After questioning his decision to strike out on his own just a few short years ago, Pat Phelan has now built Leap Hospitality into a rising star in the hospitality industry.
As a financial analyst at a major telecom firm, Pat Phelan was feeling like a “cog in the machine.” He questioned the value he was adding to the company and felt unfulfilled in his role. He sought out and obtained a position as the head of business development at a small firm where he felt he could have a greater impact. Working for that small company sparked Pat's entrepreneurial ambitions further, and that ambition grew to the point that he was again feeling like something was missing in his new career. He found himself wanting more autonomy, more responsibility, and more control. It was at this point Pat began a regimen of rigorous research, hunting for a business to acquire and operate as his own. After countless hours of research, he found the perfect fit and, in 2006, he was the proud owner of Fast Food Equipment Systems - a company that specialized in restaurant equipment sales (think ice makers and margarita machines). This may sound like the perfect story of opportunity and passion coming together for a happy ending, but the financial collapse was just over the horizon, and Pat’s latest endeavor was not spared.
"It was a scary time; I wasn't sure we could make it through."- Pat Phelan on the company's struggles
Pat Phelan, Owner
Pat’s client base was severely impacted by the Great Recession. Restaurants tightened their budgets and reduced expenditures on new equipment. Fast Food Equipment Systems suffered from plummeting sales and Pat’s workforce dropped from eight employees to one: himself. The economic environment was so poor that Pat considered abandoning the business and returning to a lower risk career. But he persevered.
Fast Food Equipment Systems needed to evolve and adapt. The restaurant equipment industry had become extremely competitive, resulting in razor thin margins paired with relatively low volume. For Pat, it was not a sustainable model. At the same time, Pat was noticing a trend in the industry. Restaurants had started separating front and back of house operations. The intense competition in the restaurant equipment industry (back of house) had left a vacuum in the concept development and furnishing space (front of house). Recognizing this opportunity, Pat re-branded the company as Leap Hospitality, and began focusing the company's efforts on designing, building, and implementing clients' visions for their restaurants.
Pat Phelan (second from left) sits on the panel at the Big Breakfast event hosted by Thinking Bigger Business
Leap Hospitality's pivot away from restaurant equipment proved successful and his team grew from one employee back up to eight. What began as one-off design and furnishing deals for individual new businesses transformed into far-reaching contracts with industry giants. If you've dined out in the KC metro in the past few years, there's a good chance you've eaten in a Leap Hospitality booth, had a beer at a bar designed and installed by Pat and his team, or experienced a concept developed and implemented by Leap. In fact, you may have even enjoyed a Leap project in a number of states outside of the area including Iowa, Georgia, and Kentucky as the company has expanded well beyond KC.
Leap's success in the furnishing and design space has opened the door to other opportunities in the hospitality industry, including one which Pat and his team are especially proud of: recruiting. Leap launched its recruiting segment in 2015 and placed 3 new hires in its first year. In its second year, Leap placed 10 hires, followed by 30 hires in 2017. As of August 2018, Leap has already surpassed its 2017 placement total and anticipates continued growth in coming years. Pat has also introduced a service to help other entrepreneurs start their own businesses. The "Hospitality Business Brokerage" segment works with franchisors, franchisees, and private equity firms to help with funding needs, growth plans, and business transition strategies. Not one to miss out on opportunity, Pat has recently added yet another complementary segment to Leap's current offerings in the form of Leap Freight. This newly implemented segment handles logistical needs for the hospitality industry and is expected to reduce the overhead for Leap's existing operations.
"Every one of these represents a substantial impact we've had on someone's life"- Pat Phelan, explaining the significance of the frames on the recruiting wall
Information on each successful employee placement for the year is framed on the wall of Leap Hospitality's office
Leap's accomplishments have not gone unnoticed in the business community. Pat Phelan was recently featured on the cover of "Thinking Bigger Business" magazine and sat on a panel for the magazine's "Big Breakfast" series.
Pat Phelan is a prime example of the possibilities that await for those who are willing to take the chance. It has been a joy getting to know him and his team, and we look forward to watching Leap Hospitality continue to grow in the years to come.
Contact Information:
Website: www.leaphospitality.com
Phone: (816) 368-2857
Email: info@leaphospitality.com
Address: 28B Westwoods Dr. Liberty, MO, 64068
Facebook: @LeapHospitality
Twitter: @LeapHosp
Ong & Company is a professional accounting, tax, and advisory services firm. Our team of CPAs specialize in helping small businesses and individuals minimize tax expenses and maximize after-tax income. Headquartered in Corporate Woods in Overland Park, Kansas, we serve clients across the United States.