Overview
Starting any business is a risky venture, and establishing a hospo business — let alone one that endures and succeeds in the industry — can be an especially challenging endeavour. But don't let that scare you off — there's lots of help at hand, from the community of your team and other business-owners to tech-driven business solutions like Square, who have helped countless companies expand.
If you're keen to get your idea off the ground but can't wrap your mind around how and where to start, we've partnered with Square to uncover some advice for new business-owners from the teams behind two longstanding Aussie venues, Melbourne's American Doughnut Kitchen and Sydney's Terminus Hotel.
Respect for Legacy and History
One of the city's oldest pubs, the Terminus Hotel in Pyrmont dates back to the 1840s and was recently revived by David Mathlin and Binu Katari in 2018. Meanwhile, American Doughnut Kitchen (ADK) has been a fixture of Melbourne's Queen Victoria Market since 1950, slinging fluffy, jam-filled doughnuts for almost seventy-five years. Belinda Donaghey now co-owns ADK's two outlets with Justin Donaghey, after her grandfather Arnold Bridges took over the business 30 years ago.
American Doughnut Kitchen
When asked about the one thing they would have wanted to know before starting their respective businesses, both Belinda Donaghey and David Mathlin underscored the significance of asking questions about the establishment's history. "As the third generation to be running the business, I wish I had asked my grandfather many questions before he passed," said Donaghey. "Looking back now, I wish I'd asked him about his vision, the challenges he overcame, his approach to business, and so much more."
Technology and Simple Systems
After taking over from her grandfather in 2020, Donaghey attributes the success of the business to "our strong, established team, our loyal customer base, and the technology that supported our new way of working." She continued, "Just before the pandemic, I introduced EFTPOS through Square Terminals, which turned out to be a critical move as we rapidly shifted to cashless transactions. Card payments quickly became the norm, with cash usage dropping to as low as 10%."
Mathlin's saving grace when they first opened the refurbished Terminus Hotel was "training before opening, and a great team." Similarly, Donaghey's advice for what new businesses should focus on before they open is "Systems, and comprehensive training of the team on how to use the systems." She adds, "Keep it simple. There is beauty in simplicity and it is easier to scale when the foundations are strong and simplified."
When asked what she would have done differently if opening her business today, Donaghey shared, "We would have invested earlier in software, technology and equipment that was perhaps a little bigger than we needed at the time, so we had space to grow into them without having to change too often as the business needs grew." She adds, "We have done that now, but it took a long time to step into that space and embrace new ways of thinking and working because there was a lot of history of doing things a certain way that didn't involve technology."
Community Support
Donaghey and Mathlin both emphasised the integral role that the community plays in shaping and growing a business. Mathlin's thoughts on what most new businesses overlook is that "They forget to put the community and customers first." When asked to recall the moment he knew his business was working, Mathlin's response again focused on the people, "We saw good reviews and saw people having a great time at functions."
Leigh Griffiths
Donaghey shared a similar sentiment, "By the time I started working in the business full-time, we were already well-established, with over 60 years behind us. The true test came during the pandemic, when we realised just how special our business was because of the people who continued to support us." She continued, "The messages we received during that time were incredibly heartwarming. Customers shared beautiful memories and it was clear we were bringing joy to people who were isolated from family and friends and disconnected from the world."
ADK's success is reflected in their popularity, which is still going strong. "Our weekend queues have become famous — not because our team is slow, but because our popularity has grown so much that people are willing to give us their most precious resource: time. They happily stand in line to get their bag of joy: our hot jam doughnuts. Our business model works. It's simple, it brings people joy, and it's the perfect snack to enjoy while exploring the market."
Find out how Square can kickstart your business at squareup.com.