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Business Spotlight: A Slice of Small Business

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When Shawn Motlagh was in high school, he managed a pizza restaurant and aspired to one day own his own pizza place. That dream became reality in summer 2010, when he purchased the franchise rights to Rosati’s Pizza in Springfield.

The Fremont Center restaurant, 3049 S. Fremont Ave., dishes up Chicago-style deep-dish pizza, along with traditional thin crust and Rosati’s own double-dough crust.

Motlagh bought the Springfield Rosati’s operation from Chance Bradshaw on July 1, 2010, for $103,000. He used $25,000 in savings and obtained a $78,000 loan from Assemblies of God Credit Union to buy the rights to the Chicago-based franchise.

Motlagh, who was born in Columbia and lived in Arizona for a short time, moved to Springfield at age 13. While attending Parkview High School, he managed a Mazzio’s Pizza, and his entrepreneurial interests began to bud. But first, Motlagh followed in the footsteps of his grandfather and several uncles and enlisted in the Marine Corps days after graduation in 1996.

If it weren’t for an ankle injury, Motlagh says he most likely would have made a career out of the Marines. Through his military service, he built a solid work ethic that quickly parlayed into his role as restaurant owner. During his first year in business, Motlagh says he spent up to 100 hours a week at Rosati’s.

The work has panned out for Motlagh with 2011 store revenues of $490,000, up by at least $20,000 from 2010 sales.

Motlagh credits the location for keeping sales humming along for the pies that range from $12 to $32 for the 20-inch Rosati’s Monster with 11 toppings – all available for dine-in, carryout or delivery.

“We’re in a perfect spot,” Motlagh says of the Fremont Avenue and Battlefield Road intersection. “The (Department of Motor Vehicles) is right here. The mall is right here. Battlefield is a busy road. I do so much business with all the hospitals. I’m there every day.”

Motlagh employs eight full-time staff members, mostly family members, and one part-timer who handles the books. Through a golden rule approach, he has maintained a zero turnover rate.

“My guys have all been here since I bought the place,” Motlagh says. “They work their butts off. I take care of them, so they take care of me.”

Rosati’s dough is made from scratch, the veggies and meat toppings are cut fresh, and the crusts are hand-rolled and cooked without a pan. Motlagh says the Classic Combo, with sausage, pepperoni and some veggies, is the most popular specialty pizza, followed by the Monster.

When Motlagh was pursuing his acquisition, he ran into trouble obtaining a loan from a bank. He says his credit was good, but no bank wanted to take a chance on him during the economic times. He was turned down by several banks before turning to AGCU. After going over his business proposal with credit union President Paul Ebisch, Motlagh was granted the startup capital.

Ebisch says he was impressed with Motlagh’s hard work ethic and determination. Motlagh sufficiently addressed concerns of a first-time business owner, Ebisch says, such as the high rate of failure and how he was going to support his family through hard times.

Ebisch says there is much potential in southwest Missouri because entrepreneurs are born every day, but there are more ideas than money to fund them. Under current federal regulations, credit unions’ commercial lending is capped at 12.25 percent of assets, and several Springfield credit unions are nearing the cap.

“We have had to turn down multiple borrowers due to being at the regulatory limit,” Ebisch says via e-mail. “We refer them to local community banks and other credit unions.”

Motlagh maintains a relationship with the Rosati’s corporate headquarters in Elgin, Ill., northwest of Chicago. He paid the franchisor $15,000 up front and went through two weeks of training. He pays 5 percent franchise fees and corresponds with franchise officials at least monthly through e-mails and phone calls.

“They do it different than what I was used to, but they do it right,” Motlagh says. “I came in and tried their pizza and sure don’t plan on changing what they’re doing.”

Nationally, there are 171 Rosati’s locations in 11 states. According to Rosati’s President Marla Topliff, five stores have opened this year. The franchise office assists the stores in creating ads and setting up product distribution.

“Shawn’s business is doing well.” Topliff says. “He’s one of our better franchisees. It’s rare that we get any complaints on his store.”  

One of Motlagh’s future goals for his business is to move into a larger space. With only three small tables currently, he’d like to expand to seat up to 80 people and possibly operate in a stand-alone building.[[In-content Ad]]

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