Mie N Yu, which I opened as the GM (later managing partner) during the great blizzard of [February] 2003, had a meteoric rise, and a long...slow fall. Sadly but predictably, Mie N Yu closed it's etched front doors for the last time just a few weeks ago. Almost 10 years is a feat in the restaurant industry, especially with themed upscale restaurants, so why did this soon-to-be-institution drown. I can tell you why because I was part of it until July 2010 when I resigned.
First, a little bit about the rise of Mie N Yu.
We opened as second in what was meant to be a chain of upscale ethnic restaurants, the unlikely brainchild of a wealthy entrepeneur's son and a successful Asian restaurateur. By the time I got involved a few months prior to opening, the construction was well underway and nobody could explain what this Silk Road themed restaurant was actually going to look like when completed. That's probably why we had such a big bang for an opening, because nobody knew (not even the staff) what the place would look like until 2 days after we actually opened! We were fortunate to open during the blizzard of February, 2003. Why fortunate you may ask? It allowed us a week of relatively low volume to work out the kinks before the onslaught, known in the industry as the honeymoon period. Our honeymoon lasted until mid-2007! We built our business methodically, and by 2004 our menu had been revamped and our private events engine was in place, which would be our vehicle for growth over the coming years. We looked at private events as a major strategy for growth and longevity, and it worked. What better PR than to have 100 young executives in for a company-sponsored event. They would get a glimpse of Mie N Yu's fairytale ambiance, only to return later on their own dime. Our strategy was a success and vastly exceeded our own expectations. By 2006 we were realizing incredible growth in private events, even as our bar and restaurant business stayed flat.
Arguably the smartest decision made by the initial ownership group was picking the location. Georgetown was just about to wake up to it's former glory as DC's most notable neighborhood. After a few years of rampant crime, exploding manhole covers, and being known as the "underage drinking capital" of the entire region; Georgetown was updating it's infrastructure and image via the Georgetown BID (business improvement district). Mie N Yu was opening just as all of these new forces were converging. Even during the all night construction of M street, bar-goers would wind their way around construction crews and barriers to Mie N Yu's bar entrance at 3125 M St, NW.
A noble mission.
Internally we built a management team worthy of running any type of business, and our mission was simple. To make Washington, DC a global dining destination. By 2006 Mie N Yu was actively involved with multitudes of organizations and causes to "grow the pie". What I now realize, is that our success in these endeavors may have also helped to speed up our demise. By 2007 Mie N Yu was represented by various managers on the Boards of Directors of RAMW (Restaurant Association of Metro DC); Destination DC (DC's convention & visitors bureau); The National Cherry Blossom Festival; The Georgetown BID (business improvement district); and the RAMMY awards gala (recognizing DC area restaurants). We were also represented on various committees within those organizations, primarily those that increased visitation to DC, and promoting DC's burgeoning restaurant scene. We were involved in every major cause, and we seemed to be doing everything right.
Chinatown
As the economic boom was starting to show signs of weakening, DC was staying strong, and our homegrown restaurant scene was getting stronger by the day. At first a few small, little known outsiders started to scout out DC as safe havens for growing their restaurant groups. I met several operators from Philadelphia, who felt we were close enough for them to visit their new DC outposts once a week. Then came the onslaught. At a blistering pace every inch of retail space in Chinatown/Penn Quarter was being gobbled at exhorbitant rents by NY groups and many more who looked at DC as a safe haven in the upcoming tumoltuous economic times. Their bets paid off, and pretty soon Chinatown took over as the dining capital of the nation's capital. The old bellweathers like Dupont Circle, Adam's Morgan, and eventully Georgetown would now feel the brunt. With the downturn in late 2007, I walked out onto M Street only to hear the sucking sound, similar to a vacuum, pulling our loyal customer base closer to 7th street (Chinatown).
Mie N Yu's revenues began to fall sharply, even as we were arguably at the top of our game operationally. We had become laser-focused on ethnic cuisine, actually consulting with master chefs from the countries our concept represented; to introduce authentic ethnic dishes as opposed to the "fusion" dishes in our opening years. We had embarked on a groundbreaking Farm-to-table program, eventually purchasing almost 100% of our meats from local, natural and organic farms. Our guest service, our food quality, and our events division were all operating at their highest levels in 2007. In hindsight, our best move would have been to bite the bullet, and move Mie N Yu to Chinatown in early 2008. We could have reconcepted Mie N Yu in Georgetown back to a bar/lounge, which would have dramatically lowered our overhead and allow us to survive the storm. That was not in the cards for several reasons.
1) We had recently divested ourselves of a costly restaurant partnership in Annapolis, MD; which took a lot of our attention and financial resources away from Mie N Yu between 2005-2007.
2) Our owner (now just the wealthy entrepeneur), was beginning to have family and financial problems, which got very ugly and very serious in 2009. To the point that all remaining cash reserves were virtually depleted.
3) We did not have the capital to convert our concept to a bar/lounge, and therefore were stuck with a high-overhead upscale restaurant that really could not support the concept at the sales levels we were headed towards.
4) Our landlord(s), as we were 2 buildings combined, were not interested in our long term success, only that we pay our rent on time. The landlord of the larger of the 2 buildings was, quite frankly, a greedy prick. Unbending in his negativity and refusal to compromise.
In essence, we were a large ship headed into low tide. We needed to get small quickly, or risk getting stuck on the ocean's floor. That never happened, and as a result we stayed a large ship, trying to stay afloat by lightening our crew and cargo; a recipe for disaster in the hospitality industry.
In the end we failed because of being under-capitalized. We knew what needed to be done but dug a hole too deep to get out of. Mie N Yu outlasted many other restaurants facing the same slow fall in Georgetown because it had it's good reputation to keep it going. Rome didn't fall in a day, and neither did Mie N Yu. It's a lesson in business. We need to be prepared (emotionally and financially) to make drastic changes; recognize when the tide is turning againts us; and take decisive action to keep the business floating on steady waters.
In the end Mie N Yu will be a distant memory for most Washingtonians. But for industry insiders I think there should be no dispute that Mie N Yu was a trailblazing restaurant that helped set DC's restaurant scene up for success. It's sad, but I'm very proud of the many employees, managers and customers that helped make Mie N Yu such a special place.
