As the Kro flies? Partner troubles at Kro’s Nest Pizza
Update III (Tuesday afternoon): I just talked to Olaf Kristoffer Bauer aka Kro and he says he plans to pursue his share of the three-branch Kro’s Nest business. While he said the U.S. Embassy had advised him that he might have to “swallow the hardest pill” and start over from scratch, he has decided instead to “pursue every avenue to get what I deserve” and to “fight the good fight for everyone who has been pushed out of a business.” He says for the time being he will not be present at the Kro’s Nest branches. He is seeking further legal help on a percentage basis.
See also this post by Damjan DeNoble, a former manager at Kro’s, and this article by the Global Times.
Note: While I have not talked to all of the players in this situation, I would make two general points. One, in a city where it seems like half of the foreigners I know want to open a bar, cafe, or restaurant, this is yet another case that shows the importance of getting your legal house in order from the start. Two, while this is a conflict between an expatriate and a Chinese, I have seen problems arise between Chinese partners and between expatriate ones. In other words, problems can arise regardless of nationality when money is involved. Both of these points sound obvious, but…
Update II (Monday night): Look for a statement tomorrow–Tuesday–from Kro re the management meltdown at Kro’s Nest.
Update: Sounds like things have taken a turn for the worse as the police have apparently taken Kro away. More coming soon.
(Saturday afternoon) Partner problems in the Beijing food and beverage scene are no rarity and the newest case involves The Kro’s Nest where it looks like the pie has hit the fan. The person most associated with this pizza chain, Kro, says that he is being pushed out of the business but that he does not plan on taking it sitting down. Instead, he’ll be standing and flipping pizzas at the Workers Stadium North branch today and tonight and asks diners to pay him directly. That’s all the info I have on this situation at the moment but hope to have more soon.
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China is just a mafia country not a country for small time businessmen. Don’t invest in this nation.
Kro needs all the support we can give.. this is a stand and i’m sure we will all be there for support.. hell, i hope he flips pizza tomorrow night. i feel a little support is needed… :):)
Like I mentioned elsewhere, I was glad to have had the chance to sample the fare at this place before all this pie hit said fan. Man, it’s a tough one…but I’m looking for the DeNoble update to this story to perhaps shed light on what transpires legally, since much of the copy of late is pure conjecture and invective…despite the fact that I dig what Kro’s pulled off.
Feel bad that the best ammo Beijing expats can sling in return at this time is more of the usual “Chinese partners are a bunch of crooks, don’t do business in the PRC, yakkity-yak.”
Still, I’m not standing in Kro’s shoes, and right about now, the kid must be livid.
Is there a risk to his person? Any news on that, Jim?
[...] UPDATE: And here’s prominent Beijing expat Jim “Beijing” Boyce’s take on things… [...]
The Kro’s Nest. Just Another Day In China….
“Steal a little and they throw you in jail. Steal a lot and they make you king.” Bob Dylan “Guanxi either retires or goes to jail.” Rich Brubaker Just read an absolutely fantastic china/dvide post, written by Damjan DeNoble. The post is entitled, …
[...] 32 Kro’s Nest, End of Days 72 comments by Damjan DeNoble on May 11, 2010This past Saturday, with the arrest and public humiliation of its foreign owner by Beijing authorities, the Kro’s Nest unofficially ended its five year run. The official end will come at the [...]
I feel for the man. But damn – how stupid. No one would start a business or any legal relationship in the west without the paper work being done. Why do people do it here all the time? It boggles the mind. :-s
If Dan Harris ever had a time to show his ilk, it would be now. Good luck to Kro, and I hope things fall in his favor.