A couple of experienced entrepreneurs are joining together as partners. One is a veteran restaurant and nightclub operator, the other has a marketing and event management firm.
Their joint venture: XO Tapas Wine Bar. Owners of 68 percent of the business are Robert Shelton, formerly an owner of NV Lounge in Cornelius, and Angela Swett, owner of Image Promotions, based in Cornelius.
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| New partners: Angela Swett and Robert Shelton |
It’s a good time to get into the club business, Shelton said. “When it comes to entertainment, it’s never out of vogue. When times are tough, people want to find a way to spend their last five dollars and that means having a drink.”
While the bar will play a key role in the operations and profitability of XO, healthy food is the focus. They have hired an experienced chef who will create smaller dishes, with “big” flavor. The healthy-size servings are to be combined and/or shared. Prices range from $5 to $12. The actual bar is in a different room in the 5,000 square foot facility on Bethel Church Road. The restaurant seats 130 to 140 people.
Patrons can get out for about the same as a more traditional restaurant and “still feel full,” says Swett, who has a master’s degree in public relations and marketing.
XO was originally the brainchild of two entrepreneurs who ran Mia Famiglia for several years in Cornelius. When they decided to expand by opening a tapas-focused nightspot and another restaurant nearby, their plans to dominate the Cornelius restaurant scene collapsed like a soufflé.
Swett and Shelton are taking over the XO Tapas, redecorating and redirecting the business. Older children are welcome, smoking is not. Jay Colavalla, owner of JK Racing, is also a partner in the business. They anticipate a total of 25 to 30 employees.
Why is XO Tapas a good idea: “It goes back to the whole health conscious society, big flavor, particularly in this economy. It’s a price point thing; you go into large restaurants—how often do you eat everything that’s on your plate,” said Shelton, who has owned nightclubs in New Orleans and Miami. “In really big restaurants, the price points are huge.”
Total investment needed to launch: $200K
Source of financing: Self-financed.
Break-even: Within the first two years.
Average ticket, per couple: $40, including food and drinks.
Projected annual revenue: $750,000.
Secret to a good partnership: “Balance and a good foundation that includes trust. The other person is bright and knows what they are doing,” Shelton said. Indeed, he was Swett’s client when he operated NV Lounge until it was sold earlier this year.
Unexpected learning experience: Mecklenburg County requires a special oyster sink, so XO won’t be serving fresh oysters until the entrepreneurs can install one. |
