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INSIDE DISH: Avec Moi in midst of startup tests

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Inside Dish

Welcome back to IBJ’s video feature “Inside Dish: The Business of Running Restaurants.”

Shifting gears a bit this week, our subject is the new Broad Ripple retail outlet Avec Moi, which has intentionally avoided most of the trappings of a textbook restaurant and boiled its offerings down to home-cooked takeout.



Although founder Kris Parmelee, 39, had no professional experience as a chef or in running an eatery, she did have a decade as a small-business owner under her belt. “I know what I don’t like to do, from my previous business,” said Parmelee, who still operates Parmelee Consulting Group on a limited basis. “I don’t like to manage people, so the idea of managing a wait staff and scheduling employees did not appeal to me whatsoever.”

No longer challenged by her grant-funding consultancy, Parmelee tapped a deep-seated desire to create from-scratch, small-batch meals for families and health-minded singles. After struggling to find the right venue and financing in early 2010, she decided to invest about $17,000 of her own money in developing a website where she could at least build an audience of potential patrons and share recipes. As the site neared completion in August 2010, she decided to dive in by leasing food-prep and cooking space at eatery incubator Indy’s Kitchen.

Chart showing sales at Avec Moi in Broad Ripple“I just started,” she said. “I e-mailed all my friends and told them, ‘Here’s what I’m going to cook on Tuesday, and if you want some you can order it.’ And they did.”

Parmelee initially offered meals only on Tuesday, but still quickly developed a client list beyond her social circle. Catering jobs soon followed. Her gross sales hit a respectable $4,076 in September 2010, her first full month in business. They grew to $6,555 the following month.

With demand already making a dedicated location more feasible than rented space, Parmelee applied for a small-business loan through M&I Bank. Negotiations stretched for months until a $240,000 loan finally was approved on Jan. 18, she said.

Parmelee was not cowed by the still-struggling economy. “It just seemed like a good time,” she said. “The Small Business Administration had money to lend. Interest rates were low. There were some incredible deals on property.

“I don’t think it’s going to get any rougher. I also think that the premise for my business is great for this economy with everybody scaling back, staying home and being close to family. That’s exactly what we do – bring families together for dinner.”

But Avec Moi’s problems were only beginning. Parmelee and her father, contractor Keith Trump (also a partner in Avec Moi), purchased a house on the southeast corner of 62nd Street and College Avenue that was zoned for commercial use. They ran into construction delays and cost overruns during the $45,000 revamp of the space. The permitting process for the business proved much more complicated and costly than anticipated, and city development officials determined that the business needed a zoning variance. Between permits and arranging for the variance–which included attorney fees–expenses rose by about $10,000.

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Avec Moi
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701 E. 62nd St.
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(317) 426-3853
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www.happygofoodie.com
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Concept: Family-appropriate meals cooked from scratch in small batches, available solely for pick-up Mondays through Fridays. Catering for modest special events is also available.
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Founded: August 2010
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Owners: Kris Parmelee and her father, Keith Trump
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Start-up costs: $300,000, including a $240,000 small-business loan and $60,000 of personal investment.
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Gross sales: $18,244 from August to December, 2010; $38,652 from January to September, 2011.
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Employees: 3 (Parmelee and two part-time workers)
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Seating: None
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Goals: Within several weeks, to introduce a line of grab-and-go appetizers. Parmelee hopes to begin planning a satellite location closer to downtown where patrons can pick up food. She also wants to continue revamping the restaurant's current location.
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Good to know: Parmelee still operates her grant-funding consultancy, Parmelee Consulting Group Inc., on a limited basis.
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Avec Moi opened on June 15, switching to a Monday-through-Friday schedule. Parmelee spends at least 10 hours on weekends planning daily menus and shopping for ingredients, and then  50-plus hours over weekdays preparing food and managing the business.

She has begun to notice patterns in sales. Because the business is designed to appeal to families, receipts spike during the school year and flag during the summer and other traditional vacation periods. Avec Moi is breaking even from an operational standpoint (including loan payments), but Parmelee still is struggling to repay another $25,000 in debt accrued by the business.

She has a number of goals for the next year, including launching a line of grab-and-go appetizers and beginning to develop a satellite location closer to downtown where patrons can pick up food. But even more immediate is the need to repay debt and begin making a profit.

“In the next year, I want to end every week being able to meet my obligatations and have money in the bank,” Parmelee said. “Right now, it’s all about that kind of survival.”

She believes the key is to get clients through the front door. The avenues include social media, northside-focused advertising, appearances at community events and food donations for fundraisers.

“I want them to at least come in, so they’ve seen the building, seen how it works, met us and developed a sense of familiarity,” she said. “Eventually, I want to see more patrons build Avec Moi into their routines.”

In the video at top, Parmelee expounds on Avec Moi’s origins and its first year of business, including the growing pains in moving to its new locale.
 


 

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  • worth a try
    I would agree that Avec Moi is worth a try for everyone...as an empty nester we have stopped by there on the way home from work to pick up dinner. Not only is the food tasty but it is portion controlled. We look forward to seeing the menu each and every week.
    Thanks Kris!!
  • This place is home-cooked convenience
    Everyone should try this place at least once. I've been a customer since Kris was at Indy's Kitchen. There's nothing like it, at least not in the area. If you find yourself needing dinner fast, don't head to the drive-thru. Instead, pop in at Avec Moi where you will find healthy, home-cooked meals (made with local and organic ingredients, when available) ready to heat up in minutes in your kitchen. They are sold individually so it's great for singles or families with differing tastes. Avec Moi is conveniently located in Broad Ripple and offers parking right in front of the door (which is helpful when you have kids in tow). And, no I wasn't paid or asked to post this! I am just a full-time working mom of two kids under the age four who values this business!!

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  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

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