Something’s Fishy @ Wahoo’s

March 02, 2007
By Susan Sunderland

Are you stoked about goinginto business for yourself? Before you paddle out into an ocean of opportunity and challenges,heed the advice of some young entrepreneurs who have learned how not to wipe out in the first year. Stephanie Pietsch, 31, Mike Pietsch, 28, and Noel Pietsch, 25, took a chance a year ago and brought a California restaurant franchise to Honolulu. They had never been in the restaurant business, but were familiar with the Wahoo's Fish Taco concept as avid consumers. The siblings thought it was the right time to expand the surf-theme restaurant concept to Hawaii. Stephanie left a career in sports marketing with the Anaheim Angels baseball team to come back to Hawaii and open the first Wahoo's Fish Taco franchise in the islands. Noel was working with Edgy Lee's film production company, and Mike was engaged in real estate. Wahoo's Fish Taco, a California-based chain, was started in 1988 by three brothers, Eduardo Lee, Mingo Lee and Wing Lam. Raised in the family's Chinese eatery business, they combined their love of surf and food to create a restaurant with an eclectic Mexican-Brazilian-Asian menu and a Hawaiian North Shore vibe. Today there are 40 Wahoo's in Southern California and Colorado. The Hawaii franchise at Ward Gateway Center run by the Pietsches is the top performing unit in sales. How did these three Punahou grads and surfer siblings manage this success? And how did they avoid the fate of many start-ups that flounder in the wake and bail? "The first six months were a blur," Noel says, recalling the "hordes of people lining up in a carnival-like atmosphere at our restaurant.We got hit suddenly, as it happens when there's anything new in the market. We were doing better than we ever expected,but at a frantic pace." Mike says, "It takes six to eight months to build a customer base as people get to know the menu and the service concept." He adds,"Franchising is a good way to get into business because there are systems already in place. The one thing we weren't prepared for is the tight labor market in Hawaii. It has taken us a year to build a really solid team. It is an ongoing battle because there is so much competition for good people." "What's helped us is creating a work environment that's family-oriented, versus having a hierarchy," Noel offers. "We've gotten some of our best employees through referrals of family and friends. Being young owners, we also understand what it's like to have balance in one's life, so we are flexible and sensitive to needs outside of work. We embrace the philosophy of hiring for personality and training for talent." "We are running so much more efficiently now," says Stephanie. "The franchise provides a support system so there's a resource for asking questions, training, and growing the business." She admits,"Each one of us has made mistakes on the journey and learned from it. But with better communications,we have made the process smoother. We make time outside of the restaurant to meet face-to-face about how we see the business going." Noel adds,"In the beginning, you think it's going to be a 9-to-5 job, but it's really 24-7. We've learned when to turn on our sibling hat and when to turn it off to be business partners." Mike says,"The biggest lesson is how to communicate and how to work together as a family.You need to know when to ask for help, when to give advice, and when to keep your mouth shut." Among their nurturing mentors is father Michael Pietsch, founder-CEO of Title Guaranty, one of Hawaii's largest mortgage firms,run by three brothers. The Pietsches also have an advisory board consisting of well-known business and community leaders. There's also the informal network of friends like downtown restaurateur Don Murphy, on whom they recently called to ask about food prep equipment. In a small community such as Hawaii, which is more important, we ask, who you know or what you know? Mike acknowledges that both are important, but relationships are often the lynchpin to creating opportunities and establishing credibility. Noel advises,"You'll meet knowledgeable people along the way. Take them out to lunch, get to know them and foster relationships." That's exactly what the trio did in meeting the principals of The MacNaughton Group early on. It led to the lease of the 2,000-square-foot space at Ward Gateway, corner of Ward Avenue and Auahi Street, next to traffic magnets Starbucks and Jamba Juice. Mike says while the rent is "extremely high" for the flagship store, he regards it a marketing investment for the location's high visibility. "I look at it as purchasing a billboard," he explains. As for future expansion, he is looking at locations in West Oahu with an opening target date of 2008. Meanwhile the clever trio has found a way to take Wahoo's to more customers and to new locations, and it will begin rolling in about two months. Scoop du jour: Wahoo's Lunch Wagon is coming to your neighborhood soon. Family parties, office functions and sports events can now have Wahoo's California-Mexican food catered. Work is being completed on an eye-catching surf-mobile that Stephanie says "will scream Wahoo's"and offer its popular platters, salads, sandwiches and party packs for up to 100 people. Catering is already a growing part of Wahoo's business, according to Stephanie, who on the morning of our interview is packing ingredients for a make-your-own taco buffet at a wedding shower for 40 guests. Keeping a watchful eye on the operations is Wahoo's founder Wing Lam, who is on one of his weekend surfing jaunts to the islands. "I'm here when the water's too cold on the coast," he says with a smile."In Hawaii, it's always summer. That's why the business here is good year 'round." Endorsing Pietsch's idea of a Wahoo's lunch wagon, he says, "From a consumer point of view, it's important to always stay ahead of the curve. But the bottom line is to stay true to what you do best and to stay relevant. You can be famous by association, or you can be famous by innovation. Stay relevant to stay current." Stephanie,Mike and Noel Pietsch are examples of a new breed of restaurateurs on the scene here. They are keiki o ka 'aina, nurtured by a family of kamaaina entrepreneurs, who bring their youthful energy and ideas to traditional businesses. While their education and intelligence spark achievement and creativity,it is their youthful quality and character that could be the biggest advantage. At ages 30s and 20s, they are bold in their approach to business and fearless of failure because every step is a new adventure in learning.They are at a point in their lives when they are actually risking less than others might at a later point in their lives. They have taken to heart the fact that you have to be willing to give up a good part of your life.You have to be prepared to work. You have to prepared to be in the trenches and to deal with the many things that come along during the day. It's not just creating a menu and saying "let's go for it."The responsibility and problem-solving are the basis of real-world experiences that add to their character-building and maturity. A year ago, the surfer siblings paddled out to a sea of opportunity with their eyes fixed on the horizon. They caught a wave and are having an amazing ride. Best of all, they readily admit, "Now we're having fun!" Stoked. Definitely stoked.