text: The fast-service restaurant chain Wagamama opened in Australia only five years ago, but now boasts 13 outlets and a turnover close to $20 million. Founder Luke Fryer talks to Jacqui Walker.
  Luke Fryer brought the British Japanese food concept Wagamama to Australia in May 2002, and built a chain of 13 fast-service restaurants in five years, to now turn over just under $20 million. He talks to Jacqui Walker.
  Jacqui Walker: Luke, tell us how you got the licence to open Wagamama stores in Australia, because it’s a UK concept isn’t it?
  Luke Fryer: I was over in the UK in 2001, saw the concept and approached the owners of the business. Essentially myself and another gentleman, who I was in partnership with, applied for the license and were small enough to actually focus on getting the business open and small enough for it to be a meaningful part of what we did, but we were also big enough that we were able to get the funding together and actually make it happen.
  And where did you open your first restaurant and tell me can you describe that restaurant and the concept behind it for us?
  Well the first location we took was King Street Wharf in Sydney, which is just north of Darling Harbour. It was a new precinct and our logic was that it was a beautiful location on the waterfront. A little bit out of the day-to-day foot traffic of the CBD and we thought that if we could make the concept work there then we could “make it work anywhere”.
  It cost us probably $2 million to get going and that was all raised from savings and a small network of investors who I’d worked with previously.
  And so were they of the family-friends-fools variety? How did you manage to convince these people that you had something that was really going to make money?
  I think people knew the concept from London and saw it as being a good concept. I also think I’d worked with this group of investors, it was three or four individuals before on my first business, which was a Burger King franchise, and that had gone well so I think it was a relatively easy decision for them.
  Probably a matter of finding the real estate. Bedding down the concept and just generally wanting to get it right before we expanded.
  So what were some of those things that you learnt before you moved on to the next store? Did you need to get the systems perfect or was that something that’s evolved over the past five years?
  I don’t think it was system evolution. I think it was probably more about getting the team trained and comfortable. Working out what adaptations we needed to make to the menu because we started with the full UK menu and we needed to work out what adaptations we needed to make to the menu to make it more relevant to the Sydney audience.
  Look we probably changed in the first year probably 20% of the recipes. Deleted some things. Probably added a few more salad type dishes and things like that. Nothing overly unusual. Nothing you wouldn’t expect.
  So the second store was opened a year and three months later. Can you give us a brief outline of what happened after that?
  Well the second store traded at a level we thought it would and therefore it emboldened us to go and open some more stores. I think in February 2004 we opened a third location, which was Crown Street in Sydney, then in June 2004 we opened the Sydney airport location. And then in October 2004 we opened a restaurant in St Kilda in Melbourne.
  It did, yeah. That probably stretched us a little bit, but we sort of took it in our stride. Looking back going to St Kilda in Melbourne was probably our biggest strategic mistake. We did end up closing that store because we… “if you build it they will come” mentality does not always work, especially in Australia where you don’t have such a huge population that secondary sites can work with potentially the ease that they can in the UK.
  We should have opened… we basically should have opened closer to the city where we got both lunch and dinner traffic. The biggest issue we had in St Kilda was the complete absence of lunch traffic and that hurt us. It’s very expensive to build a Wagamama restaurant.
  It takes quite a few people just to open the doors every morning in terms of number of chefs you’ve got to have in the kitchen and the waiters you’ve got to have on the floor and those type of things, and if you don’t have the ability to trade both day parts then it becomes very difficult.
  And so how long did you let the store operate before you made that decision, which must have been a very difficult one?
  Yeah, we’ve got a store in the QV complex and we’ve got a store in Flinders Lane. In fact we’re just about to double the size of the store in Flinders Lane.
  Well when we first started it was very much as I’ve said, if you build it they will come, so if we liked the look of a location we’d generally go for it. And we ended up with some fantastic locations and also some problematic ones.
  Luckily we ended up with many superior locations rather than difficult locations, but now we have a more corporatised business, a CEO and a CFO and an operations director, and with those people sitting around the table it’s a more disciplined approach.
  We assess local… the demographics of the local population. What are the natural traffic drivers in the area. Things like cinemas and pubs and retail and office and all that type of things and we now put together a bit of a matrix and actually give a weighted score to each of the things we know help our business. That helps us decide in a more scientific fashion.
  And the restaurant trade, staff would be a big cost in your business and a big part of your success or failure I imagine. How have you built the sort of teams that you’ve needed?
  I think we’ve been very lucky in that Wagamama has a fantastic culture and it’s the kind of culture that a lot of people are attracted to.
  It’s always been a young team and we… youthful enthusiasm has helped build the team. We’re now in a position where we’re not opening any new stores for six months so that we can train and further develop our staff.
  We’ve got lots of people being sent over to the UK so they can get deeper and more extensive training. They’ve got a network of probably 50 stores in the UK and well over 2000 staff so they’ve got highly advanced training and development techniques and it’s a great opportunity for us over the next six months to really increase the development skills of our senior chefs and managers and then work down through the ranks to all levels of the company.
  And Luke, you’re in the United States as we speak, what are you doing over there? What are your new ventures?
  I’ve set up a new business in New York that initially had been called Itsu which is actually another UK-based business, but moving forward. We’re actually going to re-brand that to our own brand and it will be called Yushi and it’s a contemporary grab-and-go sushi concept. We’ve opened our first location at the World Financial Centre here a few months ago.
  Fantastic. Very good business. We’re just in the process of building a second location at the moment.
  No definitely not. My main role with Wagamama in Australia now is to work on the strategy and the development for the business. We have a plan to open five new sites a year for the next three years and my role basically involves making sure we find the right sites for that.
  Luke as an entrepreneur, what have been the greatest lessons you’ve learnt through building the Wagamama restaurant business?
  I think the first thing is that if you’re rolling out a retail business you must very carefully focus on what makes your business work from a location point of view and hold very true to that.
  I think the second thing is that while it’s always good to give people a go and have a belief that you can train and develop people, if you’re growing a business quickly you need to attract the best talent possible and you want to end up with a critical mass of experienced people around you. I think that’s quite important as well.
  I have done that by a process I guess of evolution. A lot of the people we’ve employed over time have been fantastic for where the business was at a particular stage but as the business gets bigger and matures you need people with different skill sets.
  And it’s probably been my greatest area of opportunity, so to speak, to have probably focused earlier on getting more senior people with more relevant skills to what we were actually needing to do.
  Getting those people into those roles earlier on would have possibly saved, well not saved, but I guess allowed us to roll out faster and with a greater degree of success.
  If we talked two financial years out from now you’d probably see that figure going closer to $30 million I would hope.
  Maybe you’re having a disastrous day at the airport, trying unsuccessfully to get rebooked after a canceled flight. Or you’re sitting at home on hold with an airline’s customer service department, listening to hour two of Elevator Music’s Greatest Hits. In growing frustration, you may be tempted to take your complaint to social media — but when you pull up your airline’s Twitter page, you encounter something like this:
  “@jetblue doesn’t respond to formal complaints on Twitter. For official customer concerns go to jetblue.com/speakup or call 1-800-jetblue.”
  “Tweeting is short and sweet, but sometimes you need more than 140 characters to get an issue resolved. If you require a specific response: For post-travel issues related to travel [on] a United Airlines operated flight, please contact Customer Care at http://united.com/feedback.”
  Why are the airlines on social media if they’re just going to shut down the conversation? Can they really do that?
  Turns out that they can’t — and despite what their profiles say, they don’t even try. Even though JetBlue claims not to respond to complaints on Twitter, a quick scan of its Twitter page reveals responses to a delayed traveler (“We hear your frustration. What flight are you on so we can provide the most up to date information?”), a person having problems with the airline’s Web site (“You can either try using a different browser or give our Getaways department a call at 1-800-JETBLUE and they can help!”) and a passenger whose TV didn’t work in flight (“Sorry to hear – per our Customer Bill of Rights, you’re entitled to a $15 credit for the inconvenience”) — all within the past 13 hours.
  United Airlines, meanwhile, answered traveler questions and offered the appropriate customer service phone numbers and Web sites to Twitter followers who needed more in-depth assistance.
  It’s clear that despite the airlines’ efforts to discourage passengers from speaking out on Twitter, people are doing it anyway — and the airlines are responding, often within minutes. Really, it makes sense; a tweet that goes viral can turn into a public relations nightmare, so it’s in the airlines’ best interest to resolve issues on Twitter as quickly and effectively as possible.
  So the next time you’re fed up with a flight, consider the power you have in those simple 140 characters.
  The dramatic landmarks of Sugarloaf and the Christ statue lording over spectacular stretches of famed urban beaches like Copacabana and Ipanema; delicious food and wine with a Latin flair; the sensual moves of samba dance and rhythms of traditional music on display every day of the year including, of course, the bacchanalian Carnival; and a passionate, cosmopolitan and, most of all, friendly people are only some of the ways that Rio constantly affirms its status as a favorite travel destination. Its reputation will only grow when it plays host to the Summer Olympics in 2016.
  While not the largest city in the 190 million-resident behemoth that is Brazil — that honor goes to Sao Paulo — Rio’s six million diverse residents (called “Cariocas”) are keenly proud of their city’s stature. They are the most outspoken, lively and just plain fun people you’ll probably ever encounter. The Cariocas’ unmistakable joie de vivre and welcoming spirit is infectious, as they’ll gladly share their local secrets on where to go to experience the most important architectural treasures, the most cutting-edge art museums, the most action-packed water sports, or the most memorable caipirinha (the national drink that packs a wallop). But this isn’t surprising. Who wouldn’t have an open outlook on life living in this perpetually sunny, joyful and fascinating melange of Portuguese, African, European and South American cultures?
  Another definite advantage to visiting Rio and Brazil as a tourist is that it remains one of the few true travel bargains left today in this age of the declining dollar. Like its more dressed-up cousin to the south, Buenos Aires, Rio offers the opportunity to live grandly for a day or a week on a much smaller budget than in comparable cities like Paris or London, with reasonable prices for five-star accommodations, good bargain prices for world-class cuisine and wine, and the ability to shop till you drop when searching out the latest trendy fashion items and jewelry.
  While inarguably exciting, visiting Rio is still equated with the word “danger” in some conversations. In reality, there are some safety concerns if you venture far out of the normal tourist quarters. But the overall situation for visitors has improved greatly in the past decade, and pickpocketing and mugging incidents are not common. So kick back and relax as you are drawn into Rio’s magnificent orbit.
  Beautiful and glamorous beaches are a huge attraction in Rio de Janeiro, and are part of the daily social and recreation fabric of all Cariocas. The two most famous — Copacabana and Ipanema — are easily accessible and ideal for day-trippers who want to plunge headlong into this most democratic of activities (look for raucous kids from the favelas, or slums, sitting right next to wealthy, posing locals and hordes of hip gay men from the U.S. and Europe).
  Copacabana, a long two-mile stretch, is lined with high-rise hotels and cafes, and attracts more tourists than locals. The mile-long beach at Ipanema, south of Copacabana, is more about “the scene” (the tighter the body, squeezed into the smaller the swimsuit, the better). But everyone, no matter where they come from or what they look like, feels welcome at Rio’s beaches. To better take in the remarkable beauty of the water and beaches (and hone your people-watching skills!), rent bikes and rollerblades and just hang loose as the locals do.
  Downtown, there are numerous gorgeous churches dating back to the 17th century. Among those worth seeing is Convento do Santo Antonio (Largo da Carioca, 5), which dates back to 1615; don’t miss its colonial-era artifacts. Igreja de Nossa Senhora da Candelaria (Praca Pio X) represents Brazil’s 18th century. At the Mosteiro de Sao Bento (Rua Dom Gerardo, 32), the highlight among many is its intricately wood-carved altar. For those with more contemporary tastes, check out the daring and modern Catedral de Sao Sebastiao do Rio de Janeiro (Av. Republica do Chile, 245), which was built in the early 1960’s.
  Art museum aficionados should head to Rio’s Flamengo neighborhood. Main attractions there include the Museu de Arte Moderna (Av. Infante Dom Henrique, 85) to see a huge collection of contemporary works. The Museu Nacional de Belas Artes, otherwise known as the National Museum of Fine Arts (Av. Rio Branco, 199), features Brazil’s best artists of the 19th and 20th centuries.
  And for a fun stop, check out the Museu Carmen Miranda (Av. Rui Barbosa, 560), which memorializes Brazil’s most famous bombshell — not to mention star in the arts of samba, singing, dancing and acting. Another must-see stop on the cultural radar is the Oscar Niemeyer-designed Museu de Arte Contemporarea de Niteroi (Mirante de Boa Viagem, Niteroi), a contemporary art museum where cutting-edge masterworks meet a striking “spaceship” building with unparalleled views of the city.
  Corcovado: The Art Deco-style statue of Christ the Redeemer is Rio’s most famous and enduring symbol, perched atop the 2,300-foot hill of Corcovado. Spectacular views of mountains, bays and beaches await those who take the easy funicular ride; the trains leave Cosme Velho station every 20 minutes.
  Sugarloaf Mountain (Pao de Acugar): The views from the top of this imposing natural wonder amply demonstrate why no other city in the world can compete with Rio’s scenic beauty and setting — a magnificent harbor and impossibly beautiful beaches are nudged tight against dramatic Tijuca National Park, the largest urban expanse of tropical forest and mountains on the planet. To get to Sugarloaf, take a taxi to the cable car station at the base.
  The Jardim Botanico (Rua Jardim Botanico, 1008) is a lovely, peaceful respite from always-busy Rio. It’s spread out over 340 acres, and its biggest attraction is Avenue of the Palms, part of the world’s largest collection relating to the Amazon.
  The Burle Marx House (Estrada da Barra de Guaratiba, 2019) is a large, expansive estate that has morphed into an art gallery and museum honoring famed Brazilian landscape designer Roberto Burle Marx. The highlight is the elegant landscaping and plants that surround the house.
  Take in a “futebol” (soccer) match at Estadio do Maracana, Rio’s gargantuan stadium (the largest in South America), which holds nearly 95,000 passionate fans.
  Plunge headfirst into the celebration (and madness) of Rio’s world-famous Carnival celebration by scheduling your trip around this unique and joyous party. A four-day event, it begins on a Saturday and ends on Fat Tuesday (the day before Ash Wednesday); the date changes every year.
  Rio Scenarium (Rua do Lavradio, 36) is a large nightclub and restaurant with eclectic decor that’s part fun house, part antique store. A rotating selection of local groups plays samba and forro, the accordion music of Brazil’s northeast, and everyone eventually gets up to dance the night away.
  Take an in-depth tour of Rio’s favelas (translated as “shantytowns” but actually much more lively and diverse than the name implies). Marcelo Armstrong is a local insider who helps visitors tour the favelas safely and offers unique insights into the daily lives of the majority of Rio residents. (See FavelaTour.com.br for details.)
  The quintessential Rio dining experience is eating rodizio (or all-you-can-eat) style in one of the many meat-focused “churrascarias.” There are numerous restaurants in the city where platters of delicious grilled meats and sides are brought to your table until you say “no more!” Most of these popular establishments feature expansive salad bars as well. You’ll be pleasantly surprised by the reasonable prices for a satisfying lunch. There are many other dining choices in this international city as well, but while in Rio, you must try feijoada, a dish of black beans and pork served with rice, and pair it with a caipirinha, a typical Brazilian cocktail made of sugar cane rum, lime and sugar.
  For convenient and easy lunch choices, we’ve had great luck wandering the streets of Ipanema and Copacabana and just going to any local lanchonetes (lunch counters), where you can sample any kind of fruit juice imaginable, along with a good selection of sandwiches and snacks (one example is Big Nectar at 34A Teixiera de Melo in Ipanema). Also, look for restaurants in the tourist areas with menus that are posted outside. Most are excellent and offer fresh selections and good value. Make sure that you verify whether credit cards are accepted. And note that some churrasco restaurants charge based on what you take, rather than a fixed, all-you-can eat American-style buffet.
  Confeitaria Colombo (Rua Goncalves Dias, 32): This ornate historic restaurant is a magnificent showcase for Brazil’s Belle Epoque architecture, as well as the best in local meats and seafood, served buffet-style. Tourists and locals alike rave about the selection and quality here.
  Marius Degustare (Av. Atlantica, 290, Leme): This traditional all-you-can-eat Brazilian rodizio restaurant has evolved — into an all-you-can-eat seafood restaurant, located right next door to its carnivorous cousin. Besides the delicious buffet of antipasto and cold seafood, ravenous diners can look forward to the prime catch that waiters bring to your table: fresher-than-fresh lobster, prawns, salmon, tuna and more.
  Casa de Feijoada (Rua Prudente de Moraes 10, Ipanema): The Brazilian national dish of feijoada (bean stew) is usually served only once a week, but you can join the locals who have a hankering for the ultimate comfort food any day of the week at this popular Ipanema restaurant. The actual bean stew is served in a traditional clay pot with whatever meat you choose (bacon, sausage, dried meat, etc.). A plethora of side dishes as well as a large cocktail menu make for a memorable taste of the city.
  Bar d’Hotel (Av. Delfim Moreira, 696, inside the Marina All Suites Hotel): This hip eatery located inside the coolest boutique hotel in the city is the place where the trendy, younger set and in-the-know diners come to enjoy innovative Brazilian dishes like duck magret with fried gnocchi.
  Combining beach time with shopping in Rio is easy because the two most famous beaches abut the best areas of the city for shopping (and dining). Exhausted the areas near Ipanema and Copacabana? Head downtown for more shopping in the Centro district. Brazil is the world’s largest producer of colored gemstones (hence the presence of so many reputable international retailers like H. Stern), and is also a major gold producer. Other possibilities to add to your Rio shopping list include designer clothing, handicrafts, leather goods and unique fabrics.
  Ipanema is the heart of chic and glamorous Rio, featuring lots of one-of-a-kind and designer boutiques, pleasant parks, and outdoor cafes. The main drag, where you’ll find the majority of upscale shops, is Rua Visconde de Piraja.
  Every Sunday, rain or shine, Ipanema hosts the Feira Hippie, a handicrafts fair held at Praca General Osorio (a former hippie hangout in the 1960’s). It’s a great place to browse for jewelry, leather goods, artwork and other handmade items.
  Virtually adjacent to Ipanema is Copacabana, which offers a more eclectic array of shopping spots. The best of the area’s bookstores, clothing boutiques, souvenir shops and other retailers can be found on Avenida Nossa Senhora de Copacabana (and its adjacent streets). Also worth a look is Avenida Atlantica, which offers some of the city’s best jewelry and hosts the work of Brazilian artisans on evenings and weekends; it’s a great place to find local handicrafts and artwork.
  Downtown in the Centro district are more affordable places to shop for shoes and clothing, as well as plenty of street vendors peddling a variety of discount goodies. Check out streets like Rua da Alfandega, Rua Uruguaiana and Rua Buenos Aires.
  Looking for musical instruments — like tambourines or small drums — to take home as souvenirs? There are a number of music stores clustered together on Rua da Carioca.
  I continue to receive questions about the best ways to use frequent flyer miles. It’s not surprising, since the apparent value of miles has decreased so much lately as travelers find it difficult to get seats. Here’s a typical recent query: “I have airline miles that I can use for either airfare or hotels. Which would be the best use of them for travel to Spain, Italy, and France in September?” As is so often the case, the answer is much more complicated than the question.
  Not long ago, some financial writer pegged frequent flyer miles as the world’s third or fourth largest currency in circulation. Maybe, but if so, they’re a very tightly controlled currency. If airline miles were a real currency, you could use them to purchase just about anything, at relatively consistent exchange rates. That’s clearly not the case with airline miles as you can use them in only a few limited transactions, at set exchange rates: air travel, limited hotel accommodations and cruises, and limited merchandise.
  You can calculate a “retail” cost for your frequent flyer credit by measuring what sort of tickets you can “buy” with it. All the big lines offer most frequent flyer awards at two levels and although each line has its own names, let’s just use generic “high-miles” and “low-miles” levels.
  Arlines invariably quote the lowest-mile level when they’re promoting deals and offers. But airlines allocate very few seats to low-miles awards, so availability of seats runs from scarce to nonexistent. The retail cost depends on where and how you fly.
  If you use low-miles awards for relatively long domestic coach trips or transatlantic travel in economy, I estimate the cost from around 0.7 to 1.5 cents per mile.
  If you use low-miles awards for comfortable seats (business or first class), the retail values are higher—somewhere between three and six cents a mile. You arrive at similarly high values when you use your miles to upgrade a less expensive economy ticket.
  If you really want a seat on specific dates, you usually have to use a high-miles award that gives access to any available seat. And for business or first class to Europe or Hawaii, a high-miles award may be your only realistic choice.
  On most routes, the high-miles credit is double the low level mileage, but even more than that on some lines. Thus, credit you use for a high-miles award is worth roughly half the value you calculate for the low-miles awards. Check my earlier report for a detailed tabulation of award levels for travel within the 48 states and from the 48 states to Europe or Hawaii.
  For most of us, retail values overstate the real value. Because, to you or anyone else, the real value of any given amount of frequent flyer credit is the amount of real cash money you would actually spend if you didn’t use the mileage.
  If you can get a low-miles seat for a domestic coach trip, for example, and if the cash cost of the ticket is $350, the value of that credit is 1.4 cents a mile—pretty good.
  But if you can’t get a low-miles seat, the value of the credit you’d have to use for a high-miles seat drops to 0.7 cents a mile—not so good.
  If you can get a low-miles seat to Europe in business class, the retail value of the credit would be somewhere around four to six cents a mile. But that’s only if, lacking the miles, you’d actually buy a business class ticket.
  If, instead, lacking the miles, you’d pay no more than, say, $400 for a round-trip upgrade to Europe, then the value of the extra miles you’d need for a business class seat drops to 0.8 cents a mile.
  Unlike bank miles (see below), most airline miles have no cash value. That’s why, in a nutshell, nobody can establish either a single “true” value or a minimum value for those miles. Their value depends entirely on what you—and each other traveler—would spend if you didn’t have them and had to pay cash instead.
  “Miles” or points you earn in programs run by banks are completely different from airline miles. These days, I find they’re more valuable than airline miles for coach or economy travel, but virtually worthless for business class tickets and upgrades. And if you find you can’t use them for air tickets, most have a cash value—typically one cent per mile or point. Check my earlier report for a more detailed look at the differences between bank and airline miles.
  Deciding whether to use miles for flights, hotels, or other options depends on each specific travel opportunity, as well as your personal preferences. Here’s how I’d do it:
  1.) See how many miles would be required for an award ticket for whichever airline you’d use, your trip’s route, and the class of service you want. If you can’t find low-level seats to/from your preferred airports, check secondary airports. If you’re flexible, check alternate dates. And if your only choice is a high-level award, use that mileage figure.
  2.) Next, determine how much you’d pay for the least expensive ticket you would actually buy if you didn’t have available miles.
  4.) Look for opportunities to use credit at hotels. Check the price of a room in your destination area, determine the amount of credit you’d need, find the price you’d have to pay for a room—in any hotel you’d like, not just the hotel where you could use your miles—and calculate the value of the miles you’d need for that room.
  5.) Use your miles where they give you the most value. If the value looks good for both air travel and hotel, use miles for both; if values are low for both uses, pay for both and save your miles for later.