Jenny: All right—hello! Welcome back.

Alex: Welcome back. Hi.

Rasheeda: Hi.

Alex: Episode two! Exciting.

Jenny: Do you want to level-set where we are—what day it is—for our audience and what’s happening?

Alex: Yeah—are you telling me that or Rob?

Rasheeda: You guys or me and Rob, whatever.

Alex: I’ll take it.

Rasheeda: Oh.

Jenny: Yeah.

Alex: Today is Thursday.

Jenny: Yeah.

Alex: It’s August 7th.

Rasheeda: We’re in the Tilit studio. It’s August 7th.

Alex: Um…

All: Ra is busy—she’s got a lot to tell us, right?

Rasheeda: Yes.

Alex: Yes.

Rasheeda: Yes, yes.

Alex: Go!

Rasheeda: Well, at this point—renovations are underway and have made huge progress from last week. I have floors; the subfloors are down, all the walls are built, the coating is up. It’s a speedy mission—we’re in maybe week three of renovations, and I’m seeing such great progress. If the team comes today, it’s totally different.

Alex: Exciting! So tell me—floors, subflooring—are we talking true subflooring?

Rasheeda: Yes.

Alex: And now you still have to do wood floors or tile?

Rasheeda: Right now the subfloors are down, and the wood floors will go in before the weekend because we have cabinetry coming Monday. Everything on the floor has to be complete for the cabinets based on the back wall and uppers. Huge delivery Monday—yeah, I’m excited.

Jenny: Were the cabinets custom-built or off-the-shelf?

Rasheeda: Off the shelf. The look is supposed to feel like home. We thought about custom, but it didn’t feel cozy. Off-the-shelf looks relatable—it looks like home.

Rasheeda: So we went off the shelf. There’ll be arches inside the space with a lot of molding—it’s a fantasy coming together. We went strong with molding; once you see the archways and the arch within the window—the nook—it’s a fairy tale.

Rasheeda: The idea was to create this feminine ramen-shop look, and the molding and arches play a huge part.

Jenny: Sorry—you’re saying moldings?

Rasheeda: On the wall, yeah.

Jenny: On the walls, okay.

Rasheeda: Top and bottom, molding around the archway—it separates cooking and guests. When you see it, it’s visible right away.

Jenny: We didn’t talk about this last time—did you have to pull permits for your build?

Rasheeda: No, I didn’t. Coming from Bowery Market, everything was electric, so I’m using the same equipment here. Mostly cosmetic and aesthetic installations—similar to Bowery Market but more “old New York.”

Rasheeda: That was my goal—like old apartments with beautiful molding and radiators. We didn’t need much new infrastructure because it’s cabinetry, countertops, induction cooktops—no gas.

Jenny: And you didn’t have to upgrade electric or move outlets?

Rasheeda: We upgraded electric, yes, but not enough to need heavy permits. The previous tenant was a pizza shop using electric too, so everything was there already.

Jenny: Hmm.

Rasheeda: I basically walked into a space that could accommodate my equipment.

Jenny: And did you keep any of the equipment from before?

Rasheeda: No—those were huge bulky ovens. I don’t know how they breathed in there with all that heat. We just need four top induction cooktops.

Alex: That’s all you use for prep and service—four induction cooktops?

Rasheeda: Four doubles, technically eight.

Alex: Four doubles—got it.

Rasheeda: Yeah, two-tier setup.

Alex: That’s a lot of electric! So you did have to amp it up?

Rasheeda: No—the building’s previous use covered our needs for the double tiers.

Jenny: Have you tested it yet?

Rasheeda: Not yet.

Jenny: We had bad luck with electric once—just curious.

Rasheeda: Not yet, but that’s the plan once we’re closer. We’ll make sure everything’s solid for business hours.

Jenny: Mm-hmm.

Rasheeda: I’ll be in there for a month by myself before opening.

Jenny: Right.

Rasheeda: I’m going to do whatever I need—test, fail, have good days and bad—to see what that feels like before opening.

Jenny: Right.

Rasheeda: And if anything, my designers and contractors are in the neighborhood. It’s important for me to have that solo month—to test and fail at least twice or three times.

Jenny: Don’t learn anything like you learn from a good failure.

Rasheeda: Right? Absolutely.

Jenny: You also learn better from other people’s failures too.

Rasheeda: True.

Jenny: I don’t know, yeah.

Alex: We have a topic today—talking about the lease specifically.

Rasheeda: Okay.

Alex: And also funding—how you got financing for the restaurant. But before that, updates? Branding, licensing, team—anything you’re working on while construction moves?

Rasheeda: Absolutely. This time has been valuable beyond construction—it’s given me space to grow through branding and merch.

Rasheeda: A couple of additions to Ramen by Ra—beyond the menu—will be a retail line. People have been asking for merch constantly, so I’m sketching and creating ideas related to ramen and the space aesthetic.

Rasheeda: Think of cafes and bagel shops with sweatshirts, tees, hats, canvas bags—we’re going in that direction. Keepsakes that serve as brand souvenirs.

Rasheeda: Outside of “how can I get a reservation,” the other regular question was, “When are you dropping merch?” I’m excited to push that. Coming from fashion into food—it’s full circle.

Rasheeda: Everyday casual wear tied to food culture in New York—people love merch, it’s fast advertising, just like Tilit.

Rasheeda: So Ramen by Ra can fall under that umbrella too—people get attached to branded items like keychains, bags, small keepsakes.

Alex: I love the merch.

Jenny: You know we love a good merch play.

Rasheeda: Right? I’m in the right place.

Alex: It’s a great way to show you’re part of a community.

Rasheeda: Yes!

Alex: Once you’ve built that culture and community, people want to share they’re part of it—no easier way than with a cool hat.

Rasheeda: Yes.

Alex: So let’s jump into today’s topic. Jen, you want to talk lease first or finances first?

Jenny: Yeah—let’s start with the lease. Last time we talked about your space search—you looked at three major spaces, landed on this one, ran down there—so what happened next? How long to negotiate? What were the sticking points?

Rasheeda: The lease took some time—not from conflict, but from timing. Lots of holidays and weekends prolonged it. About two months total.

Rasheeda: We wanted to hone in on a longer lease instead of five-plus-five like most people do. I wanted to nip it in the bud and do ten years. Downtown fluctuates a lot—I didn’t want to face rent spikes after five. Five-plus-five is safe, but ten is stability.

Rasheeda: Depending on where we are in the world, it wouldn’t reflect because there was no break in the lease. But the landlord wanted to feel me out, see what I was bringing to the community. I think it helped that her daughter loves Ramen by Ra — that definitely didn’t hurt.

Alex: I was going to ask if there was a connection with the landlord right away.

Rasheeda: Yes, I immediately had a connection, and also a strong referral from my previous landlord, who I’m still close with. It’s a family thing at Bowery Market — even today, I saw the dad on my bike ride this morning. That letter of reference meant a lot; they’re known in the community, as is my new landlord.

Rasheeda: Having that strong referral really played a part — it’s who you know and how you feel when you meet them. That carried over well into the next space. They were proud to refer me, because they enjoyed the growth I brought to that corner. They knew I was outgrowing the first space and told me, “If you need help, let us know.”

Jenny: Was it competitive?

Rasheeda: I think there was one other person, but I truly think because we live down here, the landlord loved that we were local. When we signed, she wanted to meet me the next day — she said, “I just wanted to see you in person. I’ve seen so much about you from my daughter.” She told me, “You’re going to do great. We want you here forever.”

Jenny: That’s so nice.

Rasheeda: I walked away with that energy.

Jenny: But that was after you signed?

Rasheeda: Yes.

Jenny: Interesting.

Rasheeda: Before signing, I was walking with her brokers.

Jenny: Interesting. And was it just you? Or was there a lawyer?

Rasheeda: Oh yeah — I had a lawyer engaged. The delays were mostly between lawyers. It felt like every time we needed something approved, there was another holiday. But yes, lawyers were in constant communication.

Alex: Were there things your lawyer pulled out — like, “We should ask for this,” or “Change that”?

Rasheeda: Honestly, we were just fighting for longevity — the lease term and amount of time. The one we ran from on Tenth Street showed us how simple this lease was. That one was 80 pages; this one was around 20-something. Huge relief.

Rasheeda: I’m thankful for my lawyer — he specializes in restaurant leases. He told me, “This is straightforward. No fluff.” The landlord even gave me names of local businesses to ask about her reputation, and I did. Everyone said the same thing: “She’s down to earth — just pay her and you’ll never hear from her.”

Jenny: That’s great. I was going to ask if you reference-checked the landlord, because landlords often feel like business partners. It’s good she has a solid reputation.

Rasheeda: Yeah, she really does.

Jenny: I’m surprised you didn’t meet her before signing — that’s rare.

Rasheeda: I didn’t meet the Bowery Market landlord beforehand either. Lots of phone conversations — it’s a family block, his dad ran the garage next door. So I went off of that.

Alex: I can’t say that at Tilit we’ve ever sat down with our landlord. Jen, have we?

Jenny: We met Joyce, yes.

Alex: Oh, right.

Jenny: Yes, three times.

Alex: Memorable experience, clearly.

Jenny: And Husky — we met plenty of times.

Alex: Husky a lot, but Joyce was the boss on the lease.

Jenny: Oh, is she?

Rasheeda: I don’t think I’ve ever met a landlord before this.

Jenny: There was a lot of drama with the landlord on last season of The Build.

Alex: Yeah, a lot of drama.

Jenny: So this is better — maybe if you don’t see your landlord, it means things are going well.

Rasheeda: Exactly.

Jenny: Or very bad.

Alex: True.

Jenny: I’m curious — who was the lawyer you used, and can you share what you spent?

Rasheeda: Andrew Skeller — he’s in Midtown. He was a referral through a neighbor who’s a huge Ramen by Ra fan. She’s a lawyer too, and she looked over the first lease, but she said, “Pass it to Andrew — he specializes in restaurant leases.”

Alex: Was her advice something you ended up using?

Rasheeda: Yeah, but Andrew really went deep. The second location we ran from — she redlined it first, and then he tore it apart with all the red flags. That’s why we really left that deal.

Rasheeda: When it came to East First and First, he said, “This is a relief. This one’s solid.” It was smooth and straight to the point. He even emailed back saying, “Let’s move fast; this one’s meant for you.”

Jenny: I love that — you went from red flags to green flags in your lease.

Rasheeda: Exactly.

Jenny: I’m curious about the lease term — sometimes five-plus-five includes built-in escalation. So how is a ten-year lease beneficial?

Rasheeda: The main negotiation was over real estate taxes. She helped us a lot — the increase is around 3%, which is common.

Jenny: Three percent every year?

Rasheeda: Yes. And it’s very affordable. Once we showed her the renovation plans, she was happy. When you show a landlord how much you’re investing, it builds trust.

Rasheeda: It showed how serious we were — not just in the space, but in the community. The deal felt golden to me, and I felt confident signing it.

Jenny: Did you get any tenant improvement money, or just time?

Rasheeda: Time.

Jenny: How much free rent?

Rasheeda: Three months.

Jenny: And you signed in June, right?

Rasheeda: Yes, found the space in March, signed in June.

Jenny: So that’s when the clock started.

Rasheeda: We moved in mid-June, spent July finalizing the team and layout.

Jenny: And that’s why you wanted to open by September — before rent starts in October.

Rasheeda: Exactly.

Alex: If you open early, you still start paying rent, right?

Rasheeda: Nope — rent officially starts in October.

Alex: Got it. Three months whether you’re open or not.

Rasheeda: Yep.

Jenny: Was that the best she’d offer, or did you negotiate more?

Rasheeda: I didn’t push for more because the build-out wasn’t massive. It’s mostly cosmetic. The space was semi-prepped, and being electric helps a lot.

Rasheeda: That gave me confidence that five weeks was realistic. Even if it stretched a bit, I wanted September for myself — time to settle before opening.

Jenny: When you interviewed contractors and designers, did you factor in speed?

Rasheeda: My boyfriend and I were looking for a team that resonated with style, not just function. I needed the space to feel reachable — I’m short, I don’t like too many turns while cooking.

Rasheeda: We went with a designer-contractor duo — a couple with chef backgrounds. That was perfect. They understood the details — grease traps, induction, layout — and cared about design.

Rasheeda: Everyone else we talked to was “just contractors.” These two balanced beauty and function. They think about the warmth, molding, and flow — not just getting things done fast.

Rasheeda: They’re intentional — they finish my sentences. Even if I’m not there, I trust them to get it.

Jenny: Who’s the contractor? We’d love to talk to them at some point.

Rasheeda: Yes! It’s called Wild Form — two guys. One’s a chef at O2 on Clinton Street, the other’s from Asia. He’s so excited to bring his design and woodwork perspective.

Rasheeda: It’s a great balance between beauty, wood, and old-meets-new.

Jenny: Mmm.

Rasheeda: I’d love for you to meet them — they’re wonderful.

Alex: Back to the lease — is it under your business name? Did you personally guarantee it?

Rasheeda: Both — under the business name, with a personal guarantee from me.

Alex: And do you have a good guy clause?

Rasheeda: Yes — I have to be there at least three years. It gives her some security, which I totally understand.

Alex: Pretty standard in New York.

Jenny: Yeah. And did you talk to the previous tenant or know why they left?

Rasheeda: I didn’t have to ask — I saw it. It was a mess. Ventilation out the window, no permits, no certificate of authority. It was all illegal.

Alex: Did they get shut down?

Rasheeda: Yes.

Jenny: Did the landlord have to clear the violations before you could sign?

Rasheeda: Yes, of course. We made sure everything was cleared.

Rasheeda: I’d seen the pizza shop before, even back when I was at Bowery Market. It was just… a lot of illegal stuff.

Jenny: Should we talk a little about business model and funding?

Rasheeda: The truth!

Jenny: The truth, the real deal — how do we make it work?

Alex: Yeah — the stressful stuff you don’t learn working for someone else.

Rasheeda: Exactly. How would you like to start? What’s the meat of it you want to know?

Jenny: Tell us how many turns, how many seats you need to make the numbers work. Let’s talk about the model.

Rasheeda: Yeah.

Jenny: Last time you had a percentage rent deal. This time you have mixed operating costs.

Rasheeda: Yeah.

Jenny: So how are you thinking about the model now?

Rasheeda: Everything is mine.

Jenny: Yeah, everything is yours — which is great, but also challenging during slow times when cash flow dips.

Rasheeda: Yes — fortunately, I didn’t have to go through that. The way my model is set up, being small and intimate, with reservations dropping like a merch drop or a sneaker release — that system works. I can see my week and month ahead of time.

Rasheeda: I’m shooting for 40 to 50 people each day. At that number, I’m solid.

Alex: How many seats do you have now?

Rasheeda: I’m starting with six, can go up to eight — double what I had before.

Alex: And are you breakfast, lunch, and dinner?

Rasheeda: Breakfast, lunch, and early dinner — I’m out by six. Because of the timeframe, I only need six people at nine, six at ten — that’s how I break it down.

Rasheeda: This space will do half-hour staggered reservations, which allows a great rhythm. The extra things — merch, private events — are icing on the cake.

Rasheeda: I already know what I can do with four seats — I did it for a year and a half. Now I’m doubling profit through food and adding new revenue from merch and events.

Rasheeda: Being standalone, people are interested in intimate private events or buyouts. That adds at least three new income streams beyond the 2023 base model.

Alex: There’s also the window, right? For takeout?

Rasheeda: Exactly — the takeout window adds a fourth. And remember, Bowery Market rent was higher than this new space.

Jenny: Really? The Bowery rent was higher?

Rasheeda: Yes. That’s why I ran. The new lease is cheaper.

Alex: So you’ve proven the concept — now you’ve got better economics.

Rasheeda: Exactly. Proven concept. I wake up, open early, no ramen competition in the morning. I’ll fill six to eight seats depending on flow, do window service with broth and bowls — fast casual. Add merch, and now you’ve got revenue all day.

Rasheeda: Plus private events and menu expansions — it’s all growth on top of what worked before.

Jenny: And you already have people lined up for buyouts?

Rasheeda: Yes — Bellyapp already inquired. They want first dibs on everything before I open to the public.

Alex: That’s amazing — having that lined up must feel great.

Jenny: So how did you figure out what it would cost to build and open this space?

Rasheeda: I compared it to last year’s build at Bowery Market — that renovation was a little over $30,000, funded through crowdfunding . Crowdfunding covered that renovation.

Alex: Was that campaign based on advanced reservations?

Rasheeda: No — just campaign-based donations. We opened with the concept and renovations going live before the public came. People already knew Ramen by Ra from pop-ups, so that helped.

Rasheeda: We had walk-in traffic at Bowery Market because of the location, but the reservation system gave structure. People saw full seats, and most made reservations right then for next time.

Rasheeda: That intimacy kept it popular — small, new, delicious, limited. That’s the engine.

Alex: So this new space — is it more expensive to build since you have a storefront now?

Rasheeda: Actually, no. At Bowery Market we started paying rent before opening because our first contractor wasn’t legit — bad insurance, bad paperwork.

Rasheeda: We went through two failed teams before using the landlord’s team. This time, I learned my lesson — picked a solid, experienced team from the start.

Rasheeda: The space is small enough that experienced builders see it as a fast project, but big enough to be meaningful.

Alex: Are you doing crowdfunding again?

Rasheeda: No — crowdfunding helped for the first shop. This time, funding came through my bank. During the Bowery Market era, they offered me a line of credit I initially didn’t want. But they tracked my business growth and saw the success.

Rasheeda: They increased my credit line and loans for the new space.

Rasheeda: Crowdfunding first was great — it showed who supports you in real time. Donations mirrored reservations: if people fund you, they’ll dine with you.

Rasheeda: When we hit our crowdfunding goal fast, I knew we’d have strong reservations. If you can’t reach that goal, you might need to reassess your readiness.

Jenny: Help us understand — when you say your bank funded you, what exactly does that mean?

Rasheeda: When I opened Bowery Market, my bank offered a line of credit. At first, I said no — I didn’t want more debt. But they explained the benefits for small businesses.

Rasheeda: They monitored my account, saw revenue and traffic, and said, “If you perform well your first year, we’ll increase it.”

Rasheeda: I used it responsibly — I’d buy what I needed, pay it right back, build trust. When we closed Bowery, they reviewed everything and were impressed. They said, “We’ll increase your limit for the next location.”

Rasheeda: So my growth financially went from crowdfunding to line of credit to bank loans.

Jenny: So how much is your line of credit now, and what’s your interest rate?

Rasheeda: $50,000 at about 8%. Not over 10.

Jenny: That’s pretty good in this market. Did you look at other financing?

Rasheeda: No, I went straight for it — 8% is solid.

Jenny: It’s a revolving line, right?

Rasheeda: Yes, a revolver — pay it back as you go.

Jenny: For context — most small business lines of credit are prime plus 2, so about 8%. Did you have any origination fees?

Rasheeda: Just closing costs, which I took out of the amount. TD starts you at 25, then 50, and goes higher based on your business plan and equipment list.

Rasheeda: But I wanted to keep it low — I can’t sleep with big debt.

Jenny: I get that.

Rasheeda: I’d rather make the smaller amount work.

Rasheeda: I also connected with Petrushka, founder of Sugar Hill Creamery, and Nick. They introduced me to their funding network. In one meeting, I asked for $50K and they said, “That’s it?” But I told them — I want to stay sane.

Alex: Yeah — you’ve got to pay it back!

Rasheeda: Exactly. I’d rather have smaller amounts from multiple places than one massive loan.

Jenny: So where else did you get funding from? And what’s the total budget for this new build?

Rasheeda: The Bowery Market was $30K; this one is about $70K. Fifty for buildout, ten for equipment, ten for supplies.

Jenny: So you doubled the budget.

Rasheeda: Yep — 50 goes to contractors, split between labor and design.

Jenny: Were you able to reuse any equipment from the previous space?

Rasheeda: A bit. Plus, this new space has a basement — cold and dry storage downstairs.

Alex: Is it just storage or prep too?

Rasheeda: Storage only. Upstairs will be prep and service.

Jenny: So $70,000 total buildout — that includes FF&E and all initial costs?

Rasheeda: Yes.

Jenny: And you have $50K from your bank, plus another $50K from where?

Rasheeda: Another bank — half loan, half line of credit. We split it to get faster approval.

Alex: And when applying, they looked at your Bowery Market history?

Rasheeda: Business and personal. I have strong personal credit, which helps since Ramen by Ra is under five years old. My personal history is gold — that’s how I got approvals fast.

Alex: So you’ve got access to $100K total — $70K for build and $30K remaining for operations.

Rasheeda: Yes. That $30K goes toward payroll, taxes, and operational setup. I’m separating everything this time — different accounts for taxes, payroll, food costs, etc.

Rasheeda: At Bowery Market, I only had two accounts, and it got messy. Now I have an accountant managing it all.

Jenny: So basically, $30K working capital. How long does that carry you?

Rasheeda: About three months. I always plan in quarterly cycles — especially since I’m opening in October.

Alex: And you’ll be on payroll yourself, right?

Rasheeda: Not at first. I’ll replace myself with debt payments until everything’s paid down, then get on payroll.

Jenny: How will you pay your own rent personally then?

Rasheeda: I don’t have rent — my partner supports me, thankfully.

Jenny: What a world.

Alex: Must be nice.

Rasheeda: We’re blessed. He supports both Ramen by Ra and me.

Alex: How long until you’re paying yourself again?

Rasheeda: By spring. I’m hoping by then all the debt is paid off.

Jenny: And at that point, you’ll have cleared everything — what occupancy is that based on?

Rasheeda: I had to forecast three to five years. With the new additions — merch, retail, window, private events — I’m hoping to quadruple Bowery Market revenue.

Rasheeda: I’m also adding a second person — essentially another me. If I brought in $50K at Bowery, this person brings another $50K.

Jenny: So meaning that person helps add new revenue from the window.

Rasheeda: Exactly.

Jenny: The window is exciting and new. How big a piece of your overall revenue do you expect it to be?

Rasheeda: I think it’ll be strong. The idea is to make broth and bao as competitive as bagels and coffee. We’ll start with morning service, then expand time slots as demand grows.

Rasheeda: I’ll test what hours work best — trial and error. But the window will likely outperform seated service because of speed.

Rasheeda: I can serve ten takeout customers in the time one person sits 45 minutes. That’s big.

Rasheeda: The window’s prime location — across from the F train, next to coffee and bagel shops — perfect for quick-service customers.

Jenny: That’s a big change, though — adding variable revenue instead of prepaid reservations.

Rasheeda: Right, but Square has systems for pickup time slots. I can cap broth and bao quantities daily. Customers pick a slot.

Rasheeda: It’s flexible — people can walk up, but preordering ensures sellouts.

Jenny: So you’ll still control prep volume — smart.

Rasheeda: Exactly. If I don’t sell out, I pour leftovers into ramen mise en place. Nothing wasted.

Alex: That’s clever — it removes a lot of risk.

Rasheeda: Yes. And customers asked for broth! They’d say, “Can I just buy broth? I’ll bring my own cup.” I couldn’t before, but now I can.

Rasheeda: It’s fast, easy, and fits between coffee jitters and soup comfort. We’re following what people want.

Jenny: And it’s smart — Brodo is proof there’s demand for that.

Rasheeda: Exactly. Brodo’s doing it downtown — no one else in our area is. I’m excited to test it this fall and winter.

Alex: It’s also a good test for CPG down the line.

Rasheeda: Totally.

Jenny: Maybe that’s the next evolution — broth-to-go as a packaged product.

Rasheeda: I love that. “Where are they now?” Season 3!

Jenny: We should bring Marco on to talk about Brodo — that’s his main business now.

Alex: Yeah, Hearth is still there, but Brodo’s the engine.

Rasheeda: That’s a pivot!

Jenny: It’s fascinating — and cool. Okay, I think we’re close on time. So, to recap: three months of working capital, funded by loans, no crowdfunding this time. Why didn’t you want to do crowdfunding again?

Rasheeda: The first crowdfunding was phenomenal. But this time, I wanted to do it on my own — make it a gift back to the people who helped me start.

Rasheeda: Only about 10 out of 300 contributors actually redeemed their rewards the first time. Most just wanted to support.

Jenny: Only 10% redeemed? That’s wild.

Alex: Wow.

Rasheeda: Yeah, but apparently that’s normal. People contribute because they want to help, not necessarily for the reward.

Jenny: Could they redeem at the new space?

Rasheeda: They technically could until the new year, but most didn’t. Many said, “Oh, I just wanted to support.”

Jenny: Amazing.

Alex: I feel like crowdfunding works best for proof-of-concept, but maybe less when you’re expanding.

Rasheeda: Exactly. People gave, then still made reservations. It showed real support.

Jenny: Cool. All right — great conversation.

Alex: Yeah, this was great.