What Challenges? Café 808 Transforms Limitations Into Opportunities & Success

Dave Hroncich is no stranger to the frequent curveballs and challenges of the restaurant industry. But, he has a knack for finding the silver lining in every storm cloud and turning it into a goldmine.

Dave's first foray into food service was a bakery, founded in 2002, that he expanded into a quick service deli. 14 years in, the building sold to a fast food chain. Undaunted, Dave found a location in the up and coming downtown cultural district of Pittsburgh. But the spot came with some challenges.

"We went from 3000 to 1650 square feet. The storefront was 15 feet wide and the interior was even narrower because of an elevator shaft. It was an isolated spot on a one-way street across from parking lots. We realized advertising wouldn't work like it had in our previous neighborhood-based location. We'd need to rely on word of mouth and people walking by.

But where most operators would see limitations, Dave saw opportunity.

"Our last location didn't allow sit-down because of zoning. So, even though we can only fit 15 seats, we're excited to have them. We expanded our dine-in space by adding standing tables. Many of our guests are office workers that sit all day, so they love the stand-up concept."

The small footprint also forced Dave to optimize processes. "It's a smaller space but the flow is actually better here than our old location."

Even the delays and unexpected costs of opening a new place didn't deter Dave.

"The delays gave me a chance to review our original concept. What was working? What wasn't? Dropping the deli and shelf goods reduced our costs significantly. We kept our core offerings - catering, soups and sandwiches - and added high margin items like full coffee service. We also use everything in as many ways as possible."

Some of the creative compromises brought unexpected benefits.

"Because of the space restrictions, we bought a hybrid oven. Not only does it fit perfectly, it cut our sandwich toasting time from 7-8 minutes down to 1.5 minutes! Speed matters in a downtown area. People are on their way to work or have short lunch breaks. That oven enabled us to start serving breakfast sandwiches. We're already developing new menu items around it."

Cafe 808's concept reflects its proximity to several of the city's premier theaters. The walls are decorated with playbills. Showtunes fill the air and a chandelier graces the coffee service station.

The reception has been warm. They landed 7 new catering accounts in 6 weeks. But Dave pointed out the key to Cafe 808's success isn't just the food.

"Customers can buy a sandwich anywhere, but service is what sets your concept apart from the competition. That's why I brought my A-team from our old location. They know how to deliver great service."

Dave's reinvention of the concept for a smaller space has already improved food costs by 5%.

"I'm still fine-tuning. But the one thing I'll never cut is my RestaurantOwner.com membership. It's a great resource, especially for people just getting into the business. Before I joined, I built my own spreadsheets to track costs. After I signed up, I saw all the spreadsheets they had available. If I'd known about them sooner, it would have saved me a lot of time!"

The rewards of always looking for the silver lining keep coming. The parking lots directly across from Cafe 808 are going to be turned into a mixed-use development with 700 housing units. As usual, Dave is ahead of the game.

"I'm already working on specials for the construction crews," he laughed.