BOSTON —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
In 1998, Paul Conforti and Kim Moore say they turned down “lucrative M.B.A.-type job offers” upon graduation to open a concept originally brainstormed as a research project by Conforti and friends. Although Finale floundered in its early months of operation on the edge of the Theatre District here, the four-unit chain now is gearing up for major growth as it approaches its 10th anniversary. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“After a couple of months, we almost closed,” Conforti recalled. “The area was run down. The theater season was not going well. We now look back on that period affectionately as ‘the dark days.’” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Conforti and Moore quickly turned the situation around by working 18-hour days, assuming the duties of employees they had been forced to let go, and sometimes sleeping in the restaurant. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
With help from the city’s convention bureau, which told the then-new Food Network about the concept, Finale survived. Soon after, a favorable newspaper review led average daily sales to double in a single day. Conforti and Moore never looked back. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
The experience was educational, Conforti said. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“We learned that we were not just an after-theater concept,” he said. “We were an anything concept and, particularly, an after-dinner concept.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
In the next few years, Boston’s theater district came alive with the openings of several major chain restaurants, among them P.F. Chang’s, Maggiano’s Little Italy, McCormick & Schmick’s and Fleming’s Prime Steakhouse & Wine Bar. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“Each time, we’d get more business from their dinner patrons coming to Finale for dessert,” Conforti said. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Thinly capitalized by some angel investors at the beginning, the chain slowly began to gain financial strength. Today, with four units and more in the wings, Conforti estimated 2007 sales at “approximately $6 million.” This year, he’s projecting sales of $9 million to $10 million. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
CHAIN FACTS NAME: FinaleHEADQUARTERS: BostonMARKET SEGMENT: casual-dining desserterieMENU: desserts, drinks, savoriesTOTAL NUMBER OF UNITS: 4AVERAGE UNIT VOLUME: $1.75 millionAVERAGE CHECK: $18LEADERSHIP: Kim Moore, co-founder and director of branding and communications; Paul Conforti, co-founder and presidentYEAR FOUNDED: 1998 —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Finale is currently scouting sites in Providence, R.I. – “We’re real close,” Conforti said. – and in Boston’s North End and Faneuil Hall Marketplace areas as well as suburban sites in Greater Boston, such as the towns of Lynnfield and Hingham. Existing restaurants are approximately 3,000 square feet and have 75 seats, depending on location. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Finale offers a combination of unusual upscale desserts, such as Apricot Cinnamon Delight and Manjari Mousse, as well as dessert combinations designed for sharing, such as “The Whole Nine Yards,” an assortment of eight different items for $28.95. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
The concept also boasts a large menu of alcoholic beverages, many of them dessert-oriented, such as Molten Chocolate and White Chocolate Martinis priced at $9.95. The wine list features dessert wines, sparkling wines, aged ports, sherries and Madeira. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Industry analyst Darren Tristano, a vice president at Chicago-based consulting firm Technomic Inc., sees Finale, with its limited menu and $18 average check, as appealing to core customers who are “well-insulated from economic conditions.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Tristano wonders about the possibility of “the next layer of customers” potentially becoming “harder to reach given price points and economic conditions, all of which may play into their profitability.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
While Tristano questions whether dessert-oriented concepts have staying power, he said, “Dessert consumption, though not growing, still remains a big part of the dining experience.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
A Technomic survey found that consumers don’t seem to mind going somewhere other than the restaurant they’re dining at for dessert, he noted. Working against Finale is the fact that higher-quality desserts are becoming more readily available in restaurants, bakeries and supermarkets, creating “a more competitive environment,” Tristano added. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
At WD Partners in Columbus, Ohio, analyst Dennis Lombardi said he sees “après” as “an interesting daypart” that would appeal to people seeking to get together for something light. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“There are not many options,” Lombardi said. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Location choices are critical to the success of such a concept, as is the ability to maintain quality while expanding geographically, he pointed out. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“They’ve got to be upscale and urban with nightlife,” he said. “I can see one on North Michigan Avenue in Chicago or in parts of San Francisco or Los Angeles or Las Vegas. There’s almost no one else in this niche.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
He noted that he sees the ability to create additional sales through carryout and catering. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
In the past two years, Finale has doubled in size, moving out from Boston and Harvard Square to the Massachusetts cities of Brookline and Natick. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“Each one has been a little bit of an experiment for us,” Conforti said. “The Natick Collection [a new high-end mall] was a big step because it’s outside of our usual urban profile, but we always look for lots of restaurants and activity generators like the big AMC theaters a mile away.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
The mall venture has already resulted in new opportunities from other developers with the potential to “broaden our possibilities,” Conforti said. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
In 2009, the chain will open in Legacy Place, a lifestyle center in Dedham, Mass. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“We’re hoping to build this into a regional and then national chain,” Conforti said. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
While Finale survived its early growing pains, such as exorbitant credit card debt after credit was used to cover other bills, now it faces different challenges, Conforti said. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“We worry about building the team for growth and about finding restaurant-experienced investors who are interested in funding our expansion plans,” he said. “We focus on developing our managers and team members so they can create sensational dessert experiences. But they aren’t dark days any more. Now, they are days of optimism and excitement for the future.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
In 2007, Finale was named one of Technomic’s Top 100 Emerging Chains. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“We’re ready to look for strategic investors,” Conforti said. “My friends in other companies tell me we need to build infrastructure before we grow, and to do that, you need capital.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Desserts and alcoholic beverages comprise 85 percent of total sales, with the rest accounted for by savories, such as appetizer-type items, flat-bread pizzas, and salads, soups and sandwiches at lunch. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Plans call for raising investor capital in 2008 and moving into a new market in 2009. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“We’ve set our sights on Washington, D.C., and we’re starting to lay the groundwork,” Conforti said. “It’s a big dining city with a lot of little pockets where we could get a critical mass. We want to get six, seven or eight units and have a pastry kitchen that would serve as a commissary where we’d produce desserts and concentrate our experienced pastry chefs.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
Labor has not been a major problem to date, he noted. —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.
“The challenge is that we’re looking for meticulous team players who want to create an experience for the customer,” Conforti said. “We get many talented entry-level candidates. We’re considered a leader in our niche. There are still not a lot of operations like this, although there are more than ever before. The difference is they are mostly individual operations owned by pastry chefs and they have a differet approach.” —Using a combination of luck and tenacity, two Harvard Business School graduates with a dream turned what could have been a sour ending into a sweet beginning for their dessert concept, Finale.