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| Charlie Collazo and his wife Heather at The Institute Bar. |
Sitting at Woody’s at 10 o’clock on a weekday morning was a
new experience for me (Sarah Punderson) as I sipped a piping hot Tazo tea waiting for my subject
to arrive. But for Collazo, this was his jam.
SP: How did you get your start as a small business owner?
CC: My true passion is designing and building. I got my start at about three-years old when I helped my dad remodel our house. I’ve always been self-taught. I’m very much a hands-on learner and could never stand school. I dropped out of high school and got my GED and have worked since I was 13. My mom would always say, one day you’re going to regret not staying in school, time goes by so fast. Well she was right about one thing- time does go by quickly. I have no regrets about school, I think what’s important is what I’ve done with the rest of my life.
CC: My true passion is designing and building. I got my start at about three-years old when I helped my dad remodel our house. I’ve always been self-taught. I’m very much a hands-on learner and could never stand school. I dropped out of high school and got my GED and have worked since I was 13. My mom would always say, one day you’re going to regret not staying in school, time goes by so fast. Well she was right about one thing- time does go by quickly. I have no regrets about school, I think what’s important is what I’ve done with the rest of my life.
SP: What was your first business?
CC: I started a side business 17 years ago in which I designed and installed light systems for nightclubs in Philly. It was a hobby, and I did it on the weekends while working full time at Home Depot. The first club I did was ‘Zero’ which is now Fluid. I’m a licensed electrician, so that was also helpful with these projects. From there I went onto work lighting for ‘The Bank’, one of Stephen Starr’s first nightclubs, then I got involved with the Weiss brothers’ 2-4 Club (now Voyeur) and it all just rolled from there. The Weiss brothers also own Transit, the former martini bar Bump, and Woody’s. They have two new places in San Diego, California and I’m going out there soon to help them with those projects. After working my way up at Home Depot, I took an offer from Staples and stayed less than a year before opening The Institute.
CC: I started a side business 17 years ago in which I designed and installed light systems for nightclubs in Philly. It was a hobby, and I did it on the weekends while working full time at Home Depot. The first club I did was ‘Zero’ which is now Fluid. I’m a licensed electrician, so that was also helpful with these projects. From there I went onto work lighting for ‘The Bank’, one of Stephen Starr’s first nightclubs, then I got involved with the Weiss brothers’ 2-4 Club (now Voyeur) and it all just rolled from there. The Weiss brothers also own Transit, the former martini bar Bump, and Woody’s. They have two new places in San Diego, California and I’m going out there soon to help them with those projects. After working my way up at Home Depot, I took an offer from Staples and stayed less than a year before opening The Institute.
SP: Can you tell me
about the process of buying and renovating The Institute?
CC: We started the process of acquiring The Institute in December 2007. It was formerly called Jesse’s Tender Line Café (after a neighborhood gang). We acquired it in May, 2008 and shut it down for one month to gut and redo the interior. We decided to buy the property, rather than rent, like many bars/restaurants in the city do. That month, I lived there. From 7 am-midnight, myself, my dad and any family/friends that had construction skills where there around the clock working to get it open. From 2008 to the present, The Institute has evolved. We eventually put in a staircase and redid the upstairs.
CC: We started the process of acquiring The Institute in December 2007. It was formerly called Jesse’s Tender Line Café (after a neighborhood gang). We acquired it in May, 2008 and shut it down for one month to gut and redo the interior. We decided to buy the property, rather than rent, like many bars/restaurants in the city do. That month, I lived there. From 7 am-midnight, myself, my dad and any family/friends that had construction skills where there around the clock working to get it open. From 2008 to the present, The Institute has evolved. We eventually put in a staircase and redid the upstairs.
SP: Let’s talk finances. The economy was in its downturn
when you were raising capital for this new business endeavor. How did you raise
the finances needed?
CC: Raising the financial capital needed was the hardest part of this entire process. I took out over $200,000 of equity from my house and asked several family members and friends for short term loans. I was lucky in that respect that I had the resources available to me. Bank loans don’t exist right now for bars, it’s one of the riskiest business endeavors to take on. Deciding to buy the property at The Institute was a whole different beast rather than renting, but I’m betting that it’s the smarter decision. We also took on a partner who owns 15 percent of the business. The short term is hell, but the long term could be golden.
CC: Raising the financial capital needed was the hardest part of this entire process. I took out over $200,000 of equity from my house and asked several family members and friends for short term loans. I was lucky in that respect that I had the resources available to me. Bank loans don’t exist right now for bars, it’s one of the riskiest business endeavors to take on. Deciding to buy the property at The Institute was a whole different beast rather than renting, but I’m betting that it’s the smarter decision. We also took on a partner who owns 15 percent of the business. The short term is hell, but the long term could be golden.
SP: What are your future plans for the bar?
CC: The lot next door was acquired after the original purchase of our building, and we’d like to double the bar’s size to include an outdoor beer garden.
CC: The lot next door was acquired after the original purchase of our building, and we’d like to double the bar’s size to include an outdoor beer garden.
SP: Who chooses the beer list, you or Heather?
CC: It’s a joint effort. We don’t argue over beers because we both realize The Institute’s customers don’t mind paying for good to expensive beer as long as the pricier suds have a high alcohol by volume (ABV). Heather loves Belgian beers. I know when I drink a $12 Belgian beer, it’s pretty good, but it’s not like balloons are going to fall out of the ceiling. We know our customers; they like to drink quality beer at reasonable prices. We leave the fancier stuff to places like Monks, Eulogy and Belgian Café.
CC: It’s a joint effort. We don’t argue over beers because we both realize The Institute’s customers don’t mind paying for good to expensive beer as long as the pricier suds have a high alcohol by volume (ABV). Heather loves Belgian beers. I know when I drink a $12 Belgian beer, it’s pretty good, but it’s not like balloons are going to fall out of the ceiling. We know our customers; they like to drink quality beer at reasonable prices. We leave the fancier stuff to places like Monks, Eulogy and Belgian Café.
SP: How do you and Heather divide the duties of running the
bar?
CC: Starting up a bar can be insanely stressful, and it’s a complete juggling act every day. Heather handles the kitchen, menus, stuff like that. We work together on event planning and like I mentioned beer selection. I’m fortunate to be able to work with my wife and see her throughout the week. We have five kids who range in age from 4 to 13 years-old. We live close enough to the bar that we can run back and forth; otherwise it would be much more difficult.
CC: Starting up a bar can be insanely stressful, and it’s a complete juggling act every day. Heather handles the kitchen, menus, stuff like that. We work together on event planning and like I mentioned beer selection. I’m fortunate to be able to work with my wife and see her throughout the week. We have five kids who range in age from 4 to 13 years-old. We live close enough to the bar that we can run back and forth; otherwise it would be much more difficult.
SP: What are some of the struggles you continue to face as
you enter your fourth year in the bar business?
CC: In just four years, my learning curve has been tremendous. Paying bills is a daily struggle. Luckily, my support system can always be counted on if I’m in a tight spot. When we were doing the kitchen at the bar, we were in a pinch. My mom came through. Heather and I are frugal people; we still drive the same minivan we had before opening the bar. Eventually, this will all be for the kids.
CC: In just four years, my learning curve has been tremendous. Paying bills is a daily struggle. Luckily, my support system can always be counted on if I’m in a tight spot. When we were doing the kitchen at the bar, we were in a pinch. My mom came through. Heather and I are frugal people; we still drive the same minivan we had before opening the bar. Eventually, this will all be for the kids.
SP: How is it to work with other owners in the Philly bar
business?
CC: The cool thing about the business is networking. We’ve made good friends in the industry. The Craft Beer Express (CBX) has allowed us to meet many of the other owners and we learn from them and use it as a network. Although on paper I guess they’re my competitors, I don’t view it like that because patrons don’t want to go to the same place every night. We all talk the other places up and they do the same for us.
CC: The cool thing about the business is networking. We’ve made good friends in the industry. The Craft Beer Express (CBX) has allowed us to meet many of the other owners and we learn from them and use it as a network. Although on paper I guess they’re my competitors, I don’t view it like that because patrons don’t want to go to the same place every night. We all talk the other places up and they do the same for us.
SP: Speaking of other bars, where do you like to go when you
leave your fine establishment?
CC: I like to dine at Brauhaus Schmitz or Devil’s Den. Woody’s for drinking and Kraftwork has a great brunch. Pub on Passyunk East (P.O.P.E) is a good spot to drink in South Philly.
CC: I like to dine at Brauhaus Schmitz or Devil’s Den. Woody’s for drinking and Kraftwork has a great brunch. Pub on Passyunk East (P.O.P.E) is a good spot to drink in South Philly.
SP: Any advice for those interested in getting into the biz?
CC: There are a lot of assholes. They step on a lot of people in the process. I try to not be like that, I’ve been on both sides of the bar/restaurant industry as an employee and an employer. Don’t be dismissive-everyone has ideas. Be respectful and be yourself as you develop in the business world because a lot of people will remember that as you move up. Your business is a reflection of you. My mantra for working in this business can be summed up by a Captain America quote: “Not just a soldier, but a good man.”
CC: There are a lot of assholes. They step on a lot of people in the process. I try to not be like that, I’ve been on both sides of the bar/restaurant industry as an employee and an employer. Don’t be dismissive-everyone has ideas. Be respectful and be yourself as you develop in the business world because a lot of people will remember that as you move up. Your business is a reflection of you. My mantra for working in this business can be summed up by a Captain America quote: “Not just a soldier, but a good man.”
SP: How have Facebook, Twitter and Yelp affected word
spreading about The Institute?
CC: Word of mouth is more important now that ever. Now everyone is a critic (both good and bad) and the whole world knows.
CC: Word of mouth is more important now that ever. Now everyone is a critic (both good and bad) and the whole world knows.
SP: This might make you chuckle, but how is your work-life
balance since opening the bar?
CC: (Laughing) you’re right. We haven’t taken a real vacation in a decade. Heather and I had plans to take a vacation with some other bar-owning friends of ours; we were going to rent a Winnebago and drive cross-country, hitting up breweries along the way. That fell through, and now there’s not an end in sight. My side business with the Weiss brothers is keeping me busy on top of my work at The Institute, but maybe I’ll get the family to the shore this summer.
CC: (Laughing) you’re right. We haven’t taken a real vacation in a decade. Heather and I had plans to take a vacation with some other bar-owning friends of ours; we were going to rent a Winnebago and drive cross-country, hitting up breweries along the way. That fell through, and now there’s not an end in sight. My side business with the Weiss brothers is keeping me busy on top of my work at The Institute, but maybe I’ll get the family to the shore this summer.
SP: So, is it all worth it?
CC: If you’d have asked me a year ago, I think I would have said oh no! But now that we’re finally getting over the hump and starting to see The Promised Land, I’d say yes. This business is not for the weak-spirited. It’s super stressful and there’s always a problem. Even when you get to the level of established and comfortable, there are still problems. Dealing with stress is important; I don’t think you can micromanage once your business gets to a certain level. You just have to learn how to trust your employees.
SP: Do you have any mentors in the business?
CC: Within the Philadelphia scene, I like Jose Garces a lot. He’s very successful and I think he does it the right way. He’s got a great crew and he’s a standup businessman.
SP: I have to ask you, where did the bar name come from?
CC: We were brainstorming for names, and nothing good was coming out of it. Then one day, we were at the Franklin Institute with the kids, which we have a membership to and we’re at quite frequently. It’s also where Heather and I had our first date. I think I said, “Why don’t we just name it The Institute,” and Heather thought that was pretty good. It was a done deal.
CC: If you’d have asked me a year ago, I think I would have said oh no! But now that we’re finally getting over the hump and starting to see The Promised Land, I’d say yes. This business is not for the weak-spirited. It’s super stressful and there’s always a problem. Even when you get to the level of established and comfortable, there are still problems. Dealing with stress is important; I don’t think you can micromanage once your business gets to a certain level. You just have to learn how to trust your employees.
SP: Do you have any mentors in the business?
CC: Within the Philadelphia scene, I like Jose Garces a lot. He’s very successful and I think he does it the right way. He’s got a great crew and he’s a standup businessman.
SP: I have to ask you, where did the bar name come from?
CC: We were brainstorming for names, and nothing good was coming out of it. Then one day, we were at the Franklin Institute with the kids, which we have a membership to and we’re at quite frequently. It’s also where Heather and I had our first date. I think I said, “Why don’t we just name it The Institute,” and Heather thought that was pretty good. It was a done deal.
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