HEADQUARTERS: San Diego
MARKET SEGMENT: casual
MENU: seasonal comfort food
NO. OF UNITS: 2
SYSTEMWIDE SALES:
$2.7 million
AVERAGE CHECK: $25
LEADERSHIP: Arturo Kassel, owner and managing partner; Ryan Johnston, owner and executive chef
YEAR FOUNDED: 2009
METHOD OF GROWTH: private investors, bank loans
NOTABLE COMPETITORS: Bencotto, Craft & Commerce, Davanti Enoteca, Searsucker
WEBSITE: www.prepkitchen.com
The story behind Prepkitchen, a casual-dining concept in San Diego, sounds a little like “Goldilocks and the Three Bears,” according to one of its owners. There was lots of trial and error.
Once upon a time in the summer of 2008, Arturo Kassel was a 26-year-old beverage manager at a New York hotel. He had a hospitality management degree, a bit of culinary education and a dream. Driven by the desire to open his own restaurant, he packed up his bags and moved back home to San Diego.
Seeking advice, he paid a visit to a restaurateur he admired and — poof — walked out the door a restaurant owner. Several weeks later, he and his new chef-partner, Ryan Johnston, opened Fresh(er), an eatery they eventually transformed into Whisknladle, a seasonal farm-to-table restaurant.
But the fairy-tale ending was still a long way off.
“I would have benefited from more working for other people,” Kassel admitted. “[But] I wouldn’t change anything. … In some ways, it’s all worked out.”
While Whisknladle received accolades from publications such as Food & Wine and now-defunct Gourmet, Kassel and Johnston were troubled that many of the people who worked at their restaurant couldn’t afford to eat there. So one night over drinks at the bar, they drew up plans for Prepkitchen, Whisknladle’s casual and more affordable sibling.
“[We wanted to create] Whisknladle on a cook’s budget,” Kassel said.
The first Prepkitchen opened in La Jolla, Calif., in May 2009. The 754-square-foot fast-casual spot served made-from-scratch comfort foods and featured a cold case of artisanal cheeses and Whisknladle house-cured meats. Sales for the first year were $640,000, but the concept still seemed to be all over the place, leaving Kassel feeling that it wasn’t quite right.
“It was so new for us, so outside of our wheelhouse,” said Kassel.
So Kassel and Johnston closed the restaurant, remodeled and reopened with a focus on what they already knew they did best: full service. The second year, sales at the now-28-seat location grew to $1 million.
Kassel points to good food at a good price as the key attraction for the concept. The average check is $25.
Excited by the success, the pair decided to open a larger unit in a new market. They purchased an existing 1,250-square-foot restaurant in Del Mar, Calif., and modified it to fit what they thought were their needs. Kassel says it was an operational catastrophe, in large part because they had not designated enough kitchen space for what turned out to be a high-volume restaurant.
Despite the misstep, PK Del Mar had $1.6 million in sales its first year. Last October, however, the restaurant burned down when a fire broke out after hours and the fire system failed to engage.
Undeterred by the loss and determined to learn from the experience, in January the pair opened a third location in San Diego’s Little Italy. Perched on the second floor, overlooking the bustling urban neighborhood, the 5,000-square-foot, 110-seat PK Little Italy offers communal dining, a cocktail area and a private dining room called “The Study.”
The menu features classic meats paired with seasonally rotating vegetable and starch sides culled from local farms, handcrafted cocktails, and a selection of microbrews. Like the menu, the decor at Prepkitchen is both of-the-moment and nostalgic, mixing salvaged or antiqued elements and modern accents.
“We’re young to be doing what we’re doing. We’re evolving and we’re learning,” said the now-31-year-old Kassel. “Every opening is getting easier and easier. Opening Little Italy has been easy.”
Financing, in particular, has become less difficult. Since Kassel could not secure a bank loan at the start, they found four equity partners to help fund the initial venture. Given their track record, banks are now interested. PK Little Italy was funded with a combination of bank loans, cash and capital reserves, and a small capital investment from the partners.
With the concept refined and systemwide sales at $2.7 million for 2011, Kassel said they plan to continue expanding. With PK Little Italy open and PK Del Mar expected to reopen in July, Kassel projected systemwide sales would grow to more than $6 million in 2012.
“I never thought we’d end up with three units,” said Kassel. “[It] feels a bit like Goldilocks: too hard, too soft, just right.”