(Editor’s note: This is the 53rd installment in a monthly series speaking with minority business owners and leaders. Each will be asked their views on minority-business conditions in the state and for ways to improve those businesses’ chances for success. See previous features here.)
Though he graduated with a business degree from the University of Rhode Island, in a sense, James Lau is a double major.
Since childhood, Lau has received an education in hospitality that one can only get while growing up in a family-owned restaurant.
Founded by his father, Chung Hing Lau, the Chinese restaurant New Dragon Inc. has become a mainstay in the seaside town of Narragansett.
But getting to this point was far from easy. As a young man in search of a better life, the elder Lau made several attempts to swim from communist mainland China to then-British-controlled Hong Kong in the early 1980s. “He kept getting caught,” James Lau said.
Chung Hing Lau eventually migrated to the U.S. and settled with relatives in southern New England.
After operating two restaurants in rented space in the 1990s – first in Warwick and then in East Greenwich – and after years of prodding, Chung Hing Lau finally persuaded his friend to sell him the restaurant on Point Judith Road in Narragansett.
Southern Rhode Island was where Lau’s family had settled and where his children were enrolled in public schools.
Unfortunately, the acquisition didn’t come with a friendly discount. The elder Lau was charged an exorbitant interest rate, but he knew that another shot at business ownership might never happen.
“He recognized the potential of the area, so he did what he did best, relentlessly grinding until he created the opportunity,” James Lau said.
Now semi-retired, Chung Hing Lau finds it difficult to stay away. Though in his mid-70s, he was at the restaurant helping to fill takeout orders on a recent offseason weekday.
Slowly becoming the bosses, James Lau and his brother, John, now help oversee a staff that ranges from 15 to 20, serving authentic Cantonese-style fare.
“The New Dragon core will always be our foundation,” James Lau said.
With the recipes set, the brothers have worked to expand revenues by increasing the catering arm and bookings for special events such as weddings and birthday parties. They spent months during the pandemic transforming the upstairs barroom into an event space with a colorful and swanky nightclub setting.
And regulars and tourists alike swear by the New Dragon cocktail menu, James Lau says, especially the mai tai.
“We have always been able to make large amounts of food very quickly,” he said. “Our latest mission is to actively break into the catering and event space and become a viable option in Rhode Island.”
James Lau recalls making two trips to his father’s village in China, the first when he was in elementary school.
“It was exactly what you see in the movies. Poor but surrounded by beautiful open fields with mountains in the background,” he said. “I remember sleeping on my father’s old bed and thinking how hard it must have been.”
But by the time the Lau family returned to the village in 2014, things had changed drastically.
“It was no longer poor,” James Lau said. “It had modern facilities. My father was so happy to see it. He never thought it would change so drastically. He would never say this, but I like to think his success rubbed off on everyone else.”
Chung Hing Lau threw a celebration for the villagers during that visit.
“We all gathered out in the courtyard and had a giant feast. That is how he was raised. Big family meals together and everyone is always invited,” said James Lau, who is a staunch believer that success is attainable by anyone willing to make sacrifices.
His father is a living example, James Lau says, although in hindsight Chung Hing Lau would have done it a little differently. “He always says he’d be a millionaire if he had started sooner,” the younger Lau said.
1. Do you believe racism is keeping minorities from starting businesses in the Ocean State or succeeding when they do? I don’t believe racism stops people from succeeding in the Ocean State. Business is hard. No matter what your ethnicity, people have struggles. My father came to the United States almost 50 years ago with just a dollar in his pocket, no English, and no credit, but he didn’t let that stop him. If you have the right mindset, your determination and hard work are what make you successful.
2. How dependent is your business on the support of other minority groups? Is that a sustainable business model? Of course, we rely on the community and town that we are in. The people are what make us successful. My father has a lot of connections within the Asian community and is very well liked. But these communities aren’t our everyday customers.
We don’t rely on a specific group of people. Our business has always been about food. My father has always said that when you have great food and great service, the people will come and keep coming.
3. What one thing could Rhode Island do to boost the odds for minority-owned business success? We have always benefited from the tourism that attracts people to the Ocean State. We get these stories all the time of customers saying they make it a point to make New Dragon a stop in their summer vacation plans. Having the state continue its efforts in attracting tourism and promoting the rich culture packed into our small state is something that has helped us and I believe can help other businesses.
4. Have you had to turn somewhere other than a bank for a loan? Do you believe the state’s lending institutions generally treat minorities fairly? The local branches have been good to us. Our local [Small Business Administration office] has also been super helpful, especially during the [COVID-19] pandemic. It’s funny that when I was applying for the COVID relief programs, it was super confusing. I reached out to an SBA rep, who happened to be a customer and knows my other advisers very well. That is the Rhode Island charm – everyone knows each other and it’s a lot easier to leverage resources because of it.
5. If another minority entrepreneur asked you where they could turn to for support for their business, where would you direct them? Definitely start with the SBA. We participated in the [Goldman Sachs] 10,000 Small Businesses program, which helped teach us how we should be thinking about our growth plan, while also connecting us with a network of other amazing businesses to pool resources.
The Southern Rhode Island Chamber of Commerce and the town of Narragansett have also been amazingly supportive. We are active in both groups.
