Tech Entrepreneur Turned Restauranteur

In mid-August, Ferdouse Khaleque jumped into the restaurant business by buying Maharaja Express II without any previous experience in the industry. The reason? "I was smitten with the food," he says.

Maharaja Express II is renamed Mogul Naan

While the decision may sound impulsive, Khaleque says his experience in the tech sector and as an entrepreneur gives him an edge. He came to the U.S. 20 years ago, after earning his Phd in electrical engineering in the U.K., attracted by the entrepreneurial environment here.

Good Reviews, Location

Maharaja's numbers looked promising as well, Khaleque says. "The books were good and showed a break-even point." A little more time and effort should push the business into profit. And the restaurant had good Yelp reviews. The location was attractive, too, serving a large South Indian population. But Khaleque doesn't want to depend on any one ethnic demographic. "We aim to cater to all palates," he says.

"I was smitten with the food," says Ferdouse Khaleque, now the restaurant's owner

The restaurant is now called Mogul Naan. Still, the management transition was a challenge, he says. "We're building the business back up." One way he intends to do that is through technology, chiefly online marketing and ordering.

Here's where his tech experience comes into play. Khaleque has worked at Nike, Harley-Davidson and the FDIC, among other places. And he's been a blogger, writing blogs on a dating website.

About 10 years ago he worked on a GrubHub-like website called MenuStation, which fell victim to the financial crisis. Failure, though, isn't necessarily a bad thing. He's more impressed by people who try again and again after failing than by people who never tried to begin with.

Food First

His plan to build Mogul Naan focuses on the food first, followed by good service and consistency. Technology serves to back that up and will help distinguish the restaurant from the many other Indian restaurants in the area. 

Food, service, consistency are key

Mogul Naan's website offers a 10% discount for customers online. Since Khaleque can construct the website and ordering system himself, he doesn't pay the 20% commission that third-party technology providers usually charge. Orders come straight to his laptop at the restaurant.

And of course, marketing on social media such as Facebook and Instagram, is part of the mix.

Start From Scratch

"The exciting phase is starting from scratch and watching it blossom," Khaleque says. He feels he has the drive and entrepreneurial spirit to make it work, and his business background gives him the ability to see the enterprise from a "birds-eye view," but then tackle things on a very detailed basis. "You work from the ground up, but then need to step back to see the overall view," he says.

He likes to lead by example in motivating his team to advance the business. "I feel I should empower people and keep them engaged. It's not just a job."

His experiences have helped him to become open to more options when dealing with challenges. "I feel I've become more flexible," Khaleque says. "I have to keep my mind more open."

Welcome to the restaurant business, Ferdouse. You may need every tool in your toolbox.

Publishing Note: 

"This Stretch of 27" will be on vacation for the rest of the week. Please check back on Monday, Oct. 23 for the next post. Thank you!

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Diwali Is Coming; Gas Prices Fall

Diwali is coming and Bikanervali is stringing up lights for the Hindu festival of lights and displaying gift baskets for the prime Indian gift-giving holiday. Sweets are typically given as gifts for the Hindu New Year, to be celebrated Thursday, Oct. 19.

"It's the celebration of good versus ill," says Bikanervala manager Bijen Patel. "Everybody celebrates it in India." See Sept. 13's post for more on Bikanervala.

This week, people will be placing bulk orders for sweets so they can pick them up next week, he says.

People prepare for the holiday by cleaning and painting houses. And, in India, celebrations often include setting off firecrackers. "It's a multibillion-dollar festival," Patel says.

Gas Price Update

Gasoline prices are now lower than they were before Hurricane Harvey hit Houston, a major oil refinery region, in late August.  As a result of the storm, and refinery outages, gasoline prices rose by 40 cents a gallon at the cheapest gas stations. During this entire time, the price of gas at the Exxon station stayed the same -- $2.799/gallon. 

Now, the price at Valero and Raceway stations is $2.299/gallon. BP and Sunoco are in between.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Projects Along the Pike

It's a quiet, cloudy Wednesday this week. Construction progresses at the Wawa. The exterior of the building looks almost finished, at least finished enough to install signage. Wawa's website says the site is scheduled to open this Fall. That leaves a little more than two months left before winter starts. If the project runs late, they may have to skip the pumpkin-spice flavored coffee drinks.

Looking at the larger picture, the U.S. Census Bureau puts private nonresidential construction spending on a seasonally adjusted basis at  $433.9b in August, the latest month for which data are available. That's up 1.2% from the revised estimate of $432.0b in July and down 2.5% from $445.0b in August 2016.

Road Work Continues

Paving continues on Bunkerhill Road, meaning rough road for awhile. The actual construction takes place overnight, so traffic on Route 27 shouldn't be affected much during the day.

Aerial Work at Stop & Shop

And there's some work being done way above ground level at Stop & Shop on a very tall cylindrical structure, which I'm guessing is an antenna. Anybody know what that is? The employees at the customer service desk didn't know.

If you're looking for a seasonal diversion, signs just went up for the annual haunted hayride in Griggstown.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Franklin Towne Center's Unfulfilled Aspiration

Franklin Towne Center apparently had aspirations of being a town center, a goal that today remains unfulfilled. It was busier when Stop & Shop anchored the center, but the Stein Mart (that replaced only a portion of the Stop & Shop space) never came close to the traffic the supermarket had brought in.

[Update from Oct. 24: The shopping center has become even emptier after Stein Mart closed on Oct. 21. Updating from my original post, perhaps the space that was occupied by Stein Mart, can now be used as a shared-office space, a la WeWork buying the flagship Lord & Taylor store in New York from Hudson's Bay Co.Click for press release. That would be one way to repurpose traditional retail space into a millennial sharing economy enterprise.]


Sabre.life's website lists Ocean State Job Lot as a tenant in the shopping center, but there's no activity that indicates one will be moving in. An Indian restaurant is also planned to open, says one of the other tenants.

   
Empty stores in Franklin Towne Center. The space pictured above was once a shoe store.

Unused Real Estate: Indoors and Out

But could it be a center of activity?  It does distinguish itself by having a large outdoor area, mainly in the form of sidewalks, that are mostly empty. Confectionately Yours restaurant is the only business there that uses the area for outdoor seating, a logical use considering the restaurant has a window for selling ice cream in the summer.

A lot of unused real estate.

Confectionately Yours does make some use of the outdoor space.

None of the three other restaurants at Franklin Towne Center offers outdoor seating.

From a business sense, it's a waste. Surely, there's something that could be done with all that space. Perhaps, small festivals could be held there. I think there had been classic car nights held in the parking lot a few years back. Or a flea market could be held once a season. It would give the center's tenants a chance to set up booths to attract customers, who may be more likely to come back as regular customers. Add to that some live music -- carolers in December, Caribbean music in the summer, country music in the fall, and any kind of music in the spring.

Kiosk Village?

Another option might be outdoor kiosks that could be used three seasons out of the year. Of course, that would require some investment to install outdoor electric outlets, and likely improved lighting.

Here's another thought: How about constructing a small stage and hold open mic nights or afternoons? Make the shopping center an entertainment venue, albeit a small one. It would offer shoppers an experience that they can't get through online shopping--live entertainment.

What if the shopping center renovated, installed solar panels, and billed itself as an environmentally friendly retail center? Maybe add some ramps, a quarter pipe, hand out some waivers, charge admission and turn it into a skate park.

Franklin Towne Center could use a face-lift. Some repair work has started on the sidewalk areas. However, the decorative columns are also starting to fall apart and will need to be fixed.

Some repair work has started.

Still more repair work is needed.

The property is listed for leasing on both Sabre.life and JefferyRealty.com websites. Neither leasing flyer says when the shopping center was originally constructed. It was probably built in the mid- to late-'80s. 

Sadly, even the Halloween store that once occupied one of the spaces there for the months of September and October hasn't come back for the past few years.

For sure, this shopping center requires some creative marketing. It won't be easy. It will require more capital. I'm sure the right marketing/real-estate minds could come up with something unique to the area that could bring some life back to this center. The question is: Could they come up with the capital needed to make real improvements? Maybe it really could grow up to be a real town center. It's either that, or someone will buy it, tear it down and build another strip mall.

Any other suggestions?

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Friday Photos: Remnants of History

Click here for link to slides

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Business Roots: Taverns, Farms and a Distillery

Having grown up in Franklin Township, I've seen a lot of changes along Route 27 in Franklin Park and Kendall Park. What was mostly farmland has morphed into strip malls and housing. But what originally formed these two communities? What businesses sprang up along this thoroughfare in its early days?

A native American path on Franklin's border eventually became King's Highway, a well-traveled road between New York and Philadelphia, according to Images of America: Franklin Township written by William Brahms and commissioned by the Franklin Township Public Library (copyright 1997).

Six Mile Run Reformed Church, the first congregation in Franklin Township, was formed in 1710.

Six Mile Run Is Not a Race

Franklin Park, originally called Six Mile Run, formed first. In 1710, the Six Mile Run Reformed Church was established, the oldest congregation in Franklin Township. The road is also the site of Somerset County's first courthouse. The courthouse, built in 1716, burned down in 1737. After that the county seat was moved to Millstone.

Plaque commemorating the site of Somerset County's first courthouse 1716 to 1737.

Several taverns and inns were on King's Highway in Franklin Park, including Wood's Tavern and Gifford's Tavern during the American Revolution, says Brahms. By the late 19th century, Gifford's Tavern became Beekman's Hotel, which burned down in 1929. Other area businesses included Manley's Hotel, a wagon factory, blacksmith, hay scales, a wheelwright, icehouse, butcher, and a general store named Hullfish's Store. Miles Smith's whiskey distillery was located near where Ten Mile Run crosses Route 27, according to the Brahms book.

The separation between what's Franklin Park and what's Kendall Park isn't all that simple. I always thought that Kendall Park is on the east side of 27, part of South Brunswick and Middlesex County. Likewise, the west side of the road is Franklin Park because it's in Franklin Township, part of Somerset County. Earlier in the towns' histories, much of what was on the South Brunswick side was also considered Franklin Park, much like further south in Kingston, where part of the town lies in South Brunswick and part lies in Franklin Township.

Spirit of 1745

Precious little remains of the buildings that figured in the area's history.  Perhaps the oldest building is 3060 Highway 27, what's now a Barrood real estate office and law office. The house was built in 1745 and was once a tavern and inn. The building, though, is not on the register of historic landmarks because the owners added vinyl siding to the building to preserve it. 

Barrood offices in building originally constructed in 1745.

Today's Six Mile Run Church is the third structure since the congregation started. The latest replaced the building that burned down in 1879. Many of the town's early structures were eventually destroyed in fires.

In February 2009, Chauncey's Pub, considered a historic site, was accidentally demolished after an incorrect address was entered on the application to demolish the site. That building may have started as a barn on the Beekman property that survived the 1929 hotel fire, according to Brahms.

Site formerly occupied by Chauncey's Pub

The original Franklin Park Volunteer Fire Co. firehouse was itself destroyed by a fire in 1946. 

Kendall Park Constructed

Kendall Park didn't get its name until much more recently when Herbert Kendall, a builder,  a planned community of 1,500 houses between 1956 and 1961, according to the entry for Kendall Park in Wikipedia. The houses were built in three stages. The initial development was built between New Road and Sand Hill Road, the second Constable development was built south of New Road, and the last development, known as Greenbrook, was constructed last north of Sand Hill Road.

How do we honor the history of the place while being relevant to the Franklin Park and Kendall Park of today?
How about a microbrewery or whiskey distillery in the space now occupied by Stein Mart?

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.

Guess What's Most Important in Commercial Real Estate: Begins With an "L"

Small businesses are doing very well in the Kendall Park/Franklin Park, an attractive area because Route 27 is so busy, says Priya Rajan, real estate broker at Hershey Realty in Kendall Park. Like the real estate adage goes: "The three most important things are location, location and location."

Small businesses in Kendall Park and Franklin Park are doing "very, very well," says Priya Rajan.

Still, there are many vacancies in commercial properties, mostly a result of  the mismatch in the size of the spaces available for rent versus the size that prospective renters are looking to lease. The one property with the most vacancies is probably Franklin Towne Center, which will be exacerbated when Stein Mart leaves later this month.

Because the rental rates in the area are higher than other areas, businesses need to be careful to rent spaces that are the right size, Rajan says. Too big of a space increases expenses for the renter, but if the space is too small, it may limit its business growth.

A lot of the businesses in the area are very family-friendly-- learning centers, dance studios and restaurants, with a preponderance of  South Asian restaurants. "We need to get other cultures, ethnicities," she says. Already, there has been turnover in Indian restaurants. With so many restaurants in the area, some landlords are now hesitant to rent to restaurants, a notoriously difficult business to succeed in.

Leverage in negotiating leases or property sales mostly depends on location. But there are many other factors that influence negotiations, such as the mix of businesses within a strip mall. "You want to have neighboring tenants that are complementary."

Another factor is how much space the renter is looking to lease. For example, a business looking to rent 7,000 sf would have a lot more leverage in negotiating rent than one seeking 1,500 sf of space.

Financing can be difficult, Rajan says. Small Business Administration loans are not easy to obtain, especially if you don't have any collateral or property. When a restaurant is up for sale, "they're looking for cash buyers." Banks, as well, are reluctant to lend to small businesses unless they have a lot of collateral.

In terms of municipal regulations, it doesn't seem as though businesses view one town as being more business-friendly than the other. Some businesses, though, such as learning centers, have restrictions on where they operate, Rajan says.

Hershey Real Estate is also a landlord.

While most real estate brokers will deal with both commercial and residential real estate, Hershey Real Estate has a significant presence in commercial. Hershey actually owns its building on Route 27 in Kendall Park. So it's a landlord as well. Another realtor-landlord, Kuker & Kessler on the Franklin Park side of the street, deals mostly in residential real estate.

Weichert's commercial real estate business is mostly run from its Edison office, and Coldwell Banker has commercial real estate offices in Madison and Parsippany. Century 21 Abrams Hutchinson & Associates also does some commercial real estate business.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.