Sushi Goes Franchising: Hapa Sushi Grill/Sake Bar Makes History

Colorado Restaurateur Offers Nation’s First-Ever Sushi Grill/Sake Bar Franchise Concept

Colorado restaurateur Mark Van Grack is onto something huge.

With the sushi boom gaining steam and on the brink of going mainstream, Van Grack has cracked the code for how to break into the as yet untapped U.S. market for Franchising a sushi concept.

Six years ago, he opened his first Hapa Sushi Grill/Sake Bar in Boulder, Colo. Now with a total of three successful corporate locations operating (including a second Boulder location and one in Denver), Van Grack has announced he is offering Franchise Opportunities in ripe markets around the country. Initial plans call for five new Franchises over the next 12 to 18 months and 100 over the next five years.

“We like to say Hapa is where Tokyo meets New York. It blends the Japanese culture of art, bar etiquette and camaraderie with the American consumer’s taste for a trendy, upbeat atmosphere,” Van Grack said. “From beginning to experienced sushi eaters, to families, to 18-to-35 year-olds seeking a stylish scene, we hit it all,” said Van Grack, noting that Hapa offers one of the largest sake collections, with more than 20 styles and selections.

Revenues for his three corporate locations speak for themselves. Last year, Hapa’s two larger units secured a combined $4 million plus in sales, while the smaller pulled in around $700,000. Van Grack said, based on 2005 revenues to date, he expects to see double-digit sales increases that exceed the industry average at two of the locations, thanks mostly to word of mouth. “People talk about Hapa Sushi,” he said. “Our customers are our best marketing tool.”

Feeding Eclectic Taste Buds

Over the last 25 years, Van Grack has made a career of staying “trendy” – first in the shoe business and then the Restaurant business. After running a successful shoe store and shoe design company in Washington, D.C., Van Grack moved to Colorado and operated a trendy shoe store in Boulder before opening his first Hapa location in 1999, when the sushi boom was barely on the brink of success in the states. With an instinct that sushi was about to explode in America, he called the trend, creating what he calls the Hapa Sushi Grill/Sake Bar experience. He noted that currently, one out of every three glasses of wine poured worldwide is sake, and in the United States alone, about two of every 100 glasses of wine poured are sake.

Whether it’s the 2:30 p.m. to 5:30 p.m. Monday through Friday happy hour; 10 p.m. to midnight DJ spinning records; eclectic selection of foods and beverages; the Hapa brewed beer; or the club-like interior décor, Hapa Sushi Grill/Sake Bar has proven to satiate a hard-to-reach varying set of demographics.

For beginning sushi eaters, Hapa offers multiple beginner options – LA Roll (shrimp, avocado and cucumber), Shake Maki (salmon roll), White Tuna Roll (Albacore tune, ginger and scallions), and the classic Philadelphia Roll (Baked salmon, sprouts, cucumber, sweet soy & cream cheese).

Intermediate to advanced sushi eaters – and adults for that matter – have many unique options as well, especially in name. Hapa Sushi Grill/Sake Bar offers the 69 Roll (Shrimp tempura, crab and cucumber roll wrapped in salmon, sweet soy and baked with cream sauce); Climax Roll (California roll wrapped in smoked salmon); Foreplay Roll (California roll wrapped in salmon); and the Shiso Honi Roll (Eel, crab, shiso, sweet soy and honey). Get the picture? There is also a PB & J roll for children and the Green Eggs & Ham, Mork & Mindy, Statue of Liberty, and the Tootsie Roll.

“With the humorous names for our menu selections, getting your food served is a form of comedic entertainment,” Van Grack said. “You should hear the bursts of laughter every time a server brings orders to the table.”

`Do Unto Others’ …

Van Grack takes pride in the way he treats people, and views all potential franchisees as partners. “My mantra is the basic philosophy to treat people the same way you wish to be treated,” he said. As such, when prospective franchisees are at a critical point in making their decision about the opportunity, Van Grack will fly them in at his expense and let them feel the whole Hapa experience on their own – without his influence. He encourages prospects to meet with managers and staff to ensure 100 percent comfort with the concept before investing.

Van Grack said the ideal franchisee candidate for Hapa Sushi Grill/Sake Bar is an already established multi-unit developer, although he’s open to talking with other candidates. Part of what’s enticing to the prospective franchisee is the quick process – from start to finish – of opening the location. “If a franchisee walked in the door today and had all of their paper work done, we could have them up and running within 90 days,” Van Grack said. “Internally, all the processes are in place, including an intense training program for chefs designed to help them quickly learn the art of making sushi. We’re ready.”

Hapa Sushi currently offers two footprints for new franchisees – 1,500- and 3,500-square feet, respectively. For the smaller location, franchisees should expect to invest between $300,000 and $600,000, and for the larger location $600,000 to $1 million.

About Hapa Sushi Grill/Sake Bar

While earning customer loyalty from consumers locally, Hapa Sushi Grill/Sake Bar has created an extensive Boulder, Colo. fan base, quickly becoming a leader in the Colorado sushi market. And now, the sushi restaurant is expanding through franchising. Currently, Hapa has three Colorado locations – 2780 E. 2nd Ave., Denver; 1117 Pearl St., Boulder; and 1220 Pennsylvania Ave., Boulder.