| Owners of Locos Pubs in Atlanta Use SBA Loans To Open Locations in Buckhead and Alpharetta Area |
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“What attracted me to the franchise was the density of the menu and the diverse clientele,” recalled Koontz who graduated from Georgia in 1995. “We might have construction workers setting next to lawyers and college students during our lunch hour.” Koontz worked part-time at the location in Athens where the Locos franchise, with 24 locations in the state, was established. His business partner did the same. With the deli work experience, he and Spivey were able to obtain help from the SBA to open both of their Locos Pubs in Atlanta including start-up financing under the agency’s 7(a) Loan Program and counseling from the agency’s SCORE volunteers. “Our first bank recommended we go with an SBA guaranteed loan, said Koontz. “We had a high risk profile,” he recalled. “We had restaurant experience, but we were right out of college with no ownership background…we were not ideal candidates for a start-up bank loan.” Since the SBA guarantee to the lender helps take the risk out of a 7(a) loan, Koontz and his partner were about to secure a $76,000 loan from BB&T under this program for their first location on Peachtree Road in Buckhead. This was a small amount for starting a fully equipped cafe and pub. But fortunately the location had been a bagel shop so it already had kitchen equipment, bathrooms and other fixtures in place. The two entrepreneurs also helped with the interior constructions before they opened the 120-seat “Locos” Grill & Pub in July 1998. “Chris and I were in there for months helping install the bar area and other interior fixtures,” said Koontz, 35. “We found a contractor who let us help with the build out.” The two partner wanted to use a bank from the Alpharetta area to help finance their second Locos, and North Georgia Bank was only a half mile from the location at 175 Haynes Bridge Road. They used a 7(a) Loan of $170,000 to finance the 200-seat grill & pub which opened in 2000. “Before they opened their first Locos, Koontz received one-one counseling from a retired executive who volunteered at the Atlanta SCORE Chapter. “He was extremely helpful,” said Koontz. “His advice gave us some confidence we needed in starting our business.” Brad says his grill & pub locations are not sports bars, but rather what he calls a “true public house” where you gather with friends for lunch, dinner or just a brew or food. There are a number of TVs in the two locations, but the extensive menu from the grill seems to be the main draw. There are nearly a dozen varieties of burgers on the menu joined by various sandwiches, and another dozen salads to select from. Other entree items feature steaks or a grilled shrimp platter. With clientele that run nearly 50-50 between men and women, the two “Locos” sites each generated over $1.5 million in sales last year. Brad says his employees are the real key to the success of the business and at least one grill manager has been given an equity position in the company.
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The Locos Grill & Pub near his house was Brad Koontz’s favorite hangout when he was a student at the University of Georgia in Athens. He liked it so much that after graduating, he and his business partner Chris Spivey opened two franchised Locos Pubs in Buckhead and Alpharetta.
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