Welcome To The Topsy Turvy World Of Restaurant Chains

Sophie’s Cuban is a thriving restaurant chain in New York City consisting of 11 locations including 10 in Manhattan, one in Brooklyn Heights and a new commissary in Brooklyn. Of that number six are company-owned, and five are franchised. That’s the good news.

In the topsy-turvy, mercurial world of owning restaurants in a turbulent economy, Sophie’s Cuban was forced to close nine locations over a 25-year period including eight in Manhattan, with five of them in Lower Manhattan, and one in Washington, D.C.

Disasters played a significant role in their demise. Sofia Luna, its president, noted that three were forced to close after the September 11, 2001 attack and three due to the Covid pandemic, one because of an expiring lease and two didn’t work out.

Now with the pandemic fading, Sophie’s Cuban is back on the upswing. Luna says it just opened a new eatery in Tribeca on May 23 and is exploring opening one more by year’s end.

Another Immigrant Success Story

Its success also illustrates the classic story of a hard-working Peruvian female immigrant Manuela Matos who opened her first Sophie’s Cuban Restaurant in 1997 on Greenwich Street in Lower Manhattan. To raise the capital to develop it, she sold food from a cart at soccer fields in Queens and, with the help of her family, raised $66,000.

Matos is no longer involved in day-to-day operations, which is now run by three of her daughters, Sofia Luna, Patricia Luna and Mila Luna. Sofia is president and oversees the central kitchen and supplies; Mila is in charge of operations and visiting stores; and Patricia handles the culinary side and recipes.

Demonstrating her hard work and perseverance, she opened her second Sophie’s Cuban with savings and cash flow from the original eatery.

But why did Manuela, a Peruvian immigrant, open a Cuban eatery? Sofia Luna said that “Peruvian cuisine wasn’t as popular as it is now. She decided that it would be easier to start a Latino-themed cuisine that was more well-known than Peruvian.”

And Sofia noted that the three sisters get along and spend a considerable amount of time together, both off-work and at work.

Setbacks Forced Them to Close 9 Restaurants

The fact that it was forced to close nine restaurants, signified that “It’s hard to run restaurants, especially in New York City with high rents,” Sofia Luna pointed out. Once they surpassed 10 restaurants, they took a deep breath and felt a strong sense of satisfaction.

What enabled them to persevere was the work ethic that their mother instilled in them. Their mom started her first restaurant at age 17 in Lima and started Sophie’s Cuban in New York City from scratch.

Why It Has Stayed Within New York City

Unlike many regional restaurant chains, which look to expand beyond their roots, Sophie’s Cuban has stayed true to its home turf. Luna explained that “New York City is home and we love our community here. As a family-owned and operated company without outside investment, we have to be a bit more strategic with our expansion plan. Slow and steady wins the race.”

Staying in New York City, where they know the suppliers and their customers, enables them to “have more control over it, ordering food, and maintaining the same quality of product,” Sofia Luna noted.

Though one might expect that befitting its name, the Cuban sandwich, consisting of grilled roast pork layered with ham, Swiss cheese, pickles and mustard, would be its number one seller, its most popular items are the chicken picadillo empanada, followed by its pernil or roast pork entrée and then the Cuban sandwich.

Sofia Luna also noted the popularity of its green sauce, which can be added to any of its menu items. It provides over 500,000 of these packets annually, she noted proudly.

When this reported visited its East 12^th Street outpost, he was greeted by the cashier with “ola,” befitting its Spanish-speaking staff. It was extremely compact, with three stools inside and eight seats in a hut outside. For the record, the café con leche was strong enough and reminiscent of being in Havana.

Its manager said its business was mostly take-out and since it’s located in proximity to the New School, Parsons School of Design and NYU, it generates a lot of business.

Expanding its revenue base, Sophie’s Cuban has built up an extensive catering business, which now constitutes 15% of its overall revenue. Its new commissary in Brooklyn will enable it to cater to all the five boroughs and Long Island.

Luna noted that, “We can cater an event of almost any size and type but we specialize in corporate lunches, parties and private events.”

Third-party deliverers are also a major component of its business, which now accounts for about 30% of its revenue. The food is made and delivered within 25 minute of ordering is its goal.

It is also participating in Latin Restaurant Weeks, co-run by Feed the Soul Foundation, taking place between June 2 and 16^th, which encourages Latino restaurants to create new items outside of their traditional menu.

Asked the keys to its continued success, Sofia Luna replied: 1) Taking care of our employees, partners and managers, 2) Continuing providing fresh, tasty food.

New Ventures Expected in the Future

Looking into the future, Luna envisions launching a consumer-packaged product, of frozen empanadas, to be sold in big-box retailers and supermarkets. She also envisions connecting with outside funders such as private equity companies to see if it could expand in new areas outside of New York City.

“We’d do well in many places, especially if we are near colleges or hospitals,” she pointed out.