Opportunity in this industry is all about giving low-carbers
more choices, and that's exactly what Pure Foods LLC is
doing with the first-ever low-carb restaurant in the United States,
in addition to its retail stores, food product line and catering
divisions. The company projects $10 million in combined sales for
2004.
While vacationing in Europe in September 2003, friends Stephen
Bikoff, 35, and Brad Saltzman, 36, talked about going on a low-carb
diet when they returned to the States to lose some of the weight
the rich European food had added. When Bikoff, who had already
tried low-carb dieting, lamented about how long it took to receive
low-carb products ordered online and the lack of variety and
availability elsewhere, they decided to start their own low-carb
retail store. Saltzman shared the idea with Romina Kiryakous, 40,
and Linda Mihka, 37--he was already running a valet parking
business with the two--and they wanted in.
In December 2003, Pure Foods Low Carb Market launched, with
three stores open and another seven in the works for this year.
While planning the retail store, the partners realized that there
was still a lack of variety and good-tasting low-carb food on the
market; so they created a line of food products (including frozen
meals) that's carried not only in their own stores, but also in
other specialty and grocery stores. Pure Foods, which is based in
Beverly Hills, California, and does catering in the local Los
Angeles area, has discussed wholesaling some of its cheesecakes to
a restaurant chain and has been approached by several others. Pure
Foods Low Carb Cafe is now open in Beverly Hills, offering low-carb
treats like BBQ chicken pizza and an ice cream and hot fudge-topped
brownie. They hope to open eight or nine more locations before the
end of the year and plan to franchise their cafe and low-carb
market concepts.
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To succeed as well as these entrepreneurs have, Rotbart says the
way to go is to veer off from the Fortune 500 radar. "To
create a product that competes head-to-head with [big companies] is
folly for the entrepreneur," he advises.
Valen concurs and offers an "if you can't beat 'em,
join 'em" alternative: "If entrepreneurs are willing
to invest in the capital, plants, R&D and manufacturing, they
could help a larger brand," revealing that many of the Fortune
500 companies are simply scared or hesitant to enter the market
themselves.
If you want to go it alone, Valen says another area ripe with
opportunity is the many ancillary services surrounding the
industry, like business development, financing, and consulting
firms such as his that have benefited from low-carb businesses. And
Rotbart says the ethnic low-carb food niche-like Asian, Spanish, or
even kosher or organic low-carb fare-is still an open area.
Finally, he says, ultra low-carb (0 to 2 grams of carbs) and
gourmet items will give entrepreneurs who can outpace slower-moving
corporations an edge.
The Next Wave
Low-carb food regimes could be the new standard of
dieting, but looking back at history, there's always something
new coming along.
Just ask Jay Robb, who's quite possibly paving the way for
other entrepreneurs to benefit from a potential low-carb backlash
and burnout. The certified clinical nutritionist, fitness trainer
and founder of Jay Robb Enterprises Inc. in Carlsbad,
California, contends that the secret to real weight loss lies not
in low-carb eating, but in a combination of low- and higher-carb
intake. His book, The Fat Burning Diet:
Accessing Unlimited Energy for a Lifetime (Loving Health
Publications), details his program, which relies on glycogen
management rather than net carbs. He predicts low-carb dieters will
soon look to diets like his when they give up on the restrictive
lifestyle.
Robb may represent the evolution of low-carb businesses.
Offering workshops, information and supplements that promise
dieters weight loss without the constant limitations, Robb projects
2004 sales of $4 million.
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