ERINN KARMAN AND THE KARMAN BAR
My name is Erinn Karman and I am the Owner of The Karman Bar in South Orange County. I was born and raised in Los Angeles, went to college at CSU Long Beach, and I have been a bar industry professional for the last 16 years.
I have been lucky enough to have explored many interests and collected unique experiences over the course of my career; I was a writer, a musician, a traveler, a student, a teacher, and a boss. The flexibility and financially lucrative nature of the bar business allowed me to do all of these things while gathering an authentic understanding of people and the way they relate to their community, as well as develop an evolved sense of myself and where I fit in with the world.
THE BEGINNING
I started my career as a bartender two short weeks after my 21st birthday in a small, family-owned neighborhood bar in Newport Beach’s Balboa Peninsula. I knew virtually nothing about being a bartender, but I was confident that I could do it because I memorize quickly and have always had a natural ability to communicate with people from all backgrounds and beliefs. I got a crash course in making drinks and basic bar etiquette and was immediately put to work in a manner that managers lovingly refer to as the “sink or swim method.” Lucky for me (and management), I floated until I could swim.
I was immediately intrigued and challenged by the brevity and influence of the multi-billion dollar, international industry and what it took to become a pro. I dedicated my life to studying all aspects of the business, learning the dynamics of the bar world through trial and error, eventually evolving into the kind of bartender that could handle a variety of situations with confidence and grace.
Over the years, I worked in several types of bars including sports bars, Irish pubs, nightclubs, fine dining, and so on; taking from each experience what I believed was valuable and leaving behind the methods I saw as counterproductive. I have since based my management model on all of the strategies and ideas I encountered along the way.
For the last decade, I was the General Manager of a company that owned multiple locations around LA, Orange and San Diego Counties. I was responsible for all daily operations and promotions and ran a staff of over 50 people. I split my time equally among the stores and I ran them autonomously because my former bosses were absentee owners, however, I handled the workload by installing Assistant Managers to be me when I was off-site and went through several smart phones per year in the meantime.
Looking back, I find it remarkable that I held it all together so seamlessly. Yes, there were the inevitable hiccups but a successful endeavor by all accounts. When I compare my past workload to my current experience, I feel that even though running one bar has decreased the magnitude of my daily operations, I’ve definitely made up for it in emotional and financial responsibility. As much as I loved those bars and worked tirelessly to make them successful, nothing compares to the weight and responsibility of owning your own business, especially one that bears your family’s name. That’s one thing I’ve learned in the last two years.
THE JOURNEY
In 2008, the company I worked for purchased two struggling bars in downtown Oceanside that were located a block apart. These bars were in a major state of crisis, as they both had a reputation for being seedy and dangerous because they had been overrun by an undesirable clientele due to the negligence of the previous owners and the community.
With little more than a vision and unwavering enthusiasm, I recruited an incredible staff of star bartenders, eliminated the negative customer base by hiring the largest and most intimidating bunch of softies to head our security team, established a management collective, developed a marketing and promotional department, created
an extensive live music program, and completely rebranded the company inside and out, all on a shoestring budget.
Almost three years and a week to the day I took over those two bars, the bosses gave me a bonus for hitting the two million dollar goal. Those two stores that I started from scratch were grossing more profit than all the other locations combined. So I consider it a personal accomplishment and a testament to my leadership abilities, but I obviously could have never done it without an exceptional support staff and bosses who trusted my intuition wholeheartedly.
I did it by making everyone love working there, and love and respect me as a boss. I hold everyone to the same standards and treat my employees with respect and consideration. They will tell you that I’m tough, sometimes a bit blunt for the more sensitive type of employee, but fair. And they respect the fact that issues are addressed directly and promptly.
The energy and chemistry created by an inspired and motivated staff generates volume of sales. As the bar’s success gained momentum, so did the enthusiasm and drive to keep it going in the right direction. Eventually, the people involved in the evolution and growth of the business felt proud of what we had built together on both sides of the bar.
All bars are a different version of the same basic outline, but it’s the quality of the people that define a bar, as well as the way that bar is perceived by the community that comes together within them. Because that’s really what bars are: Community Centers… A place where everyone fits in.
The community that exists within the many bars I have worked in over the course of my career are all similar in one important way: They consist of groups of people from all walks of life and persuasions who find a common ground in a comfortable place. They laugh and play together, learn together, mourn and celebrate together – through deaths, break ups, weddings and babies born… these people become family and that is what makes it all worthwhile.
Over the years I have learned to believe in my ability to recognize and assemble groups of people and nurture relationships, not only with the staff, but with the customers as well. This has definitely been the most fulfilling aspect of my career.
It’s true that people drink when they’re celebrating as well as when they’re depressed, hence the old industry tale that the bar biz is “recession-proof.” I don’t know about that, but it’s a lovely sentiment nonetheless.
I would now like to introduce you to my business partner, Jesse Hamilton.
Jesse and I have been working together on a variety of different business endeavors over the years, but we have been strategizing and visualizing our bar for over a decade. We certainly didn’t make it this far and work this hard to not see it through to the level of success we’ve always envisioned.
I like to describe Jesse as a man of many skills and talents: an entrepreneur and a family man, his many successes in business have bridged across several different industries over the last 20 years. Merchant services, loans, and the stock market are just a few of his endeavors. Basically, money and businesses that make money are what inspires him professionally.
Jesse’s sharp intuition and keen sense of practicality have left a lasting impression on many of our associates over the years, business related or otherwise. His ability to connect people with similar strengths and interests has made a lot of money for a lot of people. He approaches challenges in a very pragmatic way, which makes him a natural problem solver and a voice of reason. He’s made our entire bar project possible and he’s the glue that holds it all together.
He has quickly learned the ins and outs of the bar business and taken on lengthy obligations and challenging projects since owning the bar. The staff respects his guidance and level-headed approach to handling issues and he is a perfect good cop to my bad cop (and vice versa) when necessary while dealing with employee matters. We have worked out a system for managing all the daily operations efficiently and we definitely depend on each other to shoulder the burden of responsibility in regards to all major decisions.
His current workload includes all entertainment and special events booking as well as all promotions through social media and otherwise. He deals with all the band members, managers, and promoters (a thankless and tedious job), and he organizes all annual events, coordinates birthdays, private parties, and fundraisers. He also designs all rotating weekly content and maintains the website and the company’s overall online presence.
THE LOCATION
We bought our bar in 2014 from an owner who had completely abandoned the business both emotionally and financially. He had owned it for 18 years, but had taken on other endeavors and moved out of town, neglecting the bar to the point where sales had hit an all-time low. Once we took ownership of the location, we began making affordable improvements. We doubled the amount of draft beer tap handles, refurbished the pool tables, purchased seven brand new flat screens, installed a new water heater and a new compressor for our walk-in cooler.
During the entire first year, we spent a lot of time cultivating relationships with the staff and the local clientele and building up our following; one customer at a time. We attracted new faces, mostly through word of mouth and social media of course, but we were able to reach further by establishing an art and music program, presenting artists of all mediums to use our gallery wall space to feature rotating installments and by booking musicians of all genres, local and national acts, to bring in crowds that follow live entertainment.
One of the main reasons we purchased this bar at this location was because of the unique nature of the developing neighborhood around us. There are few, if any, urban communities of its kind anywhere in Orange County, with the Shops at Mission Viejo, Mission Viejo Hospital, Kaleidoscope Courtyards and Theater, Saddleback Community College, Costco and the Orange County Transit Center (Metrolink), all within one square mile. Two other residential buildings in the immediate area, Skye (142 units) and Apex (284 units), have already been completed and are currently moving in residents.
Less than 100 feet away from Bar is the Gateway Village; a community of 684 units ranging from studios to three bedrooms with retail locations on the ground floor of the main buildings.
The project is scheduled to be completed by March, 2017.Considering the fact that we are currently in the center of a multi-million dollar construction war-zone, we have struggled with daytime sales due to limited access to the driveways and a generally disruptive environment, but we have still managed to maintain our local clientele and build upon it. The progress is slow, but carefully tracked, and it has become apparent that with a few additions, like food service, cigarette sales and keno gaming, the potential of further increasing first shift sales definitely exists.
LOCAL DEMOGRAPHICS
The median income from 2009 – 2013 in Laguna Niguel was $99,771 and Mission Viejo is just a bit lower at $96,088. Alliance speculates that their target market for residents will be young, working professionals and empty nest couples with college-age children. One-bedroom units will go for around $1850.
Safe and affordable transportation is cited as one of the major concerns for bar customers in Southern California.
The Karman Bar has a competitive advantage being located in a neighborhood where people have an option to walk, as it eliminates the cost of transportation.
Upon the completion of Gateway Village, The Karman Bar will be the only bar within walking distance to as many as 3,000 residents.
OUR COMPETITION
We have very little competition in our area, especially when it comes to being a live music venue. The Coach House in San Juan Capistrano is more than six miles away and only open during scheduled shows. Mugs Away is two and a half miles North, Patsy’s Irish Pub is almost two miles West, Shooters Saloon is one and a half miles South in Mission Viejo, and Costello’s, a recently rebranded bar, is almost a mile away across the I-5 freeway. None of these locations offer the quality or frequency of music options comparable to The Karman Bar.
THE FUTURE
The company that owns the building that the Karman Bar is located have already been approved by the City of Laguna Niguel to update the entire exterior of the building, thus greatly improving the undesirable curb appeal.
These improvements have always been outlined in our business model, however, we did not receive the capital allocated for the work as agreed upon by our financial backer. This is one of the many reasons we are currently looking for another investor.
IMPROVEMENTS
Upon investment, we plan on making the following changes to The Karman Bar:
- Install a window in the front of the bar to open up the space and provide natural light inside which will inevitably draw attention to the business.
- Remove the outdated and unsightly drop ceiling foam tiles and give the room an extra two feet of height, thus improving the acoustics, dropping the temperature of the space, and giving the bar a generally cleaner appearance inside.
- Renovating our kitchen space, including all of the expenses to cover city inspections and health department regulations so that we are efficiently outfitted to provide a focused menu of savory options. Statistics show that each customer’s spending potential can be improved by 20% if sustenance is provided. I have formulated a cost-effective and unique approach to the menu by consulting my resources for professional food design and collecting ideas over the years from all over the world throughout my travels. Without going into too much detail and also to protect the originality of the idea, let’s just say that it’s comfort food with an upscale twist. It’s something so simple and obvious that it hasn’t been done yet by anyone. More information upon request.
- Expand the stage to accommodate larger musical acts. We have had a lot of success by bringing in entertainment from garage bands to national touring acts. We have a top of the line mixer and a variety of pro audio equipment to make these acts sound great in our venue but are limited by the size of the stage.
As far as being a live music venue goes, we have already established ourselves as a local gathering place for great shows and have absolutely no comparable competition in the area. We are also outfitted with cameras to capture live performances and plan on selling subscriptions to online viewers who will gain access to small venue shows of their favorite band without having to endure the crowd and the transportation expenses. Viewers will be able to enjoy the show from the comfort of their couch for a small monthly cost.
MARKETING
The Karman Bar and myself have personally acquired thousands of followers on social media. The ability of a company or an individual to influence the business market is paramount these days, as exhibited by the many video blogs covering every subject matter imaginable to collect millions of followers and achieve international fame and attract extremely lucrative sponsorships.
Over the course of my career experience, I have created a formula for instruction that has become the building blocks for the many students I have trained with little or no experience into professional bartenders. Although there are a few reputable web pages dedicated to bar industry subject matter, most of them are not helpful or relevant. There is definitely a lack of solid information out there to provide students of the bar business with sound advice on what’s really important to the field, instead of a bunch of outdated industry etiquette and overrated drink recipes.
One of my future goals is to create a YouTube channel featuring myself and the content outlined in the instructional courses I have developed. My courses teach the fundamentals of mixology, a formula that can be applied to creating thousands of cocktails. It also teaches other things one needs to know to actually be a good bartender, most of which has absolutely nothing to do with making drinks. I have had many students who have valued the information provided and have gone on to have successful careers and become some of the best in the field.
I also want to include footage of all the funny stories, lessons learned, crazy experiences and heartwarming sentiments that are expressed in an average day in the bar with all the colorful personalities we have to (or choose to) interact with. Most bar industry professionals are really funny, expressive, quick-witted, and sarcastic; all the qualities that make for entertaining videos.
Due to the lack of media resources featuring the kind of relevant information that bar industry employees are looking for, the formula I have created is certainly the first of its kind ever to be launched in the industry. Another thing I’m sure of is that there are few young women like me that are doing what I do every day to keep things running smoothly, or at least doing it the way I do.
SOCIAL MEDIA
Website – www.thekarmanbar.com
Facebook – www.facebook.com/thekarmanbar
Instagram – www.instagram.com/thekarmanbar
THE PITCH
We are looking for an investor to buy out our third partner, who is our primary financial backer. She owns 33% of the company and has a personal guarantee on the lease agreement. She also has a line of business credit totaling $30,000.
We propose that an investment of $250,000 will cover the costs of buying out our third partner, making necessary improvements to the bar to prepare for the influx of business stimulated by the residential development being built and float our expenses until Alliance’s construction project is completed and the bar turns a profit.
The breakdown of payments are loosely assigned as follows:
- Pay off third partner with a sum amount of $100,000 buys the investor 33% of ELJ Entertainment Inc.
- Pay off Credit Card balance of $30,000 to close line of credit in third partner’s name.
- $30,000 to be budgeted and allocated to update the bar to increase profitability and productivity.
- $90,000 to cover regular business expenses, including payroll, inventory, rent, etc. for the next year.
THE KARMAN BAR’S WEEKLY SCHEDULE
SUNDAY – Open Mic Night -Singers/Musicians/Comedians/Poets – Starts at 7pm
MONDAY – Trivia Night – #GetYourThinkOn
TUESDAY – Karaoke – 80’s Music and all other Faves
WEDNESDAY – Hip Hop –DJ’s and Live MC’s
THURSDAY – Thrasher Thursdays – All Rock/Punk/Hardcore
FRIDAY- Dance and DJ Night – Featuring all Genres of Hip Hop Music – NO COVER
SATURDAY – Band Night – Featuring Local and National Acts – COVER MAY VARY
OUR RECENT CALENDAR
By: Candace Hansen
When Erinn Karman (right) and Lisa Alley (left) stumbled across the Laguna Niguel nightclub that the Karman Bar now occupies, they knew it was just the place to carry out their decade-old vision of opening the bar of their dreams. The two women came from different backgrounds; Alley from mortgage and business, and Karman from music, writing, and bartending, but after meeting through a mutual friend 12 years ago, the pair realized that opening a bar together was their true calling.
“Who doesn’t want to own a bar?” jokes Lisa Alley, “when the right opportunity popped up we jumped right on it.” Karman and Alley transformed what was formerly known as Rocks in Laguna Niguel, into the Karman Bar. “Our goal was to breathe new life and excitement into the venue,” says Erinn Karman, and in late November the pair started their journey of doing just that. They added 7 new TV’s, refinished all of the pool tables, added craft beers to the menu, and upgraded the liquor selection, all while keeping the existing bartenders on staff. With plans to integrate a food menu, host fundraisers for community organizations, bring in artists, and provide a place for local bands to play on weekends, the Karman bar seems to be off to a great start.
Alley and Karman are loyal to their locals, and have a driving energy to create something for everyone. They’ve dedicated their work to creating a diverse and unpretentious bar, and with events like swing dancing lessons at Speakeasy Sundays, a punk night known as Thrasher Thursdays, a service industry night, live bands, and 80’s karaoke, they are doing a pretty good job at keeping things eclectic. “We never want to create [a] cliquey place,” says Alley, “we want everyone to feel comfortable. We have regulars ranging in age from 21 to 81, and we love them all.” Their live music vision includes everything from reggae to folk to hardcore. “We believe in supporting local artists, and are thrilled be able to give local musicians the opportunity to showcase their talents.” In the world of pay to play Orange County, the Karman Bar is a breath of fresh air.
Its not all about business for the Karman Bar, Erinn Karman is driven by connecting with her customers, and attests that people are what the bar is built on. “We become friends with people in this industry that we wouldn’t normally have the opportunity to develop relationships with. There are so many stories, laughs, debates, and friendships formed while sitting around a bar. It’s a place where people young and old can share life experience in a very real way, in a very warm environment. I love listening to the conversations that ensue on an average day among people of so many varying interests, demographics, and backgrounds.”
Something that sets the Karman Bar apart from other OC hot spots is that it is run by women. Between Alley’s background in business and Karman’s background in bar management, they have encountered their fair share of challenges in the work world.” I think being young and a woman presented its own unique challenges,” recalled Karman, “but now that we own the bar, we’re in charge, so we don’t have to worry about that.”
For Erinn Karman, the goals of the Karman bar are simple: “We’re aiming to offer people a good time, by playing good music, and providing good service. We want people to come to The Karman Bar and relax. If we get that right, the bar will be a success in our eyes.”
The Karman Bar is located at 26022 Cape Drive #C, Laguna Niguel, CA, 92677. Musicians and bands hoping to play the Karman Bar should visit: thekarmanbar.com and include links to Facebook or websites, and the staff will get back to you as soon as possible.
