Nick's Pizza and Pub's website has an icon on its home page that you won't find on many – if any – restaurant websites: A barometer gauging the restaurant's financial health.
Two weeks ago that future loomed bleak for the Crystal Lake, Ill. based
eatery. Owner Nick Sarillo realized he had taken his eye off the ball of his two-unit, larger-than-life pizza and pub restaurant chain.
Faced with a substantial drop in volume at his Elgin, Ill. location, Sarillo figured his Crystal Lake flagship store could carry the load until the economy showed signs of recovery. That turned out to be an unrealistic assumption. Plus, road construction -- the stimulus package at work -- began in front of the restaurant, which significantly hurt business.
Sarillo decided to take what many would consider a drastic and uncertain step -- turning to his customers for financial help and support.
Sarillo found himself in "the beginning phase of crisis." And although many of his 200 employees have taken pay cuts the contractor turned restaurateur needed another solution.
He turned to the community -- his community of patrons and loyal customers.
Sarillo composed an email simply outlining his plight. The email, titled "An Uncertain Future," was distributed to the 16,000 email list of regular customers Sarillo has compiled.
Sincerely speaking from the heart, Sarillo wrote, "I have never understood why owners or management of a failing company usually don't give others close to the company -- especially customers -- fair warning about what is going on. In many instances, the team, the core family, that built the business, has showed up for work and found the doors locked. I have always said I would never do that to the people I truly care about and owe my life to."
He went on to say he overbuilt and overspent and that he didn't make the necessary cuts fast enough before everything began to go downhill. He then encouraged customers to stop in over the next few weeks.
The response has been fantastic.
Shanti Ortiz, a host and food runner, has worked at Nick's for five years. "This was my first job. I started when I was 18 and I am now 23. I just love it here," Ortiz said enthusiastically. "We have been so busy since that email; I think everything will work out. I hope so. I really love this place."
Sarillo hopes so, too. He estimated he was $100,000 short for the month of October. He had counted on a new Wal-Mart opening across the street, but a recent delay postponed the opening for a month. Once Wal-Mart opens, Sarillo anticipates an increase in volume that will close the gap between profit and loss.
Remember that barometer? Well, 41 percent of the losses have been cut by faithful, loyal customers. Since that now-famous email went viral, each Nick's location has increased business by $50,000.
And if that barometer is a true gauge, there is a lot to be said about honesty in business. It's something to bank on.
