tv Washington Business Report ABC July 13, 2014 9:00am-9:31am EDT
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>> business ne from the capital region. this is "washington business port" with abc 7 n natiol correspondent rebecca cooper. welcome to your fresh look at buness and finance in the washshington region. coming up, however washington restaurant powerhouse is built on pasassion for the business. now is the time for your small business to land lucrative government contracts. our experts tell us how to stand out in a crowdwd. a shorlist of new fbi locations has washington buzzing with speculation. roundtable will tackle those topics thihis we. first, our one-on-one inrview family oflicart
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restaurants that has been around more thahan 20 yeaears. we might recognize the names. yoyou would think the ceo of alicart had a p plan all those yes onow to turn his restaurants into multimillion dollar success stories.. thatat is what they ar en i said della ffrey bank -- when i sasat down with jeffry bank, i found out he has a personality as large as the portion sizes of hisis restaurants. he did not have a plan. instead, he had a passion. tojeffrey bank, welcome "washington business report." we are at carmine's. every time i am here, it is busy. how do you keep people coming in the door? >> very fortunate. this is s a great town. carmine's is a greatat brand. i think it is the right fit for the city. >> how did you decide wawashingn would be the right market after new york? >> we always lovoved d.c.
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it is a very unie spot. aside from the politicians and everytng going on, you have the tourists. we started realizing with the way the economy is now, there probably is not going to be cut back in the federal government so you have a strong local market. tourism, pple really want to visit the capital. they may stop going to yellowstone but they will still comeo d.c. we figigured this was the right spot. there was this giant 20,000 square-foot ot with a lot of the mechanical goodies. when w we came in, it looked lie he would be a crazy buildout. for us, the goodies were left here. >> you were at the university of albany, sociology majo interned in the new york state senate thinking you were going to be a lawyer. you ask a neighbor if you could work in his office. he owned restaurants and said
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no, go work in a restaurant. take it from there. >> wanted to take a summer off and figured i would go to law school next year. my neir bor carried a briefcase and drove a beautiful corvette. i said, what do you do? he said i buy and sell restaurants. i said i am in. he said yr 20. i will put you to work in my restaurants. me to work in onene of f his restaurants in the south shore. i haveideaea what i was doing. i look back and don't know how i did noput us under. when i came in, we were doing $20,0,000 a week, a million-dodr busineness. i moved it to $2 milillion, , se gave me another restaurant. wewe started another restaurant. then he gave me a third reaurant. all of a sudden, i am running three restaurants. i don't know how we were successful. i know what i know now and whaht i knew then. somebody look out for meme becae we did ok. >> you opened up in new york
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city. >> 2000 square feet and we did almost $5 million. phomenal sales, very successful. >> what i find fascinating is mamany people dream of getting away frothe corporate job and owning their own business and calling all the shots. you were doing t that with the and decided you wanted to get back in the game of multiple restaunts. that is when you went to alicart. >> i got bored. i loved the deli. it wasas my baby. we opened the deli and then my daughter was born. i tell her she is the middle child. finally, one day i left the deli and started working in the alicart office full-time. i worked there for a couple of
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years and help us leave the island. we went to atlantic city, the bahamas. i became ceo in 2005. we didid our deal in d.c. last summer, we opened inas vegas in the forum shops. >> how many employees? >> proximately 1600 across the different locations. we will be close to hitting triple digits of $100 million. >> wow. now what are the biggest headaches for you aseo? trying to keep that growth going? what keeps y up at night? >> we consider ourselves very fortunate. the restaurant industry is a tough industry. your manufacturing food. you are seselling the food. you're selling a perishahable president -- perishable product. you have employees to empower and keep happy. we have been fortunate. sales have been greawhether
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there is a recession or not. we prode a lot of value and the quality of the food. we are very consistent with the food. we have a mcdonald's like mentality in the house. we are very high quality. heror eat chicken parm e bahamas, it is exactly the same.. >> you want consistency. >> that is the key to success. pricesdo you keep low and sustain this kinind of t setting? >> volume here is all ills -- volume cures all ills. we are big on volumume. >> you are ok with people sharing entrées. >> everything family-style and large value. if i have an entrée that is $24 and two of you ate it, you're papaying for dollars a person fr dinner and you will have to left over for the week. >> you are ok with that? >> of course.
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if four people came to the meal, you are paying $6 and still eating likings. --eat like kings. i think we won an award sometime for ththe best place to pick up the billecause you will get a good value. i'm sure there is a compliment in there. >>hat the best thing abouout being in the restaurant busins instead of aawyer like you planned? >> by bibiggespleasure is watching my employees grow. nothing mas me happier than watching some pretty -- somebody was work f me get married, get a house, see they created a career, and we helped with that. >> for a guy who says he did not know what he was doing to ceo, well done. thanks f for joining us on "washington business report." bestg up, it is one of the sources for business and revenue in washington. but many small businesses are mimissing out. our spotlight is next.
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>> welcome back. it is time for our smalll busiss hotline. when it comes to government contracts, we are inin the midde of the season. fromow until october, the majoty are awarded. should benesses cranking uto when work that will stain them. our experts say the climate is not small business friendly now. wewe brought the mentor advice. judy bradt is ceo of summi insight. she brings me tn 25 yearsf helping small businesses w government contracts. ofarissa levin
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inrmion exrts, always s here to givive good advicece. let's start wiwith the upshot of why it is not a small business friendndly environment in govevernment conacting.. > s small binesses always had to fight for their fair share. do not have thehe budget t laer companies have, even thoh there e lots osmall busine seset-aside progograms. whenen push comes to shove, we don't have the budget larger companies have. with the lower price acceptablee mandate, our labor categorories havend flashed -- slashed. in the last 2.5 years, it has been bloodbath. of thosehe mercy whwhose rates e being cut. theyre taking our seaeatsn contracts that were initiay hours. we are dealing with rising health care costs, lowe price technically acceptable, a lot of fearar in the government vironment, they are afid budgets willot be renewed or cucut. we are dealing with others for
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taki their bottom line. it is very difficult. >> you like a challenge. you managed to not just survive the bloodbathut thrive. you haveorked withudfor a lo time. explain tourudience wh this climate makes it especially difficult for small businesssses trying t to get contracts. because it is an election year, congress isis going to finish its session in august. members will go home to campaign probably without passing the budget. that is not going to hpen obabably unt after the electionon. going to s ly passing temporarary spending measures that will give agencies a little of their budget.. covering the essential ththings le paying salaries and k keeping theights on. big thingsgs will not srt hahappening until aftethe e firt
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of new year, after jananuary 1 when commerce does pass the lolow-budget. >> you're notneo be terred. is a thehere istill opportunity and ways for smallll businesseto get in wh's kick off your top five rus -- let's ck off your to five rules. abc's. remember your >> anybody whoas been sex will anybody whoet -- has s been successssful thi market has been havingng those coersations. it is time to goack to everyby on tt list and ask if mananana is now. if it is no lononger r a priori, it is happening some other te. concentrate on the stuff t that ll happen. lt andsit your b update your c list. >> concncentrate on the stuff that will happen. people,ome back to them
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anand say, is te? ne thing we e haveveearned ov 2years is tgo deep and not wide. when you kw whwhat you can offer to the g government, focus on t agencies buying your product or service. do not tryry to get into many agcies. focus on a narrow list that can benefit from youou. fos that. staying-er twis spots.mall and hit sweet >> think smamall.. federal agenesan spend up to $3000 is afternoon, y you on credit card with no competition. me up with three things you can d do for under $30 and yoyou might yet the first chance. >> refresh your outreac know your vehicles. you're tking your flfleet vehicles. >> refreresh your outlook --
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outreacheans get back tou with the smallll business specialists and contacts ging t them an updatated capability statement. remind theyou are there. ask who wod ke more of the fabulous express we have been giving you. who elelse should i be talking ? >> know your vehicles. small businesses have a small pool of money to o be apping to saleles and marketing.g. ing after contracts, y would need to look at how much it will co to go afterer a certain ntract knowing if you are multiplehing where things havave been awarded, , yu will have to compete at the task order level. the p potential for protest,hat yo competition level is.. you need to be carul aboutut ere yoare puttinyour money. >> this is gooood advice for all businesses, especially smsmalll busisses going aft government contracts. thank you for joining us on "wasashington business report."
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welcome back. it is time for thehe round table to talk about hot topics in business news, including the depaure of anothther topop exececutive. the last in the ongoing struggle between maryland, virginia, and d.c. to land the new fbi headquarters. joining u is jim dinegar, presidentnd ceoeo of the greaear
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washington board of trade, and steven overly o of the "washihin post." welcome to you both. i will start with you, steven. you have interesting behihind-the-scenes color about president obama's artup incubar. itas gotten local press but has not been on the nationonal scene. you say theyey were not even expectg this presidential visit. they had a hint when the secret service came. to call that morning and said he is coming over. >> that is right. the secret service had come in a month before and done a sweep to make it should -- to make sure it would be safer the president, there was no guarantee a visit would happen. getday before july 4, they a call that president obama will be there in one hour. what do you do? it is a scramble. >> he wants to talk to diffent startups.
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they had to call everybody and say be in place. you have a chance to pitch to the president. >> that is right. cleaning off their d desks, getting businesssses reaeady to pitch. these companies often pitch to investors. it is rare to get to pitch to the president. he met with about 40 compaes. he was there about an hour. he spoke about the jobs numbers and other parts of his economic agenda than he e was gone as quickly as he arriv. >> he was not therere with vente capital money. he w was there to talk about his agenda and other things. it was not specifically aimed at startups, but he liked the fact he w at 17 and 76 on independence day weekend. is it my imagination or are we becoming a natioional city seens a startup city? do we have the right pololicy based to support these startups. >> i think greatater washingtons becoming known as a tetechnololy hub. i ve to say thpresident is
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alizing greater washington is a better backdrop. he does not have to travel the world or country. he had a press conference at the foot of key bridge to lk abobout highway funding. he has had this event at 1776. there is a lot going on in his owbackyard. if that helps geget the story ot about opportunities in greer wawashington, we are all for it. >> you said you think there are laws that could be more startup friendly. >> we have t to be better on investmements. we have to be lighter on the tax burden. california continues to atact more of the money.y. we need to be able to atact more here. i think we have the technology and know-how. i think we have the emphasis. no one competes with us on cyber. we havave to brandhat better. that is an initiative by the board of trade. i thinkhe jurisdictions cou play better to be able to compe with austin and silicon valley. >> one of the companies you have
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covered quite a bit that we have looked to as a success story is livingsocial. have a top executive leavi. he said people like to talk about the demise of livingsocial,, look what we wewe five years ago and where we e now. what is going onon? >> livivingsocial has been a roller coaster in rece years with ups and downs. was announcedi the chief financial officer would be leavi after four yearars. >> this is on the heels of the founder and ceo leaving. >> he announced in january hee would leaveve. ey still he not announced his successor. that is expected soon. they have lost their top sales exececutive. there is a lot of change at the top of the company w while they are aluating tir business model. they got their start in daily deals, the eails we have all received. they are relaunching thohose toe more personalized so the deals are catered depending on our interest areas. twohere are still one or
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big leaders. they are known as one. your take on livivingsocial? do youhink they ll be gobbled up as sosomeone bigger? >> i think there is a second act for livingsocial. it will be exciting because they hahave a brand, infrastructure, stro and vibrant personnel we w will wait tsee what the nextxt act i is, but they are nt going away. i think they will be growing in a different direction. >> that leaves us one minunute o ta about a topic we have been followowing. is a movement you have been following for f fbi headquarter. what is the latest? >> we are expeinfew days a shors where the fbi may relocate headquarters. every jurisdiction in the area is jockeying. >> we thought it would come down toto springfie, prince george's county, maybe d.c.
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"the washington post" is now reporting maybe none of the abovove. what is hapappening? >> last week, the g greater washington region was shortlisted for the 2020 olympi. when we look at the short list spec did next week, i think game on when it comes to attracting the fbi. maryland do not beat u up on the districand then he goes to cleveland with lebron. we knew we wod get lebronn in there. you have to have a cerin amount of acreage. they are alsemphasizing security. that is a lot of land it will require. >> it is. thatat changes the dynamic o oft sites will qualify for a potential headquarters. >> ste tuned. stay with usit. we will be back after the break.
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>> this week on "government matters" -- day, theyend of the can thw anything in the sky at us and we will be able to knock it out of the sky. >> the navy shows off its new eltric rail gun. >> we had the vision 10 years ago. >> government tries to harness the future of facial recognition technology.. >> something needs to be changed. >> the approach becomes a burden to i.t. "government matters" s starts right now. >> from abc 7 and newsws channel 8, this is "government matters." captioned by the national captioning institute --www.ncic.org-- >> to our viewers around thehe world on the american forces network, and here in the nation's capitol, thanks for joining us. government is the engine that runs the c
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