In addition to their original Sherlock's on Westheimer near the Beltway, the partners operate three other Sherlock's locations in the Houston area, as well as two Sherlock's Baker Street Pub and Grill locations. Several more pubs are in the planning stages.

Carlson and Martin met in college at a time when both worked as bartenders in Houston. They developed a friendship while learning the pub business in a variety of locations.

In 1994, Martin and Carlson decided they were ready to take the next step.

"We were in our mid-30s and felt we needed to get out of the business altogether or be owners," Carlson says. "We decided we were ready to step up."

They stumbled onto Sherlock's Pub in the Westchase area, which went up for sale when the owner was ready to retire.

"There were 15 or 20 people vying to purchase Sherlock's, and everyone had ideas to change this and that. We just wanted to make minor improvements," Carlson remembers.

Martin and Carlson bought Sherlock's with the help of a private investor and a partial loan carried by the seller.

They took over Sherlock's in January 1995. The pair immediately began making the changes they had envisioned for the bar.

"We went in there and got the books straightened out. We began booking better entertainment, installed new carpeting and new air conditioning. We looked at all the details to ensure the patrons were comfortable," Carlson says.

Their attention to detail paid off.

Carlson says profits began rising "slowly but surely."

With a little revenue coming in, Carlson and Martin were able to start promoting Sherlock's. Their first big event was a St. Patrick's Day party, which was so successful that it spilled into the parking lot.

Martin says that promotion served to both give Sherlock's some early exposure and to create an annual tradition for the pub.

When they first started out, Carlson and Martin were so intent on getting their concept right that they traveled to London to conduct research on the pub scene.

Martin says the partners learned that British pubs are casual, simple and non-trendy. And they knew Houstonians would appreciate those traits as well.

He points out that the word "pub" is short for public house, a local venue where patrons can relax, talk and have a drink.

"That was the philosophy we learned in London -- and we have tried to replicate in Texas," Martin says.

In addition to Sherlock's, Hospitality U.S.A. operated a number of other ventures in Houston, including a jazz club in Shepherd Plaza and a dance club above Biraporetti's on West Gray.

Carlson says those venues, which are no longer in operation, provided a learning experience for the partners.

"The dance club was very popular, but we learned that the whole disco/ cover charge/lines-out-the-door concept was very short-lived," he says.

The club was open for a little over a year. After its closure, Carlson and Martin decided to remodel the facility -- and a second Sherlock's was born in 1997. It was an instant hit.

"We felt like we had a concept that could `travel' without cutting into our existing clientele," Carlson says.

A year later, they opened a restaurant in the Rice Village called Sabroso, which allowed them to test the waters of restaurant ownership.

But there was so much competition in the area that the restaurant never really took off. So Carlson and Martin sold the restaurant -- which is no longer in operation -- and made the decision to focus solely on Sherlock's.

In November 1998, they opened the doors in Clear Lake to the third Sherlock's.

Martin and Carlson then decided to try their hand at a combination restaurant and bar, largely because they weren't ready to give up on the idea of food service.

So after working closely with a design team, the idea for Baker Street Pub and Grill was formed.

While both the Sherlock's and Baker Street concepts included a bar, the new Baker Street would have a kitchen and dining area instead of a stage and dance floor.

Carlson and Martin knew what they needed to make the new concept successful: restaurant and food experience.

"We went and recruited some experts in the food industry to help with running the kitchen," Martin says. "We needed to hire people who had more experience with restaurants than we had at the time."

The partners remained focused and were very hands-on in running each of their venues, even taking the dish towels home each night to wash them. Martin says the pair essentially worked day and night.

They still do," says Patrick Henry Creative Promotions President Patrick Henry, who has known Martin and Carlson for 15 years. "I've seen firsthand how they run their operation. If it takes cleaning a table or greeting someone, anything that needs to be done, they'll be there."

Carlson says the partners have to take on much of the work themselves in an effort to keep a tight lid on spending. He says profit margins in the restaurant business are extremely thin.

"Everything ends up being the bottom line," he says. "Every move we make is a financial move. It will cost you some way, either positive or negative."

The conservative approach seems to be working: Hospitality U.S.A.'s revenues have grown from $4.2 million in 1998 to $8.5 million in 2001.

With three locations of Sherlock's thriving and Baker Street open, Carlson and Martin began to look to the future.

They consulted with numerous professional acquaintances and friends to educate themselves about expansion.

"One thing we learned: When you begin to expand you've got to hire people who have experience in expanding a business," Carlson says. "Do not trip and fall by doing it yourself."

Carlson and Martin did have to delegate some of their day-to-day duties once they began concentrating on their expansion efforts. Before doing so, they shored up their management team with strong leaders. With the proper management team in place, Carlson and Martin were able to explore other areas for expansion opportunities.

As a result, a fourth Sherlock's opened in Humble in September 2001.

And a Sherlock's/Baker Street hybrid -- dubbed Sherlock's Baker Street Pub and Grill -- opened in April in San Antonio. It's a much larger venue that combines a bar, a live entertainment area and a dining area.

"They have a winning formula," says Peter Greene, the pub business development manager for Guinness U.D.V. who met the partners two years ago while consulting for Guinness beer. "Their design and build are very authentic, and they have the comfort level people expect from an Irish or English tavern."

Meanwhile, Martin and Carlson plan to open another Sherlock's Baker Street Pub and Grill next month in Addison. An Arlington location is scheduled to open its doors this November.

They are also looking at opening locations in The Woodlands, Sugar Land and the Austin area. They are even putting some feelers out in other states, mainly focusing south of the Mason-Dixon line.