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In 1998, Lane Muraoka took the leap from employee to employer. He opened the first Big City Diner in Kaimuki and hasn't looked back. Big City Diner currently has 4 locations, 250 employees and is considering a much larger expansion. While the entrepreneurial lessons are important, what captivated us was his mission to help the community through his business. Big City Diner helps people get back on their feet by hiring those who have been shut out by the current market. This mission was recognized by the Hawaii Division of Vocational Rehab (DVR), which nominated Big City Diner as their Employer of The Year. If this wasn't enough, the DVR awarded Big City Diner employee Alvin Nakama DVR Employee of the Year. We sat down with Lane to learn about his accomplishments and how his experience can add value to other budding entrepreneurs.
Enter entrepreneurship
Lane always dreamed of owning his own restaurant.
"I had a dream of always opening my own restaurant and working in the restaurant industry. My coach got me a job as a dishwasher at Flamingo Chuckwagon while I was junior in high school and from there I kind of learned the trade."
Lane's dishwasher job led him down a 20 year path in restaurants and eventually to founding Big City Diner. Lane worked all over the country, including TGI Friday's in Denver, Colorado and Stouffer's Restaurants in Cleveland, Ohio. In 1998 he leapt at the opportunity to open his first restaurant as an owner.
"The concept evolved in 1997 and we found our location in historic Kaimuki. We opened in August of 1998. The concept was basically born out of what [we felt] the neighborhood was lacking. There were great ethnic restaurants like Hale Vietnam and a great bakery and coffee shop next door, Café Laufer, so we thought we need[ed] a good burger, great salads…some history [and nostalgia]."
What's in a name?
"When we came up with that original concept of Big City Diner, one of our partners said we should just call it Kaimuki Soda Fountain or something because it's of the area and I said we had to have a bigger picture…[it's] hard to locate something in Pearlridge and call it Kaimuki Soda Fountain."
Big City Diner is a name with a special meaning. Lane came up with the name when they were opening in Kaimuki during the hundred year centennial anniversary. What he found out from doing the historical research was that Kaimuki was the edge of the "big city".
"Honolulu kind of stopped on Koko Head Avenue and Waialae Avenue was the only way to get to Hawaii Kai and Niu Valley. There was no H1 freeway at that time and there [were] a lot of farms. Big farmers and carnation farmers [were] out on the east side of Honolulu and as they looked toward the west in the evening, they could see the lights, the glowing lights of the big city and basically that's what is referred to [as] the Big City…I thought that was catchy, you know, that's a catchy name. It could travel. It could go national with a name like that and the people remember it."
The right partnerships
Dr. Hank Wuh of Cellular Bioengineering, Inc once said it takes a small village to accomplish something big. With that in mind, Lane's choice of partners was exceptional. When it came time to partner up, Lane started with his friends. His first financial partner was a high school friend that owned a chemical company. Another partner owned a local produce company.
The key strategy in that relationship was to align and leverage the goals of both companies: SYNERGY. Big City Diner would buy produce from its partner, thus increasing revenues and exclusivity. When Big City Diner expanded, so did the sales of the produce company.
"I guess he's happy now because we've grown so we quadrupled the business for him that we bring in."
Relationships with your key partners are absolutely crucial. Even Lane's banking relationship was due to another classmate at Central Pacific Bank. Their relationship and growth didn't go unnoticed. When it was time to expand, Clint Arnoldus, the CEO of Central Pacific Bank met personally with Lane at their Kailua location.
"Clint actually came out to Big City [Diner] Kailua, I was shocked! I was like man he came all the way out here to talk to me?…I mean how many CEOs will take the time out of their day to come talk to small business person, so [it] made a big impact upon me."
People, People, People
From the beginning, Lane went to his friends. He hired friend and former co-worker Nadine to run the back office. He hired another friend as the chef.
Big City Diner strives to promote internally. Employees can start as a host, move to a bussing position, then to server and possibly management. The only time they hire outside servers is when opening a new location which adds more teamwork and a better understanding of roles. Lane prefers to train employees the 'Big City Diner Way' to avoid any preconceived notions which helps maintain the company culture.
Giving back
Big City Diner gives to charity through donations, gifts and fundraising. They also go above and beyond the normal giving. Lane has hired homeless and disadvantaged people, to help them get their lives back on track. He shared with us his unique philosophy regarding this controversial topic.
"As far as the homeless in general, I think a lot of people have stereotypes about what the homeless are. [I saw] a show, it's got to be about five or six years ago I saw it on Prime Time and it was about the homeless in Arizona and it [there] was actually a U.S. Congressman who was one of the homeless, and there are doctors and there are attorneys all at this camp. Basically through one circumstance or another, they ran into some hard times and ended up in this place and they were trying to make it all better because these are all professional people with high educations.
And it really moved me and I go wow, that's fascinating. You can't take anything for granted nowadays because there's all kind[s] of people that need help, you know, and one day you're going to need help…Like how would you have known that Katrina would have done the devastation that it did to New Orleans? I think everything comes around and people need help now and then…we have an employee in Kailua and she was [homeless], you know, she doesn't have a house. I think it's her grandchild and her husband, the husband can't work and so they basically live out of a van but she's always on time, always got a great attitude, great smile, is always clean, you know, and she works very, very hard, wonderful lady."
Big City Diner has a mission of making a better Hawaii and they're off to a great start.
For the full audio interview and transcript please visit greatergoodradio.com. Greater Good Radio airs every Saturday morning and Wednesday night on 1420 AM and online at www.greatergoodradio.com.
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