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Gb and Its History

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Submitted By nalinj
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Overview * First GB brewery restaurant in July 1988 in Palo Alto, California * $ 20 mn company – 5 locations- small retail beer biz * Aim to open 20 restaurants by 1999 & expand brewing biz- required additional funding and expertise
Steps taken * Approached Lorenzo Fertitta and his advisors in SF. Why him?? * Background in food and beverage; so instant expertise and value add * Stellar reputation in Las Vegas * Sophisticated, one stop investor that provided patient capital ( vs. venture capitalist) * Invest $11.2 mn with controlling interest- will buy 23% for majority control- purchase existing shareholders for $7 mn * Persuasion required for existing investors to sell: German friends convinced easily, friends and families in US difficult to appease ( pot of gold attitude) * Robert Carrau- godfather of Dean & chairman- sold his stake along with 3 more- control completed * Time spent on future plans & Structure – open new, brewing biz, mgt team, structure of BoD * BoD wont set up formal quarterly meetings, conference calls to discuss issues as they arise & one annual meeting
Growth
* Plans in detail (goals) & organizing: * Hire a new mgt. team: Nelson Exec. To help * Expansion plans: 2 more in 1996, 3 in 1997, 6 in 1998 so on- from 5 to 22 * Construction of new brewing facility: to be completed by 1996 end * New organizational structure and well defined roles * Staffing : * Qualities of Managers searched for: * Experience working in a rapidly growing restaurant/food service industry * Needed to fit well in the org. culture * Method of selection : * Recruitment * Initial Interviews and reference checks by Nelson to prune the pool and got 5, narrowed further * Multiple meetings with final

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