Surf Brothers enjoy saucy success

By: SHANNON WINGARD - For the North County Times | Friday, June 1, 2007 7:26 PM PDT ∞

CARLSBAD ---- Loyal customers may recognize the elaborate murals with surfers and hula dancers, parrot decor, woven straw tables and teriyaki food as staples of the long-standing North County establishment Surf Brothers Teriyaki.

However, Reza Karkouti, founder and chief executive officer, said the restaurant, with its simple menu of chicken or steak teriyaki with white rice and cabbage, is hoping to gain new customers as it expands in North County.

Its newest location off Palomar Airport Road attracts about 150 people for lunch daily. In addition to the original Surf Brothers Teriyaki restaurant in Encinitas, the company operates another one in San Marcos and plans to open a fourth in four weeks in Escondido.

Karkouti, 33, said the family opened its first restaurant after moving to the area from Seattle.

"I fell in love with Encinitas, and then I found a location," he said.

The family fled from Iran during its civil war, he said, and the business was developed as a means for the immigrant family to support itself.

Years later, it is still a family business. Karkouti serves as a chief executive officer, his brother Amir is chief financial officer and his father, Ahad, is treasurer.

The secret to Surf Brothers Teriyaki's longevity, Karkouti said, is consistency. Since it opened, he said that the only significant changes have been to the restaurant's decorations, such as the addition of painted murals by Encinitas artist Kevin Anderson.

The family has kept the simple menu the same to appease its customers.

"The more loyal they are, the more they are susceptible to change," he said.

He said the company still only offers its chicken and steak teriyaki. Although it takes about 45 minutes to prepare, it can be served assembly-line style within minutes or catered.

Karkouti, who was 18 years old when Surf Brothers Teriyaki was established, said that the company has come a long way. He estimates that it served 15 customers on its opening day, and business was so slow that he asked family friends to act like they were eating to attract new customers.

The company, which started with a $35,000 loan, should gross $2.4 million this year, Karkouti said.

The family had never run a business. They got the idea for Surf Brothers Teriyaki because they enjoyed teriyaki in Seattle.

After spending three weeks developing a special teriyaki sauce, Karkouti said it is now so popular that it is packaged and sold in stores for $4.50 a bottle.

"Our sauce is what has kept us in business," he said.

Contact freelance writer Shannon Wingard at scwing711@gmail.com.

Standout Facts

Name: Surf Brothers Teriyaki

Owners: Reza Karkouti, chief executive officer; Amir Karkouti, chief financial officer; and Ahad Karkouti, treasurer

Address: Carlsbad: 2708 Loker Ave. W.; Encinitas: 274 N. El Camino Real; Escondido: 1032 W. Valley Parkway; and San Marcos: 679 S. Rancho Santa Fe Road

Phone: Carlsbad: (760) 929-1313; Encinitas: (760) 633-1717; Escondido: (760) 233-1515; and San Marcos: (760) 471-5544

Products: Specializes in preparing, serving and catering meals of chicken or steak teriyaki, white rice and cabbage

Web site: http://www.surfbrothers.net/

Established: 1992

Employees: 35

Estimated gross sales for 2007: $2.4 million

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