Richard Falzone’s restaurant Off Vine was so severely damaged in a spectacular fire two years ago that he wondered if it could ever come back. He didn’t have much to build on.
But he had one asset that turned out to be huge: a list of his customers. He asked for their help.
In an extraordinary showing of loyalty to the Hollywood restaurant, the patrons came together to produce a Hollywood ending. The customers raised money by filling a theater for a benefit performance, paid to attend an elegant soiree and bought gift cards good for future meals at the restaurant – one customer spent $10,000 for a gift card.
In all, the patrons raised nearly $100,000. The restaurant is now open.
Falzone is still amazed that people put up time, reputations and money to help his small business survive.
“We said, ‘Wow,’ especially with the economy in such bad condition. It was unbelievable,” said Falzone.
The April 2008 fire consumed part of the upstairs of the 1908 Craftsman bungalow that houses Off Vine, which is at 6263 Leland Way, a narrow residential street one block from Sunset Boulevard and Vine Street. However, to reopen as a restaurant, the entire structure had to be rebuilt to current building codes, which require wheelchair access and a sprinkler system.
The problem: Fire insurance didn’t cover the cost of bringing the house up to code.
“Things got jiggy because we had to come up with more than $200,000 for code upgrades,” said Falzone. “The days turned into weeks, the weeks into months. Money started running out, but we were committed to this project so we held the fundraisers.”
His computer, which survived the fire, included a list of more than 1,000 customers with their names, phone numbers and e-mails. Falzone set up an office on the porch of the house and started working the list.
He soon was surprised by the number of patrons willing to help.
The first fundraiser was a benefit performance at Hollywood’s Blank Theatre. Falzone sold all 53 seats at $100 each.
Another fundraiser was a dinner at the Los Feliz home of loyal customers David Rambo, a producer on “CSI,” and Ted Heyck, an actor and attorney. Tony Hernandez, executive chef and a co-owner of Off Vine, catered the meal. Greg Fedderly, the third co-owner of Off Vine and a tenor at Los Angeles Opera, performed. About 60 people attended.
“It was the coolest thing I’ve ever been to,” said Michel Papadaki, chairman of the Hollywood Christmas Parade and a longtime Off Vine diner. “It was one of those parties that you read about in a magazine.”
At the party, Falzone sold gift cards redeemable for food at Off Vine when it reopened. Former diners bought cards with values from $2,500 up to $10,000. One bought the $10,000 card.
The events raised almost $100,000. That was crucial because the total cost to rebuild and remodel the house was nearly $750,000, and insurance covered only about $350,000. The co-owners were able to put up $300,000 from their savings and by taking on debt.
Dean Small, founder and principal at restaurant advisory Synergy Consulting Group in Santa Ana, said extreme customer loyalty is rare but can be found when people feel an emotional connection with the business.
“They feel they have roots in the restaurant,” Small explained. “If you have a thousand raving fans and can use social media to put your message out there, these people will step up. It can work if they love you.”
Second serving
Off Vine filled its 175-seat capacity for an official reopening dinner March 18.
Now the question is whether it can survive as the restaurant sector continues to slog along in one the worst slumps in history.
Small said the food service business is “as challenging as it has ever been.”
Many restaurants have chopped prices, but Off Vine reopened with the same prices as in 2008. So far, it doesn’t seem to be an issue with customers.
“We are lucky to have our loyal customers coming back,” said Falzone. “I know everybody in the neighborhood, at the studios, Nielsen Co. and the House of Blues. We are lucky to have that fan base.”
Papadaki, the loyal customer, said that before the fire, Off Vine catered to two types of diners. During the day, they were mostly business people or production types from the nearby TV and film studios. At dinnertime, the customer base switched to couples and people attending the ArcLight and Pantages theaters, both within walking distance.
But in the two years since the restaurant closed, hundreds of condominiums have opened in the neighborhood, bringing a whole new crowd.
“I’ve got to believe it’s going to be a gold mine,” Papadaki said.
For now, Falzone is relieved to be serving California American meals again. As a board member of both the Hollywood Chamber of Commerce and the Sunset & Vine Business Improvement District, he is working with those organizations to plan his next event, a ribbon-cutting ceremony in early May.
“I’m proud to say we begged, stole and borrowed to open this fine restaurant,” he told the Business Journal. “We have debt, but we are back on our feet and I couldn’t be happier.
“As I tell people, it’s only money.”
