WEBVTT - Small Business Champions

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Stenebeck on Bloomberg Radio.

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<v Speaker 2>Jess Metton and Tim Stenovik here in the Bloomberg Interactive

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<v Speaker 2>Brokers studio in New York, and Tim, I have to say,

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<v Speaker 2>I'm very excited about our next segment, especially because our

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<v Speaker 2>guests are here in studio on this rainy day here,

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<v Speaker 2>and I have to say, our next guests have ventured

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<v Speaker 2>and also are entrepreneurs in so many different areas when

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<v Speaker 2>you're talking about what's happening in real estate, restaurants as

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<v Speaker 2>well as obviously when it comes to dating and coaching

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<v Speaker 2>in that particular area. So I'm excited to have Scheri

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<v Speaker 2>and Tracy Sifax, who are the founders of Just the Facts,

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<v Speaker 2>here and in studio with us. And I first want

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<v Speaker 2>to start off because when you were here about three

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<v Speaker 2>months ago, both of you had your Fax Entertainment Group

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<v Speaker 2>company had announced that they were taking over ownership for

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<v Speaker 2>Booker's Restaurant in Bar in West Philadelphia. So before we

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<v Speaker 2>get into the other things with real estate and dating

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<v Speaker 2>and all of that, Jazz I wanted to hear how

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<v Speaker 2>things are going as far as when it comes to

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<v Speaker 2>the restaurant space.

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<v Speaker 3>The restaurant space. Then this is going great. We are

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<v Speaker 3>sells up twenty six percent over the first quarter, and

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<v Speaker 3>we are excited to be in this position. As you know,

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<v Speaker 3>we kept the majority of the staff, maybe seventy five

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<v Speaker 3>percent of the staff we kept there, so we didn't

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<v Speaker 3>change much, but we elevated the menu, added some special drinks,

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<v Speaker 3>and it's been a real great ride.

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<v Speaker 2>It's an interesting dynamic because especially coming out of the

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<v Speaker 2>pandemic right tim when you think about how challenging it's

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<v Speaker 2>been for specific restaurants from.

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<v Speaker 1>Exactly where my head was going to go, Yeah, like

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<v Speaker 1>if you're going to buy a restaurant, you know, twenty

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<v Speaker 1>twenty three, when you're coming out of a pandemic, tracy

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<v Speaker 1>is not really the time to do it. Can't find labor, Yes,

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<v Speaker 1>costs are going through the roof, food costs are going up,

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<v Speaker 1>and then you have this whole pandemic thing that you

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<v Speaker 1>got to worry about. What what's the uh, you know,

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<v Speaker 1>what's why take a risk like that?

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<v Speaker 3>Well, we felt we looked at the model the previous

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<v Speaker 3>Onasava had built a great model over six years, so

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<v Speaker 3>she had built the SESS. It was already pretty much

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<v Speaker 3>there when we inherited the rest oft, and we just

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<v Speaker 3>really felt with our profile and our social media presence

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<v Speaker 3>that we can elevate it and market it in a

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<v Speaker 3>whole different light. Bookers is located not too far from

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<v Speaker 3>the colleges the hospitals, so it's in a prime area

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<v Speaker 3>for that type of growth, So we really felt that

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<v Speaker 3>we could really enhance Bookers by just our presence.

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<v Speaker 2>I'm curious what y'all are seeing when it comes to

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<v Speaker 2>because Tim brought up labor and obviously when you think

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<v Speaker 2>about inflation issues with what you're seeing, what do you

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<v Speaker 2>think this tells us about the direction of the economy.

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<v Speaker 4>Well, a couple of things. I think the economy is

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<v Speaker 4>doing better than initially when we started talking about recession

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<v Speaker 4>and everyone was concerned and worried, and even we were

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<v Speaker 4>because we were in the middle of negotiations during that time.

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<v Speaker 4>We felt good about our business evaluation and the ability

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<v Speaker 4>to retain employees. The really great thing about being in

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<v Speaker 4>was Philadelphia, and Philadelphia period is very neighborhood centric, so

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<v Speaker 4>a lot of our employees come right from the neighborhood

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<v Speaker 4>that they can walk to work, so it's rare that

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<v Speaker 4>you're able to walk to work and not have to

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<v Speaker 4>work in center city and still be able to make

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<v Speaker 4>a really good wage. So those things helped us retain

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<v Speaker 4>and have helped us grow.

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<v Speaker 2>How challenging is that from a business perspective, because I

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<v Speaker 2>feel like at Bloomberg, Great Tim, we're always talking about, oh,

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<v Speaker 2>the employment costs index, and it's really challenging for businesses

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<v Speaker 2>as far as to keep up with that type of

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<v Speaker 2>wage growth. From your perspective and what you hear anecdotally

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<v Speaker 2>from your employees, what is that challenge?

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<v Speaker 4>Like? Yeah, So what we think about is every dollar

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<v Speaker 4>that we spend, we have to figure out what that

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<v Speaker 4>return on investment is. So we have to look at

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<v Speaker 4>every single line item. We've done well with having a

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<v Speaker 4>fractional CFO that really helps us look at not just

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<v Speaker 4>the food and things like that we adjust.

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<v Speaker 1>Wait, explain what a fractional CFO is. I Mean, it

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<v Speaker 1>sounds like it's pretty self explanatory, but it's differently saying

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<v Speaker 1>a part time CEO basically a.

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<v Speaker 4>Part time CFO. Our accountant has that service and they

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<v Speaker 4>offer that. And I think sometimes when we go wrong

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<v Speaker 4>in business, especially at entrepreneurs, is that we try to

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<v Speaker 4>do it ourselves. We try to wing at ourselves, and

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<v Speaker 4>having that outside help really helps us look at every

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<v Speaker 4>single line item, so we know how what percentage we

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<v Speaker 4>want our labor to be. We know what percentage we

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<v Speaker 4>want our expenses to be as far as food, so

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<v Speaker 4>we have to look at those things. Obviously, we have

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<v Speaker 4>to look at everything and make adjustments for inflation and

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<v Speaker 4>look at wind, eggs are up, wind, butters up, you know,

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<v Speaker 4>those types of things to adjust pricing accordingly.

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<v Speaker 2>It's funny because McDonald's has this sort of fry indicator

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<v Speaker 2>as far as how many people are adding those on

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<v Speaker 2>to where they can tell this is what an indicator

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<v Speaker 2>means for the economy. I'm curious if you have any

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<v Speaker 2>sort of way to gauge as far as when it

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<v Speaker 2>comes to spending in the consumer.

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<v Speaker 4>Well, at this point, we're what five four months, and

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<v Speaker 4>so everything is still a first for us. But we're

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<v Speaker 4>definitely looking at the market. We definitely look at our

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<v Speaker 4>sales versus last year. We look at how many seats,

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<v Speaker 4>not just what the revenue number is of, but actually

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<v Speaker 4>how many people are coming into the restaurant. So we're

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<v Speaker 4>assessing all that data and that that helps us with

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<v Speaker 4>our forecasting, and it helps us build out knowing how

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<v Speaker 4>much we need to make sure staff is proper we're

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<v Speaker 4>properly staffed, and that we have enough inventory so that

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<v Speaker 4>we have we're able to serve our customers with our menus.

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<v Speaker 1>Hey, Tracy, give us an idea of of how you

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<v Speaker 1>think the economy is based not just on the restaurant,

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<v Speaker 1>but the work that you've done in real estate development,

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<v Speaker 1>what you're seeing in your other business right now.

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<v Speaker 4>Yeah.

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<v Speaker 3>Well, I've always believed in real estate as someone who

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<v Speaker 3>started my first investments in early two thousand. Even when

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<v Speaker 3>the market crashed in two thousand and eight and I

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<v Speaker 3>lost millions of dollars in the real estate crash, it

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<v Speaker 3>was still my saving grace as I came out of

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<v Speaker 3>that that allowed me to continue to do business and

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<v Speaker 3>actually eventually buys Bookers. So I'm always big on economy.

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<v Speaker 3>I really believe in us. I believe that what we

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<v Speaker 3>can do as a husband and wife team that gives

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<v Speaker 3>me a bright look on what the economy can bring.

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<v Speaker 3>So I really believe that our combination has really been

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<v Speaker 3>the proven recipe.

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<v Speaker 1>It's less about what's happening externally for you, yes, and

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<v Speaker 1>more about what the two of you were sort of like,

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<v Speaker 1>what I'm hearing from you is it doesn't matter how

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<v Speaker 1>the economy is, because you guys can weather it.

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<v Speaker 4>Oh.

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<v Speaker 3>Absolutely, I'm thirty years as being a serial entrepreneur, So

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<v Speaker 3>I've seen the highs and the lows. I really have

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<v Speaker 3>felt them. So really believe that even when we have

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<v Speaker 3>a bad economy. I think good business, good customer sells

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<v Speaker 3>in any economy.

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<v Speaker 1>But do we have a bad economy right now?

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<v Speaker 3>I don't believe so. I don't believe so.

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<v Speaker 4>And real estate has always been my anchor as well,

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<v Speaker 4>so when we put it all together, that really gave

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<v Speaker 4>us leverage to do a lot of other things. So

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<v Speaker 4>real estate does always tend to be that foundation that

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<v Speaker 4>if you have that and you're able to get in

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<v Speaker 4>on some really good opportunities, that that propels you and

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<v Speaker 4>can't propel you to other things, and you always can

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<v Speaker 4>leverage it.

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<v Speaker 2>Do you see any sort of red flags brewing at

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<v Speaker 2>all when it comes to the real estate space? We

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<v Speaker 2>always talk so much about when it comes to commercial

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<v Speaker 2>real estate, But are there things beyond that type of

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<v Speaker 2>area that you think you're a little weary about right now?

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<v Speaker 3>Yeah, commercial real estate, Me and my wife. We was

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<v Speaker 3>just talking about we visit a lot of malls, and

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<v Speaker 3>we were just visiting the mall and some of the

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<v Speaker 3>malls that we've been visited as we've been shopping, that's

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<v Speaker 3>been pretty much non existent when it comes to customers

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<v Speaker 3>inside stores like they used to be. So it's something

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<v Speaker 3>that we definitely noticed. In the commercial space.

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<v Speaker 2>Is that something that would give you pause and you

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<v Speaker 2>wouldn't want to go into that.

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<v Speaker 3>I wouldn't want to open up a restaurant in the mall, Right.

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<v Speaker 4>That's where I'm headed with that, And I don't know.

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<v Speaker 4>We wouldn't have probably purchased the restaurant without being able

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<v Speaker 4>to purchase the real estate. So we purchased the commercial space,

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<v Speaker 4>six apartments and things like that because it gives us

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<v Speaker 4>so many more opportunities in the event that anything happens

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<v Speaker 4>with the restaurant.

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<v Speaker 1>What are you seeing the on the landlord tenants side?

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<v Speaker 1>What are you seeing with the tenants right now?

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<v Speaker 4>Yeah, so far, attendants have been great. We've been really,

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<v Speaker 4>really fortunate. We believe that we offer a good product

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<v Speaker 4>and that they acquiesce and they do their part of

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<v Speaker 4>it too. So we're pretty accessible, we're pretty available, and

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<v Speaker 4>we just haven't had any tenant landlord issues.

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<v Speaker 1>No late but we like to talk to landlords too

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<v Speaker 1>because they start seeing, okay, well, late rents are a normal,

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<v Speaker 1>normal part of being a landlord, especially if you have

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<v Speaker 1>a lot of tenants. Absolutely, are we seeing more late

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<v Speaker 1>rents now? Are we seeing people?

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<v Speaker 2>You know?

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<v Speaker 4>Pretty fortunate through the pandemic. We had two people that

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<v Speaker 4>kind of took advantage of not paying and that's of

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<v Speaker 4>what twenty some odd tenants that was less than ten percent. Like,

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<v Speaker 4>we were pretty fortunate. I think, you know the beauty

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<v Speaker 4>of Tracy being a We keep our properties really well

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<v Speaker 4>and things like that, so you have a good thing.

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<v Speaker 4>Kind of why, you know, mess it up when you

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<v Speaker 4>think of certain urban communities and landlorns that are not

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<v Speaker 4>as invested in your quality of life. So to Tracey's

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<v Speaker 4>point about service and customer service, we just live the

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<v Speaker 4>model up, provide a good product, and we'll get a

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<v Speaker 4>good result.

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<v Speaker 1>Do you guys do the day to day with that too,

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<v Speaker 1>meaning the day to day work on that or do

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<v Speaker 1>you have a management company.

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<v Speaker 4>We have someone that helps us manage the other raw. Yeah,

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<v Speaker 4>but Tracy's able to assess whatever needs to be done

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<v Speaker 4>and is able to, you know, get a team out

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<v Speaker 4>there and take care of things.

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<v Speaker 2>We only have about a minute left, but I have

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<v Speaker 2>to ask about also your dating coaching business. You both

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<v Speaker 2>met during the height of the pandemic virtually, so tell

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<v Speaker 2>us a little bit quickly about your dating business. Yeah.

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<v Speaker 4>So, I don't have as much time for it as

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<v Speaker 4>I used to because of the restaurant, however, and it's

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<v Speaker 4>shifted a little bit because it used to be like

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<v Speaker 4>how I attracted my husband and all the positive things

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<v Speaker 4>about that, and now it's like, how are me and

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<v Speaker 4>my husband really doing business and day to day? But

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<v Speaker 4>ultimately the messages, you know, fall in love with yourself,

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<v Speaker 4>make sure you understand and know what you want to

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<v Speaker 4>love that out of the relationship. Yeah, and then the

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<v Speaker 4>thing that you want will will come and find you. Basically,

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<v Speaker 4>you know, if you have some gutten to be the

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<v Speaker 4>results you're looking for, you may want to adjust that.

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<v Speaker 2>Yes, because that's okay too.

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<v Speaker 4>I love that.

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<v Speaker 2>What a great little lotto there, well, Cheri and Tracy Sifax.

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<v Speaker 2>Great to have you both joining Tim Stenovic and myself

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<v Speaker 2>here in the Bloomberg Interactive Broker's studio. Who are the

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<v Speaker 2>founders of Just the facts, but then also they have

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<v Speaker 2>all of these different small business entrepreneur type areas like

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<v Speaker 2>we were just talking about with Booker's restaurant and bars.

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<v Speaker 1>Oh don't forget Seri's book too.

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<v Speaker 2>Oh yes, and of course we have to talk about

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<v Speaker 2>what's happening with her book as well with that, so

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<v Speaker 2>people should check it out as far as second act,

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<v Speaker 2>living boldly and a bunty at every age,