From Mott Street to Main Street
by Jessica Neville
New York Media Rave
about Rickshaw “The dumplings themselves, showcased in steamer baskets behind the spic-and-span kitchen's glass walls, are plump and tender, adroitly made, and filled with ingredients that are fresh and tasty…” New York Magazine “It will serve five different dumplings and was conceptualized by Kenny Lao, a graduate student at New York University.” New York Times “Rickshaw will change the way you look at dumplings forever.” Gotham Magazine “Chef Anita Lo has come up with five almost too-good-for-lunch dumplings… tofu-wrapped pork dumplings will thrill carbophobes; mochi-wrapped chocolate dumplings will delight the rest of us.” Daily Candy, New York Rickshaw Celebrity Patrons • Matthew Broderick and
Sarah Jessica Parker • Linda Evangelista • Lucy Liu • Diane Sawyer • Martha Stewart • B.D. Wong | 
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“Chairman Mao is smiling down on this ‘zen-like’ dumpling spot that brings ‘Mott Street to Main Street’…Patron’s only complaint, ‘I’m so full, where’s my Rickshaw ride home.’”
This was the hypothetical Zagat’s restaurant review that Kenny Lao (MBA ’04) used to pitch and win over the judges of NYU Stern’s 2004 Maximum Exposure Business Plan Competition. With prize money, his MBA degree, and investor support in-hand, Kenny made his business dream operational. He opened his first Rickshaw Dumpling Bar unit in New York City’s Chelsea neighborhood just one year later.
Zagat has already weighed in, citing “lines practically out the door at mealtimes at this big, sleek newcomer indicate that Chelsea was in need of a dumpling fix.” And with favorable reviews in The New York Times, New York Magazine, TimeOut New York, and others, an on-premise visit from tastemaker Martha Stewart to cook dumplings for the day, and a business that is already beating projections, Rickshaw is off to an astounding start.
“We’ve really caught the imagination of the public with dumplings,” explained Lao, 28. “Dumplings aren’t something you need to learn how to love. We just brought a food people really like to a mainstream audience.”
But opening a new fast casual restaurant in the most competitive food city in the United States is not as simple as it sounds. After all, in New York there are eateries on literally every block, and the restaurant industry is known for having a high mortality rate. With restaurant consulting experience already under his belt, Lao recognized early on that to be successful, he needed to differentiate himself. Getting his MBA was the fast-track way to do it.
“I had lived and worked in New York City for about five years and had started making some great contacts,” said the native of Pasedena, CA. “I knew that NYU Stern would give me not only an opportunity to get a world-class MBA, but also the chance to do so in the very city where the restaurant industry has its heartbeat.”
For Lao, the Stern MBA experience began to pay off during his first week in the program in the fall of 2002 when he heard Stern alumnus Andrew Stenzler (MBA ’94), founder and former chairman and chief executive officer of the popular urban snackery Cosi, Inc., speak on campus. Driven by perseverance and entrepreneurial zeal, Lao persuaded Stenzler over lunch and several subsequent meetings that his Rickshaw concept was viable, and today thanks him for inspiring a long-term vision for size, scalability, and expansion in New York and beyond. And with Stenzler and other investors on board, Lao was able to secure the imprimatur of a great chef, Anita Lo, of New York City’s highly-regarded Annisa.
“People are very conscious of the quality of food they’re eating these days. In urban areas, this speaks for itself. Having a chef like Anita gave Rickshaw immediate validation,” Lao said. “Like any good business school student, I had a copy of my business plan in my bag when we met, and two weeks later, we were talking dumpling flavors.” Patrons can have their dumplings steamed or fried, with a salad, in noodle soup, or solo. An assortment of choices such as “Classic Pork and Chinese Chive,” “Peking Duck,” “Vegetarian,” and even a low-carb option flavor the menu. And many find the dessert “Chocolate Soup Dumplings” of melted chocolate in a black sesame mochi wrapper a must-have.
Throughout his two years at Stern, Lao took advantage of every opportunity to hone his business concept. He credits Stern’s competition with giving him the impetus to develop his first business plan at a high-caliber level.
“The amount of homework I had to do to prepare for the presentation in the competition was extremely useful,” he reflects. “What this ended up doing was helping me internalize all of the information I needed so I could be ready to convince someone to invest over coffee.”
As a business plan competition winner, Lao was automatically invited to become one of the first “incubatees” in Stern’s Incubator Program, which like the competition, is run by the School’s Berkley Center for Entrepreneurial Studies. The Incubator provided grounding and office space while Rickshaw was in the construction phase.
Today, as an entrepreneur and manager, Lao relies on good communication with his staff to get the job done well. He recognizes that a strong team is critical, a theme Stern stressed to him throughout his MBA experience.
“The hardest part for me is letting go, trusting my people to get us through the lunch rush,” said Lao. “If you’re unable to let go, you haven’t created a company that’s scalable. You’ve failed as an entrepreneur.”
What’s next for Rickshaw Dumpling Bar? An MTV documentary and a feature in Martha Stewart’s new daytime show, “Martha,” are planned for the coming months. And Lao is already raising capital for eight potential new units, with plans underway to open his second within the year.
“I wouldn’t have been able to do this if I wasn’t in New York,” remarked Lao. “At the end of the day, you have to take the lead and just do it.”
For a preview of the menu, visit www.rickshawdumplings.com.
Let Me Tell You…
by Stephanie Sampiere
Most graduates of NYU Stern see scrapbooks as a good place to store nostalgia-inducing photos from important events. But while thumbing through scrapbooks, two recent Stern alumnae discovered the seeds of a new business, “Let-Me-Tell-You,” a line of gift scrapbooks and related celebration products that help women plan for and capture significant life milestones from birthdays to graduations to weddings. And a Stern business plan competition spurred them to turn it into a reality.
Having made countless scrapbooks for friends’ weddings, Karin Sloan (MBA ’99) and Amy Graiwer (MBA ’99), realized that there was an untapped market for wedding gift scrapbooks. But both were busily pursuing finance-related careers, Sloan as a turnaround and restructuring consultant at FTI Consulting, and Graiwer as an executive compensation expert at Merrill Lynch.
In 2003, however, Sloan approached Graiwer with her idea of starting a scrapbooking business. “At almost 30 years-old, we had the confidence to try something new,” Sloan said. “I don’t think we could have taken the same risk at 25. We needed the years of work experience behind us, and the ability to realize that sometimes you don’t know everything, but that's OK, you figure it out.”
While still working their day jobs, the two traveled to gift trade shows and researched the industry after hours. During their research, they discovered NYU Stern’s Maximum Exposure Business Plan Competition, sponsored by The Berkley Center for Entrepreneurial Studies. The duo credits the competition with helping them develop a business model, hone the presentation skills necessary for generating business partners, and build a network. “The competition put us in contact with other Stern alumni who helped by providing advice and mentoring. We were even offered financial support,” said Graiwer.
In order to focus on the business while participating in the six-month-long competition, the partners left their jobs in November 2003 and January 2004. And the risk was rewarded. In May 2004, Graiwer and Sloan won the competition’s first prize of $30,000 in seed money to support their new business concept. They used the funds to trademark the Let-Me-Tell-You name, hire an illustrator, attend tradeshows, and supplement their business needs.
The victory did more than help pay expenses. “Everyone loves hearing that we won a business competition,” said Sloan. “It takes us from the cute girls with a cute idea, to professionals who have the credibility of going to business school, executing on a plan, and winning a competition.”
Since the competition, Let-Me-Tell-You has teamed up with EK Success, the country’s leading scrapbooking and creative consumer products company to launch its first product. “The Bride-to-Be Scrapbook,” a wedding keepsake gift book that friends and family personalize with memories, wishes, and advice for their favorite bride, became available nationally in September 2005. And the line is already getting attention – Joyce Washnik included the book in her “Design, Decor & Demographic Trends” seminar at this year’s National Stationery Show.
The company is now a bi-coastal business, with Graiwer working from Los Angeles and Sloan from New York. While working from different time zones presents a challenge, they are grateful for the flexibility that entrepreneurship provides and the benefits of their close partnership.
In offering advice to potential business owners, Graiwer said, “Don’t be afraid to call on people you don’t know. It’s amazing how open and helpful people are, especially when you are part of the same alumni network.”
Sloan has one final piece of advice. “Make sure you are having fun. Celebrate every little success because that is why you are doing this. And keep a scrapbook of your milestones.”
For more information on Let-Me-Tell-You, visit www.let-me-tell-you.com; for more information on EK Success and where to find Let-Me-Tell-You products, visit www.eksuccess.com.
Interested in participating in Stern's Maximum Exposure Business Plan Competition? All Stern alumni are eligible. Contact Loretta Poole in The Berkley Center at lpoole@stern.nyu.edu. |
1. What was the most useful course you took at Stern? I had an undergraduate degree in English, so Stern was my first real exposure to business content. And in that light, all the courses I took at Stern have been incredibly useful. At the time, I was in the technology field, and the courses I took on relational databases had incredibly valuable direct applications for me.
2. Your thesis at Stern was about the NASDAQ. What did you conclude? I concluded that as the NASDAQ Stock Market became increasingly automated, the verbal interaction between traders during the day would become less and less important, and the efficiency of the market and the price discovery process that electronics afforded would become more important. And I think we’ve seen that play out.
3. Why does NASDAQ need to be in New York? Our customers are here, and our first and foremost mission is to satisfy market participants. New York is the global center for capital markets activity.
4. We've seen a good deal of consolidation. Are there too many exchanges and trading platforms in the US? There clearly will be two very large exchanges. But there’s room for many other competitive exchanges. If you have a good handle on your technology costs and the ability to manage order matching technology, you can be successful in the US.
5. Convincing Google to list on the NASDAQ was a major triumph. How did you persuade the hottest IPO of the last few years to become a NASDAQ stock? They didn’t see their IPO as a branding event. And they didn’t come here because other technology companies like Yahoo!, Amazon, and eBay were here. They approached the decision based on what would be the most efficient trading platform for their investors.
6. What skills/characteristics do you look for in new hires? We always go for what I call the best available athlete. We understand that the job they hire into won’t be the one that they stay with for their entire career. So it’s the abilities and the desire to work that we’re looking for. Skills and experience, while important, are secondary.
7. What has been the most pleasant surprise in your tenure? We had to transform NASDAQ from an institution that was part of a regulatory body into a for-profit entity that answers to investors in the public market, and to its own shareholders. The most pleasant surprise is the true willingness of my colleagues to embrace this transformation. We’ve moved along a lot faster and more successfully than we would have assumed.
8. You’ve run four marathons. Is training for a marathon good training for being a CEO? Yes. I certainly tell my colleagues that we’re engaged in a marathon, and that we have to be focused on the mission over an extended period of time. |
