Kalispell's Anderson Family
Pub Date: 1/1/2003
Every kind of business has its ups and downs, cycles and evolutions.
Certainly the hospitality business particularly foodservice is subject to fluctuating market trends that can dictate the success or failure of your enterprise, depending upon where you are on the curve.
If, however, you can ride the crest of the trends or at least stay ahead of the curve, you have a fighting chance of keeping your head above water or, better yet, making a nice living while you develop "sweat equity" in a business asset, perhaps providing eventually for a comfortable retirement.
That scenario pretty much describes the ride Kalispell's Terry and Judy Anderson have taken riding the trend waves to the crest, then changing course before hitting the bottom of the next inevitable trough of the business cycle.
The couple, both Montana natives, took their first dive into business when they opened the first Little Big Men Pizza franchise in Kalispell in 1974, serving pizzas, sandwiches and beer and wine.
Talk about hitting the crest of a wave! The Andersons paid off their total initial investment proceeds from selling their house in the first year, an almost unheard of feat, especially considering a large combo pizza retailed at just $3.95 back then.
Terry and Judy were joined in their labors by their children who washed dishes or helped out in other part-time slots.
In 1978, the Andersons sold the business.
Good pizzas earned good profits until there were pizza joints on nearly every corner. And that was pretty much the situation when the Andersons "reacquired" the business in 1986. They knew they had to change course or watch their business, hard work and employees' jobs whither under the onslaught of market over-saturation.
Gaming had been legalized in Montana in 1985 and the Andersons once again rolled the dice, investing heavily in a remodeling and expansion of their restaurant to accommodate a small and discreet adjacent gaming parlor called the Silverado Casino.
Meanwhile, the 14- and 15-hour days, six and seven days a week continued for Terry and Judy. "We could do a 9 a.m. to midnight shift easier then," Terry says with a chuckle.
The Andersons say the small casino produced enough income to keep the rest of the business viable even growing in the face of ever-increasing competition and ever-decreasing margins.
With the advent of gaming machines, "the business became stronger," Judy relates. "If it wasn't for the casino, the rest of the business probably wouldn't be here and neither would more than 50 jobs. The gaming machines keep the "mom 'n' pops" open."
"It takes a lot of capital to get into the business," Terry says. "If, for example, the legislature was to eliminate or curtail gambling, there would be a lot of people hurting'; banks holding the loans would be hurting'; many operations would close. There is no good scenario."
Terry continues, "If an operator has all the business debt paid down, they might make it. If not, you'd be in deep trouble."
Even with the casino, though, the Andersons saw revenues and margins begin to erode again as the gaming market reached maturity and the market pie had been cut into progressively smaller pieces.
That's when the couple decided another evolutionary change was in order. They adopted today's hot hospitality business model: build an upscale restaurant and couple it with a micro-brewery.
The Andersons, once again with the help of their banker, gave the old Little Big Men a complete make-over, overhauling the menu and price range as well. Gaming remained an integral part of the overall business plan. A micro-brewery, set up by John Campbell of Lang Creek Brewing in Marion, makes high-end, hand-crafted suds on premise and patrons can observe the process through large glass panes.
The new business is now known as Barley's Brewhouse and Grill and is located at the corner of Highways 2 and 93 in Kalispell.
Terry says, "We went from pizza and sandwiches to steaks, seafood, ribs, burgers, salads the whole works. Yes, there's more revenue but, again, there's a lot more overhead, too."
"You know," Judy says, "in small business, you don't just risk your assets'; you risk your life. When we think of the many, many long days we've put in here..."
Terry chimes in, "Yeah, if you want to gamble, get into the restaurant and tavern business. If we lost legal gaming, there would be a lot of losers."
Source: Special Reports published by Continental Communications, 125 W. Granite, Suite 102, Butte, MT 59701.