Food part 1 Franchising usa October 2015 3#12 2

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Fresh To Order Aims to Identify With Their Franchisees the

Food Industry And Franchising

3 Reasons

Why Mobile Apps are Essential in the Restaurant Business Franchising USA

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Franchising opportunities now available in the following regions: Louisiana, Arkansas, Southeast Texas, and Mississippi.

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what’s new!

Restaurant Industry Sees Growth in Fast-Casual Mexican Sector The fast-casual Mexican segment of the restaurant industry is growing faster than any other restaurant category.

Consumer research identifies the drivers of fast casual’s growth to include “better – than – quick service food, an upscale ambiance and fresh made for you appeal.” Now is the most opportune time to become a Baja Fresh franchise owner.

Baja Fresh offers a unique restaurant franchise opportunity and you’ll join a growing family of over 165 thriving locations across 23 states, plus international locations in Singapore and Dubai.

Right now Baja Fresh is looking for new franchisees who are energetic, motivated and have an unrelenting commitment to customer service, quality and freshness.

You’ll be empowered to grow and achieve success, with the right tools and marketing support from an iconic, established brand.

And you’ll be able to take pride in what you serve your customers every day with our commitment to quality, healthy ingredients and hand-made freshness and flavor.

To download your free franchise success kit and learn more about U.S. and international opportunities, real estate submittal and more, visit www.Bajafreshfranchise.Com

Huddle House Wraps Up its 50th Anniversary with Strong-Year of Growth year and new construction starts finished 140 percent ahead of the previous fiscal year.

Chambers will continue this successful expansion for the brand.

In addition, Huddle house will continue to offer incentives to new franchisees who take over and remodel existing stores.

“The results continue to prove that the remodeling program as well as other initiatives introduced over the past few years are paying off both in the performance of our restaurants as well as franchise growth,” said Huddle House CEO Michael Abt. “Demand for Huddle House franchises has never been stronger.”

Huddle House recently wrapped up its 50th anniversary with one of the chain’s strongest years of growth ever, signing 21 new franchise agreements, opening eight new restaurants, completing 41 remodels and adding four new company operated restaurants through the acquisition of existing locations.

In addition, as the 2014-2015 fiscal year closed in May, Huddle House recorded its 17th consecutive month of positive same store sales increases. Overall, new franchise and development agreement signings were up 23.5 percent over the previous fiscal

Franchising USA

Typically open 24-hours, Huddle House serves breakfast, lunch and dinner all day. The menu offers a mix of Southern inspired comfort food, including signature Big House breakfasts, crispy hash browns, creamy grits, golden waffles and fluffy omelets, all made to order. Other favorites include Big Bold Burgers, Big House sandwich platters, country fried steak with green beans and marinated grilled chicken with sweet potato fries.

The core values on which Huddle House was founded – serving quality food in a warm, friendly environment that brings the community together – remain intact today. huddlehousefranchising.com

THE SPICE & TEA EXCHANGE® SETS SAIL FOR EXPANSION Favorable Spice, Tea Industry Trends Leads to Growth The U.S. tea industry topped $10 billion last year, while the spice industry was calculated at $5 billion.

Enter The Spice & Tea Exchange® the franchise at the forefront of both growing industries, providing more than 140 spices and 75 exclusive hand-mixed blends, naturally-flavored sugars, salts from around the world and more than 30 exotic teas to guests of all 40 locations across the country. Looking to spread its unique eighteenth century trading post concept and reputation as a leading provider of gourmet spices, seasonings and teas, the franchise named on Entrepreneur Magazine’s 2015 Franchise 500® is now

targeting expansion nationwide.

The Spice & Tea Exchange® was created by a group of five talented individuals with a passion for life and food. Their vision, to create a one-of-a-kind shopping experience, brought the 18th Century Trading Post concept to life, providing guests with more than 140 spices and 75 exclusive hand-mixed blends, naturallyflavored sugars, salts from around the world and more than 30 exotic teas. The Spice & Tea Exchange® currently has 40 locations across 24 states and the District of Columbia.

For franchising information, visit http://franchise.spiceandtea.com/.

Philly Pretzel Factory set for growth Philly Pretzel Factory Creates a System and Infrastructure to Grow into a 500-Unit Chain by 2020 The first Philly Pretzel Factory opened its doors in 1998 with a concept to serve a soft pretzel “Hot Outta the Oven” to consumers as they walked through the door.

This was the vision of the CEO & Co-Founder, Dan DiZio who started selling pretzels at age 11 at the busy intersections throughout the city.

In 2004, Philly Pretzel Factory started franchising has grown to over 150 units located in 12 states and boasts 7 consecutive years of same store sales increase! Philly Pretzel Factory has created the system and the infrastructure to grow into a 500-unit chain by 2020.

“Each location is a factory, in addition to the retail customers there are wholesale opportunities at schools and businesses” said Marty Ferrill, President of Philly Pretzel Factory. “There is so much efficiency in the menu” stated Tom Monaghan, Chief Development Officer, when talking about how many different menu items are on the menu. These include Pretzel dogs, Cheesesteak Pretzels, Pizza Pretzels (with or without pepperoni) on top pretzels, rivets, mini pretzels and the always popular pretzel party tray to name a few.

Philly Pretzel Factory features a traditional bakery that can be a

Store in store model inside a Walmart in suburban Atlanta, GA.

stand-alone store or inside strip center. Other models can also be found at Airports, Train Stations, Amusement Parks and more.

We have partnered with Walmart for a store in store model that could be located inside your local Walmart.

If you are interested in becoming a Philly Pretzel Factory franchisee, visit our site at: www.phillypretzelfactory.com/ franchise.

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what’s new!

World of Beer Announces Opening of New Location in Chelsea, New York City “World of Beer has experienced rapid growth over recent years, which is a true testament to our unique concept and enthusiasm for the craft beer industry,” said World of Beer CEO and President Paul Avery, “We are proud to offer unparalleled experiences for every guest that visits our taverns and look forward to expanding the World of Beer brand to new markets nationwide and overseas.”

World of Beer, a craft tavern featuring the best local craft beers, is thrilled to announce the opening of its newest location in New York City, and its first in Chelsea.

This marks the rapidly growing franchise’s fourth tavern in the state of New York.

This year, World of Beer has opened 14 taverns and is projecting 12 more taverns by the end of the year.

With Avery spearheading the brand’s future growth, World of Beer plans to have more than 100 locations opened across the country within the next year. Since opening the doors to its first location in Tampa, Fla., in 2007, World of Beer has grown to 71 locations in 19 states across the U.S. Those interested in World of Beer franchising opportunities may visit World of Beer’s franchising website. www.worldofbeer.com/franchise.

Zaxby’s Opens 700th Location Fast-Casual chicken restaurant concept, Zaxby’s Franchising, Inc. (ZFI), opened its 700th restaurant on August 17, 2015, in Charlotte, North Carolina.

The new restaurant is operated by ZAX, Inc.—the largest franchisee in the Zaxby’s organization—and joined 5 existing Zaxby’s locations that serve the Greater Charlotte area.

“Although Zaxby’s is expanding outside of the Southeast, we’re excited to continue adding locations in the Charlotte market, especially because it’s close to home,” said Zaxby’s co-founder and EVP Tony Townley. “This area has been very good

Franchising USA

new and existing markets in 2015, which

The company plans to continue this momentum as it introduces the brand to new regions outside its established Southeast footprint. Zaxby’s currently has locations in 16 states.

marks its 25th year in business.

www.zaxbysfranchising.com

to us, and we’re proud to serve these loyal customers and their communities.”

Zaxby’s is on track to open 80 stores in

Mobile Technology for the Food Service Industry “Many of our franchise and restaurant customers use mobile technology across their operations, and they saw Zenput’s integration with BlueTherm probe thermometers as an easy way to access their most important field data and employee assignments all from one dashboard.

Now, chains that offer food service can instantly measure and log temperature readings for all prepared foods.”

“Together, the thermometer probe and Zenput’s mobile solution eliminate the need for food service workers or managers to manually log temperatures, guarantee exact readings every time, and ensure customers receive quality food in accordance with Hazard Analysis and Critical Control Points (HACCP) guidelines.”

“By instantly logging and recording food temperatures, which previously was done manually and tracked by pen and paper in each store, corporate officers, district managers and others can now monitor their locations via the phone app without having to travel to each store to review the physical records. This makes it easier to ensure compliance is met and fix noncompliant food lines before they become problems.” - Vladik Rikhter, co-founder and CEO, Zenput www.zenput.com

Chicago-Area Gastropub Launches Franchise Expansion Program Tap House Grill Addictive Food/Creative Brews, an eclectic gastro-pub with a unique twist on American comfort food and an exclusive, rotating selection of local craft beers on tap, launched its new franchise program to be rolled out in Illinois, Indiana, Wisconsin, and Michigan, with national expansion to follow.

Launched in 2006, Tap House Grill has seven locations across the Chicago suburbs and several franchise agreements in the works. “We have been developing our imaginative concept for a decade and are now primed to aggressively grow our brand through franchising,” says founder Scott Ward.”

With 50 years of combined experience in restaurant management and restaurant operations, founders Scott Ward and Mark Zych have opened and developed dozens of restaurants. The two worked together at Bar Louie, where Ward served as Chief Operating Officer for more than a decade.

“There is a high demand for craft beer and

it is still growing,” says Zych. “Tap House Grill aims to match the creativity and quality of craft brewers with an inventive menu. That’s how we became known for addictive food and creative brews.”

Tap House Grill Addictive Food/Creative Brews is designed to capitalize on the growth in the craft beer market, providing franchisees with a strong support system and customers with a welcoming environment and food and drink that delivers on the concept’s tagline.

“We believe the collective experience of our executive team and the products, service and philosophy of Tap House Grill provide us an unparalleled foundation,” adds Ward. “We are looking for franchisees who embrace this concept and are dedicated to providing customers with a totally satisfying experience.”

To learn more about franchise opportunities with Tap House Grill Addictive Food/Creative Brews, please visit www.thgfranchise.com or call the franchise team at (847) 496-7054.

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C over S tor y - fr esh to o r der

Growing at Right Pace

Seen as Key for Franchise’s Success

Fresh To Order aims to identify with their franchisees in their own unique way.

In order to better understand what their franchisees have to face when they’re

opening and running a Fresh To Order

restaurant, the company plans to open one

“It’s elevated service experience, elevated food quality preparation methods closer to fine dining than fast casual in a more upscale than typical fast-casual environment.” – Pierre Panos, CEO corporate store for every franchise they open.

“We plan on growing roughly on a 50/50 basis,” CEO Pierre Panos said in recent interview with Franchising USA. Having roughly the same number of corporate

stores as franchises will help the company be a better, more effective franchisor, he added.

When changes to the restaurant market happen — like the price of beef jumping, for example — the company wants to be able to figure out how best to handle these challenges so they can have solutions figured out for franchisees to help them overcome these bumps in the road easier.

Currently, Fresh To Order has 15 locations and another two will be open by the end of the year. Of the current 15, seven stores are corporate and eight are franchises. In total, the company has 30 restaurants under development at various stages.

Fresh To Order has locations in Georgia, Florida, Tennessee, North Carolina, and has commitments to open new locations in Chicago, Philadelphia and Dallas. They are looking to get into markets east of Dallas and southeast of Chicago down to

Franchising USA

Florida and they especially want to expand further in states where they currently have a presence.

Pioneers

Panos started Fresh To Order nine years ago, the first restaurant of its kind.

“When we opened our first store in 2006, no one was doing very elevated fast casual, which I call Fast Fine,” Panos said.

With Fresh To Order, Panos wanted to bring quality food preparation and freshness to the restaurant market at around the $10 per plate price range.

Essentially, he wanted people to enjoy the quality and service of a $25 per plate restaurant, but for a price that he says is just 50 cents to a dollar more than the average fast casual restaurant.

At Fresh To Order, guests can expect to be greeted at the door, see their food being prepared in front of them and having their drinks refilled.

“It’s elevated service experience, elevated food quality preparation methods closer to fine dining than fast casual in a more upscale than typical fast-casual environment,” Panos explained.

flavorful food. Today, fast casual is a big trend, especially among ethnic foods, but Panos considers Fresh To Order to have been far ahead of the current trend.

Now, people want flavorful food and Fresh To Order can attract people who have specific calorie counts in mind, as the restaurant has meals from anywhere between 200 and 600 calories.

getting it built takes time. So, to keep that initial excitement going, Fresh To Order sends their franchisees little gifts each month that will keep them engaged with the company as they look for suitable sites and wait for the buildout to finish. These items include books that explain the Fresh To Order culture, hats, t-shirts and branded gifts for the franchisee.

Growing at the right pace

Training

Panos says the brand is specific about where they award franchises. They receive a healthy number of applications, but want to grow responsibly and methodically and in specific target markets only.

Franchisees, along with their key operators, go through training that lasts for about six weeks. They are trained in all areas of running the business in existing Fresh To Order restaurants.

They also only want franchisees who meet specific criteria, one of which is to have been a restaurant operators for at least five years. They also must open the restaurant in the city where they live.

The company also helps a lot with the opening. For the first week, there can be a team of six to eight people from the company helping with the opening.

Over time, as the franchisee gets more established, these corporate representatives will leave one by one until the franchisee is running the restaurant themselves.

“We like the idea of local knowledge,” Panos said. “Fresh To Order is growing at the right pace with the right franchisees.”

Keeping the Excitement Going

He opened his first Fresh To Order in 2006 and his first franchise in 2012.

When entering a market, Fresh To Order already has a strategic real estate plan drawn up that shows suitable trade areas.

Franchisees identify potential sites within their trade area and the company will visit and evaluate each site and give final approval. They also help franchisees with research on the locations by giving them access to their comprehensive neighborhood profiles of the sites.

At that time, healthy eating had just started to become a trend, but Americans weren’t quite ready to embrace that caliber of

Franchisees are always excited to open their restaurant once they’ve been awarded a franchise. But, choosing a location and

With Fresh To Order, Panos wanted to offer flavorful, healthy cuisine where people could be in and out in 30 minutes, and where everything is fresh instead of frozen.

Once they’re open, the company will help with franchisees with a step by step marketing plan that is rolled out in stages.

The company also inspects the franchises to ensure everything is running smoothly and to liaise with franchisees.

With a comprehensive growth plan that favors quality over quantity, and with a desire to meet the challenges of running a restaurant head on and figure out solutions for their franchisees, Fresh To Order is poised for success at just the right pace. www.freshtoorder.com/franchiseopportunities/

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Featu re

b y G i n a G i l l Fr a n c h i s i n g U S A

food

franchising

e r u t Fea

Franchising USA

Franchising is synonymous with the Food industry. It’s the first concept anyone considers because it’s one of the most successful forms of multibusiness known in the economy.

“Food is the safest and most popular franchise option, because it is always in demand. In order to survive we need food and everyone depends on the market to supply this necessity.”

Throughout the history of business, restaurants have been a staple part of the franchise industry and nowadays food has extended far beyond a meal. People know what they want and they want choice. The food industry now has to create numerous options for food and service to help keep up with the many demands of the many very busy and knowledgeable customers.

Food is the safest and most popular franchise option, because it is always in demand. In order to survive we need food and everyone depends on the market to supply this necessity.

Vending Machines People need to eat, all day, every day and a way to keep up with that demand is through vending machines. It’s sometimes an overlooked piece of furniture, but once that tummy starts grumbling, people will search to great lengths for the snack dispenser.

In the office, the hospital, the university, the airport- people are on the go and they want to have access to food at all times.

They seek snack vendors, coffee vendors and though unrelated to food, there are now vendors offering electronics for the immediate demands of people.

Becoming a franchisee for a vending machine company allows for a lot of freedom and simplicity. Owners are usually provided clientele and it’s a form of automatic retailing- no employees, no schedules and no fuss.

However, with people having a better understanding of their health, the vending machine has come under scrutiny in the

last few years. For the most part vending machines have unhealthy options and usually only accept change. In a world of plastic, that really limits the customer base.

However, with change comes adjustment.

Vending machines with healthy and fresh options are becoming a franchise in itself and a preferred source of quick and easy satisfaction for towns and schools across the country.

The vending machine is easy, quick and a low maintenance option into the food industry. It’s a great consideration for those who want to continue a good work life balance while also being in control of their own schedule and profit to a certain extent.

A bakery usually offers bread products, dough pretzels, cupcakes, cookies served up with some coffee. The bakery appeals to the masses, with a usual sit down area for their customers, while also offering catering and delivery services.

Though the baking industry focuses on one area of food, according to the American Society of Baking, the commercial baking industry brings in an annual revenue of close to $100 billion in 2012.

The baking industry can curve to any consumer needs by either making products more healthy, adding certain flavors, changing treats and beverages and providing options for certain diets and allergies.

Baked Goods industry

Full- Service Restaurants

This type of franchise gives a mom and pop feel as soon as you walk through the doors. The smell of fresh bread can lure any customer and make them feel truly at home.

Some may say restaurants are the very beginning of franchising, with one of the first business models to duplicate and create chains, it is well-known in the world of franchising.

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Featu re

b y G i n a G i l l Fr a n c h i s i n g U S A

In this case, the supply is relevant to the demand. Sales of full service or table service restaurants were forecasted to reach 219.69 billion U.S. dollars by the end of this year and that number has been increasing since 2009.

The average family is busy and working, they don’t have a lot of time to prepare a meal but they enjoy a break with their family. In fact, on average 194 restaurant meals are served per person in America annually. That is a whole lot of burgers.

Restaurant chains are found within a lot of institutes- offices, malls, theme parks because everyone has to eat. There are so many different restaurants, with different themes, foods and flavors making the choice a personal perk for any franchisee.

Though no background is necessary to become a franchisee, an interest in the food industry and a background in the business would be useful. Unlike other franchises, restaurants may take a bit more hard work and personal time from owners. That being said, for the most part well-established chains provide a lot of support through training both staff and franchisees, marketing and building.

Though full-service restaurants rely heavily on marketing, for the most part the brand and name are well- known and already well-liked. Keeping the product and layout consistent helps create a reliability and huge consumer base, but it also limits creativity for the franchisee.

Health food stores and supplements The internet has provided a lot of information to a lot of people. With it has come a lot of health crazes that provide new markets. Whether gluten-free, organic or clean eating is actually healthier or not, it has help strengthen and build the health food industry.

Restaurants are ever changing and evolve with the many demands of the consumer but one thing has never changed- people like a night out and everyone enjoys a visit to a restaurant.

together, restaurants are where memories

From a fancy evening to a family get

of consumers.

Franchising USA

are made and have become a part of

American culture. Walk down a busy

street in the States and there are a wide

variety of restaurants for the many choices

Americans are concerned about their health, but a lot of people do not want to work hard for it. Health food franchises provide people with quick fixes, easy access while fulfilling their needs.

Once something is labeled as healthier, people want it. In fact, organic food sales

“Americans are concerned about their health, but a lot of people do not want to work hard for it. Health food franchises provide people with quick fixes, easy access while fulfilling their needs. ”

increased 11.5 per cent in 2013. When the trend first took off, it grew 21 per cent in 2000. This decrease in sales proves that health trends are fickle and risky. Once something easier comes along, a business may become irrelevant. Health food stores can and should keep up with all the latest trends and appeal to the masses if possible.

It’s a great opportunity for someone who is passionate about health and enjoys a fast paced field that is always changing.

The food industry reaches far beyond the dinner table. Though most food franchises are well established and marketed, it can sometimes be high paced and demanding.

Most franchisees have a lot of passion and love the industry, which creates a successful outcome. However, there are so many venues available that whatever the person’s interest, there is likely a similar market with food.

Whatever your palette, the option is there.

Bon Appetite.

About the author: After receiving an English Degree, followed by a Journalism Diploma, Gina became a freelance journalist in 2008.

She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.

Look out for our next special feature:

Food Franchising Part 2

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Ted Milburn, Director of Franchise Development, Wienerschnitzel

Diversifying your Franchise Portfolio

Exploring a Second Brand With the trend of multiunit franchising continuing to drive the industry, many progressive franchisees are looking for the next logical step in their business progression. Many more are finding that next step is through diversifying their franchise portfolio and exploring a second brand.

As a multi-unit franchise operator, you understand the trials of success in building your store count with solid business

Franchising USA

practices. Franchising works when you’ve validated the right opportunity and you’ve followed a rigorous training program day-in and day-out. Wash, lather, rinse, repeat. This takes at face-value, a brand and concept with staying power, strategic marketing and corporate support – right down to stellar execution and top-notch customer service. The numbers work, and with the right resources in place, you’ve found your niche and are fulfilling your market development schedule. The alternative may be a saturation of your brand with little or no room to grow.

Either way, the notion of expanding your empire with another franchise brand is a natural next step. So, where to start?

Well, that’s fairly easy if you’re willing to take the time to turn over many rocks in your next franchise discovery process.

There are a ton of resources out there.

From numerous franchise publications

and multi-unit brand rankings, to the experience of fellow colleagues, the IFA, and several multi-unit conferences throughout the year for networking and exploration. You have been successful for a reason and likely stay current on industry trends and business climate. However, giving necessary time to thoroughly explore your next franchise is often glossed over in favor of, “what is the AUV and the average net profit of this brand?”

Understandably, this is typically going to be your first consideration before all else.

Unfortunately, it is also the reason why many candidates looking at a second brand get stuck on this critical topic. They often don’t go any further than asking this same question again-and-again to every new opportunity they’re exploring. Yes, we are all in business to make money and build wealth, but it’s not as simple in round two of “discovery” as one might expect.

As many franchises as there are out there, take the time and commit to learning about three new franchise opportunities.

Why three? It is imperative to compare and contrast opportunities with one another – and not just with the current franchise you own. Narrow the field down based around your goals, needs and expectations as you would for any business opportunity. Your strengths should parallel successful business models that are seeking the same operational skill set. Staying within your current industry i.e. restaurant, automotive, retail, etc., can lend itself to making use of your existing resources. Just make sure early on that you are not exploring a brand that would fall into the non-compete clause of your current franchise agreement.

One suggestion I offer to franchise candidates is to write down your questions and ask the same of each franchisor.

Where are you growing? Do you offer market exclusivity? What makes this a successful brand, and why will you be relevant 20 years from now? Are you flexible and easy to work with? (Ask “for example” questions). Have same-storesales increased over the past 5 years?

What specifically has changed to affect your sales? What innovations have you made to improve the brand? The list goes on, but ask the same of each.

Every franchisor has its own process for qualification, discovery and franchise award. Keep an open mind in understanding that each follows its own system for granting a new market or multiunit deal. The exception is that we must all follow the laws of FDD disclosure.

The process for obtaining sales, profit and expense information must be obtained in validation with current franchisees of that brand. This takes time and research.

Be willing to complete applications, review FDDS, and speak with multiple franchisees from each brand. There are no short-cuts. You will be better off in the long-run if you are thoroughly educated on multiple opportunities, and can be rest assured that you made the smartest selection for your next franchise venture.

“Franchising works when you’ve validated the right opportunity and you’ve followed a rigorous training program day-in and day-out. Wash, lather, rinse, repeat.”

Also, keep an eye out for franchises that have been around for decades but have retooled for the future. These are typically golden brands that can demonstrate a steady increase in sales with a resurgence and commitment to new growth. They know how to remain relevant and have the experience to open stores and sustain.

These brands often provide the best opportunities to open in new markets and grant exclusivity with very attractive entry terms.

Guest editorial shared by Ted Milburn – Director, U.S. Franchise Development at Galardi Group, Inc., franchisor of Wienerschnitzel, Tastee Freez and Hamburger Stand. Milburn has over 25 years of successful sales, marketing and public speaking experience – the past 12 years, holding leadership positions on a select few franchise development teams of internationally recognized brands.

Wienerschnitzel, the world’s largest hot dog chain, hired Milburn to lead their domestic franchise efforts and, under his direction, the company is overhauling its franchise marketing tools and increasing its industry trade presence as the company pursues new national growth.

exponential growth, both domestically and internationally. With a refreshed marketing focus, Wienerschnitzel has received tremendous media attention and accolades including Franchise Times’ “20 to Watch” and voted Best Fast Food in Southern California by the readers of Los Angeles Daily News for five years and running. Additionally, the company recently introduced a unique next generation store design featuring a smaller footprint and a lower cost of entry; while the simple menu allows for easy execution and lower food costs. As a family owned and operated company, Wienerschnitzel is in a unique position to always put its franchise partners first and is actively recruiting passionate franchise candidates to grow with the brand during this very exciting time.

For more information on owning a Wienerschnitzel/ Tastee Freez co-brand, visit franchising.wienerschnitzel.com or contact Ted Milburn - Director, Franchise Development at franchising@wienerschnitzel.com.

About Wienerschnitzel Founded by John Galardi in 1961 with a single hot dog stand in Wilmington, California, Wienerschnitzel (www. wienerschnitzel.com) is a bona fide pioneer of the limited-service food industry. Today, Wienerschnitzel is the world’s largest hot dog chain and home of America’s favorite Chili Dog. Based in Irvine, California, the parent company, Galardi Group, franchises restaurants throughout the U.S., including Wienerschnitzel, Hamburger Stand, and Tastee Freez. An iconic American brand with a devoted following for over 50 years, Wienerschnitzel is poised for

Ted Milburn

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By Renae Scott, Chief Marketing Officer, Togo’s Eateries, Inc.

Reasons Why

Mobile Apps are Essential in the Restaurant Business We take it for granted now that major consumer brands have mobile apps, but do they make sense for restaurants?

If you own or manage a restaurant franchise, what exactly is the value of going mobile?

I’d sum it up this way: you build a mobile app so you can be on hand, on demand and on everyone’s mind. You do these three things so you provide better service, attract more visitors and sell more food.

With the creative license to describe my ‘dream’ restaurant app, I’ll discuss what we can expect from restaurant apps in the coming years and illustrate why a restaurant would be foolish not to have one.

1On Hand

On the Internet, your restaurant gives up control over information for greater visibility. Customers usually know more about you than you know about them.

Mobile apps level this playing field.

The most basic purpose of the app is to give customers accurate information about your restaurants. You provide the menu, hours, nearest locations and perhaps even a button that pulls up driving directions.

Customers will use this because Yelp and Google searches sometimes lead to false information.

In exchange for this service (and many others we’ll talk about), you get

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ssential usiness information about your customers that is only available because mobile devices are ‘on hand’ at all times. With permission, you learn about where they live, when they are near your restaurant and how often they visit. This mine of information becomes rich and detailed as we weave in the next two aspects of an app.

2

On Demand

When Millennials want something, they want it now. This is no attack on their character – this is just the norm in society where information, goods and services are available with one click or tap. Restaurants have to adapt to this expectation, and a mobile app can help you do it.

Let’s focus on the experience inside a restaurant first. Customers hate lines, and the cash register is the bottleneck.

Particularly after new EMVco standards go into effect this October, checkout will become slower. This is the perfect time for restaurants to integrate web-based payments into their app, as if it were an online store. A customer could checkout on the app while waiting in line, order food and skip the cash register.

Outside the restaurant, the app should enable one-tap deliveries. Most restaurants used to avoid deliveries because maintaining a delivery staff is expensive.

Today, third-party services rely on independent drivers who supply their own vehicles (a la Uber), which brings down the costs dramatically. They can provide instant gratification for customers without hurting your bottom line.

By baking orders and payments into an app, your restaurant will be able to track what customers order, when and how

“You build a mobile app so you can be on hand, on demand and on everyone’s mind. You do these three things so you provide better service, attract more visitors and sell more food.” often. The app is a fast lane to getting what techies call a “single view of the customer.”

3

On Everyone’s Mind

To be on someone’s mind, you have to be relevant. When you combine a good rewards systems with a mobile app, being relevant is easy.

At Togo’s, we use a point system. For every dollar a person spends, they earn a point, and 50 points is worth $5 at our restaurants. There’s no one right way to do rewards, but points systems get people excited to check their balance, which means they’ll spend more time on the app and interact with the brand more often.

In previous two sections, I talked about information you can gather about customers. The rewards system is where you put it to work. For instance, if a customer orders the same sandwich nine out of ten times he visits your restaurant, it would make sense to surprise him with special offers for that sandwich. It would be even better to send that offer as a push notification, during lunch or dinner hours, specifically when he is within two miles of one of your locations. You can also tie offers to current events. If the 49ers win a big game, why not invite local customers to celebrate at your San Francisco restaurants?

Renae Scott

customers. Today, there are over 1.5 million apps available to smartphone owners, and each one demands some level of commitment, time and trust. If you’re going to put your brand in peoples’ pockets, be worth it. Be on hand, be on demand and be on everyone’s mind.

This is by no means an exhaustive list of features a restaurant app should have. You can build social sharing, referrals, gift cards and much more.

Renae Scott joined Togo’s as vice president of branding and marketing in December 2008 and oversees new product development, marketing and advertising. A visionary and strategist, Renae supervises all aspects of brand management. She has led Togo’s brand-rejuvenation efforts working to redesign the company’s logo, menu boards, uniforms and packaging. In addition, Renae has developed a new store prototype and remodel package for franchisees, and has been instrumental in launching new and limited time offer marketing promotions and public relations campaigns. Renae is an experienced executive and strategic marketer, having managed several nationally recognized brands within the restaurant, food and beverage, consumer products and non-profit industries.

Whatever you do, empathize with your

www.togos.com

Being on the customer’s mind works. At Togo’s, we find that our mobile rewards users visit one to two times more per month than the average guest and spend an average of $10 more each time.

Be Worth It

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Al Cave, Partner, RAMMP Hospitality Brands

Rebranding, really:

How to take your new brand from concept to execution So you’ve branded your company. You have a vision, you’ve articulated the key elements that your brand represents, and you’ve created your logo and other brand materials. Now you have to implement the brand elements in your franchise.

it into the present and will enabled it to expand into the future.

heritage, and uses other touchpoints to create a casual atmosphere.

When we came up with “steakhouse casual” branding, we wanted to create the un-steakhouse steakhouse. MR MIKES SteakhouseCasual breaks the traditional rules of dark lighting, tablecloths and fancy plates. It’s a, casual come-as-you-are environment.

The physical design of your building — interior and exterior — has to tie into your brand.

It’s one thing to have a brand, and it’s quite another to bring that brand to life.

My partners and I at RAMMP Hospitality Brands bought and rebranded the heritage Canadian steakhouse brand MR MIKES. Blending the beloved elements of the brand with new elements that brought

Inside and out, our new MR MIKES SteakhouseCasual locations exude the new “steakhouse casual” brand identity.

They have a feel of approachability, family, and community alignment. Every restaurant has branding that connects it to the community it is in, shows the brand

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Once we had developed that conceptual branding vision, we got down to the nuts and bolts and rolled out the brand.

Here’s how we did it.

Create your space

Proper flow is important, too. Your guests should experience your brand seamlessly from the moment they roll into the parking lot to when they sit at the table. Everything they touch and see should align with your brand message.

Study up When you educate your staff about the brand, they can carry that knowledge into everything they do in your business.

Team knowledge and buy-in is incredibly important. We provide extensive online training about the brand and process for our products in the kitchen.

We train all levels of staff: servers, back of house, host or hostess, managers, shift

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Al Cave, Partner, RAMMP Hospitality Brands

supervisors, franchisees. Everyone needs to go through an online training program, with different modules they need to pass to progress. We also train franchisees in an eight-week training program. We can monitor who has completed their online training modules and provide additional materials when required.

This way all our staff are trained to deliver consistent information and service.

They’re also trained to become trainers themselves.

Design your menu with purpose The next major touchpoint guests experience is the menu. The menu itself needs to look and feel like your brand, as do all the items on it and their descriptions. At MR MIKES SteakhouseCasual, our menus put an irreverent twist to the traditional formal menu you’d find at a steakhouse.

Make back-of-the-house magic There’s an elaborate system that goes on behind the scenes in our purchasing, prep and cooking. We’ve designed every detail of delivery to make sure our customers get a consistent, great product that looks and tastes great, and reflects the MR MIKES SteakhouseCasual brand.

From the back of the house, the idea is to have consistent product across the chain.

The first element we look to in order to accomplish that is our ingredients. We have a very focused ingredient deck with quality ingredients from our trusted suppliers.

A consistent product is very important.

Every business is going to have a different way of creating this, but we do it using systems to sequence our food preparation.

For instance, if you order a medium steak with fries, the steak is going to take 15 minutes to cook, so our system lets the back of the house know when to cook the French fries so that they are done at the same time as the steak. This way, the customer gets hot steak and hot fries, both perfectly cooked.

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“Understand who your target market is and don’t try to be everything to everybody, differentiate your brand.”

Brand the product itself Beyond excellent ingredients and great flavour, we really wanted our food to visually embody the MR MIKES SteakhouseCasual brand as much as possible, so the guest experiences the brand in the flavours, aromas and visuals when their meal arrives at the table.

For instance, we serve certain dishes in signature dishes rather than on plates. You might get your beer in our customized stein rather than a beer glass.

Those touchpoints give you a differentiation from the guests perspective.

Al Cave

Distinctly brand the different areas or products you offer At MR MIKES SteakhouseCasual, we don’t just have a bar. We have an Urban Lodge.

It provides the ying to the yang of our steakhouse casual dining area. The design is distinct — a rustic lodge mixed with more urban chic. Our use of board games and music programs might make you wish the Urban Lodge were your own rec room, and our liquor, wine and beer program reflects the Urban Lodge’s mix of sophistication and relaxed irreverence. It is not a sports bar, but a place where people can socialize and enjoy themselves.

Market Yourself Ensure your messaging both internally and externally aligns with and reinforces your brand position. Understand who your target market is and don’t try to be everything to everybody, differentiate your brand. Know where you can intersect with your customer in all forms of media.

Connect to the bigger picture Whatever brand attributes you want to embody, connect to the community in ways that make sense for your brand.

We specifically went into communities that would connect with the MR MIKES SteakhouseCasual brand.

One of our biggest attributes is our franchisees that embody the brand in their communities. They’re locals that actually live in the areas where our franchises are based, so they know everyone and they genuinely want to build those communities, supporting through many different sponsorships and events. Our community involvement is something we’re really proud of.

Al Cave is a partner in RAMMP Hospitality Brands owner of Mr Mikes Steakhouse Casual, Al has extensive experience working with start-ups and leading restaurant brands in the franchise industry. http://www.mrmikes.ca/

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