GARY: Next on Start Up, we head to Fort Worth, Texas to meet up with Toan Luong and the team at Ampersand, coffeehouse by day and a lounge by night.

All of this and more is next on Start Up.

♪ ANNOUNCER: Colonial Penn offers guaranteed acceptance, a type of whole-life insurance that does not require answering health questions or taking a medical exam.

Learn more at colonialpenn.com or by calling 1-800-372-8383.

Colonial Penn is a proud supporter of Start Up.

JESS: We give 3% back to fund women in entrepreneurship and our local communities.

It's about reaching as many people as we can and sharing our message of purpose.

ANNOUNCER: More than 60% of sales in Amazon's store come from independent sellers like Jess at Bundle x Joy.

Amazon, a proud supporter of Start Up.

ANNOUNCER: Running a business isn't easy.

BambooHR supports your HR strategies by automating operational tasks, leaving you with more time to concentrate on what's most important to you and your business.

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ANNOUNCER: The future is not just going to happen, you have to make it and GoDaddy Airo can help you get your business online with an AI-generated name, logo and website.

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♪ GARY: My name is Gary Bredow.

I'm a documentary filmmaker and an entrepreneur.

As the country faces uncertainty, small business owners continue to persevere, pushing the economy forward with their unrelenting drive and determination.

We've set out for our 12th consecutive season, talking with a wide range of diverse business owners to better understand how they learn to adapt, innovate, and even completely reinvent themselves.

♪ This is Start Up.

♪ ♪ The American coffeehouse market is a large and competitive industry that has experienced significant growth in recent years.

With the rise of specialty coffee, coffeehouses have become social hubs, workspaces, and community gathering spots creating a welcoming and comforting atmosphere with amenities such as free Wi-Fi, cozy seating areas, and live music or events to attract and retain customers.

Today, I'm heading to Fort Worth, Texas to meet up with the team at Ampersand, a coffeehouse by day and a lounge/ nightclub by night, bringing a unique experience to traditional coffee culture.

I can't wait to meet the team and learn more about Ampersand.

♪ ♪ What is Ampersand?

TOAN: Wow, that's- GARY: That's the big one.

TOAN: That's a big question.

You know, to me, Ampersand is- is very special.

Obviously, you know, it's a community-driven coffee shop.

It also doubles as a bar at night.

But, for me, Ampersand is my life.

Whether it's coffee or a bar, we want you to come in to our space and connect with your friends and family.

I would say that the philosophy behind the brand is to strive to create a better community, one cup at a time.

GARY: Talk about the original sort of concept, and architecture, and design for this amazing business that you built.

TOAN: We started the business in 2016.

Originally it was me and Dom.

And then, from there, I started adding on to the team, with Mimi.

It's definitely changed form.

I wish I could tell you that we had the vision to create what we have right now, but it's truly changed over time, and truly changed through everyone's inputs too.

So whether it's Mimi through coffee, Daniel and Michael through the bar, or Dom through construction, everyone has played their little part into making it to what it is today.

GARY: Was that a conversation that he approached you with, and like, "Hey, I wanna make this part of an overall vision?"

Like, how did you guys come together?

MIMI: I started in coffee throughout high school and throughout college.

I started at a coffee shop inside of a church.

We got to experience, like, super high volume inside of a church, you know, because of, before services and whatnot.

He saw how busy that the coffee shop at the church got.

GARY: Okay.

MIMI: And so- GARY: He had an eye on you.

MIMI: Yeah, he definitely did.

You know, at first, they wanted to do a donut shop and bar.

And I think they realized that they didn't wanna wake up at 12 AM to make donuts.

But he was like, "Hey, Mimi, "do you wanna have our own brick and mortar?

"You know, I have a great idea of just a coffee shop in the front and a party in the back."

GARY: It's kind of like the mullet of businesses.

MIMI: Yes, exactly, yeah.

♪ DANIEL: Being a partner, I manage the business operations for the bar side.

GARY: How separated is the coffee from the bar?

Is there a clear line between it?

DANIEL: Prior to me beginning, there was a clear line.

But we can't be two separate teams, like, you have to be... GARY: Sure.

DANIEL: One team and kind of coexist in some manner.

I kind of came in and made sure that there was some sort of involvement with the coffee and then the bar.

By doing cocktails with coffee inspired, having our baristas being trained to be bartenders or make cocktails too, and then having my bartenders learn how to make coffee as well, just to give everyone new experiences.

But now everything kind of does move together and cohesively.

♪ TOAN: For us, being young entrepreneurs, having no resources or little to no resources, all that we had was sweat equity.

And so, you know, whether it was nailing a nail, designing the bar... GARY: Yeah.

TOAN: Installing the espresso machine, we figured it out ourselves and, you know, our skill sets grew into that, and that's how the construction side actually happened.

GARY: Was that sort of a necessity thing?

Did you have bad experiences with contractors?

TOAN: Yeah, you name it, we ran into, Gary.

With the budget, to timeframes, every single problem that you can think of, we ran into it.

And so, you know, out of necessity, that's how our company came to be, and how we formed the construction side of Ampersand.

Now we're building other restaurants.

We recently just built a sushi restaurant in Dallas called Kaiyo.

And, yeah, we're growing as we go.

♪ GARY: Tell me about the early days.

Like, the first location.

DOMINIC: Our first build- out for Ampersand, on Bledsoe and West 7th, took about nine months.

GARY: Wow.

DOMINIC: Which was, you know, we were eating rent every single month.

What happened was the contractor was actually never there, so we had to act as the superintendent for the project.

And then, in turn, we just learned everything, learned the ropes.

Over time, you know, we thought that if they can do it, we can do it because- GARY: You were already having to do it anyway.

DOMINIC: We were already having to do it anyways, and we were doing it better, you know?

GARY: Yeah, you have the construction side, but now you're actually building and contracting for other companies?

DOMINIC: Correct, we created AMPM Concepts as a construction company to help new entrepreneurs get their feet wet into the business world.

New business owners are being taken advantage of... GARY: Yep.

DOMINIC: You know, and we wanted to be a catalyst to change that.

GARY: Has someone internally in the business become like a licensed contractor at this point?

Or do you work underneath a licensed contractor?

DOMINIC: So the funny thing about Texas is that you don't really need a license.

GARY: What?

DOMINIC: So you don't need a license to be a contractor.

So there's so many contractors out there that are not licensed.

You know?

GARY: Yeah.

DOMINIC: And it really ruins the image of being a general contractor, because anyone can, you know, screw you over.

GARY: It makes it hard to be discerning as somebody in need of those services too.

Like, who do you trust?

DOMINIC: Yeah, exactly.

And our reputation is everything.

So, you know, we really pride on providing the highest level of communication, of craftsmanship, and just being attentive to our clients.

GARY: How were you able to acquire the finances to kick this business off?

TOAN: We funded the first shop just through local investors, and then also some family and friends too as well.

GARY: Can you share what that initial number was?

TOAN: The first build that we did was about 700 to 750,000.

GARY: So you were able to raise that full 7- 750, whatever it was, just from family and friends?

TOAN: Just through family and friends, and through our own personal savings.

Yeah.

GARY: Okay.

So you got it off the ground.

TOAN: Got it off the ground.

Our second location was created in 2019.

GARY: Mm-hmm.

TOAN: You know, with the success of our first location, we used, you know, the revenue from that to fund our second location through traditional means too as well.

GARY: Okay.

TOAN: So traditional lending through local banks.

GARY: And you were able to prove that with your initial concept?

TOAN: Yes.

♪ GARY: Coffee is a really saturated market, pun intended.

Right?

MIMI: Yeah.

GARY: Pun is always intended.

(Mimi laughing) And coffee's really saturated.

Like, how do you stand out?

MIMI: Man, that's like a question I ask myself every day.

Like, "How do we stand out?"

It's just, I think, staying in your own lane makes you stand out.

If you're proud of what you're making and what you're serving, then, you know, everybody will, you know, eventually jump on the bandwagon.

Invite people in, be inviting, and don't let it be such an intimidating place to be, because coffee in general can be such an intimidating- like whenever they have a menu of just a surplus of things, it could be very intimidating.

People get turned off by just asking questions.

GARY: Yeah, don't be snooty and make people feel dumb because they don't know what a flat white is.

MIMI: Exactly, yeah, and take time to just, like, let people know what it is.

Yeah, it's not that serious, you know?

GARY: It's just coffee, right?

MIMI: It's just coffee, yeah.

GARY: Talk about all your different locations right now.

MIMI: So we have this location right here, it's the Bledsoe location.

And then, we have the TCU location, which is on the campus of Texas Christian University.

GARY: Yep, is that like a student union coffee shop?

MIMI: I would say so, a lot of students gravitate towards Amp.

And then, we have the airport location.

GARY: So three right now?

MIMI: Yes, yes.

♪ ♪ ♪ TOAN: This last location has been probably the biggest challenge of our lives to say the least.

We are the first class of the SBEC Program for the airport, the DFW International Airport.

And we're also one of the youngest concessionaires in airport history.

GARY: So you have an Ampersand location in the Dallas Fort Worth Airport?

TOAN: Yes, sir, yeah, we actually just opened about a month ago.

GARY: Wow.

TOAN: And then we're about to do our grand opening.

GARY: Okay, so let's reverse engineer that.

Go back to the beginning.

TOAN: The airport will call out exactly what they want.

GARY: Sure.

TOAN: And entrepreneurs from all over will bid on it, and the airport will decide after about a six-month process of deciding.

GARY: So I didn't know that they did, it's essentially like an RFP, like a request for proposal.

TOAN: Yep, it is an RFP.

GARY: And you responded to it?

TOAN: We did.

And so, you know, normally when you go into the industry, like it's filled with conglomerates.

And so during that meeting, the vice president of the airport went on, Mr. Buchanan.

Mr. Buchanan, during his speech, was promptly saying, "We're looking for young entrepreneurs, "we're looking for great concepts, "and we're looking for representation both in Dallas and in Fort Worth."

And so in my head- GARY: Check, check, check.

TOAN: I was check, check, and check, Gary.

GARY: Yeah.

TOAN: And I went up to Mr. Buchanan and I told him exactly that.

He gave me his card.

He looked at me, Gary, and he said, "It's not that simple young man.

"But if you're really serious, here's a card to my secretary and we'll talk."

GARY: You stood out by approaching him?

TOAN: Fortunately, yes.

I was in the right place at the right time.

And, you know, Ken now is our mentor, and now we're in the airport.

So it just kind of shows you to take those actions, and take that step, and to follow your gut.

GARY: What makes something fit or not fit here at the airport?

HENRY: I think good concepts, maybe some proven concepts outside the airport.

GARY: Sure.

HENRY: And running, I think, a concession in an airport as opposed to outside is a little bit different, so I think it has its own challenges.

I serve on the board as a representative of Fort Worth, so my focus is to bring Fort Worth businesses as much as I can, or at least advocate for them.

GARY: What was your impression of him and the team?

I mean, for me, the energy is through the roof.

It's incredible.

HENRY: Super driven.

Yeah, lots of energy, lots of intelligence, and sort of they really had a path, they knew where they were going, or it seemed like it, which was amazing for a group of people as young as they are.

And so, yeah, I was impressed from the moment I met them.

♪ GARY: You're approaching an opportunity to do a build-out at the airport.

TOAN: Yes.

GARY: That can't be cheap.

TOAN: Winning the actual RFP was monumental for us.

We beat Starbucks, we beat Peet's, we beat Dunkin'.

GARY: Yes!

TOAN: And so it was truly a David and Goliath story.

GARY: Yeah.

TOAN: And for us, you know, I wish that it just ended there and that it was a happy story after that.

But very much like Murphy's Law... GARY: Yeah.

TOAN: What can go wrong will go wrong.

We actually had an investor, he invested through the whole project.

And then, about 70% in, he had to pull out, and so- GARY: Leaving his 70%, but then you couldn't finish?

TOAN: Yeah, well, actually he wanted all his money back, and so he was in a tight spot.

GARY: Oh wow.

TOAN: So we went from the highest of highs to the lowest of lows.

GARY: That's a gut punch, man.

TOAN: It was a gut punch, and we were literally about two months from finishing, and that was about four months ago.

But I'm really proud of now, in hindsight, it was probably one of the best things that ever happened to us.

It taught us so much.

And fortunately enough, I was taking SBA classes during that time.

GARY: Got it.

TOAN: When it happened, me and the rest of the crew, literally, I called up Elsie from the SBA, who's the director, and she gave me a list of 50 banks.

GARY: 50, plenty to get a yes, right?

TOAN: Plenty?

Oh no.

We got rejected from all of them except for one company, Gary.

GARY: 49 out of 50 rejected you?

TOAN: Yes, sir, we were eating a no for breakfast.

We were eating a no for lunch.

We were eating a no for dinnertime.

GARY: And dessert.

TOAN: And dessert and snacks too.

GARY: With a no.

TOAN: But, you know, the silver lining to all of it, Gary, is all it takes is one yes.

GARY: Yeah.

TOAN: And that one yes has led us to this point today.

GARY: That drive, whatever that is inside you that kept you going after so much rejection, I mean, it's really easy to give up.

What keeps you going?

TOAN: Well, in that moment in time, I think that what really drove me was the team, our team on our coffee side, our bar side.

Everyone has done so much for the company, and we truly are where we are because of them.

And so, for me, when everything was falling down, that was my North Star.

Thinking about my family.

We're all first generation here.

Thinking about what I can do to help make their lives easier... GARY: Yeah.

TOAN: That's what drove me passed the hard times.

GARY: Let's get into the nitty and gritty here about the build-out at the airport.

Gotta be extra complicated working inside of an airport.

TOAN: It is on another level, Gary.

Street side, roughly around here, within our metroplex, it's roughly between 250 to 350 per square foot if you're gonna build anything street side.

GARY: Got it.

TOAN: In the airport, it's about $1,500 a square foot.

GARY: Wow.

Why?

TOAN: The amount of regulations is astronomical.

GARY: Yeah.

TOAN: From every screw that you bring in to- GARY: FAA is involved, all of it?

TOAN: FAA is involved.

GARY: Yeah.

TOAN: Every screwdriver that you bring in, every nut that you need to bring in is accounted for.

GARY: Wow.

TOAN: Every person that works on your business, they have to do a background check.

They have to go through TSA.

GARY: Wow.

TOAN: Then they have to work at night, Gary, so... GARY: I get it now.

TOAN: Yep.

So it adds all up.

♪ GARY: Talk about the airport and construction there.

What have some of the challenges been around that?

DOMINIC: So we originally wanted to do the construction side of the airport.

I didn't understand how complex it was in the airport.

GARY: Yeah.

DOMINIC: So we made the executive decision to hire a company that has experience in the airport.

And I think that was honestly probably one of the best decisions we have made going to the airport, because we've learned a lot on the construction side of things, and they also helped us get our doors open, you know, as soon as possible.

GARY: Did you sub primarily the whole thing out?

Or are you kind of working together so you can learn the process?

DOMINIC: I worked alongside the project manager.

So the construction company was JRT Construction.

They subbed everything out.

But I was working hands-on with the project manager learning how they project manage, you know, their constructions inside the airport.

♪ GARY: What does the airport mean for this company at this point?

'Cause it's still pretty new.

How are the numbers looking?

MICHAEL: It's so surreal for me, every single one of them.

Like, I can't believe we have an airport business.

The numbers are doing great.

We actually beat out- they release- it's all public, and so they release all the reports.

We're a top 10 coffee shop in all the DFW Airport.

We've beaten a Starbucks, we've beaten a Dunkin' Donuts, we've beaten a Caribou Coffee, a Peet's Coffee, and so all these national chains.

We're the only one that's on there that's not a national brand or even a global brand.

And so for us to be, you know, at the top 10 on our first month is phenomenal.

♪ GARY: Being first generation, is there something inside you that feels like you have to prove to your family, to your parents, "I'm good- I'm gonna do it here"?

TOAN: I never really thought I would ever own a business a day in my life, Gary.

GARY: Really?

TOAN: I like to tell people that I'm the biggest mess up in the world.

You know, but I've been really fortunate with the great people in my life, not only on my team, but the mentors have really taken me to where I am today.

You know, my parents, when we first started, they were not for it, you know?

GARY: What did your parents want for you?

TOAN: The original plan was actually to be a dentist and a doctor.

But just having the true inner belief in yourself to not only go against the grain, but to perform and execute for the team, that's truly what it's about.

GARY: Where are we right now?

Is this the campus or something that we're at?

TOAN: Yeah, Gary, welcome to Fort Worth.

You're on the beautiful campus of Texas Christian University.

GARY: What's your affiliation with the university here?

TOAN: Sure, I actually went to school here about 10 years ago, Gary.

I attended- that dorm room right there actually.

GARY: Okay.

TOAN: And then, yeah, I was part of a great scholarship called the Community Scholars Scholarship.

GARY: Wow, so you got a full-ride scholarship here?

TOAN: I did, I did, but, you know, in that moment in time, I wish I would've not taken it for granted, Gary.

Instead of focusing on studying, I actually focused on partying.

GARY: So you got kicked out of the university?

TOAN: I got kicked out of my dorm.

I got kicked out of my scholarship.

And it's not a proud moment, but I do think that, you know, now with the silver lining, and then location being across the street from my old dorm room, it's a magical moment, and a special place in my heart.

GARY: You won, my friend.

You won.

TOAN: I appreciate it.

Thank you so much, Gary.

GARY: So where are we going right now?

What are we doing?

TOAN: Yeah, we're actually delivering coffee.

We deliver coffee to local businesses.

But we're actually gonna deliver coffee to the same scholarship that I got kicked out of.

So it should be interesting.

GARY: Do you have a good relationship with the person we're gonna meet?

TOAN: Yeah, Dr. Gordon is amazing.

She's been definitely a mentor.

But she's really proud of me, and she's gonna be ecstatic when she talks to you.

GARY: Oh, I can't wait to meet her and hear what she has to say.

♪ ♪ How did that feel, you being the one that extended that opportunity and doing that?

Was there an initial punch of disappointment?

TIMEKA: In my spirit, I knew that he was going to be successful.

Like, I always told him, "I see it, I see the potential."

So even after he left here, I said, "Stay in contact with me, because I wanna see where your story ends up."

GARY: What do you think about what he's doing now?

Getting removed from the university, removed from the dorm, and then, sight distance, is the location of his amazing business.

TIMEKA: Oh man.

GARY: How does that make you feel?

♪ TIMEKA: I was gon' try not to do this.

I'm proud of him.

GARY: Yeah, he's doing some amazing stuff.

TIMEKA: He is doing everything that I knew he could do.

♪ He just had to believe it in himself that he could.

His story gives other students hope.

You know, some feel like, "Okay, I left college after a certain time, and like, I can't be successful."

Yes, you can, his name is Toan.

It's a story of resilience.

♪ GARY: Advice for somebody else out there that wants to build something that they may not originally think might be possible, but they have a dream of vision.

TOAN: Especially when you first begin, that dream is very vulnerable and it's your job to protect it.

GARY: Yeah.

TOAN: But if you truly do protect it and you're truly passionate about it, I always have a saying, "Aim for the stars, 'cause even if you miss, you'll end up in the clouds."

And, for me, I've lived through that, and that's how I really look at life.

And my advice to young entrepreneurs too is just do not give up, believe in yourself, find your true passion, find the right group of friends, the right team, and you'll be amazed at where you'll be in a few years.

GARY: I can't quite remember what I was doing in my mid to late 20s, but it definitely didn't involve starting a coffee and nightlife empire with my friends.

This I know for sure.

The team at Ampersand is beyond impressive, with each of the partners uniquely qualified to express their passion within the company.

From Mimi's love of all things coffee, to Michael's obsession with numbers, Daniel's expertise behind the bar, to Toan's visionary approach to growth and scale.

The partner versus employee model seems to create a sense of individual accountability for the success or failure of the company in a way that only a true partnership can, and maybe this is the secret sauce.

Ampersand feels less like a hospitality company and more like a collective of like-minded individuals who are dead set on shaking up an industry that, quite frankly, needs shaking up.

They're offering a more relevant and accessible option for the ever- growing demographic of the coffee obsessed, and I wouldn't be the least bit surprised to see an Ampersand in every town across the US.

If you've watched the show before, you know that I've openly discussed how the younger generation tends to get a bad rep these days.

And for anyone who thinks that all Millennials or Gen Zs are lazy or lack innovation, pop into Ampersand sometime and prepare to have your opinions challenged, because these guys are the real deal and they are just getting started.

For more information, visit our website and search episodes for Ampersand.

Next time on Start Up, we head to Blue Ridge, Texas to meet up with Blake Shook and his team at Desert Creek Honey, a company that sells raw, unfiltered honey and all things beekeeping.

Be sure to join us next time on Start Up.

♪ Would you like to learn more about the show or maybe nominate a business?

Visit our website at Startup-USA.com and connect with us on social media.

♪ ♪ We got a long road ahead of us ♪ ♪ A long road ahead of us ♪ Got a long road ahead of us ♪ Before we pay our dues ♪ We got a long road ahead of us ♪ ♪ A long road GARY: Oh (beep).

That was not easy.

♪ Before we pay our dues I'm sitting in a cave.

ANNOUNCER: The future is not just going to happen, you have to make it and GoDaddy Airo can help you get your business online with an AI-generated name, logo and website.

GoDaddy Airo, learn more at godaddy.com/airo.

ANNOUNCER: Running a business isn't easy.

BambooHR supports your HR strategies by automating operational tasks, leaving you with more time to concentrate on what's most important to you and your business.

Learn more at BambooHR.com.

BambooHR, a proud supporter of Start Up.

JAKE: Fellow is just a mash up of two of the things I really love: coffee and I really love product design.

We're trying to create something that didn't exist and we're just getting started.

ANNOUNCER: More than 60% of sales in Amazon's store come from independent sellers like Jake at Fellow.

Amazon, a proud supporter of Start Up.

ANNOUNCER: Colonial Penn offers guaranteed acceptance, a type of whole-life insurance that does not require answering health questions or taking a medical exam.

Learn more at colonialpenn.com or by calling 1-800-372-8383.

Colonial Penn is a proud supporter of Start Up.