Fat Angelo's proprietor Andy Chworowsky says Hong Kong offers a great retail market for his restaurant chain

In a city renowned as an international gourmet paradise, Mr Chworowsky and two business partners had identified what they saw as "a gaping hole" in the market - that of mid-scale, family-style Italian cuisine. The diners of Hong Kong agreed. When the first Fat Angelo's opened in Wanchai in May 1998 it was an instant success, leading to four more restaurants in quick succession, and a sixth under planning.

Hong Kong's dining out culture makes an ideal starting point for restaurateurs, and with the economy now in full swing and tourists arriving in record numbers, the entertainment scene is vibrant and alive. But for all these positives, Mr Chworowsky stressed it is essential to have a sound business plan.

In his case, this meant returning to study to obtain a degree in hospitality administration at the Hotel School at Cornell, New York.

Solid partnership

Another key factor is having a solid business partnership. While one of the original three partners has since sold his share, the other, Canadian chartered accountant Dale Willets, is still very much involved and the two complement each other.

"Dale looks after our administrative and financial aspects, as well as holding co-authority on all the major decisions," Mr Chworowsky said. "It's a good 'marriage', as I am better at the qualitative things while Dale has the quantitative side covered."

The next step is identifying your targeted clientele. Hong Kong has always been a strong market for restaurants in general, Mr Chworowsky said, but when it came to Italian restaurants the choice was limited to either the very low, or very high end.

"No-one was providing high vale, mid-scale Italian food," he said. "That's where we positioned ourselves. We're fancy enough to be an "occasion" place for those on a budget, but inexpensive enough to be an everyday place for those less impecunious."

Staying ahead in the restaurant business means being insulated from factors such as economic fluctuations and rising prices. Fat Angelo's achieves this by holding true to the original vision, while constantly adapting to make sure it meets the needs of guests.

Study the market

"The menu certainly undergoes constant refinements and changes, and we have adjusted portion sizes and pricing strategies to closer match what people are looking for," Mr Chworowsky said. "You can never be afraid to study your market and adapt and change when necessary. It's nice to think you can stick to your guns and always keep things the same, but things just don't work that way - unless you want to end up with an out-dated and empty restaurant."

A restaurateur meets these challenges by offering different value propositions, he continued. "This isn't to say that you raise prices in line with the economy. Rather, if people have more money to spend, you give them more high-quality choices. So we will keep our prices essentially the same but start adding more expensive menu items, while still keeping the same high value they are used to."

The partners are currently building their sixth Fat Angelo's in the Panda Hotel shopping arcade, Tsuen Wan, and have flagged more branches in the future. Mr Chworowsky said Hong Kong offers restaurateurs "a great retail market", with an incredible concentration of people who are culturally open to fresh ideas. Where else could you get 750,000 to one million people within a five minute radius of a single (Tsim Sha Tsui) restaurant, he says.

"We still believe Hong Kong has more potential for us. At some point, we will venture further afield and China is an obvious choice. But with a business as capital intensive as this, we would probably need to have a pretty heavy-hitting partner to take us that next step."

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