Results for the fourth-quarter TEC Confidence Index are in. This survey, with more than 1,000 CEO responses nationwide and an additional 100 TEC CEOs in Wisconsin has, historically, proven to be a relatively accurate barometer of future economic and global conditions.
The index, now reported in the Wall Street Journal and other national and regional publications, is also a useful tool for business planning purposes. The bottom line on this quarter’s index results is that the consensus for the next 12 months is indeed positive.
To be specific, 70% to 75% of those surveyed believe that economic conditions have improved compared to a year ago. The outlook for the next 12 months is even better, with 80% of both the US and the Wisconsin sample expecting the economy to be even better.
Close to 60% of TEC US and TEC Wisconsin members expect to add employees in 2004. A scant 4% expect to cut their present employee count. Commitment to increased capital expenditures is nearly identical: one-half of both groups expect a greater commitment and 40% expect no changes.
Eighty-two percent of both groups expect sales to rise over the next 12 months. Interestingly, 2.5% of the Wisconsin group expects sales decreases, compared to 4.1% of the TEC US sample. In terms of profitability, 76% of the Wisconsin group and 73.8% of the US sample expect improvements. About 5% of both groups expect declines in profitability from a year ago.
Regarding the US dollar, 63% of the Wisconsin group sees no change compared to 53% of the US group. More than one-fourth of both groups see a weaker dollar in 2004. As for Alan Greenspan, chairman of the Federal Reserve board, two-thirds of both groups indicate he is doing a good to excellent job.
Even though perceptions of significant economic improvement characterize the overall tone of this survey, about half of both groups rate President’s Bush’s performance as "pretty good but not excellent." The Wisconsin group is slightly more critical of him than the US group.
In terms of the greatest threat to the economy over the next 12 months, both groups remain most concerned about terrorism. A distant second and third is "weak business investment" and "weak consumer spending."
Since our last TEC Confidence Index, the mutual fund trading scandal has dominated the business pages of most newspapers. More than half of both groups feel this has had no effect on their investments and only 3% of both groups plan to move their mutual fund holdings.
The No. 1 and No. 2 issues dominating next year’s elections? Fifty-five percent of both groups rank the economy "No. 1" and the war in Iraq/terrorism "No. 2." More than two-thirds of both groups favor the current postwar policy outlined for Iraq. Interestingly, about 75% of both groups rate President Bush’s handling of the Iraq situation since he declared an end to major fighting as pretty good to only fair. Nearly 80% of both groups favor keeping the same number of troops in Iraq or sending more if needed.
Here is an atypical survey question in the Index. "Have European companies who have adopted 35-hour work week and five-week paid vacation plans for their employees created a competitive disadvantage in the global marketplace?" More than half of both groups think this is definitely the case and another quarter of them think it has "somewhat." We’ll see.
The last few questions of the TEC Confidence Index ask about what I’ll call some "odds and ends." They enable a fitting calibration perspective, if you will:

1. "What is the most effective way you use to develop employees for key leadership positions?"
More than half of both groups use mentoring, and about one-fourth use training and education.

2. "Is your business family-owned and did you inherit it?"
Sixty percent of both groups are family-held, and about half of both groups built their businesses from scratch.

3. "Will your business remain in the family?"
Thirty percent of the Wisconsin group and 49% of the US group plan on developing an exit strategy; 28% of the former and 20% of the latter plan on passing the business to their children.

4. "What is the most significant way your firm gives back to the community?"
Sixty-five percent of the Wisconsin group and 49% of the US group do so through corporate giving/monetary donations; interestingly, while 18% of the US group does not participate in community givebacks, only 7.5% of the Wisconsin group falls in this category.

5. "How will your company’s holiday bonuses compare to
last year’s?"
About a third of both groups plan no changes and another third do not give holiday bonuses. The remainder of both groups is evenly divided between giving increases this year and giving decreases this year.

In conclusion, 2004 promises to be a turnaround year for many Wisconsin and Michigan TEC members. Key initiatives indicated to us include:

1. More aggressive efforts to reach "buy-sell" arrangements with potential Chinese vendors and customers.
2. Implementing lean manufacturing practices.
3. Identification of new product/service opportunities.
4. Closer attention to human resource issues.
5. Continued elimination or reduction of non-performing assets.

Here’s hoping that your company’s own "Confidence Index" will reach an all-time high in 2004! Until next month, good luck implementing your own key initiatives.

Harry S. Dennis III is the president of TEC (The Executive Committee) in Wisconsin and Michigan. TEC is a professional development group for CEOs, presidents and business owners. He can be reached at 262-821-3340.

Jan. 9, 2004 Small Business Times, Milwaukee

Karl Lusis was shocked when he learned he was the first American Indian in Wisconsin to be licensed as an architect.
Lusis, 33, opened Standing Stone Design LLC, his own architectural design firm on 217 W. Reservoir St. just north of downtown Milwaukee last summer.
Raised in the city, Lusis attended the Milwaukee Public School system and at the time was teased for his ethnicity.
"I always identified myself as an Indian," Lusis said.
Today, he’s proud of that heritage and has incorporated it into his field of work.
Lusis has been hired to design the Oneida Museum and Cultural Center on the Oneida Reservation in northeastern Wisconsin.
"It’s a good stepping stone for me," said Lusis, a member of the Oneida Nation of Wisconsin.
The project, estimated at $8 million and with 45,000 square feet of space, will be a joint design effort between Lusis and two other firms: Plunkett Raysich Architects of Milwaukee and Two Row Architect of Ontario, Canada.
Lusis wants to use his American Indian background in his other design projects as well.
"Being an American Indian gives me an advantage over other firms," Lusis said about working with American Indian communities.
The desire to work on American Indian projects is one of the reasons that Lusis opened Standing Stone Design.
Along with working on his own projects, Lusis will subcontract work from Engberg Anderson Design Partnership in Milwaukee.
However, he wants to work mainly on American Indian projects and plans to be selective in the projects that he pursues.
Lusis uses his heritage and his family, especially his 94-year-old grandmother, when formulating ideas for upcoming projects.
"The passion to work for the community that allowed me to fulfill my dream of becoming an architect," Lusis said.
The name Standing Stone Designs comes from People of Standing Stone, another name for the Oneida people. According to Lusis, the Oneida people built their communities in a circle and surrounded it with timber palisades. According to legend, a large stone would be placed at the gate, the only opening to the community.
Lusis described the name, Standing Stone Designs, as having "a Native American flair with an architectural flair."
In the past, Lusis has witnessed architects incorporating American Indian elements into their designs erroneously, such as a Plains Indian’s teepee for a Woodland Indian’s building, or incorporating a feather headdress into a design. "They used too simple of a statement of who Indians are," Lusis said.
Lusis plans to use ancient design concepts combined with modern materials. He wants no material to be wasted. "It’s the right thing to do in general, but being an Indian, people look to you to be a leader," Lusis said of his environmentally friendly developments and designs.
He plans to have no shortage of developments from American Indian communities, as he expects gaming compacts to create many new projects. Casinos and their expansions are obvious examples.
Lusis also envisions civic structures, schools, health clinics and many other community buildings being built. "I perceive many things coming out of the gaming compacts," he said.
Lusis is pursuing two other new projects. The first is with the Little Traverse Bay Bands of Odawa, who are planning a health center, a record storage building and a government administrative building. The other is with a casino and hotel expansion in Michigan.
"I see myself slowly developing the company and maybe taking on a partner or two," Lusis said.

Jan. 9, 2004 Small Business Times, Milwaukee

"Hey, I know that guy. That’s old whatsizname. I wonder what he’s selling?"

A celebrity in your advertising is a great way to attract attention, create excitement for your products and build awareness among your prospects and customers. The celebrity serves as a testimonial – an endorsement for your product or service. That endorsement may be enough to turn a browser into a buyer.
"Y’know, if it’s good enough for whatsizname, it’s good enough for me."
Nike uses LeBron, Tiger Woods, and other sports figures to strengthen the association between great athletic feats and Nike sporting goods.
Consumer attitudes of ,"I wanna be like LeBron" or, "I admire Tiger Woods, so I’ll emulate his behavior," help Nike link its products with winners. That translates into big sales.
You might think celebrities cost a lot of money, and some do. LeBron James earns far more from endorsements than from his lucrative playing contract with the Cleveland Cavaliers.
The extent to which you use the celebrity often determines the amount you may have to pay. There are times, however, when you may be able to arrange a celebrity endorsement gratis, or for a small fee.

1. Borrow one from a supplier – First, check with your suppliers to see if they have any celebrities under contract. Look into any cooperative advertising arrangements or personal appearance opportunities.
If the celebrity attends your next industry trade show representing your supplier, bring along a camera and shoot a few pictures with you and the celebrity. You may be able to obtain permission through your supplier to use the photographs in your advertising and promotion.

2. Talk to their promoters – Contact local entertainment promoters to see if any celebrities are coming to town. Offer to schedule an appearance in order to help promote the celebrity. The promoter may be willing to arrange a brief appearance, especially if the celebrity is selling a product.

3. Donate to charity – Local charitable organizations may have a working relationship with a celebrity. Offer to donate a percentage of your sales to the charity if the celebrity endorses your product.

4. Find one who likes your product – Say you hear of a celebrity who uses your product. Make an offer of free merchandise in exchange for permission to photograph him or her with the products. The idea of something for nothing appeals to everyone, even celebrities.
The late Burl Ives was a depositor at a Santa Barbara bank that was offering free fishing gear with new account openings. The bank offered Ives some gear he admired for the right to use his photograph in its ads. Cost: about $100.

5. The industry celebrity – Your celebrity need not be someone famous the world over. You may have someone unique to your industry, someone whom few people outside your small circle of trade specialists would know, but someone who is revered by you and your customers alike.
An industry celebrity can boost your image of expertise among your prospective customers. Stage a special event around his appearance at a seminar you sponsor; have his picture taken with customers; submit a feature story on how he became an industry authority, along with a few pictures of the expert using your product, shaking hands with your company president or standing on your factory floor.

6. Sports heroes – Sports celebrities are always a hit, but major celebrities can be expensive. Some lesser sports stars, however, may not charge anything at all. Retired professional athletes or former college greats are particularly popular. Coaches from the local high school can even be a big draw, especially in smaller towns.
Celebrities can be used in a variety of situations:
— Signing autographs
— Demonstrating products
— Conducting seminars
— Modeling clothing
— Posing for photographs with customers and employees
— Endorsing your products in advertisements and promotional materials
Latch on to a good celebrity, one who will bring instant recognition, and your product and services can receive the same recognition. Use celebrity endorsements to boost your products’ awareness, your company’s sales, and your bottom line.

Robert Grede, a speaker, author and an adjunct faculty member at Marquette University, operates The Grede Company, marketing and strategic planning consultant. (www.thegredecompany.com).

Jan. 9, 2004 Small Business Times, Milwaukee

Question: We’re trying hard to become an "employer of choice." We’re trying to brand the company and create an image that says, "That company is successful, going places, pushing the envelope, etc." We want both our customers and employees to easily identify, connect and relate to what we are about. Any suggestions you have to offer would be more than greatly appreciated.

Answer: Using the language of organization development, what you are describing is building a corporate culture. There are many definitions of corporate culture ranging from the simple (e.g., ("The way we do things around here") to the complex (e.g., "The shared and relatively enduring pattern of basic values, beliefs and assumptions in an organization"). Suffice to say that when we are talking about corporate culture we are talking about the how the business does business – the words it uses, the messages it sends, the behavior it expects, etc. To get a sense of your corporate culture, you may want to examine these variables (among others):
— Strategy/Mission
— Ideology/Philosophy
— Goals
— Methods
— Measurement
— Performance monitoring
— Language
— Group boundaries
— Power/Status
— Relationships
— Rewards
It is worth noting that corporate culture is a systemic issue – it encompasses the totality of the organization. So, by definition, building a corporate culture is a far-ranging initiative. To become an employer of choice, therefore, will take more than simply paying higher salaries than the market or industry average. It will mean developing a broader view of the bottom line (i.e., success means more than profits) and what it takes to favorably impact the bottom line (i.e., success happens through a dynamic synthesis of financials, customers, operations and employees).
What constitutes the ideal corporate culture and the desirable bottom line? Fortune magazine, in its "Best Places to Work" list has historically used the following criteria:
— Camaraderie/Friendliness
— Openness/Fairness
— Pride in Work/Company
— Job Security
— Opportunities
— Pay/Benefits
How does your company "measure up" against these criteria? Where are you devoting time, money and other resources? What could you do to more fully address these (and related) factors?
One framework for coherently building a corporate culture is called a Quality of Work Life (QWL) program. QWL programs are comprehensive initiatives designed to generate high involvement from employees so as to change their mindsets from "renters" to "owners." Generally speaking, key components of QWL programs include:
— Adequate and fair compensation
— A safe and healthful work environment
— Jobs that develop human capacities
— A chance for personal growth and security
— A stimulating social environment
— Rights of privacy, dissent and due process
— Work rules that minimize infringement on personal rights/needs
— Socially responsible organizational actions
I have no doubt that if you were to pursue those issues over time, your company would begin to emerge as an employer of choice. But, you may be wondering, is it worth it? Will addressing these issues and truly building a sustainable corporate culture cost us more than it will return? What evidence is there to support the efficacy of corporate culture initiatives?
Well, there is an accumulating body of data to support the idea that spending time building corporate culture pays off. For example, organizational culture has been linked to better organizational performance. Organizational culture has been shown to improve competitive advantage. And, organizational culture has been demonstrated to impact individuals in a host of ways-employee morale, commitment, productivity, physical health and emotional health.
Let me close by noting that I agree with your observation that building a dynamic corporate culture is hard work and does not happen over night. It takes a sustained effort consistent with the adage, "It’s a marathon, not a sprint." An illustrative case study will demonstrate, though, that this is one race worth running.
As you can imagine, in doing this kind of work over the last 17 years, I have seen a wide variety of corporate cultures. I have worked with organizations large and small, private and public and from most market sectors. In all of my comings and goings, the organization whose culture I have been most impressed by is D&S Dental Laboratory in Waunakee, Wis.
As a rule, dental laboratories are small operations. D&S, however, is the exception to that rule-with more than 100 employees, it ranks in the top 1% nationally with respect to the size of its workforce. Its service area is roughly the southern half of Wisconsin.
D&S is unique, though, not just because of its size, but because of the way the organization operates. The lab strives to make use of leading edge techniques and tools. Performance-based pay is pursued. Bachelor’s credentialed teachers staff a fully resourced on-site day care program. Learning opportunities for employees abound – everything from computer skills to interpersonal relations to management development are offered, in addition to job-related technical skill building.
Predictably, as employees become more skilled and capable, they sometimes leave to set-up their own shops. How does D&S respond to this attrition? They wish their exiting employees well, help them establish themselves and may even send them work from time to time. Participation and involvement are visible from every employee, from the most junior to the man who sits at the top – Dick Pilsner, the founder and president of the company.
Pilsner describes his approach to shaping organizational culture in the following way:
"Of course we need to work on numbers, but the financial doesn’t dictate the choices that we have – the ‘other bottom line’ does …. It’s all of the things that some people today might call emotional intelligence, all the things that add up to corporate culture – attitude, compassion, the spiritual – all those elements that are in the other bottom line besides the financial one. What we’re trying to do is build a community here at work."
Sums things up nicely, I think.
Want to be an employer of choice?
Then start tending to the "other bottom line."

Daniel Schroeder, Ph.D., of Organization Development Consultants Inc., (ODC) in Brookfield, provides "HR Connection." Readers who would like to see an issue addressed in an article may reach him at 262-827-1901, via fax at 262-827-8383, via e-mail at schroeder@odcons.com or via the Internet at www.odcons.com

Jan. 9, 2004 Small Business Times, Milwaukee

Mueller Communications, Milwaukee, announced that Andrea Rowe has joined the team as an account coordinator. Rowe brings more than 10 years of experience in media, government and public relations to the Mueller team. Rowe is a former morning news anchor and reporter for WUWM-FM Milwaukee Public Radio.
Allan M. Foeckler has joined the law firm of von Briesen & Roper, Milwaukee, as an associate to the firm’s litigation and risk management practice group. Prior to joining the firm, Foeckler was a litigation associate at another Milwaukee law firm and also served as Justice David T. Prosser’s law clerk during the Wisconsin Supreme Court’s 1998-99 term. Since 1999, Foeckler has served as an alderman for the City of Oak Creek. He also sits on the city’s planning commission and is a past member of Oak Creek’s Community Development Authority. Foeckler received both his B.A., cum laude, and his J.D. from Marquette University. Von Briesen & Roper also announced that attorney Sibylle H. Tasker has joined the firm as an associate in the banking, bankruptcy and business restructuring practice group. Prior to joining von Briesen, Tasker practiced for several years in California. Tasker earned her BA from UW and her JD degree from Santa Clara University School of Law.
Chamness Consulting, Milwaukee, recently named Kirby Rosplock as business development consultant. Prior to joining Chamness Consulting, Rosplock worked independently as a business development consultant and principal researcher at Marquette University’s Center for Family Business. Rosplock has a background in the financial sector, the non-profit sector and the business consulting realm as a coach, consultant and management strategist. Rosplock graduated with honors from Middlebury College and has a master’s degree in business administration from Marquette University with an emphasis in private equity finance and entrepreneurship.
Sherry Frahm has joined Frank F. Haack & Associates, Wauwatosa, as the claims management specialist for worker’s compensation in property and casualty. Frahm brings more than 23 years of workers compensation claims experience. Frahm’s most recent experience as a claims specialist was with CNA Insurance.
Thomas Brickley has accepted the position of vice president commercial lending at Community Bank & Trust’s Sheboygan downtown office. Brickely has more than 10 years of lending experience, most recently as president of Community Bank and Trust’s Taylor Drive office. He received his BA degree from the University of Northern Iowa.
Mike Hnilicka has recently been promoted to the position of vice president at Voss Jorgensen Schueler Co., Waukesha. He has been with the firm since October of 2001 and has been in the construction industry for 26 years.
The Centare Group, Brookfield, has hired Bob Hanson to join its Microsoft business group and appointed Brian Tinkler to a new director of business development position. Hanson was the founder and CEO of Custom Programming Unlimited. Tinkler is the founder and president of the Wisconsin.NET Users Group. He previously served as business development manager for a Chicago based IT consulting firm and as marketing director and business development manager for .NET technologies for an IT consulting firm in Madison.
Netrdao "Burn" McIlvried has been named assistant general manager at the new Pedro’s Mexican Restaurant, Brookfield. She has held several positions in the Pedro’s restaurants in Madison over the last 11 years.
Connections Ticket Service, Milwaukee, has added Cornelius Holt to its staff as advertising and marketing director. He brings eight years of experience in media marketing, promotions and sales.
Lafayette L. Crump has joined Prism Technical Management & Marketing Services, Germantown, as an associate. Lafayette joins Prism after five years of serving private and public sector clients while practicing law at Quarles & Brady and Foley & Lardner. Lafayette is a graduate of Duke University and Duke University School of Law.
Jacquelyn Hribar has assumed a new role as public relations manager at Meyer & Wallis, Milwaukee. She joined the agency in 2002 as an account management associate. Hribar’s previous experience includes holding positions in account service and public relations for Bellwether Communications, The Haggerty Museum of Art, and the Wisconsin Department of Agriculture, Trade, and Consumer Protection. She is a graduate of Marquette University with a BA in communication.
Fiduciary Real Estate Development, Milwaukee, announced that Richard J. Glaisner has accepted the position of managing partner, marketing and sales for the Kilbourn Tower project. Glaisner has been a financial partner at Fiduciary for 18 years. Glaisner was most recently a regional manager and senior vice president for Wells Fargo Private Client Services. He is former senior managing director of The Ziegler Companies, founder and former CEO of GS2 Securities, former managing director of Kidder Peabody’s Institutional Equity Group, former executive vice president for Kemper Securities (now Wachovia) Equity Management – Blunt, Ellis & Loewi, and a former vice president with E.F. Hutton.
NAI MLG Commercial (NAI MLG), Brookfield, has promoted Sean K. Osborne to senior vice president and sales manager of NAI MLG. Osborne has been a broker with NAI MLG for more than eight years.
Fresh Brands, Sheboygan, announced the appointment of John H. Dahly as executive vice president, chief financial officer, treasurer and secretary, and Louis E. Stinebaugh as executive vice president of operations. Dahly previously worked for Fresh Brands for 17 years, including serving as chief financial officer from 1986 to 2001. Since that time, Dahly has served as a consultant to Fresh Brands on franchise related projects. Prior to joining Fresh brands, Stinebaugh served as president of the Sentry Division of SuperValu in Wisconsin. He previously worked for Fleming Companies for over 15 years. He has more than 30 years of experience in supermarket industry.
INSPEC, Milwaukee has recently promoted Ziad Salameh to director of structural engineering. Salameh has been employed at INSPEC since 1998, serving as a senior structural engineer.
AQS, Hartland, hired Barbara Bauer as sales support specialist. Bauer is a Chartered Property Casualty Underwriter (CPCU) and spent 25 years in commercial lines at Indiana Insurance, 18 years in underwriting and 7 years as a rater. Bauer also has experience in customer relations, marketing and sales.
Kahler Slater Architects, Milwaukee, is pleased to announce the following promotions: Barbara Armstrong, Kelly Gaglione, Joseph Heinowski, John Horky, Daniel Morgan, Douglas Nysse, Jennifer
Schlimgen, Stephen Steen and Matthew Tendler to principals.
John Cain, Richard Eschner, Lawrence Schnuck and Louis Stippich to senior principals.
Scheibel Halaska, Milwaukee, has hired Karl Robe as public relations manager. Before joining the firm, Robe headed his own public relations consultancy. He also worked in public relations, media relations and marketing communications for global financial services and heavy equipment manufacturing companies as well as national sports and human services associations.
Mike Abuls has been promoted from 1SOURCE division manager to vice president at CG Schmidt, Milwaukee. Abuls has been with CG Schmidt since 1999 and has headed the company’s design-build division, 1SOURCE, since 2001. Abuls earned his bachelor’s degree in civil engineering from Purdue University, and his master of science degree in civil and environmental engineering from UW.
The American Society for Quality (ASQ), Milwaukee, has hired nine and promoted four employees. Kimberly Czerwinski, Tanya Reyna, Cindy Rogers and Tiffany Morgan have been hired as customer care representatives. Jordan Martone has been hired as a Web producer. Christian Dreyer has been hired as a media sales representative and Carrie Konopacki as a media sales coordinator. Kathy Miller has been hired as a learning offerings program developer, Nick Lokshin as a supplier administrator, and Michelle Centell has been promoted to sales coordinator. Dan Dougherty has been promoted from a customer care representative to an event management coordinator. Trish Borzon was promoted from an assistant in event management to a coordinator in the community development and value work group. And John Rossetto has been promoted from senior marketing administrator to marketing services manager.
Christine V. Lake has been named president and chief operating officer of RidgeStone Financial Services, Brookfield. Lake has more than 30 years of experience in the banking industry, serving as executive vice president of RidgeStone Financial Services since April, 2002, and vice president from the company’s formation in 1995. Prior to RidgeStone, Lake served in a variety of banking positions, most recently as vice president of M&I Wauwatosa State Bank from 1991 to 1994.

Jan. 9, 2004 Small Business Times, Milwaukee

Buoyed by the success of his restaurants in Milwaukee and Indianapolis, John "Johnny V" Vassallo, hopes to open about 200 restaurants, similar to his steakhouse and Irish pub, throughout the United States. "My 10-year goal is to have a couple hundred restaurants – 40 or 50 steakhouses and 100 or 150 pubs," Vassallo said. "As often as we can find an opportunity in other communities to grow, we will open up other (restaurants)."
The 37-year-old restaurateur opened Mo’s: A Place for Steaks in 1999, Mo’s Market: A Place for Wine in 2001 and Mo’s Irish Pub in August. All three are located at the intersection of Wisconsin and Plankinton avenues in downtown Milwaukee.
Vasallo, who is of Italian and Irish descent, named the restaurants after his mother, Maureen.
The success of his Milwaukee steakhouse led Vassallo to open Mo’s: A Place for Steaks in downtown Indianapolis in 2003.
So far, the Indianapolis restaurant has also done well, Vassallo said. Located across the street from Conseco Fieldhouse, home of the NBA’s Indiana Pacers, the restaurant has become a favorite for many Indianapolis carnivores, including some Pacers players and management, Vassallo said. The team’s Christmas party was held there.
"It’s going really well," Vassallo said. "It’s exciting to watch. It’s catching on so fast."
"There are a lot of steak places in Indianapolis," said Steve Slosarek, restaurant critic for The Indianapolis Star. "I think (Mo’s) is finding a niche. It’s got a great location. That helps. Of course, time will tell. I don’t think he’s tearing it up. It seems to be doing pretty good, though. He hasn’t really advertised that much."
In his review, Slosarek gave Mo’s: A Place for Steaks three stars.
"It seems a little different from typical steakhouses," Slosarek said. "Some of the steak entrees were reasonably priced."
Next, Vassallo is making plans to open steakhouses in Houston and Minneapolis. He hopes to open the Houston steakhouse by June 1, in time for Major League Baseball’s All-Star game there on July 13.
In 2003, Vassallo formed Global Restaurant Systems, a small Milwaukee-based company to manage his restaurant expansion plans.
Vassallo said each restaurant he opens in another city would be co-owned by himself and a local partner. The local owners will help make sure the atmosphere and menu of each restaurant fits in with their community’s identity.
In addition, Vassallo said he plans to hire Alf France, who is leaving his job as the development director for Guinness, where he has been helping entrepreneurs start Irish pubs in the United States. France will do the same job for Vassallo. France will start his new job Jan. 15.
"He worked hand in hand with Guinness USA and Guinness out of Ireland," Vassallo said. "He helped independent operators like myself open 150 pubs in the U.S. over the last five years. He’s got an incredible amount of expertise and contacts."
Last year, Vassallo took a trip to Ireland to learn from Guinness how to operate an authentic Irish pub. The five-day class included a five-hour lesson on how to pour the perfect pint of Guinness.
"The key is to get it to be as authentic as possible," Vassallo said. "The closer you are to getting it right, the more it tastes like you are drinking a Guinness in Dublin. I know we’re not 100% authentic, but we’re very close.
"They say if you dedicate yourself to making the pint perfect, that’s going to create a culture of striving to make everything perfect," he said.
Since the early 1990s, Guinness has been teaching its Irish pub concept to restaurateurs such as Vassallo, helping them recreate the authentic Irish pub experience.
According to Guinness, the concept has been used to open more than 1,800 pubs in 53 countries since 1992 and more than 200 pubs in the United States in the last seven years, including Mo’s Irish Pub.
Irish pubs are popular because they provide a pleasant and relaxed atmosphere for patrons to hang out in good times and bad, Vassallo said. Pubs are a central part of social life in Ireland.
"I was looking at all different kinds of concepts for that corner," Vassallo said. "I really think people are comfortable there. A true Irish pub, they stand the test of time."
Guinness believes the U.S. marketplace could support up to 500 pubs patterned after its Irish pub concept. Vassallo hopes to co-own many of those, with a twist.
"I don’t think they have fully explored the food component, which I really add," he said. About 75% of revenues at most pubs are from drinks and 25% from food, Vassallo said.
With his Irish pub, the revenue split for food and drink is close to 50-50.
U.S. laws do not allow the producer or distributor of alcoholic beverages to own a bar or pub or provide financial assistance to them. Although Guinness cannot own any of the U.S. pubs it helps create, the company benefits from increased sales of its product in those establishments.
"Every pub they open will sell an extra half barrel of Guinness a day," Vassallo said. "They’re like a benevolent father figure (to the pubs). Lots of wisdom, lots of knowledge."
Vassallo said he became inspired to open restaurants in other markets about three years ago when he took an entrepreneurial class called "The Strategic Coach." In the class, he had to imagine what his business would be like if it was 10 times larger. It was then he began developing his restaurant growth plan.
"(The class) enables you to, No. 1, have the confidence to do things bigger than yourself and, No. 2, it gives you a template to support your dreams," he said.
However, Vassallo said his dream is not to create a restaurant chain.
"I don’t consider it a chain," he said. "It will be a league of independent restaurants with a similar menu and with the synergy of having unified accounting, legal and marketing departments.
"A chain, at least what I think that comes to mind, is the same thing the same way in each place. The mentality of a chain is cold and impersonal. There are a lot of people that don’t like chains," he said.
Vassallo said he is building relationships with customers at his restaurants, which create opportunities for business growth.
One businessman from Houston, who eats at Mo’s when he visits Milwaukee on business trips, urged Vassallo for a few years to open a steakhouse in Houston.
"In a friendly way, he badgered me in e-mails to look at the Houston market," Vassallo said. The Houston businessman flew Vassallo to Texas, and Vassallo developed relationships to attract business partners and potential landlords.
Vassallo said making friends with customers and establishing loyalty with them is the key to the success of his restaurants.
"We try to build our restaurants one relationship at a time," he said.
Vassallo is confident he will obtain the necessary financing to open 200 restaurants nation-wide.
"Financing never really seems to be an issue," he said. "Financing is not an issue with the right landlord and the right plan. We have some great banking relationships. We have some phenomenal friends in the investment world."
The biggest challenge to achieving his goal will be finding quality ownership partners and employees for each restaurant, Vassallo said.
Dedicated employees are needed to provide a high level of service. However, such employees can be difficult to find in the restaurant business. Vassallo said he tries to take care of his employees and make their lives better. One perk of working at Mo’s is the company Christmas party in Las Vegas.
By opening a restaurant in Indianapolis, Vassallo says he has taken the first big step toward establishing a national presence for Mo’s.
"I’ve seen how it works here," he said. "I’m your classic entrepreneur. I just want to keep pushing the envelope."

Big plans for Milwaukee’s ‘restaurant row’
By Andrew Weiland, of SBT

In addition to his plans to open numerous restaurants across the country, Johnny Vassallo is planning some changes in and around his Milwaukee restaurants.
To improve stagnant business at Mo’s Market, Vassallo plans to alter the interior and menu to create an Italian restaurant. The changes will be unveiled in March. The retail sales for wine at Mo’s Market will continue.
In addition, Vassallo is talking to city officials about his desire to enhance the corner of Wisconsin and Plankinton Avenues where his three Milwaukee restaurants are clustered. He wants to add trees with Christmas lights along the sidewalks and a large 16-foot by 20-foot video screen over his Irish pub, similar to the screens at the Bradley Center and Milwaukee Theater.
Vassallo wants to create an exciting Times Square-type feel at the corner.
"It’s my dream to have a nice high-end street for people to go to," he said.
Vassallo’s establishments have added to a burgeoning restaurant area downtown, said Towne Realty Inc. vice president Tom Bernacchi.
"I really think that whole street (Plankinton) between Wisconsin Avenue and Kilbourn Avenue has really become restaurant row there," Bernacchi said. "You’ve got not only Johhny’s three places, but a Japanese place (Benihana), a Thai place (King & I), an Indian place (Aladdin Middle Eastern Cuisine) and Rock Bottom Brewery.
"Johnny doing what he’s done has certainly enhanced that area of Plankinton Avenue," Bernacchi said. "From a real estate standpoint, it’s good."

Johnny Vassallo
Age: 37
Restaurants:
Mo’s: A Place for Steaks, 720 N. Plankinton Ave.
Mo’s Irish Pub, 275 W. Wisconsin Ave.
Mo’s Market: A Place for Wine, 717 N. Plankinton Ave.
Mo’s: A Place for Steaks, Indianapolis
Web site: www.mosrestaurants.com

Jan. 9, 2004 Small Business Times, Milwaukee