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Wearing crisp khaki pants and a maroon oxford shirt emblazoned with BD's Mongolian Barbeque's logo under his collarbone, Billy Downs stands before a group of what look like disciples -- they're all wearing similar outfits -- to talk about his most recent business trip.

". . . And no part of the goat goes unused," he explains.

Downs is the BD in BD's and is CEO of the 24-restaurant chain based in Ferndale (Michigan). The restaurants are well-known for their style of cooking: out in the open on a large, round stone grille, which is modeled on how the warriors led by Genghis Khan cooked their food while sweeping through Asia and part of Europe in the 12th Century.

The growing restaurant chain is now sweeping through the Midwest and beyond - including a restaurant in Mongolia itself.

Downs and three other company officers recently spent almost two weeks in Mongolia touring not only the capital city of Ulaanbaatar but also into the mountainous region to the north.

Downs' group looked for ways to incorporate more of the Mongolian culture into the company's restaurants in seven states but also to lay the groundwork to open a BD's Mongolian Barbeque in Ulaanbaatar early next summer. The profits from the restaurant are to go to the Mongolian Youth Development Center, a not-for-profit organization that helps at-risk children develop life and job skills.

"In this restaurant it's possible to organize a charity dinner among the people who are willing to help disadvantaged children," said Esunmunkh Myagmar, president and executive director of the MYDC. "Mongolia is a country in transition and is facing many social problems, where the children are innocent victims. I am very happy that I met with Billy Downs. He is a very generous and intelligent man."

Ganbold Sodnom, trade and economic counselor at the Mongolian Embassy in Washington, D.C., says he believes the restaurant will do well. He said Mongolia receives about 200,000 tourists annually, and most of those gravitate to nonnative restaurants in Ulaanbaatar. He said Asian -- in particular Chinese -- and European restaurants have been moving into the country for the last decade, but American restaurants have been slow to follow.

"There is one other American restaurant. It is fast-food-style but not part of a chain. It is independent," Sodnom said. "I'd like to say anyone who wants to start a restaurant business needs to study the situation. They should visit the capital city, Ulaanbaatar. Of course, (a restaurant is) one of the best opportunities to invest and start a business."

He said more than 70 percent of the residents of Ulaanbaatar are younger than 35 and are excited by new restaurants, especially the thought of an American restaurant. "Mongolian people very much like to visit new restaurants with European and American names," he said.

Downs said the idea behind working with Myagmar to open a BD's in a country where the average person makes $84 per month is part of the company's philosophy of "friends helping friends."

"We think we can donate at least $25,000 annually to the MYDC," he said. "This is a giveback. We've been trading on Mongolian culture for a while now, and this is a chance for us to give back. Yeah, there's a chance it could fail, but we feel confident it will work."

Andy Deloney, director of public affairs for the Michigan Restaurant Association, said he's not surprised to see Downs opening a restaurant in Mongolia. While Deloney has concerns about the level of risk, ultimately he's optimistic about the venture.

"There's always an element of risk in any venture," he said. "To embark into a new country poses some challenges. We do know that Mr. Downs is a very thoughtful individual that does not take decision making lightly. Is there a sense of risk? Absolutely, but most people would tell you that, if there's no risk involved, the reward is not going to be as great."

Downs is not only expanding into Mongolia. The entire company is on the uptick. It reported system-wide sales of $49 million in 2003. He said same-store sales are up 3.9 percent through the first 10 months of 2004, and he expects to surpass $50 million in system-wide sales this year. The company is early in its expansion plan, which calls for doubling the number of restaurants and expanding the company's footprint in the Midwest.

"We are taking the brand from a regional brand to a regional powerhouse," he said. "We want to have significant penetration into each marketplace, have significant volumes and be recognized as the No. 1 player in the Midwest."

The company has seven restaurants in development that are expected to open by the end of 2005. The new restaurants will be in Kalamazoo, Cincinnati, Flint, Indianapolis, as well as in as-yet-named suburbs of Detroit and Chicago. Downs said the company can open as many as 12 restaurants annually and expects to meet the goal of 50 restaurants and $100 million in annual system-wide sales by 2007.

The company's expansion isn't limited to outside Michigan. The original restaurant in downtown Royal Oak is moving a few blocks south to the first floor of the new Skylofts condominium building on Main Street.

The 12-year-old flagship restaurant was inefficient and costly to run because it was on two floors. The new 5,600-square-foot space is on one level. Although it handles the same number of patrons, it boasts bigger tables and booths and Downs expects it will make for a better experience.

"I hate to say the difference is night and day, but it is," he said. "We're not going to lose the intimacy. We want to keep that intimate feeling."

The company spent $1 million to open the new Royal Oak location and it's part of the company's plans to reinvest in its older restaurants, including upgrading the bar area and revamping the menu to allow for more conventional service with a waiter or waitress handling orders.

"There is a certain population that loves the create-your-own meal," Downs said, "but others like to have someone serve them. We're adding tapas-style food. We want people to be able to come in and eat but not feel like they have to be really hungry to eat here."

©2004 Detroit Free Press Inc.

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