Scott Barnett - Gumption: Taking Bubba Gump from Movie to Restaurant

They say if you want to make a small fortune,then take a large one and go into the restaurant business. You have to be prettystupid to choose that field. Yet here I was. A few weeks before, my board of directorshad shown me to the door and paid me a large sum of money to go away. But nowI was looking to give that upand then someto get back in thebusiness.

I was standing on a Manhattan street corner ona hot and humid April day, trying to find a taxi. I had just spent three hours ina stressful meeting with a well-known private equity firm that had particularinterest in restaurant deals. I was trying to coax them into partnering with mein an attempt to purchase what I already considered my company: Bubba Gump Shrimp Company Restaurants. I had not beenvery optimistic when I began the meeting, since I had been shuffled off to somejunior people.

As I proceeded in my discussion with them,however, one left and returned with someone who introduced himself as a partnerin the firm. An hour later, I was discussing the deal with three of the firmsmost important members, and the junior people had receded to the background. Itold them I was certain that an investment banker representing the company wasgoing to call them within weeks and there would be a book (a sellingdocument) out very soon.

I already had another private equity groupthat I knew was interested in backing me, so I viewed this firm as insurance. Ihad not shaken hands on a deal with the others, and I had enough experiencewith private equity to know better than to take any chances. At the end of themeeting, the group had told me that it was a very compelling proposition,which was private equity language for we have some interest. The only issuewas whether it was too small for them since they would be writing a check for only$30 or $40 million.

They listened politely when I talked aboutthe unusual nature of the Bubba Gump experience, the intense loyalty of thecustomers, and the unique culture my team and I had built. As the companys CEOand founder, I was very proud of those things. In truth, however, the firm was notat all interested in those aspects of the business. They only wanted to knowthe numbers.

Well, if they wanted to hear about thefinancial results, I was the guy to tell them. Our numbers were as good asanyones in the industry, and since I had been trying to sell the company forthe last three years, I did not need to look at any notes in order to discuss them.As I listed the figures, the story of Bubba began to emerge. As I related thestory, they began to understand that it was compelling. Just as importantly,they realized that there was a real business under the notoriety attached tothe name.

* * *

People usually get involved in therestaurant business for one of only a few reasons. They might have an intenseaffinity for food, or they might have that innkeepers attitude where theywant to create a coming together of people over a good meal and drinks. Someare exposed to it in their youth and never get it out of their systems. Somethink it is the exciting road to riches. I am not sure that any of those usual reasonsapply to me, because the real reason I became involved in the restaurantbusiness was a motorcycle accident.

I had been working at a gas station in PalmDesert, California, before going off to college. I needed that job in order topay for the first few months of expenses at school. Once I arrived at theUniversity of Arizona, I intended to find work that would enable me to pay for therest of my education. One rainy afternoon, I borrowed a friends motorcycle andcrashed it on a gravelly curve, tearing up my hand and severely spraining myankle in the process. I could not walk without crutches or work for a month,and college was going to have to wait.