Mindset

Brothers in arms

By Jonathan Jackson

In spite of the doubters, Bill and John Fotiadis have built their Souvlaki Hut franchise into a 28 store, nationwide family restaurant phenomenon. In the process they learnt that family is thicker than garlic sauce. Jonathan Jackson reports.

Sibling rivalry or indifference is often a difficult problem to overcome. When two brothers – years apart in age — have nothing in common, the only thing they share is the family bond. John and Bill Fotiadis are two brothers who up until 2004 spent more time apart than together. The pair had taken diverse career paths. John had leveraged himself as a corporate businessman, Bill the entrepreneur who had kick-started his career at age 14 running underage club nights pulling in $7,000 per night. The one thing they did share was a work ethic forged by their father which brought them together in business and made them closer in life.

"I learnt my biggest life lessons from our parents," John says. "They   moved to Australia from Greece and worked in a milk bar for their   relatives. Our father took over the milk bar and ended up extending   the business to two milk bars. It was extremely hard work for him and from a young age we were taught firsthand how tough running a business can be."

Bill concurs. "I learnt early on that it doesn't matter how hard you fall, it's how quickly you can get back up."

While John learnt his business skills in the corporate world, first with   the State Bank of Victoria which merged with the Commonwealth   Bank in 1991, Bill set about working for himself, establishing and   growing two businesses supplying product to the Australian fast food   industry. It was while operating and owning a business called Magic Taste that Bill drew on his Greek heritage to develop a souvlaki based product for a multi-national fast food chain. In seven days they sold six   weeks worth of product.

Meanwhile John was tiring of the corporate life and Bill felt the two should pool their skills. John would look at the business from a process point of view and Bill would drive the ideas.

The success of Bill's single product line, brought John across the line and they formed a business partnership.

"This is my first time in business with family, in the past I always worked with business acquaintances and I always took risks," Bill says. "Being in a partnership with John has been more structured and planned – which has meant we complement each other and work   really well together. We know our common goal and we both bring our own perspective."

The process perspective is something John swears by. "Everything revolves around process. The key to success however is to make the process simple; the simpler the process the more likely it will be   followed, the more likely it will be done correctly and the more likely you will have achieved your desired outcome. Souvlakihut's processes are built around these principles."

Yet the principles were tested early on as the brothers launched their first store in the still little known outskirt Melbourne suburb of Hillside.

Hillside is a housing estate the brothers felt they could utilise to their advantage by keeping the business small and insulated; it was a chance to fine tune the processes.

"Hillside was a new estate and there was a group of shops, but every retailer that had been there before had failed," Bill says.  "We spent a lot of money marketing to the local area and refining all our processes and it paid off for us. The store was booming in the local area and we knew we had the right concept to run with." Bill's risk taking philosophy had paid off: "I think a big part of being successful is knowing when to take a chance."

However it wasn't all smooth sailing. One supplier walked off   location claiming the concept wouldn't work in the area (that   supplier's disloyalty meant he hasn't stepped foot in the chain since).   Friends and family were also doubtful and to top things off certain   products didn't work. It took some extensive trialing to ensure the   menu and portion sizes were just right.

"Bill has the uncanny ability to create something out of nothing,"   John says. "He is creative and can visualise things before they develop.   He is also a great people person and builds relationships. It has been   these relationships with our suppliers that have assisted in our growth   so far. He also has great negotiating skills which are critical when you are trying to get the best deals for your franchisees."

With the processes in check it was time to expand; they opened their second restaurant in Reservoir in November 2005.

From the very beginning they recognised the franchise model as something worth investing in.

Bill felt there was a gap in the hospitality industry for casual dining restaurants specialising in Greek food.

"We had a vision to bring Greek/Mediterranean food to people at  an affordable price. We wanted to offer freshly cooked Greek food in a   casual dining environment. I think this has been the key to our success."

Family is big theme in the way the Fotiadis brothers run their business.  Not only has their own relationship grown stronger, they have nurtured   their suppliers and franchisees in a familial way. They have also taken on a mentor.

Bill and John's third franchise went to a 22-year-old who worked in the milk bar behind their first store. Getting to know Michael Jalloul's   family, the brothers were inspired by Michael's enthusiasm and potential   and have worked closely with him as mentors to build his knowledge   and business management skills. Now at the age of 24 Michael operates two successful franchise stores in Melbourne.

"Mentoring is a two-way relationship, which involves a more experienced person helping a less experienced person to achieve their goals," Bill says.

"By sharing my knowledge, skills and experience of life to help a   younger person develop their ideas and positive attributes, it's a win-win   situation. I am getting full satisfaction and fulfillment for the contribution I make to this person but at the same time I am increasing my own   confidence knowing that Michael is gaining from this relationship."

And that's what success comes down to: relationships. Coming   together the brothers have developed a bond that previously didn't exist.   Most importantly they have learnt from each other and grown. John   feels that it is his decision making process that has improved.

"In the corporate world you are guided by rules, procedures and processes when making critical decisions. In your own business you   are making decisions every day and a bad decision can prove quite costly. I've learned to properly evaluate the whole situation before   making a decision."

For Bill the growth has come from team work. At first with his brother and later through his franchisees.

"I swear by Ray Krok's (the founder of McDonald's) motto. None of  us is as good as all of us. They were the philosophical words of a fast   food pioneer. In our offices this is what we swear by. We need to stick together as a team and when more minds think together and all strive   for the same success, we can't go wrong."

For many years Bill and John were on different pages; at different stages in their lives and living by different ideals. Their success proves that when you learn to work effectively with the people closest to you, you can achieve anything.