Entrepreneur USA - January 2018

(Jeff_L) #1

132 / ENTREPRENEUR.COM / January-February 2018


WHEN POKÉWORKS opened


in midtown Manhattan


in December 2015, its


cofounder Kevin Hsu won-


dered if he had made a huge


mistake. “The first evening,


no one stepped foot inside,


apart from two drunk college


kids asking if we sold shark,”


remembers the 36-year-old


entrepreneur. The answer


was no. His fast-casual


eatery served the traditional


Hawaiian bowl of marinated


raw fish. “I thought maybe


we were trying to introduce


a food that the masses were


just not ready for. No one


had a clue what poke was or


how to say it.” (“Poke” rhymes


with “OK,” for the record.)


But business picked up


once nearby office workers


learned they could get a large


bowl of lavishly seasoned


ahi tuna for $13.50—less


than the price of two sushi


rolls in other restaurants


nearby. Introducing an


Instagram-worthy, seaweed-


wrapped poke burrito also


helped. “One freezing day


in January, I arrived to see


a line outside that stretched


past a neighboring Chick-


fil-A,” recalls Hsu. “I thought,


Wow, if this many New


Yorkers prefer raw fish in the


middle of winter, this could


work anywhere.”


Two years in, there are


18 Pokéworks locations in


key North American cities


such as Seattle, Chicago, and


Vancouver, five of which are


franchises, and the busiest


locations average 700 to 800


servings a day. In January,


the company is embarking


on an expansion program to


open another 80 locations,


primarily franchised, across


the U.S. “This isn’t some


trendy bicoastal thing,” says


Hsu. “People everywhere are


eager for diverse foods, and


they want healthier fast and


fast-casual dining.”


Pokéworks is far from


alone. In the past few years,


poke has become ubiqui-


tous in America. In 2016,


there were 585 American-


Hawaiian restaurants in the


U.S.; 43 of those had “poke”


in their name, according to


the food industry market


research firm Datassential.


In 2017 there were 843; 290


had “poke” in their name.


Mentions of poke on U.S.


restaurant menus have


increased 90 percent from


four years ago. Significantly,


more than 35 million Ameri-


cans have tried the stuff.


If this kind of growth


continues, it would seem poke


is poised to join cupcakes,


frozen yogurt, cold-pressed


juice, and customizable salads


as seemingly-out-of-nowhere


exploding food trends. And


of course, theories abound


on what makes poke the new


hot food. There’s Ameri-


cans’ increasing interest in


healthier lunch options, of


course. There’s the narrative


that millennials love anything


in a bowl. (In 2016, the Wall


Street Journal declared that


“bowls are the new plates.”)


There’s the priming of Amer-


icans’ palates: Much of the


work of familiarizing diners


with raw fish had already


been done by the U.S.’s 4,000


or so sushi restaurants. Then


there’s the simplicity of what’s


required to prepare the dish;


all anyone needs to open a


location is a refrigerator, a


rice cooker, and a bit of elbow


room. (Not having to ventilate


a commercial space filled with


industrial ovens can shave a


few hundred thousand dollars


off the cost.) “We started in


one location and opened


almost 20 within our first two


years,” says Hsu. “That would


have been more difficult with


any other type of restaurant.”


But no matter what the


reason for its popularity,


poke restaurant owners are


about to learn something


that many cupcake, fro-yo,


juice bar, or salad shop


entrants learned the hard


way: Trying to turn a profit


from the latest food trend


is not for the faint of heart.


And if you’re going to jump


in, you’d better understand


exactly what’s in the water.


“When something is hyped


in the media, you often see


incredibly high growth for a


while before attention shifts to


the next thing,” warns Aaron


Allen, a third-generation


restaurateur and founder of


W


In 2016, there were 585


Hawaiian restaurants in


the U.S.; 43 had “poke”


in their name. In 2017,


there were 843; 290 had


“poke” in their name.

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