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The Bosses of Barbecue

Patrick Neely, his wife, and three brothers launched their barbecue empire with a $20,000 family loan.
 
Don't call the Neelys an overnight success. Sure, Patrick Neely and his wife, Gina, are working on the second season of their cooking show "Down Home with the Neelys," which had the highest-rated daytime debut in the history of the Food Network. And, yes, the Neelys count Al Roker, Jay Leno, Bobby Flay, Paula Deen, and Alicia Keys among their famous fans. But their current success was 20 years in the making, says Patrick Neely. "We thought at 20 years, we'd be doing OK as a company. But looking back, especially over the last year, it's been an amazing ride."
 
Patrick, Gina, and his three brothers-Tony, Mark, and Gaelin-oversee two barbecue restaurants in Memphis and another in Nashville, a thriving catering business, and arena concession outlets in Memphis' FedEx Forum. Their barbecue sauces and rubs are sold on their Web site and in supermarkets throughout Tennessee, a state known for its barbecue.
 
The Neely brothers came by their barbecue roots naturally. They worked at their uncle Jim Neely's Interstate Barbecue before Patrick and Tony opened their own restaurant straight out of college with $20,000 borrowed from their grandmother. "We didn't realize the risks we were taking," says Patrick. "The best thing we had going for us was our age, and the worst thing was our age." That first restaurant in Memphis was 2,000 square feet, had seating for 60 customers, and had a barbecue pit but no stove. "We couldn't even make our own sauce," Patrick recalls.
 
After a few years of hard work and reinvesting in the business, the Neelys were ready to expand into Nashville. They did their research, choosing a location based on traffic statistics. However, their location was a suburban commuter hub, far from downtown and commercial areas. After two years, Tony Neely finally knew the city well enough to relocate the restaurant. The Nashville experience taught the Neelys an important lesson about their customer base. "All of Nashville enjoys barbecue, but it's truly a lunch and tourists' cuisine," Patrick says. "We had to start from scratch and rebrand ourselves."
 
The Neelys take every opportunity to get their name out to the public, like the time they rearranged their schedules to drive across the state to participate as a last-minute replacement in a Food Network show in 2006. "When we got invited, I didn't want to go," Patrick says. "I complained the whole drive. But you've got to go out there and work hard. In business, you never know where the jewels will come from."
 
To share a Success InSight of your own, e-mail Greg Galdabini at ggaldabi@uschamber.com, phone 202-463-5563, or fax to 202-463-5707.

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