BUSINESS MATTERS

Little Rock restaurant developer McGehee has itch for barbecue, new markets

Yellow Rocket Concepts executive chef and co-owner Scott McGehee, like the company's other partners, has plenty of vision.

Northwest Arkansas is becoming an increasingly attractive option for opening new locations. If things go well in that market, perhaps success awaits in other midsize markets like Tulsa, Jackson, Miss., or Birmingham, Ala., McGehee said.

McGehee would like to one day open a barbecue restaurant. For now, though, the smoker he purchased in May is used primarily for special-events catering. Healthy eating options will see "dramatic growth" over the next 10-15 years and is an area where McGehee has both personal and professional interest.

Many options exist for Yellow Rocket Concepts, which operates Local Lime, Heights Taco and Tamale Co., ZaZa Fine Salad + Wood Oven Pizza Co., Big Orange Burger and Lost Forty Brewing.

So why did an eight-year streak of opening new restaurants end in 2016?

Producing quality food is just part of owning and operating a burgeoning empire. With nearly 500 employees, attention to human resource management becomes more vital.

"We took a year off to really focus on further developing our HR systems, which we really had to get ahead of the curve," McGehee told me. "If we want to own nine restaurants, we need a much better HR program, which we have done. We have centralized all of our accounting. We continue to grow and evolve our marketing, branding and social media."

Recently the company purchased property for a new headquarters. It spent about $800,000 for 11,150 square feet and 2 acres at 1311 Rebsamen Park Road.

Yellow Rocket Concepts currently employs about 470 people, McGehee told Little Rock's Rotary Club 99 during a recent appearance. McGehee explained that the challenges facing those running his company aren't that different than those other business owners are experiencing.

Millennials, particularly when it comes to the the concept of paying one's dues, are just as much of a challenge in the restaurant industry as others. McGehee recalled spending four years washing lettuce and making pasta at Chez Panisse in San Francisco and spending another two years on food prep before he was allowed to "saute on the grill and work the pizza oven."

"There's a slightly different mentality," McGehee said of today's workforce.

Some of that impatience in his field is fueled by what employees are seeing on television. Tension can help build an audience, so young workers have feasted on a steady diet of reality shows featuring profanity and violence in kitchens.

Despite the relative lack of patience among employees who foresee a future in restaurants, McGehee said turnover is relatively low among the eight operated by Yellow Rocket Concepts.

Depending on the source, restaurant and hospitality industry turnover ranges between 50 percent and 75 percent. McGehee didn't offer a percentage, but noted that turnover is lower for his shop because of what employees are paid.

"If the minimum wage was raised to $12, only about 3 percent of staff would be affected," he said.

All that food on TV hasn't been totally negative, by the way.

Customer understanding of gourmet food is growing. They're expecting more from their restaurants and that's pushing chefs to be more creative.

And as expectations for culinary experiences have changed, so have the effectiveness of customer opinions. Criticisms and praises can be more widely circulated now than ever before and that, McGehee said, is ultimately good for the industry.

"Everyone is a food writer. Everyone is a blogger. Everyone is an expert. It's the world we live in," McGehee said. "Social media is still dramatically transforming the industry. ... Now [opinions are] permanently engraved on their Facebook page forever. Opinions mean a lot more now. It's really pushing customer service and hospitality in an incredibly positive direction. The world is changing and if hospitality and customer experience is not constantly improving, you're falling behind."

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Arvest Bank and the Arkansas Department of Parks and Tourism are offering specialty debit cards decorated with popular state destinations.

Customers will be able to select from eight designs including Blanchard Springs Caverns, Buffalo National River, Crystal Bridges Museum of American Art, Lake Chicot State Park, Lake Ouachita, Petit Jean State Park, The Ridges at Village Creek and Whitaker Point near Boxley. Designs will be available through June 30.

Kane Webb, executive director of Arkansas Department of Parks and Tourism, said in a news release that the cards are "an additional opportunity to promote our attractions outside the state."

Missouri and Oklahoma are among the five states that produce the most visitors to Arkansas' parks and tourist destinations, according to the agency's 2016 annual report. Arvest Bank's footprint is in Kansas, Missouri and Oklahoma.

If you have a tip, call Chris Bahn at (501) 378-3518 or email him at cbahn@arkansasonline.com .

SundayMonday Business on 09/11/2016

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