots. We had l baby lamb chops over French fries, but we would hand cut them every day, fry them in olive oil, top them with oregano. So, uh, the way that we had them in Greece, right, with real fresh potatoes. And so, and this was a sit down restaurant or you would order at the counter and sit down. You sat down. We had full service. We had a full bar. Full service waiters. Well, everything full service bar, host stand, um, everything that you would experience at at a nice restaurant. And the three of you guys were going to do everything. Everything. Dimmitri was going to cook. I was going to run the kind of front of the house with Ike. He would use his time to focus on the finances. Uh but that was the plan that we would own and work in this restaurant for the rest of our lives. All right. So you got the 20 grand to pay off the back rent, but you still need money to like get supplies and get and and build it out and you know and Right. So where did the rest of the money come from? So, the rest of the money came from us working during the day, during the evenings I should say. We worked at night at a lot restaurant and Demetri worked at his restaurant and uh during the day we we would build and we would do all the work ourselves. Your dad was a contractor, so presumably you had some guidance. They helped. Um they were really disappointed that we were going into the restaurant business and that we were not lawyers and attorneys. You're not going to be a lawyer or a doctor. What are you doing? Why do I move from Greece for this? Yeah. And they and and you know, they saw the center and they were like, 'Are you going to even have any business here?' Um yeah, they weren't happy about that, but they did help. Um Ike's dad, Ike's uncle, my dad, Dimmitri's dad, they all really helped us bring it together. But I'm telling you, we built this thing for right around like 10 grand. We everything was from Marshalls, TJ Maxx, Target. We We would go into these to Target or Walmart. We would open up the credit card so we could get that extra 10% discount, you know, when they offer that at the at the point of sale and we did everything ourselves. It was it was there were crazy stories that happened along the way. I mean, we did our own electricity. Wow. Was that permitted? Um, I'm going to plead the fifth on that. You know, it's uh Not everything was done by the books, I will say, for for the buildout. And uh everything's up to code today. So, we we resolved any issues we had. But before it was a Russian bakery, it was a tile shop. So the person who was selling tile there had tiled every part of this place in different color tiles. And so we tried to hand chisel this stuff up. We tried to get it up with machinery. None of the none of the tiles would come up. Once we hand chiseled it all off, there was about an inch of glue underneath them. I don't know why anyone would need that much glue, but for some reason it just was there and we could not get it off. And I remember asking people what they recommended and someone said to me, you know, you should try muriatic acid. And I said, okay, that sounds cool. I head over to Home Depot. I buy some myriadic acid. I remember mixing it with my flipflops and a t-shirt and shorts. Uh it starts kind of, you know, steaming up. The vapors are coming up. I pour it all over that glue. And I'll tell you what, that glue was gone. Uh that myriadic acid works miracles. But I was literally at the doctor uh and in the hospital. I hours later I was just I could not breathe, wheezing. I had blood was dripping from my nose and you know you're supposed to be wearing goggles and a mask and gloves and there I was just literally just pouring that stuff out. But it worked. We got the glue up and we can move on. So you guys are working your day jobs as waiters or night jobs and then or maybe in the daytime you're working on the buildout. How long did it between the time that you got the lease and the time that you eventually opened? How long did it take? I think it took I think we were working on it in in the summer of ' 06. Uh, and we eventually got to opening day was in November of ' 06, a few days before Thanksgiving. Uh, and I remember right around October, we went for final inspection and the fire the fire inspector came in and he looked at us and he said he was there to to test the Anel system. Anel system in the restaurant is basically what puts out fires on your grill or fryer if you have one. And he said, 'Where's your grease hood?' And we said, 'What do you mean? It's just a there's the hood right there.' And he said, 'Well, this is a baker's hood. call me when you have a grease hood. And we went out and we we got a quote for this and it was going to cost over 20 grand. It was like 23 grand to remove that hood and put a new one in. And I just remember we were sitting in that restaurant. It was all built out. The candles were lit. We had the tables. The tables and chairs were all set. I mean, there was we were just ready to go. And we thought we were done right then and there because I don't know. We just didn't know how we were going to find that money to put that hood in. Wow. I can only imagine how how just disputing that was because you need that approval to open up. You can't open it up until you get that final inspection. So, what did you do? So, that was one moment where it felt insurmountable because where was this money going to come from? Our credit was already down the tubes, by the way, because we were not paying those credit cards we maxed out. Uh so nobody was was really uh going to give us another credit card. And I remember talking to my uncle who had recommended we talk to a banker he knew. And so we met with this banker and he met us. He came into that restaurant and sat down. By the way, this restaurant at the time had no sign on the outside. So you it it was hard enough for him to find it, let alone our what our customers were going to experience down the road. So he comes in and he's like, 'Where's your sign?' and we start to tell him our story about the money and how we've run out and the hood. But he kind of looks around and he sees the space and he's like, 'Well, how did you get it to this point?' And you know, I told him the story that I've been telling you about all the work we had done ourselves. And he looked at us and he said, 'You know what? I believe in you guys. There's something here. I love the story. I love everything you've done in here. I'm going to lend you the money.' Wow. You guys had no credit. No credit. But this is I mean it happens less and less with bank consolidations, but this is what used to happen more often when you'd have small local banks. Yeah, it was it was a nice it was my first interaction with a bank or a banker um because I never even had any money to put in a bank. So I I kind of thought it always worked like this. You meet a guy, he gives you money and and you build your business. But, you know, obviously as we've been in business for since then and we've learned that that was actually a pretty miraculous moment. Yeah. Very lucky break. What kind of collateral did you guys have to put up against then? Well, there was no collateral except for the restaurant itself. So, there was a lean on the restaurant which like I said, I mean, we built that place for 10 grand. So, the collateral was less than the loan was going to be. So, yeah. What was impressive is how quickly we also got that loan. And I mean it was probably uh a week maybe 10 days later we we the check came in. So you then went out and bought that grease hood. We bought the grease hood. We got it installed and we called the inspector in. Everything worked. Everything clicked and we were set to go. And that was the Tuesday before Thanksgiving of 2006. Huh. So let let me let me ask you about the name uh Cava Mesa. Uh why did you choose it? Does does by the does cava mean like a a seller or or like a cave? So cavo with an O on the end means seller or cave. And the word cava actually comes from that word. It's when you go to Greece, you'll see a lot of uh stores called cava or you'll see a lot of bottles of wine with the word cava on them. And it's not the sparkling wine from Spain. It it really means uh that this wine has spent a little time in in a in a cellar and and becomes kind of like a a reserve wine. And and tell me about the menu. Was like was it spanicopa, musaka, satsiki, dolma, sulaki? Was it like that kind of stuff? Yeah, we had we had some of the basics. Uh again, it was like all small plates. Uh we had chicken sulaki, but we also, you know, did these beautiful like U10 scallops that we sauteed in our Greek olive oil. Uh we did lamb chops. We did uh grilled meatballs. A lot of the recipes came from Dimmitri's mom and just doing it in the way that Greeks would do their food or their treat their food or their cuisine and have the best possible products and create food out of that. All right. So, you eventually get the go ahead to open. I'm assuming when you open there was probably a lot of friends and family and people from the church to support you at the beginning, right? Like people were coming in and you were probably busy from day one. So, we had some friends and family who came in just to kind of help us practice and, you know, things kind of went wild. Uh, we didn't really know what we were doing and we were trying to figure that out because we didn't have a POS system. We didn't have any way of like tracking orders. We were handwriting everything. We were using all these You're handwriting orders on tickets? Everything. And we were so we were writing it on on a ticket and then we were going in the kitchen and transferring that order onto yellow sticky notes and you know I remember I remember one of the early moments of of those sticky notes. You know I think the common theme has been we we didn't have a lot of money and we were trying to save money and everything we bought and I remember we bought the knockoff brand of the 3M sticky notes and walked into the kitchen. We had a packed house. I'm looking around. I'm wondering where the chefs have gone. I'm wondering where all the food is. I looked down and they're all on their hands and knees kind of looking through these tickets. Uh it was so hot in the kitchen that the glue was melting on the back of these knockoff sticky notes and they were all falling down on the ground. So, you know, I remember we end up kind of giving all this food away for free and uh you know, that was a little bit later after opening, but I just I remember funny stories like that uh along the way. I mean, restaurant is a very risky business, right? I mean, anyone who's been in the business knows that that you're more likely to fail than succeed in the first three years. I mean, once you factor in, you know, the cost of labor, the cost of of rent, the cost of food, there's very little margin left. I mean, it was just the three of you, so you didn't have presumably you didn't have to pay employees. But were you bringing money in? Were you losing money? I think in the restaurant industry, and maybe it's it's just I don't know, maybe it's in our blood, but every single day, you feel like the restaurant could fail. It's uh it's kind of a a crazy feeling. Even even that first day of opening, we had one customer come in. I remember he came in, he sat down, I was the waiter, and I and I went up to him and I said, 'This is what we're doing here. We're doing this Greek concept, small plate shared.' Uh and he said, 'Well, I I want big plates. I want a dinner. I came to have a meal. And you know, I tried to be as charming as I could. I I love talking to people. I love making people happy. And I went into the kitchen and I think it was Ike that pointed out that we had only purchased small plates. So there were not even any big plates in the restaurant. Literally, you only had small plates. Exactly. And so I went back out there and I said, I'm I'll figure it out. I'll make him happy. And he got up and left. And we didn't have another customer for two more days. Huh. And again, we thought we were going to fail there. And so, like, as we kind of got busier and busier, we didn't really know what we were doing. We were bringing in octopus. And let's just say the octopus weighed 40 lbs. We would divide that by the ounces that we served. And we were like, great, we could serve octopus for six bucks. Well, we didn't take into account that once we cooked that octopus off, that 40 lb became 18 lb. And so all the loss in that, we didn't capture that in the pricing. So we were really giving away octopus for way less than you could buy anywhere in the world probably. And we did the same for scallops and lamb chops. And uh we were kind of getting busier and busier and losing more and more money.