Steve Simon and his partners opened South City Kitchen in 1993 in Atlanta. A year in, they tried to emulate a Starbucks-like experience and opened three coffee shops in the market. Three years later, they pulled out of their coffee experiment.
“I’d like to say everything we’ve done has been a home run, but we occasionally choose wrong. We had a bad strategy because we were trying to run coffee shops like a full-service restaurant,” Simon said during a recent interview.
So they sharpened their focus on full-service restaurants and formed Fifth Group Restaurants. South City remains the flagship — and most successful — restaurant in the portfolio that now also includes La Tavola, Ela, Lure, Ecco, Alma Cocina, and Bold Catering & Design. The cuisines vary from contemporary Mexican at Alma Cocina to modern European at Ecco.
It’s been a slow and steady growth strategy for Fifth Group and there have been plenty of wins (and a few misses, such as coffee shops). What Simon has pulled from his 30-plusyears of experience is that it helps to differentiate the dining experience — everything from the culinary offerings to the design and atmosphere.
“We love designing restaurants and creating spaces and environments that people will fall in love with. We always want to do something current. Creating nice environments helps attract people and brings them back,” Simon said. “They have more interesting conversations in environments that are comfortable and stimulating and have the right amount of energy and professionalism with their service.”
It also helps to make sure the bills are paid, which is how Fifth Group has established a strong reputation in the Atlanta market, Simon said, noting that most of the company’s locations have come from landlords proactively reaching out.
“That has been common for us. It’s a fickle business, but everyone seems to like our track record. We pay our bills and stay in our spaces for a long time. What costs landlords money is turnover,” Simon said. “They’re looking at us more than rent roll. They look at us as an amenity.”
Balancing that business acuity with the creative side — the menu, the interior design, etc. — is Fifth Group’s priority. Simon said the company has a deep bench of both culinary leaders and business leaders and they run the company metaphorically like a pilot runs a plane.
“If you look at a cockpit, the pilot has a million little knobs to control. We feel like we do the same thing. We are hyper-focused on culinary and business, how we’re doing operationally; are we getting menu changes done on time or are we dragging? We have to balance. If it’s too artsy, the business model’s in the pits. If you get too business-y, you get too stale and people stop coming in,” Simon said.
Fifth Group will maintain this balance as the company plans what’s next. The first order of business is several brand refreshes, starting with seafood concept Lure. Simon said such updates are especially important now as consumers become more discerning and as younger consumers become a bigger target audience.
The company is also focused on being more sustainable and cost effective, selecting more efficient equipment and composting, for instance. There’s also the potential for more growth.
“We’re looking to continue to grow the South City brand. People want it,” Simon said.
He is having conversations with a hotel in Dallas to potentially license the brand. If any such agreement comes to fruition, it will be the first Fifth Group expansion outside of Georgia. The company currently licenses three locations in the Atlanta airport and Simon said licensing has “been a good thing for us.” That said, there is no commitment now and there is no expansion guidance. Things remain for Fifth Group as they’ve been since the beginning — slow and steady.
“All I have right now is a plane ticket,” Simon said. “There is no set target in mind. We just want to create something we know will have longevity.”
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