Three mathematicians-turned-restaurateurs are breaking new ground. Vaios Podiotis, Lefteris Yeorgiades and Christos Koudounis are turning their popular Thessaloniki restaurant Ouzou Melathron (Ouzo’s Mansion) into a franchise. If the plan works, Greece’s first tavern/ ouzeri franchise will have name recognition in Lamia and Kozani, Athens and New York.

It may seem strange at first, as taverns, by definition, are neighbourhood establishments, each with its own character. Yet in 2002, the company Anelpa, which owns the Ouzou Melathron trademark, opened franchises in Lamia and Larissa. Kozani and Komotini will have Ouzou Melathron taverns by fall. The owners are strategizing on how to enter the Athens, Cyprus, UK and US markets too.

Tasty Mediterranean variety
“We’re no Goody’s,” says Anelpa co-owner Yeorgiades, referring to Greece’s mega-successful fast food chain. For unlike Goody’s and all its ‘imported’ fast-food peers, none of Ouzou Melathron’s food is pre-packaged. Dishes are always created from scratch. “Every fifteen days, we train the [franchise] chefs,” Yeorgiades explains.

Expansion has been the rule for the entrepreneurs from the start. Anelpa’s founders turned from private tutoring to café ownership before opening the first Ouzou Melathron in 1993. The Thessaloniki tavern has expanded to occupy 14 spots in the Ermion Arcade, taking up practically the whole street. (Two competitors remain in the stone-covered arcade, Yeorgiades observes, but they cater to a different niche.)

Chef Miltiadis Bakouras’ recipes are the chief draw. Together with Koudounis, he’s created a huge menu of Mediterranean food with Greek, Italian, French and Turkish influences. “You won’t find French fries or ribs,” Yeorgiades cautions. What you will find, upon unrolling Ouzou Melathron’s enormous scroll menu, is variety and innovation.

The mezes, or appetizer, has a cherished spot, with countless potato dishes, cheese recipes (including fondues), salads, savoury pies and much more. There’s everything from The Prince’s Saganaki (cheese melt) to Snails in Butter. The menu is full of names that aren’t self-evident (like Miaouli’s Bombs) and rife with pop culture and jokes. Main courses range from meat dishes to local speciality Seafood Pilaf. The meal may end with a Tiramisu Crepe.

Friendly prices
Ouzou Melathron owners insist on quality ingredients – down to their olive oil. But they are also concerned with keeping prices down. Yeorgiades is outraged that other taverns charge three times the buying price for house wine. Ouzou Melathron wine from the island of Lemnos or Macedonia stands at 3.80 euros per kilo. Prices will be kept the same across the franchise.

While 80% of the Thessaloniki restaurant’s food will be available throughout the chain, there will also be room for local flavours. In the Larissa restaurant, for instance, galotyri cheese (a local speciality) is sprinkled over salads. Lamb is also more pronounced on the menu. Costas Drougas, one of the Larissa branch’s three co-owners, says that new taverns usually can’t offer 150 dishes right away, yet Anelpa’s technical know-how and training made it possible. More staff is required in the kitchen than at your average taverna, says seasoned tavern owner Drougas. He’s put in lots of overtime, but people are lining up at the restaurant after just a few months.

Thessaloniki tavern model
If at TGIFriday’s, customers know they will be served by someone laden with small stuffed animals, at Ouzou Melathron, they can expect the food to be presented on copper trays. The taverns will look alike too. They will resemble a Thessaloniki tavern with Macedonian architecture. In its conditions for franchisees, Anelpa insists on centrally located houses (preferably former neoclassical-style residences) with outside spaces. The interior must be decorated with stone and wood and decorated with old photos and antiques.

The original Ouzou Melathron in Thessaloniki branch is sometimes a victim of its own success, at least on one visit, in terms of weekend queues and waiting time. However Yeorgiades insists the company has mastered how to offer the best oven-baked food quickly. Anelpa trains its franchise waiters on proper polite service under pressure.

The franchise agreement stipulates Anelpa receive 5% of profits, while offering training, advice, emergency staff and supply discounts. In terms of spreading the word, Anelpa is advertising itself in youth magazines and high profile events. The franchisees generate local publicity.

Number crunching
Ouzou Melathron’s numbers are checking out as it approaches its tenth anniversary in June. The Thessaloniki restaurant has a staff of 75 that serves 500,000 customers a year, or 1,500 a day. Meanwhile, with the two new franchises, Anelpa’s total staff has grown to 140 people, with 50,000 clients a month. 2002 turnover was 2.6 million euros. In its international drive, Anelpa eagerly awaited Cyprus’ EU entry in order to proceed with its franchise efforts. The company has also examined US options at the Greek American Hermes Expo.

The aim is to have a minimum of 200 people per day visit each restaurant. Yeorgiades notes it may not be much of a goal for some foreign towns, but in small cities like Lamia, it’s a lot. The Thessaloniki mathematicians are interested in slow, exponential growth. “We want to be a restaurant chain that lasts,” Yeorgiades notes, “not grab the money and run.”