Key Idea #1: Be Your Market Wing, Ed and Mingo love surfing and the business they started sprung out of this love and their life experiences.

Topic for Discussion: What do we mean when we call Wahoo's target market, "the boarding tribe?"

Answer: Merriam-Webster says, a tribe is, "A social group comprising numerous families, clans, or generations together with slaves, dependents, or adopted strangers; a group of persons having a common character, occupation, or interest; a category of taxonomic classification ranking below a subfamily; also, a natural group irrespective of taxonomic rank." This largely male group (though the females are coming on strong) is comprised of surfers, skateboarders and snowboarders. This is a "tribe" and that lifts them into a special category of target markets.

Chuck Allen, former surfing coach at Huntington Beach High School and founder of the national Scholastic Surfing Association and the USA Snowboard Association, comments, "You have to be a heck of an athlete to surf; it is very difficult." We saw surfers greeting Chuck Allen with a special hand shake while saying, "I love you Brother." Now that is tribal bonding. How many men do you know who walk around speaking the words, "I love you," to each other?

The surfer is a bold, brave loner. Matt George, editor of Surfing Magazine says, "The US has given the world two icons -- the cowboy and the surfer. They're one in the same. There's a total dedication to adventure." Selling to this tribe requires membership. Wing says, "There are no successful products or services sold to surfers that were not either invented or marketed by surfers."

Surfing is a global sport but the iconic roots are found in Southern California. It was the perfect place for surfers to start a surfer food joint. And the extension to skateboarders and snowboarders is natural. The boys and men (and girls and women) who ride the boards of all kinds are very much alike. They are independent, adventure-seeking and alone when they are doing their sport. One of the major draws of Wahoo's is it is a place to gather with other tribe members. The surfer is alone a lot but eventually is ready to be social.

What do you think? What does it mean to be in a tribe? Could your target market be described as a tribe? If not, why not? If yes, what insights do you gain from thinking of them as a tribe? Would they like to see each other more often? Can you provide bonding experiences for them that others could not?

Key Idea #2: Do What You Know The parents of Wing, Ed and Mingo are entrepreneurs themselves. They know how tough it can be. They hoped and expected their sons would graduate from college and go to work for big American companies.

They all achieved their parent's dreams. They graduated from college and got jobs in big American companies, but they just didn't feel good wearing those suits. The parents were also hopeful that someday at least one of their sons would take over their successful Chinese restaurant located on the charming Balboa Island (Newport Beach, California). We learned that the younger generation felt that if they took over their parent's business, the current employees would not respect them.

This was great insight on the part of Wing, Ed and Mingo.

The boys did not want what their parents had built from scratch because they did not think they deserved it. They believed they should build their vision from scratch, too.

Topic for Discussion: How did growing up as, "help" in their parent's restaurant prepare the boys to start their own food establishment?

Answer: First and foremost, they knew the work would be 24x7 at the beginning. They knew it would be hard with long hours which is one of the reasons they envisioned very small places rather than the many-tabled, rather upscale place their parents own. If you have never worked in a small business, or been around the owner of a small business, it is impossible to imagine the number of hours it takes to get a company off the ground and to keep it growing.

Second, they had enormous confidence. They saw no obstacles to cooking something that surfers would eat. They knew what they liked personally to eat after surfing for hours so they just pleased themselves. Of course, the driving item on the menu was to be fish tacos like they enjoyed so much on surfing trips to Mexico. At the time of Wahoo's launch, fish tacos were hard to find in Southern California!

Third, they knew the suppliers. Their parents cook commercially nearby. They may even have been able to order on credit because of their parent's fine reputation.

Fourth, they knew how to find and keep good employees.

Fifth, they knew as much about what they did not want as what they wanted.

What do you think? Are you learning everyday? Are you applying new lessons learned to your business? What do you need to learn to grow your business? What new life experiences would fuel your business growth? Should you take a trip? Climb a mountain? Learn to surf?

Key Idea #3: Refine a Trend In the past 30 years this country has been obsessed with nutrition, health, diets and high performance foods. There is tremendous interest in what is healthy and what is not healthy. Strangely, research in 2004 showed that being obese is probably worse for a person's health than smoking! Wow. Does that means that the people who gained weight when they quit smoking should go back to smoking? Even though Americans are getting fatter every year, there are segments of the population who are leaner and more interested in fitness than ever, especially the athletes and the wanna-bes.

Topic for Discussion: What do surfers want to eat?

Answer: Exactly what Wahoo's serves. They want clean food, piled high and priced low. While big food chains would probably never guess that young men would be concerned about nutrition, it is almost uncool to eat greasy food in front of other surfers. Clean food is food that feels clean in your mouth. It is not slick with oil or fat. The beans at Wahoo's for example, have no lard while traditional Mexican fare is loaded with lard. The fish tacos are topped with vitamin-filled cabbage rather than vitamin-vacuous lettuce.

Wahoo's tribe is made up of the 18 to 24-year old male which happens to be the biggest consumer of commercially prepared food in the US, according to the National Restaurant Association. They eat out 5.9 times per week.

This is THE reason Wahoo's grew faster than the young men dreamed that it would. It was an accident that they decided to launch a business that would serve up the perfect product, to the perfect customer from a perfect location. They refined a trend by coming up with tasty, healthy food for their own tribe.

What do you think? Was this luck? What can you do to make luck for yourself?

Key Idea #4: Recognize Your Weaknesses Quickly The brothers learned much from their parents and they thought that they would only need and want what their parents had. What did their parents have? One location. The brothers thought they would grow to three locations. They could share all the business infrastructure and each run one location. This is the owner-operated model they had learned from their parents, right?

Topic for Discussion: What has happened?

Answer: First, they were embraced quickly by their tribe/market. They had people loving the Wahoo's experience on day one. They added locations but then were stuck because they had the one-owner-one-location idea in mind and they had no experience to grow past that stage. Steve Karfaridis magically appears. He loves the taste of the food and the simplicity of the operation. He can see that the joint has growth potential and he knew how to grow it because he had big chain experience.

As Steve began to run a location, the brothers realized that he had talents and experience that none of them had. They decided to recognize their weaknesses and take Steve in as a full partner. This is tricky and it has worked for Wahoo's. You do have to be sure that the person you bring in has the same values and goals. So far, so good. Steve is just like a son to Mr. and Mrs. Lee and they now consider him to be a full-fledged member of their family even though he was born in Greece! Wing told us that every restaurant needs a Greek. Just remember, you heard that here first.

Growing up eating good but bland food, we certainly agree that 30 years ago, American cooking was lacking the rich mix of seasonings we all now expect. Wing believes the Greeks know about seasonings and garlic and onions and that every recipe can be improved by a Greek chef.

What do you think? What are your weaknesses? What can you do to fill the gap created by your own lack of experience and natural talent?

Key Idea #5: Turn Tradition Upside Down

Topic for Discussion: Describe the management team at Wahoo's and why the structure is obviously the result of creative thinking.

Answer: Traditionally the oldest son sits at the top of a family business but these guys turned tradition upside down by making the baby brother the CEO. They set egos aside and looked at their natural strengths with cold, calculating eyes. The three decided that Mingo was best suited for the top job. He admits, he is the tight-wad. He also knows what day it is and what time it is while Ed says that Wing can't comb his hair or even tie his shoes. They are hard on each other which is one of their secrets to success. There is no walking on egg shells or trying to couch things so no one will get their feelings hurt. There is plenty of humor and at the same time, this is business and they are excellent at dealing with the facts.

The amazing commitment to honesty and open communication at Wahoo's helps the leadership work like a well-oiled machine. Ed is in charge of real estate and Wing is over marketing. Steve is over all day-to-day operations and the brothers are not allowed to walk into a restaurant and tell any person what to do. That is Steve's job and Steve's job alone.

What do you think? What are you doing now just because that is always the way it has been done in the past? What would happen if you turned tradition upside down?

Key Idea #6: Give, Don't Discount Launching a business with zero marketing budget forced Wing to be creative.

Topic for Discussion: How did Wing initially attract his tribe and why does he keep doing this even though he owns the market?

Answer: He gave and continues to give food away. Anyplace surfers gather for competitions or meetings or lessons, you'll find some free food from Wahoo's Fish Taco. Wing is convinced if people taste his food, they will want it on a regular basis. It's like Mrs. Field's chocolate chip cookie or Auntie Anne's Pretzels. People get addicted to a certain food item and when that happens they will find it and pay the asking price for it.

Sampling is a much-used and effective marketing technique. Wing mastered this and nurtures his image as the friend to hungry surfers by continuing to give food away. He is looking to please and impress the new wave of surfers and skateboarders and he has seen competition come into the market. He wants to preserve and grow his market share. He also helps other companies in Southern California who are making products for his tribe. For example, he created an event for a new rock climbing gym in Costa Mesa. Of course, Wing supplied the free food.

He does not believe in discounting as he says, "you cheapen the image that you have built." Besides, his food is already priced low.

What do you think? How would you go about giving away products or services to create the right goodwill that would build your company's image?

Key Idea #7: Think: The First Shall Be Last

Topic for Discussion: How does this New Testament scripture play out at Wahoo's?

Answer: Steve said he thinks the dishwasher is just as valuable to the company as the CEO. In 2004, the world famous American chef, Thomas Keller, opened a new restaurant in New York City. To guarantee the success of the launch, he brought from his Napa Valley, California restaurant, 25 highly trained employees -- including the dishwasher!

Marc Katz of Katz Deli in Austin, Texas said on a busy night, the dishwasher is the most important person in the place. We learned all about constraint theory from ModernPostcard's founder Steve Hoffman and he makes the point, "there can be no weak link. Your organization is only as strong as the weakest link." Even though the dishwasher may not need as much training and education as your top sales person, the "dishwasher" can hold the key to customer satisfaction.

Topic for Discussion: How does this thinking impact the corporate culture?

Answer: It absolutely makes people feel good about working at Wahoo's. They don't see or feel a pecking order. They don't have to fight their way to the top. They see themselves as part of the value chain. Customers give Wahoo's their hard-earned cash in exchange for a delicious, healthy, well-priced meal. Each employee at Wahoo's does their part to earn the customer's cash. What each employee does is a value-add and critical to the success of the operation.

What do you think? What can you do to make everyone feel more valued, more important, more involved and more vital to the over all success?

Key Idea #8: Grow Your Own Leadership Wing, Mingo, Ed and Steve are fast learners. As they began to expand past their own ability to run all the locations, they first thought they would go out and recruit managers from other restaurant organizations.

Topic for discussion: What actually happened?

Answer: Mingo said, "STOP." How can we possibly inspire the people who have worked for us if we don't give them a chance to move up? Therefore, the big idea to bring in big guns was shot down before it got off the ground. Thus, they committed to building a farm team so people could see the upward mobility potential. Why would you hire a person like Felicia then not give her a path to growth? Steve says she has what he looks for and that is enthusiasm and personality. He admits he can't teach those things but he can certainly teach a person with those qualities how to run one of his restaurants.

What do you think? What are you doing now that could be de-motivating to your team? Do you have a policy or a procedure that is discouraging rather than encouraging the growth of the individuals on your payroll?

Key Idea #9: Put Processes in Writing Ugh. Don't we want everyone to read our minds?

Topic for Discussion: Why did Steve insist upon putting together the Wahoo's training manual?

Answer: When Steve arrived, Wahoo's was already a success. But, all the processes were in the minds of Wing, Mingo and Ed. Steve did not try to change anything, he simply documented EVERYTHING. He put the details in writing so he could go off to new locations and make the place work without Wing or Mingo or Ed being around.

What do you think? What would happen to your business if you went off for three months? What would happen if you left and never came back? What do you need to do now so that your business can continue without you?

Key Idea #10: Find Fun Ways to Measure Success Wahoo's is about an experience and that includes fun. There are enough surfers and other boarders eating in most locations to give the place it's sporty feel. This means when you go in, you don't feel as if everyone left their white-collar desk job to come have lunch. The founders never wanted to put a wet blanket on the fun feelings brought in by customers. They want the employees of Wahoo's to feel that they are part of the sport. To do this and to make learning fun, they have found some fun ways to measure success.

Topic for Discussion: Describe the measurement example Steve told us about.

Answer: Steve has the ten-second rule. It's not the ten-minute rule, it's the ten-second rule. He showed us, on tape, how long ten seconds really is. He said, "Ten seconds is the maximum amount of time a customer will stand in front of the register before somebody approaches them. Ten seconds is the maximum amount of time that the cook will look at a ticket that comes into the line and know exactly what needs to happen.

Topic for Discussion: Is this a trainable goal?

Answer: That is the beauty of it. It is a perfect, fun goal for everyone to work on all through the day. Wahoo's is not fast food, it is quick food. There's a difference. Fast food is usually cooked ahead while quick food is cooked to order. This is the key reason the ten-second rule is so profound. Every single person who comes into Wahoo's gets to decide what they want to eat and it will be fixed after they order it. The customer arrives at the cash register and the multi-step process swings into action with the ten-second rule applied all along the way.

Steve also tells us that every skill he teaches can be taught with one page of instructions. He makes every task small enough for a person to grasp quickly and master quickly.

What do you think? What can you think of to measure that will create some fun for everyone, including yourself?

Review the transcript

Key Idea #11: Measure the Right Things Steve does not worry about sales per square foot even though each location has about 2,500 square feet and will do about $1 million in revenue. That is not the goal he asks his team members to measure.

Topic for Discussion: What does he ask them to measure?

Answer: Steve trains managers to measure what will result in the sales. For example, he wants every employee to learn the names of two customers every day. He says, "Don't worry about your quota…can you do A, B, C, D, E, F, G and 'H' will be magical. It will automatically appear out of thin air."

Especially entry level employees would look at a million in sales as too big for them to impact and not be very excited to work on that goal. However, it is motivating and fun to work on a goal that each person finds they can achieve on a regular basis. They can leave work feeling good rather than feeling like just a cog in a machine.

What do you think? What are the steps you ask your employees to take toward the revenue goals and how do you help them measure their success?

Lightbulb/Key Idea#12: Create Chaos out of Order Yes. We said this right. If you are competing with big companies, as a small business owner, you want you customers to have a rich, soulful experience. It should not be sterile or cut and dried.

Topic for Discussion: How does Wahoo's achieve this one-of-a-kind fun and delicious experience?

Answer: We already said that they imbed systems to guarantee consistent food quality. Next, they work very hard on each location to decorate and furnish it in the spirit of Baja. If you've never been to Mexico then it is hard to imagine the goal Wahoo's has set for itself. A Mexican taco shop could be on the side of someone's house and on the back of that same house you could find a chicken coop. In Mexico banks won't loan for most construction so people have to save up their money to build something. This means they build what they can, then have to stop and save up some more money. Many things in Mexico then are "in progress" and appear undone.

Ed works hard to find locations that he can spin into a Wahoo's. The goal is to not look like a chain. They ask their surfer friends to donate surf boards and to bring in bumper stickers and product stickers. They use plenty of paint in vibrant colors and the many locations we've been in all have plastic and metal chairs.

Things are crowded. Too much space could make room for strollers and families. Do you get the point? They serve beer, too. Surfers in Baja would never have tacos without beer.

What do you think? Could this idea apply to your business? If yes, how?

Key Idea #13: Pay Your Debts Cheerfully Do what you say you are going to do. Seems really simple but simple is good and important.

Topic for Discussion: Who was smiling at the end of this story?

Answer: Wing, Mingo and Ed's Mom and Dad. Most companies in America today are started with loans from the founders or from the founder's friends and familes. Banks aren't around in the beginning because they can't be. Banks simply can't afford to take big risks and every startup is a big risk.

Mr. and Mrs. Lee never expected to get their money back. They don't need the $30,000 they loaned their sons and they were happy to jump start the business venture. They remembered back when they had no one to fund their startup and they wanted to get the boys going so they wouldn't have the struggle they had faced.

The boys paid back the loan because it was the right thing to do. They don't want to feel like pampered children. They each want to stand on their own two feet.

What do you think? Think about what promises you have made. Have you kept them?