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What accounts for GBBCs historic performance What near and intermediate term risks if any do you foreseeAs the author mentioned the failure rate in the restaurant industry is as high as 90 there were definitely some important things that made up the Gordon Bierschs success The duo started the business in a good era when the regulation changed in California Law in 1983 The new law allowed the brewing and serving of beer in the same locale which opened up a new market and an opportunity for them With their passion techniques and related experience in the microbrewery and restaurant business in 1987 Gordon and Biersch were able to start their own business The supports from their family and friends helped them with the necessary initial funding and loans which give them a push to a good start From the operational side they knew locations are important for a restaurant business so they choose busy areas with other complementary entertainment or shopping facilities around Competition was another concern and they tried to avoid them by locating somewhere no so close to the nearest competition For example the nearest competition for the first Gordon Biersch in Palo Alto was 10 miles away They aimed for serving high quality of food and beers at the very beginning and they believed in the word of mouth advertising and would like to build up their brand name and brand awareness by keeping the quality of their products and services They used the freshest and highest quality domestic and imported ingredients Also their beers are naturally carbonated Additionally the upkeep rate was 25 per year higher than the average industry rate For their customers the new experience and new concept combining microbrewery and restaurant services brought their attention which resulted in the success of the Gordon Biersch business However just like many entrepreneurs starting from the scratch there were some risks at the near or immediate term First they
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