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Ones to Watch | By Sabrina Davis

Pesto Creative Italian Bistro

Shadle combined his business development with his studies at The Ohio State University, from which he graduated in June 2005. He entered an OSU business plan competition. “I didn’t win the $100,000 prize, but then the winner had created an implant for spinal cord injury—hard to compete with that,” he says. “My friends and family loved the concept and said they would support me if I pursued it.”

Shadle set his sights on a new mixed-use development near the OSU campus. “They were going with Wolfgang Puck Express, but I hounded them for months, and when that fell through they agreed to talk to me.”

Pesto has been a good fit, drawing students, faculty, and professionals. “Dinners are stronger than lunches, and weekends are stronger than weekdays. That has been surprising,” Shadle says. Pesto serves about 250 customers a day on weekdays between the 11 a.m.–11 p.m. hours and roughly 450 a day on weekends.

The average check is $9. “About 50 percent of customers get gelato, so that’s really driving our average ticket up,” Shadle says. Pesto offers samples of the rich Italian ice cream as customers wait to order, and unusual flavors range from Guinness beer to carrot cake.

Pesto Creative Italian Bistro
CEO: Lee Shadle
HQ: Columbus, Ohio
Year Started: 2005
Annual Sales: $900,000–$1 million
(projected)
Total Units: 1
Franchise Units: 0

Also a bit unusual (for an Italian restaurant) is Pesto’s décor, which tends toward sleek and modern rather than old-world Italian, which Shadle says has been overdone. In keeping with contemporary furnishings in walnut, slate, and steel is the modern, high-energy European Techno music playing in the background. “From the atmosphere to the way our employees are trained to relate to customers, we want the feel of a cool, hip setting of outgoing people having a good time.”

WHY IT BEARS WATCHING: Lee Shadle is not only showing his customers a good time; he’s having the time of his life. His enthusiasm and planning are as critical to his success as the menu and branding. “I’m very ambitious. I’m not going to stop until we create a national presence,” Shadle says. His goal is to focus on his first franchise next year before beginning rapid expansion.
“People are going to be skeptical about my age and experience,” Shadle says. “But I’ve filled in the gaps with experienced people. I recognize my strengths and outsource everything else.”
Shadle’s first outsource, hiring restaurant consultant Ron Santibanez, led to a long-term relationship. Santibanez is now Pesto’s director of operations and franchise development and Shadle’s partner on a speaking tour discussing restaurant development. The speeches soon will be combined with their effort to sell franchises. Shadle also plans to complete a book this year on his experience launching Pesto.
Shadle wants to sell 100–150 franchises in the next five years and have 1,000 stores open in 10 years. He’ll be just 33 then, a good time, he says, to start working on his next concept. Not only is Pesto one to watch; Lee Shadle might be one to watch as well.
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