Kro's Nest Returns

For many expats, The Kro’s Nest has been a sanctuary of sorts from all the ketchup- and mayonnaise-covered abominations that pass for Western food here in China. You’ve probably noticed, though, that the old locations near Peking University and the Worker’s Stadium have recently changed their names. Unbeknownst to many late-night bingers, Beijing almost lost this slice of home to some legal shenanigans just a few months back. But fear not, The Kro’s Nest is here to stay.

Olaf Kristoffer Bauer (better known as Kro), the man at the heart of these legal battles, invited Agenda to the new Kro’s Nest location on Xiaoyun Lu to discuss what went down. Amid a flurry of construction workers in the new 1000-square-foot establishment, which comes complete with its own hydroponic wall for growing fresh herbs and a tree that’s bigger than The Tree’s, this laid-back Georgia native sat back in his army fatigues and an old hoodie to tell Agenda about how Kro’s Nest got started, how it almost got destroyed, and how it’s now better than it’s ever been before.

First things first. Why did you decide to open up a pizza place in Beijing of all places?
Well, in China everybody sits around and eats one thing together. With pizza, it’s the same deal. You get one massive pizza and everyone shares it. You can satisfy any type of appetite with a well-made pizza.

When I first came here, all Beijing had was Italian-style pizza. Frankly speaking, Italian pizza is pansy pizza. Americans took pizza and perfected it, made it hearty. There wasn’t any American pizza here at the time. It was a gap that needed to be filled, so I just went for it.

So what did it take to get everything set up in China?
Yelling, screaming, smoking, and drinking. Which are all things that I’m good at. (laughs) But seriously, it just took a lot of patience. Trying to find a place was difficult, staying in budget was difficult. And at the end of ’05 when I opened the first Kro’s Nest, getting the right ingredients was next to impossible. I put everything I had into doing things right, and when all was said and done, I only had a thousand kuai in my pocket.

How did you go from there to making pizza that drew a crowd?
A lot of it was trial and error. Most of my experience here has been one big experiment in doing things yourself. You don’t have to learn everything from a book. You can learn a lot by just going out and doing things, and in that process you’ll discover a lot of do’s and don’ts. I’ve discovered a lot of don’ts.

So you went from nothing to three successful restaurants. And as a lot of people have heard, your partner later tried to steal it all from you. What happened there?
At the time, business seemed to be going pretty well. Then, out of the blue, my partner at the time started firing all the employees that I had originally hired. Most of the foreigners left, and he started saying that we were losing money.

I wanted to see the books, and he wouldn’t show me. So I hired a new accountant and we performed an audit. We checked how much money we made on a daily basis. After a few months’ time, we put all the numbers together and found out that we weren’t losing money at all. Based on those numbers, my partner actually owed me about RMB four million in profits.

Everything came to a head on May 8. My partner was ignoring me, so I figured if he wasn’t going to give me the money he owed me, I’d keep on making pizzas and earn the money back myself. I’d take what I earned with my own hands, remove the signs and leave. But when I went into the restaurant that day, some employees came up to me and said that my partner had held a meeting and told everyone that I left the company. I went in the kitchen to make pizza anyway, and they called the cops.

Was that even legal? How did things play out?
That’s the best part. The cops came and they knew that I was partners with this guy. Everybody knew. And they didn’t want to touch it at all. My partner finally came barreling in himself and told me to get the heck out. He pushed me up against the wall and started roughing me up, then got sent to jail for three days. And when he got out, boom – he just disappeared.

And then?
Well, I was flat broke. I sold everything I owned just to get by. Pursuing things legally, starting up a new shop – that all takes money. You see all these TV shows where lawyers are like, “I’ll do it pro bono.” But let me tell you: No one does it pro bono. In the real world they’ll say, “Well, I’ll take your case … maybe.” With these types of lawyers, even printing up paper costs a ton of money.

Honestly, to me the most important thing was to get back up and show foreigners that, even if you get screwed over, you can pull yourself off the ground and there’s still something to hope for. So I sold everything, hired some lawyers, and went after the guy.

So now you completely own Kro’s?
Yes, and that’s one thing that I want to make very clear: There is one and only one Kro’s Nest in Beijing, and that’s at Xiaoyun Lu. Only one. All the old restaurants in Gongti and Beida, they’ve already changed their names. They’ve already changed their registrations and their menus. I still haven’t gotten my 50/50 cut from them, but I have the name, the recipes, and the logo. And that’s enough for now.

In retrospect, what would you have done differently?
If I could do things again, I would put the time and the effort into knowing my surroundings. I came barreling in here at 22 with all guns blazing, and I should have scouted the area first. I should have checked to see if there were any potholes or booby traps.

Having courage, being willing to try something, and then going out and getting it is great. But in retrospect, I know I should have done things the formal, legally established way rather than having so many oral agreements based on friendship and trust. Business is business, friends are friends, and you have to protect yourself. Never take too many chances, especially with your name.

And that’s not to say that you shouldn’t trust people. I haven’t lost my faith in humanity. I’m just more careful and more sensitive about who and how I trust now, and what steps I take to protect myself.

Do you have any advice for people looking to start their own business here?
Get everything put down in writing. The only time you want to bring out a contract is when you’re having problems. And when I had problems, all I had was an outdated contract that lacked two very, very important words: “Kro’s Nest.” My partner and I had signed everything before we settled on a name.

What would you say to people who knew about your legal troubles and continued to patronize the old Kro’s Nest?
I’d say come to Xiaoyun Lu. Come try some real pizza.

Are you bringing anything new to the Xiaoyun Lu location?
We’re bringing everything back, bigger and better. In every respect. We’re going to be Beijing’s first pizzeria, not just some restaurant that serves pizza.

We’re going to push our pizza to new limits, finding the best flavor combinations, taking an innovative approach and delivering a product that’s much, much more authentic. Take everything great about the old place, add an “er” to it. It’s Kro-er than ever before.

The opening date for the new Kro's Nest is yet to be confirmed - stay tuned to the Beijinger blog.

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