The Beer Joint That Became A Restaurant
Back in 1978, Louie Riederer partnered with his friend Rick Renfro and another mutual friend to buy Johnny's Tavern in Lawrence - a simple little beer joint. Today Johnny's is a full restaurant bar with six locations, six partners, and a casual family dining atmosphere. Riederer is this year's Kansas On-Premise Retailer Of The Year.
(May 15, 2008) Back in 1978, when Louie Riederer joined his friend Rick Renfro as a partner in Johnny's Tavern, it was just a little beer joint. The Lawrence location with the neon red arrow and giant beer mug outside had already been a fixture in Lawrence for 25 years by then - just a simple beer joint, nothing fancy.
What a difference 30 years can make. Today Johnny's Tavern has six locations - the original in Lawrence, plus five others in the Kansas City area. It has morphed into a full service restaurant, the kind of place you can take your kids. And Riederer is this year's Kansas On-Premise Retailer Of The Year.
How do you go from a beer joint to a casual dining restaurant? From one location to six? Riederer said that for Johnny's Tavern, it's been a matter of staying true to your roots.
"We have never tried to be a concept bar," said Riederer. "We're just a neighborhood bar. We just take care of the customers we have."
That's helped Johnny's hold on to its market niche through an onslaught of new competitors, especially in the Kansas City market.
That competition is not just for customers but also for employees. In Lawrence - with thousands of University of Kansas students looking for work - it's fairly easy to find help. That's not true in Kansas City.
"In Kansas City it's a lot harder and getting harder all the time," said Riederer. "There are just so many restaurants."
That's not exactly good news for a business whose lifeblood is an army of part time employees. About 60 to 70 percent of Johnny's employees are part time. Most are between 18 and 25 years old. Just getting them to show up for work on time can be a struggle. Impressing upon them the importance of serving the alcoholic beverages responsibly is a never-ending challenge.
"We are very strict about it. If you're not 21 you don't drink here," said Riederer. "We impress it upon our employees. If you serve someone underage you can get a ticket. I could lose my license."
Challenging as personnel issues might be, they barely hold a candle to food costs. And these days as food costs are going up, Johnny's customers are holding on to their hard-earned dollars tighter than ever.
"I think people might not skip going to Johnny's. But they might skip the $30 steak," said Riederer.
All that might put the brakes on thoughts of opening new locations - at least for a little while.
"We're always looking to do something," said Riederer. "Today, right now, it's a little scary. It's harder to get money than it used to be."
That's one reason why today Johnny's has six business partners: Pat Roberts, David Allen, Sean Haydock, and Kyle Witherspoon along with Renfro and Riederer. The new partners are young men that bring not only new capital, but also new ideas and a fresh perspective. In a best-case scenario, they'd buy out the senior partners at some point.
"It's kind of an exit strategy getting these younger guys involve," said Riederer.