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Press Release
May 1, 2002
President Bush and SBA Administrator Hector Barreto congratulate National
Small Business winner - Thanh Lam of Hawaii, a former refugee from Vietnam.
http://smallbusinesssuccess.sba.gov/hotelpics/4winners2002_Pres.html
When he fled Vietnam in 1979 in a frail boat with 186 others, bound over the
open sea for a refugee camp in Malaysia, there was virtually no room to sit down
and almost nothing to eat for Thanh Quoc Lam.
Today, however, Thanh is surrounded by food.
At the age of 43, he's a successful retailer of Vietnamese-style sandwiches,
pastries and noodle dishes, and a wholesaler of baked goods and deli sandwiches
to airlines, food caterers, hotels, supermarkets and restaurants throughout
Hawaii. Food critics say Thanh makes the best French bread in Honolulu.
With his entrepreneurial skills, his business conduct, his success and his
unselfish support of his employees, the story of Thanh is indeed remarkable.
When he arrived in the United States from the Malaysian refugee camp in 1979,
Thanh had little money and only a minimal knowledge of English. With the help of
the Red Cross, Thanh relocated to San Jose and held a series of low-paying jobs
before starting his own business organizing overnight gambling trips to Reno.
For $27 each, passengers received round-trip transportation, a night in a hotel,
some gaming chips and sandwiches Thanh made himself.
His business grew to the point where Thanh didn't have time to make sandwiches.
Instead, he purchased them from the Ba-Le sandwich shop owned by another
Vietnamese immigrant, Le Vo. When competition in the Reno junket businesses
stiffened, Thanh decided to look for other opportunities. He discussed them with
Vo, who had been encouraged by his customers to open another shop in Honolulu.
Vo wanted Thanh to be his business partner in the new venture and the two
traveled to Hawaii. Shortly after their arrival to open their Ba-Le ("Ba-Le"
means Paris in Vietnamese) sandwich shop, Thanh and Vo were confronted with an
unexpected development that forced them to think and act swiftly * a decision
that would determine the course of their business in Hawaii.
The two made a verbal agreement with the owner of a grocery store in the
Chinatown section of downtown Honolulu to lease the property for $20,000. When
they showed up a week later to sign the papers, the owner raised the price to
$40,000. Vo didn't like the new terms and wanted to instead purchase a
Vietnamese restaurant in midtown Honolulu for $35,000. Thanh was skeptical about
the restaurant and its location. He noticed that Vietnamese who traveled to
Hawaii were usually drawn to the Chinatown area of Honolulu. Thanh believed, at
least initially, that it would be better to target the Vietnamese-American
market. Even at the inflated price, the partners decided to lease the Chinatown
grocery store.
The first Ba-Le sandwich shop opened in December 1984. It was so popular that
local suppliers could not keep up with his demand for fresh-baked French bread.
Six months later, Thanh was baking and selling his own bread. In 1986, Thanh
opened a second Ba-Le shop and bought out Vo's interest in the business. That
same year, Thanh realized that his expanding bakery operations required new and
better equipment, specifically a $17,000 French-made Pavailler automated oven
capable of producing almost 500 loaves an hour. After being turned down by two
banks, Thanh secured an $80,000 direct loan from the U.S. Small Business
Administration which allowed him to pay off a prior business loan and finance
his new oven. In March 1986, the same year he became a U.S. citizen, Thanh
became the sole owner of Ba-Le.
The terms of Thanh's SBA loan required full payment within seven years. He paid
the loan off in two years. Respectful of the financing sources, Thanh worked
many long hours because he was determined to pay off the loan as quickly as
possible.
In 1987, a restaurant critic at Honolulu Magazine wrote, "The best French bread
in Honolulu is baked by a Vietnamese in Chinatown." That review opened new
markets for Thanh, who added on average at least one new outlet per year
throughout the 1980s and 1990s. By the new millennium, shops had been opened on
Maui and the Big Island of Hawaii, despite a soft economy.
Meanwhile, Thanh's bakery operation also grew. In 1996, when he began offering
catering services, four established bakeries were ahead of him. That year, Thanh
moved his headquarters and bakery to a 15,000 square-foot warehouse and expanded
his bakery operations by paying meticulous attention to the quality of his
products and working long hours to keep his customers happy. By 1999, Thanh was
number one, increasing his revenues 1.5 times over the previous year. Satisfied
customers included the Hilton and Sheraton hotel chains, as well as such
airlines as Continental, Japan Airlines, Delta, American, United, China Airlines
and Air New Zealand.
In the late 1990s, Thanh's business really took off when he secured a lucrative
contract to produce fresh pizza dough for Papa John's Pizza expansion in Hawaii.
Thanh now delivers 40 tons of pizza dough every month to the pizza chain.
Between 1998 and 2000 alone, Ba-Le's gross revenues rose from $2.6 million to
$4.8 million. Earnings for 2001 exceeded $5 million. Since opening his first
sandwich shop in 1984 with four employees, Thanh has expanded to 22 outlets,
each of which employs between two and 10 people, depending on the location. At
his headquarters and bakery plant, he employs 70 people. Over the past three
years, he's increased his staff by 15 employees. Thanh has unselfishly shared
his success with others. He currently owns only one of his 22 sandwich shops,
rewarding his loyal employees with opportunities to own and operate their own
businesses.
Thanh finds time to participate in community affairs. He donates his services
and products to various temple, church and community groups and is also a
regular contributor to the American Red Cross. For his employees, Thanh offers
every possible opportunity to succeed. He starts them at a rate higher than
minimum wage. He provides zero-interest financing on loans to franchisees. He
also stresses education, with an emphasis on learning the English language. To
this end, he offers flexible working hours to encourage employees to attend
classes.
For the future, Thanh is expanding his sandwich and bakery business to Japan and
China. Two Ba-Le French Vietnamese restaurant cafes have opened in Tokyo and
Nagoya. Thanh is grooming his two sons to take over the international operations
after they complete their schooling.
In Hawaii, Thanh plans to grow his business further by expanding his kitchen at
the bakery to meet USDA requirements, allowing him to supply meats and other
prepared foods which he's not been able to previously offer. Ever the vigilant
entrepreneur, Thanh is always looking for growth opportunities.
http://app1.sba.gov/sbsuccess/2002/dsp_winner_info.cfm?Bus_ID=12
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