October 16, 2008

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MBDC helps Malik Rose bring 'Philly phlavor' to San Antonio

(Nov. 5, 2003)--Two years ago Fletcher Parks, director of the San Antonio Minority Business Development Center at UTSA, sat at the top of the Philadelphia Museum of Art steps made famous by film character Rocky Balboa.

In his hands Parks held an oozing, overstuffed sandwich containing what seemed to Parks like 10 pounds of beef. Although a staple among Philadelphians, Parks, who grew up in Georgia, was on his third cheese steak sandwich variation of the weekend, and he just didn't get it.

"Well, I couldn't tell them apart because I wasn't accustomed to the Philadelphia cheese steaks," explained Parks.

Malik Rose, native Philadelphian, current San Antonio Spurs star, and the reason Parks was trying to grasp the Philly cheese steak appeal in the first place, sat beside him with a bevy of animated questions.

"(The sandwich) was dripping, and Malik was like, 'Isn't it great, Fletcher?' and I'm going, 'Yeah, right," said Parks.

Rose had recently approached Parks about helping him develop a business plan for a restaurant that would bring a taste of his native Philadelphia to his adopted home in San Antonio.

"I thought he was crazy," said Parks. "Why? There are so many other investments that are less risky than restaurants."

Rose was determined and soon Parks found himself sitting on the "Rocky steps" contemplating taking a chance on another Philly-bred long shot. The sandwich didn't sell Parks that day on Rose's business idea. Rose did.

"When he said that his mother had told him that his dreams could come true and not to let anyone stop him from dreaming, then I knew I had to pursue it," said Parks.

For years, former Spurs assistant coach Paul Pressey had listened to Rose talk about opening a restaurant and finally put him in touch with Ed White Jr., senior vice president and commercial banking manager of South Trust Bank. White sent Rose to Parks. "(White) introduced me to Fletcher, and Fletcher and I hit it off from day one," said Rose. "The two of us took idea to conception to reality, and now we're here."

Idea-to-conception was possibly the most difficult part of the process. Initially, Parks had Rose look at bringing in a business partner, an idea Rose vetoed almost immediately. Parks then suggested Rose become part of a franchise, like Blimpie or Subway. Neither suggestion matched Rose's vision.

"I was more looking at his venture as an operation and how it could be successful from an operation standpoint," explained Parks. "Malik was looking at this restaurant from a perspective of there's no Philly cheese steak in San Antonio like the original -- and San Antonio would love it."

Once the duo found a common vision for the restaurant they would call "Philly's Phamous," it was time to look for a management team. "I used to work in a cheese steak shop in Philly, and most of the people I grew up around worked there, so I just thought I could hire some of them," said Rose. "But, there's some pitfalls that you really have to be leery of and (Fletcher) guided me through them."

Enter the Centofanti Management Group. The Centofanti team had lived in Philadelphia and already had a Philly cheese steak place in Fort Worth, Texas. As had happened with Parks, Rose immediately hit it off with the Centofantis. More important, Rose had confidence in the group.

"(Parks) helped me find quality management, which is what a bank wants," said Rose. "You know, the bank wants to lend you some money, they want the risk on that money being lost to be minimal and good management is something they look for."

With the Centofanti group on board, Rose and Parks worked on developing a business plan, ranging from the menu, how much space the restaurant would need and whether or not that space would make money based on the pricing of the sandwiches to financing, construction costs and working capital.

"(Parks) helped me with more than a business plan," said Rose. "He helped me just getting my team together, as I call it. I have my management team. I have my money team. I have my realtor team... Then, Fletcher did a really good job helping me just meeting distributors and equipment people -- people I can order tables and chairs (from) and contractors."

For Fletcher, whose background is in finance, a big part of the job was teaching Rose about business. The duo talked about balance sheets and profit/loss statements. For Rose, finding a restaurant location seemed as simple as, “it's an empty space and I like it, let's put down a deposit.”

Parks taught Rose a new perspective. "It's a different mentality," said Parks. "You can't just make a deposit, because once you make a deposit -- it's a contract. You don't know how much it's going to cost. You don't know how much space is there. You don't know if it's going to fit what you need. So, it's a little bit of that not knowing business that I had to kind of bridge, but I bridged it by relating it to basketball. You've got to have a coach. You've got to have team players. The team has to operate according to a system."

With a new understanding and help from Parks, Rose reserved space in the Alamo Quarry Market, a high traffic shopping center close to downtown. A local contractor gave the space Malik-approved Philly flavor, and in September, Malik’s Philly's Phamous opened its doors.

So far, things are going well for Rose and his restaurant. A steady stream of San Antonians has patronized Philly's Phamous, and Rose vows to keep bringing in new products from Philly for his customers.

As for Parks, his job is done. "We made it," said Parks. "We did it. It's not as easy as you think."

An even bigger behind-the-scenes team helped Parks and Rose make Philly's Phamous happen. The UTSA-operated San Antonio Minority Business Development Center (MBDC) divided the project among its resident experts. The organization has financial experts, like Parks, as well as contracting, management and marketing pros.

Since 1982, the MBDC has served more than 3,500 clients, assisting in procuring more than $170 million in contracts and securing more than $185 million in loans and bonds. MBDC has access to a comprehensive network in the business community with banks, loan officers, federal and municipal agency staff, chambers of commerce and private sector companies.

There is a nominal fee based on a sliding scale for MBDC services, however, most small businesses qualify for a $10 per hour fee. For most new business owners, the result is worth a trip to the UTSA institute.

More than anything else, the MBDC helped ease the process for Rose and business owners like him. The process left Rose convinced Parks knew everybody in town.

"Even Malik has no idea," laughed Parks. "He just kind of sees the results of things. I know a lot of people, but the key was structure and system. It just took time and it took a lot of effort."

--Leigh Anne Gullett

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The San Antonio Minority Business Development Center, part of the UTSA Institute for Economic Development (IED), is located in the Durango Building at the UTSA Downtown Campus. IED offers small-business development seminars, some for free and others for a low fee. For more information, call 210-458-2480.