In a small city in Europe, there is a small restaurant called Yoichi. Started in 2018, Yoichi is the brainchild of Nobuhisa and Emerald Nakatsubo who already have an existing Japanese restaurant that was established thirteen years ago. Their first restaurant serves authentic Japanese food with most of its ingredients sourced from Japan. The couple decided it was time to expand horizons and start something new. They observed that the trends in people’s dining habits are changing. Thus Yoichi was born. It is the goal of Yoichi to serve delicious yet affordable bento boxes and donburi rice bowls. An all-in-one meal that is light on the pocket.
Nobuhisa and Emerald are still very hands-on with the first restaurant that they don’t know how to handle another one. For now, the orders from Yoichi are being prepared in their home kitchen at a limited time schedule during their free hours and catering only to residents within the vicinity. With customers loving their food, they started getting overwhelmed with the volume of orders.
It was on a family reunion, amidst light conversation that Emerald’s cousin mentions Tej, a friend of hers who has a lot of money to spare but with no specific skill set. Tej has been constantly mentioning to Emerald’s cousin how he wanted to invest in a restaurant for quite some time now.
Tej meets Yoichi Business plans and negotiations were soon in full swing between Nobuhisa and Emerald and Tej. The latter simply loved the portfolio of Yoichi and he could see himself taking it further. Some of the important minutes from their initial meetings were as follows:
– Yoichi will be franchised in a small-scale by Tej and create a small brick-and-mortar restaurant – Tej will have the license to operate Yoichi without the royalties because it is not a formal franchise in a legal sense – The name “Yoichi” can be used by the new restaurant and all social media accounts will be shared across parties – Both partners will work closely together and Yoichi books will be made transparent to all parties involved – Nobuhisa and Emerald will supply all raw ingredients and train the employees that will be hired by Tej – Deliveries to be made once a week – Continuous kitchen training and surprise visits twice a month – Management will remain as Tej’s responsibility while the couple oversees only kitchen operations
Financial agreements As stated earlier, the owners will deliver Yoichi supplies to Tej on a weekly basis. He will purchase all ingredients at cost plus a small delivery fee. Tej will also shoulder training sessions. A breakdown of the costs will be stated in the contract to be signed by the parties.
Because the agreement is not a typical franchise, Tej does not have to pay royalties, licenses or penalties to the owners of Yoichi. He does, however, have to ensure that the business will be created in a perfect location and generate income because if it stops operating for 12 months consecutive, for any reason not deemed valid, all assets of the restaurant will be taken back by Nobuhisa and Emerald. Tej’s liabilities extend only this far.
The world is filled with different types of people and scenarios. There are people who are very skilled yet don’t have the capacity to turn that skill into a lucrative business. Then there are those who have the capacity in terms of cash but not expertise. It is when these two scenarios meet that a win-win situation is created and everyone goes home happy.