As the old adage goes, it’s easy to make a million dollars in the restaurant business: you just need to start with $2 million.
Nico Ortiz, owner of Turtle Mountain Brewing Company, confirms that succeeding in the restaurant and brewing business is not as easy as serving your grandma’s famous enchilada recipe, brewing a gold medal IPA, or being a “people person.” In fact, the statistics are pretty grim: 80 out of 100 restaurant starts typically fail within the first five years, according to the National Restaurant Association. As they enter their 24th year of operation, Turtle Mountain Brewing Company has beaten those odds handily. They boast two Rio Rancho locations and an army of enthusiasts that made sure the venture not only survived, but thrived during the pandemic.
Work to your strengths
“In my opinion, you have to have a certain amount of humility to do this well,” said Ortiz. “It’s critical to know what you don’t know. When I started Turtle Mountain, I knew very little about the restaurant/brewery business, so I hired a head brewer, a kitchen manager and a front-of-house manager who helped me fill in the gaps of my knowledge.”
What Ortiz does do very well is manage the operation. While attending the Kellogg School of Management at Northwestern University, he tried the corporate route as a summer intern at American Express, but soon learned that being his own boss was a much better path. “I figured out pretty quickly that I needed to create my own job and my own rules,” he says with a laugh. Ortiz inherited a bit of money after his father’s passing, and in 1999 decided to open a brewpub in what was then a growing Albuquerque bedroom community called Rio Rancho.
Expensive life lessons
Ortiz acknowledges that his biggest mistakes occurred when he allowed emotions to rule over prudent financial decisions. In 2003, he opened up a taproom with a tiny little kitchen in Sandia Park, New Mexico.
“I really liked Sandia Park and thought it would be a good location. What I didn’t figure out until we were in operation mode was that Sandia Park was a long, long drive from Rio Rancho — there was just no easy way to get there from my other location.”
After two years, he made the decision to close the location. In 2013 he tried again — this time opening up a 2,500-square-foot restaurant in the Mariposa subdivision. This time, he was a victim of timing. “Unfortunately, right after we opened, Mariposa’s main investor pulled out and the community literally closed down overnight.” Even an educated risk, he says, can be very expensive.
Third time’s a charm
The company’s third attempt at growth has proven to be very successful —even with opening at the tail end of the pandemic. Applying all of the lessons about location, staffing and more, Ortiz opened a second brewpub in the Enchanted Hills neighborhood of Rio Rancho. This success has been aided by his long-time staff and customers, which he refers to as the Turtle Mountain Family.
“We’ve celebrated weddings, anniversaries and even end-of-life celebrations at our restaurants. Now we are hiring the children of our first employees.” Ortiz says he is most proud of the fact that working at Turtle Mountain has helped many people buy cars, purchase homes, start families and send their children to college.
“We’ve had a positive impact in Rio Rancho and are part of the tapestry of the community. We’re a refuge and a fixture in many people’s lives.”
Pay attention to the bad news
While it’s always fun to celebrate success in any industry, according to Ortiz, it’s the bad news that should be on your read-first list. “I scan as many restaurant and brewing industry emails as I can. My biggest teacher is other people’s experiences. I think it is important to understand why businesses fail. Learning from other people’s mistakes can help you avoid making them yourself,” he says.
Find a financial institution that is there for you
“I was banking with a company for 20 years, and when I really needed them they were not there for me. Luckily, I still had a relationship with Casey Bresnahan and Andrew Jaynes, who had moved to Sandia Laboratory Federal Credit Union. They quickly helped with a refinance of the Turtle Mountain building, which was critical to my business.”
For Ortiz, moving all of his accounts to a credit union has come with the side benefit of saving a lot of money. “I was paying almost $200 per month for a business checking account. With SLFCU, I get dividend deposits every month, so I am being paid to have my accounts at SLFCU. I will never go back to the for-profit banking world again.”
Interested in a financial institution where your money will work smarter? At Sandia Laboratory Federal Credit Union slfcu.org, we’re local, and have money to lend. We’d be pleased to be a part of your story. Contact Casey Bresnahan for personalized, expert service. CBresnahan@slfcu.org.
