Meet a Houston Entrepreneur: Chef Chris Williams of Lucille's in the Museum District

Chef , Caterer, Restaurateur
Chris Williams

Econ Students and Readers:

One of the things that I enjoy about my food-blogging hobby is the opportunity to meet local entrepreneurs who own and operate restaurants (aka "restaurateurs") and ask them for some nuggets of wisdom from their experiences in starting up their businesses.  If there is anything useful to be gained, I like to pass it onto my students (and I tell them as such) because experience is a better professor than I can be.  I've had students tell me they wanted to start up a  restaurant or other such business, so this is something you may find useful or interesting if you are so inclined.

Chef Chris Williams is a native of Southwest Houston who has student at Le Cordon Bleu's Austin school and has traveled the world, working in Canada, the UK and Lithuania, among other places.  In the Houston area, he worked at Max's Wine Dive, ran a catering business for a number of months before establishing Lucille's in the Museum District.  I got to attend a tasting of some of their representative dishes, which you can read about here.  The catering business was used to raise funds to start the brick and mortar restaurant and to survive on until the restaurant was ready to open to the general public.

Entrepreneurship is clearly in Chef Williams's blood.  His Maternal Great Grandmother Lucille Bishop Smith created a hot roll mix that she marketed and sold, and also started one of the first commercial food service and technology programs at Prairie View A&M University here in Texas.  The recipes Chef Williams served, such as the Fish Fry and the grilled Pork Shank and Beans, were inspired by his Great Grandmother's recipes, but were modified by his years of experience cooking different kinds of high end cuisine all over the world.

I asked Chef Williams for some advice he would give a student of mine that wanted to start his or her own restaurant.  Here is a paraphrasing of several key points he made:

• Do your due diligence before you begin.  Research all the legalities you have to work with in order to start up and operate your restaurant or any other business.  Learn about zoning, structure regulations and liquor laws.  Apply for your permits sooner rather than later.  

• Be aware the process is slower than many realize, especially in acquiring building permits from the city.  It took 10 months of paperwork and back and forth action with the city, county and state before I could start building up the property.  

• You need to be aware that you will have to have other income to pay the bills until you get under way. I paid my bills by catering, and you need to plan accordingly.   

• As you are constructing and preparing to open, MAKE FRIENDS WITH THE NEIGHBORHOOD.  Good relations with the neighbors will make the difference in approval or denial, if you are applying for some kind of zoning variance or license.  

• Be conscientious about managing costs.  Shop around for distributors for wine, beer, liquor where you can get a good deal, and always be looking for a better one.  Don't cut corners, but save money where you can and not compromise on quality.  

• Above all else BE DISCIPLINED.  Have a solid business plan, get it vetted by an attorney and an accountant, and stick to it, no matter what. 

I'd be hard pressed to argue with any of these points, students.

Success to you all!

Prof. Lewis

In the News: Greek Yogurt succeeds as Greece Fails Financially

As a bit of a foodie, I have had Greek and Bulgarian style yogurt, as well as the standard North American Style yogurts. Truth to tell, American Style yogurt does not taste like it did 30 years ago. Somehow the slightly sour taste and thickness has given way for a blended smoothie style that is easier for many to eat, but lacks some of the nutritious benefits of traditional style Yogurt. However, thanks to a confluence of conditions, things have taken off in a strong positive direction for Greek style Yogurt. 

This article would be of interest to both Macro and Micro students.




Canada's Metro News Daily gives details of this in this article telling Why Greek Yogurt is flying off the shelves in Canada--similar to what it's doing here in the US, but at an even faster rate!  Several of the non-price determinants of Demand and Supply are at work here, and are worth further investigation.

Per the article:

"Greek yogurt is flying off supermarket shelves in Canada after conquering the U.S. market. The high-protein content, natural ingredients and creamy taste have made it a hit with consumers in a health-conscious culture...

“I can’t remember the last time I’ve seen anything this strong. It’s been explosive in growth, unbelievable,” said Carlo Noce, category manager, dairy and grocery, at Longo’s. Sales have tripled and quadrupled in some locations, he said. Greek yogurt is low in sodium and can be used in cooking and instead of sour cream, said Noce.... Dieters like it because it is natural, nutritious, filling and convenient.

Chobani created the Greek yogurt market in the U.S. The company has gone from boot-strap start-up to $1-billion worth of business since launching out of an old Kraft plant in upstate New York in 2007. The number of employees has increased from five to 1,200. “It’s a real Cinderella story,” said Kyle O’Brien, executive vice-president of sales for Chobani. Chobani founder Hamdi Ulukaya got the idea when his parents visited from Turkey when he was a student in New York and complained the yogurt available in the U.S. wasn’t rich and creamy enough. “It’s not like we invented something. We just brought it to life in the U.S.,” said O’Brien. The timing was right, O’Brien said. Pitched as healthy, natural and nutritious, it hit a sweet spot in the American food market.

It didn’t hurt that Dr. Oz recommended eating Greek yogurt as part of a healthy diet.

A report by UBS Investment Research in the U.S. in 2011 said Greek yogurt brands captured market share more quickly than almost any segment ever in a major food category – at the time 13 points in three years. But it also concluded the growth in Greek yogurt could spell trouble for existing yogurt makers who fail to innovate and capture market share.

Chobani is now third in market share in the U.S., behind Yoplait and Dannon, sold as Danone in Canada. General Mills, which bought Yoplait in 2011 for $1.2-billion U.S., has seen sales decline in the category because it wasn’t ready for the Greek invasion, according to U.S. analysts.

Canadian consumers eat three times as much yogurt as American consumers, a fact O’Brien attributes in part to the popularity of yogurt among Quebecers, who take an artisanal approach to food and prefer natural products. According to Danone’s Canadian website, yogurt was introduced to Montrealers at the turn of the 20th Century.

What we see at work here are several factors involving the non-price determinants of demand and supply shifting in the yogurt market.  The most obvious one is changes in consumers tastes and preferences.

For Your Discussion:

1. What has happened to Demand for Greek Yogurt in North America?  What factors other than tastes and preferences account for it?

2.  What has happened to Supply of Greek Yogurt in North America?  What factors have led to this?

3.  What is the resulting effect on equilibrium price and quantity (P* & Q*)?  

First 5 students to post correct, intelligent comments with correct answers will get a bonus point added to their unit 1 test.

Success to you all!

Prof. Hank Lewis