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It was drizzling in Portland, Oregon on January 10, 1969, the day The Old Spaghetti Factory opened its doors
for the first time. Standing there to greet the few customers who wandered in was the owner, Guss Dussin. Total gross sales for the night were a paltry $171.80 and many in the business who knew Dussin
were convinced his hare-brained idea was a complete bust.
They couldn't have been more wrong. One week later the evening's receipts rose to $900 and by the end of the
year, the restaurant had sales of almost $400,000. In 1970, two more restaurants were started and company sales rose to $1.3 million. Today, The Old Spaghetti Factory is an international restaurant
company serving more than 10 million customers annually. In an industry where few places ever see their seventh anniversary, The Old Spaghetti Factory's continued success is a rarity. The formula for
that success has been the result of smart thinking, even smarter operating instincts, and an uncanny devotion to customer value. All were conceived by founder Dussin, whose values permeate the entire
organization.
Picture of Success: One cornerstone of Dussin's business philosophy is the belief that a memorable dining
experience doesn't have to cost a lot of money. Indeed, a key part of The Old Spaghetti Factory's success is its ability to deliver a complete dinner (salad, bread, spaghetti entree, beverage and
dessert) for around $6 and change. Nearly everything in the meal is made on-premise, from scratch using fresh ingredients. For the price, the food quality is uncompromising. By keeping the focus on the
complete dinner, The Old Spaghetti Factory has simplified the concept of dining value.
A Value-Driven Formula: Hard work and a great food value aside, there are a few other contributing factors. One
is real estate. Dussin pioneered the concept of developing restaurant properties in places others considered unworkable. These diamond-in-the-rough locations often are unique and distinctive—even
historic—buildings in older warehouse districts where rents are low. As the restaurant's popularity grows, the area begins to improve. Other stores and businesses move in, bringing more people to the
area. The Old Spaghetti Factory's traffic goes up, but the rents stay low.
The uniqueness of an Old Spaghetti Factory restaurant's location is matched by the creativeness of its interior
decor. Dussin always saw the decor as part of drawing people to the out-of-the-way locations. The first Old Spaghetti Factory was furnished by Dussin's wife Sally from garage sales and whatever she could
find cheap. Today, The Old Spaghetti Factory invests close to $1 million per restaurant in antiques and other interior improvements, including a centerpiece streetcar and brass headboards that serve as
bench backs. Sally supervises the decorating of every Old Spaghetti Factory's interior and oversees a 25,000 sq. ft. warehouse and crew of craftspeople who restore antiques and create reproductions for
the restaurants.
Dussin has also made sure from the outset that the Company practices sound financial management and has solid
cost controls in all of its operations, particularly food. Being as efficient as possible means less waste that can eat at profits or force higher prices. Efficiency in the kitchen pays off in lower menu
prices that don't compromise the quality of the food.
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