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FranchisingFeature food franchising - part 2
november 2 0 1 6
Franchising USA
foo d franchising fe at ur e - part 2
what’s new!
Arby’s Expands its Everyday Menu Offering crispier, juicier and tenderer filet. The new buttermilk breaded filet is available on four Arby’s chicken sandwiches: Chicken Bacon Swiss (pepper bacon, natural Swiss cheese, shredded lettuce, tomato and Dijon honey mustard); Chicken Cordon Bleu (thinly sliced pitsmoked ham, natural Swiss cheese and mayo); Crispy Chicken (shredded lettuce, tomato and mayo); and the all new Buffalo Chicken.
Recently, Arby’s turned its attention to enhancing its chicken offering by launching a new buttermilk breaded chicken breast filet to its everyday menu.
The Buttermilk Chicken Sandwiches at Arby’s feature a large, premium, 100 percent breast filet marinated in buttermilk, then coated in sweet, savory buttermilk breading, resulting in a
The new Buttermilk Buffalo Chicken Sandwich arrives on the heels of the successful launch of the Buffalo Chicken Slider earlier this year and is hand-dipped in the same tangy, spicy buffalo sauce. Add creamy parmesan peppercorn ranch dressing and shredded lettuce nestled inside of a toasted star top bun, and you have a full-size buffalo chicken sandwich that delivers on the iconic buffalo chicken flavor guests crave. arbysfranchising.com
PIZZAFIRE Opens New Location in Ohio PIZZAFIRE, the largest and fastest growing fast casual pizza company in Ohio, opened its 12th location in Fairlawn, OH. PIZZAFIRE, serves handcrafted pizzas built to order right in front of you with your choice of premium cheeses, hand cut fresh veggies, artisan GMO-free meats, and scratch made sauces - like their Authentic Neapolitan Pizza Sauce, with hand crushed tomatoes, extra virgin olive oil, sea salt, and fresh basil. “We take pride in using all-natural ingredients like our pear tomatoes from Northern California that are picked and fresh packed within two hours, 100% whole milk mozzarella cheese, and our
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fresh dough that is made in-store daily,” says founder and CEO Sean Brauser. He also noted that the Fairlawn PIZZAFIRE location will be the 9th in Northeast Ohio, joining Strongsville, Parma, downtown Cleveland, downtown Akron, Cuyahoga Falls, Woodmere, Rocky River, and Niles. Locations are also thriving in Upper Arlington, Dublin, and Kettering. It’s all about “Fast and Fresh” at PIZZAFIRE. You won’t find a fryer, freezer or microwave. Watch as your pizza is built just for you by your very own personal PIZZAFIRE chef and put into the 800-degree oven where it is fire-baked in just 180 seconds! www.pizzafire.com
Juice It Up! Testing Sambazon’s Pure Açaí Berry Machine at California State University, Northridge
Pupatella Announces Expansion Plans Juice It Up!, one of the nation’s leading raw juice bar and hand-crafted smoothie franchises, is currently testing the Pure Açaí Bowl at its California State University, Northridge (CSUN) location. T he item’s star is Sambazon’s™ new machine that quickly produces 100% pure Açaí out of a tap. The Açaí berries are crushed cold and “stirred” to the perfect consistency and texture, which is chock full of protein, healthy omegas, powerful antioxidants and fiber. To complete the bowl, it’s topped with organic hemp granola, fresh bananas and a drizzle of honey. “Juice It Up! is constantly searching for ways to make our products even healthier and more convenient, and incorporating Sambazon’s Pure Açaí machine into our operation is a perfect example of this,” said Frank Easterbrook, Juice It Up! President & CEO. “We’re catering to guests with on-the-go lives, making the CSUN campus an ideal test location for this innovative piece of equipment. We’re confident our Pure Açaí Bowl will become a popular natural energy boost for students and faculty to grab quickly between classes.”
Due to high demand, Pupatella, a classic Neapolitan pizza concept, just announced it will expand through franchise and corporate development. To accomplish this, Enzo Algarme, Pupatella’s founder and owner, has joined forces with founding partners of Elevation Burger who grew the country’s first organic burger chain from one to more than 50 restaurants worldwide. Started as a food truck in 2007, Pupatella is a favorite among Northern Virginians. The restaurant is consistently named as one of the country’s best pizzerias by media and consumers alike. Its current location has experienced solid growth and high profit, totalling nearly 2.5 million dollars in gross sales in 2015. In addition to its classic artisan food, Pupatella is also known for it’s fast and affordable format. From a family outing to a romantic date night, guests appreciate Pupatella’s commitment to simple, true Neapolitan pizza served in a casual atmosphere where all are welcome.
The Pure Açaí Berry Machine is testing at CSUN’s Juice It Up! location only.
Pupatella is now seeking entrepreneurs to help expand the pizzeria in key markets across the United States and Middle East. The ideal franchise partner has restaurant experience and a passion for executing a proven system.
www.juiceitup.com
pupatellafranchise.com
Franchising USA
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what’s new! Hwy 55 Burgers, Shakes & Fries Opens in Lugoff, South Carolina Gamecocks-Nation, the city of Lugoff and the community of Kershaw County welcomes its new favorite burger joint as the highly-lauded Hwy 55 Burgers, Shakes & Fries readies for business. Hwy 55 Burgers, Shakes & Fries welcomed guests at its new Lugoff, SC location at 828 Highway 1 South in Lugoff on Monday, September 12. With multiple South Carolina locations already in Spartanburg, Myrtle Beach and Charleston, the Lugoff restaurant adds to the brand’s statewide-profile, and approximately 50 new Hwy 55 locations are planned for South Carolina over the next 10 years. With 128 units and growing quickly, Hwy 55 boasts a fresh, All-American diner experience with fresh, never-frozen burgers, premium sliced cheesesteaks piled high on steamed hoagies, and frozen custard made in-house every day. With its open-grill design, the kitchen’s dedication and care when hand-crafting meals is front and center. Hwy 55 has resonated with the burger-loving public, while the restaurant and franchising industries have taken notice of the growing concept as well. Hwy 55 won BurgerBusiness.com’s “Best Burger” in 2012 and in 2014, Franchise Business Review named Hwy 55 one of the best restaurant franchises in the country. www.hwy55.com
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Old Chicago Pizza & Taproom Signs New Franchise Development Agreements
Old Chicago Pizza & Taproom has signed franchise development agreements with three of its existing franchise partners to open nearly two dozen new restaurants. These agreements will grow Old Chicago’s footprint across eight states, including Tennessee, South Carolina, Montana, Wyoming, Oklahoma, Arkansas, Missouri and Mississippi. Furthermore, they are a testament to the strength of its evolving business model and innovative menus featuring the best local and regional craft beer, handcrafted pizza and distinctive taproom fair. Old Chicago continues to make significant investments into the company that reinforce the brand’s growth potential and positions franchisees for success. The company experienced recordbreaking success in 2015 achieving $254 million in system-wide revenue, and is currently reporting 27 consecutive months of positive comp sales. Old Chicago recently launched its new restaurant prototype – a 5,000 square feet build with an additional 1,000 – 1,200 square feet of outdoor patio space, a new kitchen and upgraded bar technology. To fuel franchise growth, the company is seeking multi-unit operators with business, management and food service, and/ or restaurant experience, and a passion for and commitment to exceptional customer service. www.ocfranchising.com
BurgerFi Brings Chef-Driven Menu to New Location in Florida BurgerFi, known for juicy all-natural Angus beef burgers, has brought its chef-driven menu to a new location in West Delray Beach, Florida at 7959 West Atlantic Avenue. The new restaurant opened on September 15th, and marks the second for BurgerFi in Delray Beach, as the chain approaches 100 restaurants less than six years since its inception. In addition to its domestic growth, BurgerFi has also accelerated its international expansion, recently celebrating the opening of its first location in London. Coupled with its ongoing development, the company is on track to report record-high system-wide sales at the end of this year with a projected increase of 20 percent. BurgerFi has differentiated itself through its commitment to serving the highest quality food and ensures no steroids,
antibiotics, growth hormones, chemicals
or additives are ever used. The brand uses Angus beef, known for its superior taste and texture, that is humanely raised and
sustainably farmed. BurgerFi is currently
seeking multi-unit restaurant operators with a desire to provide an unmatched customer experience to join its rapid expansion across the U.S. and abroad. www.burgerfifranchise.com
In addition to the restaurant opening, Native also launched a new menu
nationwide. Native Grill & Wings will be
including new handhelds and pizza, along with revised recipes for existing menu items.
The polished sports grill proudly offers 20 wing flavors that guests can order by the individual wing, as well as an extensive
menu of burgers, sandwiches, salads and
Native Grill & Wings Opens First Restaurant in Yuma Native Grill & Wings, an award winning Arizona restaurant chain known for its 20+ wing flavors that guests can order by the individual wing, has opened its first restaurant in Yuma located at 1731 East 16th Street. “Native Grill & Wings has truly become
an Arizona staple, and I am excited to continue its local expansion with our location in Yuma,” said Native Grill & Wings Franchise Owner Brad Williams. “We also added bold new flavors to our menu that we can’t wait to introduce to guests.”
more. Most of the sauces and rubs can be used to customize other menu items.
The restaurants are divided into a bar and restaurant, with approximately 30-40 flat screen TVs throughout, offering sports
coverage for families and serious fans, and a customer base spanning all generations – baby boomers, Generation Xers and Millennials.
nativegrillandwings.com
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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 franchisin
e r u t Fea
When considering owning a franchise, people tend to immediately consider a restaurant. However, the food industry stretches wide and far, covering a variety of different venues and business opportunities, especially in the franchising field. Not only is food a necessity to survival, it’s a profitable business on many levels. Whether, you are interested in a fast paced
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environment or you are a foodie with an exceptional palate, franchising can provide different areas of success.
Fast Food Every street corner in America has a fast food restaurant, which are widely successful and generate profit. The fast food industry has become a part of our everyday lives, we are all busy and working and crunched for time and a quick burger and fries fits into that lifestyle. There are many options when it comes to the fast food industry and the majority of them do function as franchises. Marketing and brand establishment are evident in this field and something a franchisee would not have to worry about. Before the place is even constructed, the food and reputation
have been well established. The fast food franchise has an expensive buy in but it is a guaranteed success. If you are interested in the craft and industry of food and its preparation, especially the creativity behind it, a fast food industry is definitely not worth exploring. Since most have determined a reputation, they like to remain consistent and have specific guidelines to follow. If you thrive in an environment that allows you to be a leader without too much involvement and you enjoy guidelines and regulations, this may be a career path worth considering, and a wealthy one at that. The fast food industry produced 198 billion dollars in revenue in 2014 and the number is predicted to rise to $223 billion by 2020.
ng
“Though most food franchises hold a pricey initial price tag, the money will return to your pocket quickly and in large sums.�
Natural Food and Vitamins Nowadays people are obsessed with the word natural; they want to live their lives in a chemical-free and environmentally friendly way. Organic and natural food sources have become an established part of the food market. The popularity of grain fed meat and livestock along with a demand for organically grown fruits and veggies has started its own individualized entity. Franchisors can now purchase real food grocery stores or natural and vitamin supplement chains than appeal to the masses. People are also considering vitamins and mineral supplements as a means of healing many ailments in a non invasive way. Though the demand is there, it is a very specific one and some food phases
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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
Catering now applies to kid’s birthday parties, small dinners, events and meetings and it’s in demand. With revenue of $9 billion last year, it’s a market on the rise.
themselves involved in the process. With schedules being dependent on the client, the franchisee may have to step in for a successful outcome. Small businesses, which have created growth in the catering industry through websites and social media will be a direct competition. However, a franchise has a reputation and could come with an established clientele and appointment, guaranteeing profit before you even get off the ground.
Cafés Enjoying the food industry on a smaller scale can be achieved with the purchase of a café. Many coffee shops have become a well recognized part of the economy. Customers are loyal to the brand name of coffee and are repetitive buyers. The café or coffee shop allows franchises a small surface area to work with, branding and marketing is usually taken care of, and a franchisee can gain easy profit from the head office’s hard work. The hours should allow a franchise to enjoy a work life balance that keeps them out of the actual café but the late hours and high turnover rate might bring them in to manage the day to day basis.
can die out relatively quickly. The idea of natural and clean food sources has been a craze for nearly a decade but as business progresses, it may become less popular. However, it’s a franchise that can create a community establishment, even at a larger business level. It’s great for the franchisee who prioritizes community engagement and interaction as a key component to success. Although not too many real food grocery stores have become a brand establishment, and an franchisee would be competing with big bulk grocers. That being said, those franchises have been successful because they remain within the demand category of specialty foods. Franchises can provide you with the analytics and proper research that allows for success and constant understanding of the market demand.
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Catering People want food to come to them; again it’s not a matter of customers being lazy, but rather a need for spare time. Catering has become more than a simple niche applicable to wedding and holiday markets. Catering now applies to kid’s birthday parties, small dinners, events and meetings and it’s in demand. With revenue of $9 billion last year, it’s a market on the rise. With the internet and easy accessibility, people can access and order catering services for their many needs and the customer base has widened and recognized catering as an option for many different avenues. Those interested in the food and service industry may benefit from this type of investment because they may find
Enjoying the food industry on a smaller scale can be achieved with the purchase of a café. Many coffee shops have become a well recognized part of the economy. It’s an easy industry and platform to learn, with great training and support from the franchisor.
Specialty Foods and Gourmet Foods With more people seeking take out and restaurant experience, the food industry has had to get creative. Customers are no longer satisfied with cheeseburgers and milk shakes; they want to experience all types of food and they want it now. Specialty foods and restaurants include smoothies, chocolate factories, cupcake
and cake bakeries – essentially the franchise focuses on a specific type of food. There is a lot of direct competition in this type of field, but if a franchise option is available, again the customer base and brand is well recognized. Someone with a specific passion in a specialty should consider this type of food market rather than simply a restaurant or fast food establishment. On the other hand, gourmet restaurants cater to passionate people who truly enjoy the art of food and cooking while other franchises are usually recognized with
uninspired fast and easy meals. The gourmet restaurant offers the option to work with a bit more creativity and higher end meals. The food industry is massive and always profitable. People have to eat, they like to eat and they usually like it prepared for them. Even with an economic downturn, it’s rare for the food industry to dip and it’s always well protected. Though most food franchises hold a pricey initial price tag, the money will return to your pocket quickly and in large sums. With the many options and large investment, it’s worth taking your time to research all aspects of the many different fields. Determine what your priorities are as a franchisor and see which food industry fits your specific needs and whets your appetite. ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill 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: RETAIL FRANCHISING Franchising USA
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Tom Garrett, Founder, GPS Hospitality
The Principle Americans love pie – banana cream, pecan, chocolate – people just can’t get enough. In fact, Americans consume an average of 20 pounds of pie each year. That is a lot of pie. My daughters are no exception – they love pie, too. When the pie is cut, they check to compare the size of their slice to everyone else’s. I often laugh as I think it requires the skill of a surgeon to make sure each slice will satisfy the girls exacting measurements. After all, neither wants to end up with the short end of a slice. Isn’t it true that everyone wants to get the biggest slice possible or their “fair share?” The problem is that every pie has a predetermined size, usually selected by the baker and the pan in which it was baked. Everyone’s share can only go up or down depending on how many slices are in each pie. The more slices means smaller pieces for everyone, and in turn the fewer slices mean bigger pieces. So what would happen if the pie grew larger whereby everyone’s piece of pie was actually larger than before? I often reference one of my favorite TV shows “Shark Tank,” as a program where entrepreneurs pitch a business idea to investors (sharks) to entice them to make an investment in their company in exchange for a piece of the pie (equity). The potential upside for the entrepreneur
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is huge. Not only do they receive capital for growth, they also receive expertise and exposure, both of which can help the business grow exponentially. The tradeoff for the business owner is the amount of equity they must give up in order to convince the “shark” to invest. “Shark Tank” is the best example of the ‘Principle of the Pie,’ which put simply says, “It is better to have a smaller piece of a huge pie, than a larger piece of a small pie.” The winning entrepreneurs know their business can grow dramatically if they are willing to accept a smaller piece of the equity. I see many ways the ‘Principle of the Pie’ applies to GPS Hospitality as well as our industry. Some leaders are intimidated by top performers. Rather than attracting great people who are capable of growing the pie, they keep poor performers in order to keep the pie for themselves. They are too busy hoarding the pie. Others may micromanage restaurant tasks, not allowing their managers to make decisions. By doing so, they send a strong message that they are “in charge” and all decisions must go through them. Rather than growing the pie, they limit the business as well as future opportunities for themselves and their people. If they don’t share in the rewards of growing the business, their team will eventually become immune and unmotivated to grow sales and instead focus on controlling costs. They are too busy making small pies. Once the business stops growing, the
of the franchisee tightens up even more, not giving raises and eliminating bonuses. The result being, their pie actually shrinks. Their fear becomes a self-fulfilling prophesy; they are too busy hoarding small pies. Expanding our business takes many forms such as developing our teams to become leaders, growing sales by displaying guest focused behavior daily, remodeling restaurants, building new restaurants, acquiring more restaurants, etc. There are endless opportunities for each of us to grow and as we grow, we are much less concerned about how big our piece of the pie is. In real world terms, the question I suggest franchisees ask themselves is “Why us?” What is it about this one restaurant that would make guests prefer you more than others? Location, price, and selection all influence a decision, but I always come back to the PEOPLE. Pick the right people who excel with customers and the customers will pick you. Service is the ultimate decision-maker. Nowadays our industry is more competitive than ever. Every minute of every day there is someone working feverishly to increase their piece, but not the pie as a whole. According to Technavio in March 2016, the global quick service restaurants market is expected to surpass $141 billion in revenue by 2019. Now that is a lot of pie! Part of this is due to
es
e Pie
“There are endless opportunities for each of us to grow and as we grow, we are much less concerned about how big our piece of the pie is.”
“Service and the customer experience are basic ingredients to bake a successful pie.” quick service restaurants changing menu items to satisfy the culture of the “healthy eating mentality.” For most businesses, this sounds like turnkey for profit and success. However if this is the only focus for franchisees, then they are limiting their growth . . . they are staying busy making small pies. Service and the customer experience are basic ingredients to bake a successful pie. At GPS Hospitality, we believe that sharing the pie is more fun. By offering incentives to work hard and encourage quality service, we can set ourselves apart and continue to grow our pie.
Tom Garrett founded GPS Hospitality in 2012 with the belief that if the company was centered on three core principles – Goals, People and Service – it would be successful. Since then, Tom has led the company with an ambitious vision of growth supported by a positive corporate culture that rewards success and creates opportunities for employees to achieve both their personal and professional goals. Tom has spent over 30 years in the restaurant industry developing teams and leaders. www.gpshospitality.com
Tom Garrett
Franchising USA
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G olden K r ust
the fastest growing
jamaican-owned U.S. Franchise Golden Krust Caribbean Bakery & Grill has capitalized on Jamaica’s popularity as a tourist destination, fueling the rise of authentic Jamaican cuisine consumed in the U.S. The Bronx, New York based company has become the fastest growing Jamaicanowned U.S. franchise, with over 120 restaurants and kiosks located in nine states, since opening its first companyowned store in Bronx, New York in 1989.
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That small piece of real estate was the genesis behind Golden Krust’s decision to become the first Caribbean, Black-owned U.S. company to be granted a franchise license in 1996. Today, Golden Krust continues to draw franchisees interested in serving authentic Caribbean cuisine in the states of New York, New Jersey, Connecticut, Pennsylvania, Georgia, Florida, Maryland, Massachusetts and North Carolina. Plans now call for 10 new store openings in Boston, Houston, the greater Atlanta market, South Florida and several locations will open for the first time in Toronto starting in second quarter 2017, thanks in part to 500,000 Jamaican nationals residing in that city.
e
Golden Krust initially opened stores in New York City and its suburbs, where a strong Jamaican and Caribbean population continues to rise. But soon the company followed that growing populace to Atlanta, Fort Lauderdale and Orlando and now has plans to expand in markets that include a more diverse American customer base interested in Jamaican and Caribbean cuisine. The same holds true for attracting new franchisees other than Jamaican and Caribbean nationals. The brand has distinguished itself from other quick-service chains; its variety of authentic Caribbean fare is not typically associated with American mass-market fast food chains. Golden Krust’s vibrant décor is also filled with bright Caribbean colors and motifs, creating a casual, downto-earth atmosphere and a more distinct, memorable dining experience. That dining experience is not typically found in a fast food chain, where the majority of customers look for speed, convenience and predictability. Golden Krust’s franchise concept was launched with the company’s signature Jamaican-style homemade patties, for
“Today, Golden Krust continues to draw franchisees interested in serving authentic Caribbean cuisine in the states of New York, New Jersey, Connecticut, Pennsylvania, Georgia, Florida, Maryland, Massachusetts and North Carolina.” which the chain has become synonymous in the U.S. Patties are offered in a variety of flavors, each made with fresh ingredients and the signature flaky golden crust that has become the hallmark of Golden Krust patties. Flavors include seasoned beef, chicken, shrimp, vegetable and spinach fillings wrapped in a flaky baked crust. But as market demand changed with the times, the Golden Krust menu evolved into a larger three-meal-day menu. Breakfast includes porridge as well as ackee or callaloo with codfish, while lunch and dinner options range from soups and salads, sandwiches and wraps to larger entrees such as braised oxtail, curried goat, jerk chicken and jerk fish-- all served with rice and peas, plantains and fresh vegetables.
For franchisees, the total investment required to own and operate a Golden Krust Caribbean Bakery & Grill ranges from $173,400 to $564,000 for a 250- to 500-square-foot kiosk -- a smaller design suitable for non-traditional locations (airports, food courts and hospitals) -- or a more traditional stand-alone restaurant, occupying up to 3,500 square feet found in more urban and suburban markets. Golden Krust currently charges an initial franchise fee of $25,000 for a restaurant (a traditional franchise) and $15,000 for a kiosk (a non-traditional franchise). Golden Krust estimates that approximately 60% of the franchise fee represents the cost to perform its pre-opening obligations for a restaurant or kiosk. The remaining dollars are placed in the franchisor´s general operating fund.
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G olden K r ust
“The retail division is part of Golden Krust’s strategy to help achieve the company’s long-term vision – to transport the taste of the Caribbean to the world, no matter how long it takes.” 2005 sells its signature patties to New York public schools, the penal system, military channels nationally, plus over 20,000 supermarkets, club and dollar stores nationwide, providing additional marketing for franchisees.
Average per unit sales for Golden Krust’s restaurants currently range from $537,993 to $2,401,494, according to Golden Krust Franchising, Inc., Franchise Disclosure Document, Item 19. To achieve a high success level, Golden Krust is committed to offering franchisees a learning environment that fosters continuous growth through information sharing and skills training. This includes training and assisting with the preopening, operations, marketing and food preparation for a new franchisee. The company’s experienced staff guides
new franchisees through its comprehensive three-week training course conducted at Golden Krust’s Corporate Training Center in The Bronx or other designated training restaurants. Upon course completion, new franchisees should be ready to operate their kiosk or restaurant. Members of Golden Krust’s franchise support team also assist new franchisees during their first two weeks of a new opening to ensure they are self-sufficient. After this time, the franchise support team is readily available for further assistance. Beyond its restaurants and kiosks, Golden Krust’s retail division formed in
Numerous restaurants have launched similar retail operations, but very few have been successful. New restaurant owners underestimate the start-up capital they need to open a restaurant. To be successful, a restaurant needs a good location, a theme or style that appeals to a broad range of customers and a great menu. Restaurants in large cities or heavily populated areas are always subject to competition. One must know how to market and manage their business, attract new customers and develop a repeat clientele to be successful. The retail division is part of Golden Krust’s strategy to help achieve the company’s long-term vision – to transport the taste of the Caribbean to the world, no matter how long it takes. Lowell F. Hawthorne is President and Chief Executive Officer of Golden Krust Caribbean Bakery & Grill, the nation’s largest Caribbean franchise chain. He migrated to the United States in 1981 along with his family and found employment as an accountant with the New York Police Department. In 1989 he pursued his desire to create economic stability for his family and opened a bakery on East Gun Hill Road in Bronx, NY, with the help of his wife, his siblings and their spouses. The bakery grew rapidly and soon gave birth to several other outlets in the New York metropolitan area. Today Golden Krust Caribbean Bakery & Grill operates more than 120 franchised restaurants in nine states. www.goldenkrustbakery.com
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foo d franchising fe at ur e - part 2
Linda Vap, President & Founder, HuHot Mongolian Grill
Advice from a Franchise Founder
10 Things I Wish I Knew 37 Years Ago
Linda Vap
In my 37 years in franchising – as both a franchisee and then a franchisor, I’ve learned many things about family, business, and people.
never have imagined how much I would grow personally, in all aspects of my life.
I know what it takes to be a franchisee and a franchise owner, from my time owning and operating Godfather’s Pizza restaurants and founding HuHot Mongolian Grill with my husband and son in 1999.
I firmly believe that this is the most important part of building a successful restaurant, business, and franchise. The best employees I’ve hired may not have had every requirement at that moment, but they were good people that were willing to work hard, were coachable, wanted to be a part of a growing company and wanted to do it honorably.
However, there was a lot that I didn’t know when I started in the business, and I could
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Here are ten things I wish I would have known when I started my career in franchising.
1
No one builds a company on one’s own, hire good people
2
Lead by example, never be too good for the day-to-day work
Stay humble. There are few good leaders out in the world, be one of them. Inspire people and help them find their fire even on their bad days. A few good motivating words from management can make all the difference.
3
Know the right time to take a risk
My husband was the risk-taker, and I was a more analytical partner. He taught me to be open to new ideas and concepts, get advice from people you trust and have a team with a wide variety of skills.
4
If someone works hard for me, I’ll work twice as hard for him or her
In franchising, people sign-up because they believe in the concept and more often than not, they put their life savings on the line. I know the value of the franchisees – that’s where I got started. As a franchisee I learned, to be successful, the franchisor and franchisee need to collaborate and work smart together.
5
Don’t sign a deal under pressure
Sign the deal because it is the right thing to do for all parties. It should be a win for everyone involved. It is easy to get distracted by numbers and added value, but remember that the decisions you make impact the brand and the people, so take your time and make sure you are signing a deal for the right reasons.
6
Know the numbers, don’t count on someone to know them for you
Even though you may have a CFO, don’t underestimate the value of knowing your business inside and out. I tell this to all of my employees regularly. We are all responsible for knowing the business for ourselves.
“My goal to this day is to create a company with an atmosphere in which people are happy to work hard but also understand the importance of a quality life. This balance is key to building a great company.”
7
Listen to the franchisees and work as a team
Franchisees are essential to your brand and your franchise growth, so work with them and listen to what they have to say. If someone is not on the same page, take a step back and understand where he or she is coming from and make sure to explain your stance. Never let your ego get in the way of working as a team. Don’t be a bully and don’t let yourself get bullied. Respect has to go both directions. I hear a lot about franchisor and franchisee relationships; it’s good to know when to get advice and insight and when you need to take the lead and make important decisions for the brand as a whole. My goal to this day is to create a company with an atmosphere in which people are happy to work hard but also understand the importance of a quality life. This balance is key to building a great company.
8
Work/life balance is important for you and your employees
Remember that your employees have lives outside of work and you need to value that. We understand that there are things in life that we can’t control. We try to make allowances where we can, for example, allowing flex time, letting employees bring their dogs to the office, having adjusted hours for school, and even having kids come into the office in the afternoon after school from time to time.
9
You can’t be successful in business if you’re not honest with yourself and your business
Be transparent with your partners and brutally honest with yourself. Don’t make
excuses for results and see them for what they are.
10
Be grateful and give back
I attribute my success with HuHot Mongolian Grills to my experience as a franchisor and franchisee. During my years, I established an appreciation for both sides of the business and am grateful for the opportunity to help others become entrepreneurs. At HuHot, we help entrepreneurs get into the franchising business, train them and their employees and are always available to support their needs. Our franchisees are not just another number. We make sure that we set our franchisees up for success and that we are always available to support their needs. I am grateful to be able to grow this brand with good people who take pride in the HuHot concept. We donate to The Food Bank because it aligns with our mission of feeding people, and many people struggle to feed their families. We donated $10k to the Missoula Food Bank a couple of years ago and continue to do so on a regular basis. We also always encourage our franchisees’ to pick a charity to support during their grand opening and throughout the year. Linda Vap is the president and founder of HuHot Mongolian Grill. An experienced restaurant executive, Linda has an impressive 35-year career in the restaurant industry. She is responsible for overseeing all departments of the company with a focus on finance, accounting, and company development. Linda has considered herself a mentor to many young business people during her career. huhotfranchise.com
Franchising USA
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G eneration N E X T Fra nchise B ra nds
Innovation, Robotics and the Rebirth of the Consumer Frozen Yogurt Experience Based in San Diego California, Generation NEXT Franchise Brands is a company focused on both the innovation and evolution of the franchise vending industry.
their non-traditional approach to offering fresh healthy options within vending machines across the United States and abroad. Challenging the sugar-laden machines that blanketed the market, the new concept provided consumers choices that included natural, organic and tasty snacks such as raw granolas, mixed fruits, sports drinks, juices, protein shakes and bars.
Started in 2010 as Fresh Healthy Vending, Inc., they were the first-to-market with
Attracting both consumers, as well as savvy entrepreneurs looking for minimal
entry franchise opportunities, the company grew their first concept to over 3000 machines across the country, showcasing their Fresh Healthy Vending machines in premiere locations such as schools, businesses, YMCA’s, college campuses and hospitals. From that success, Generation NEXT Franchise Brands was founded and quickly became recognized as an innovator and leader in the development of new franchise vending concepts. An identity which was solidified by the growth of Fresh Healthy Vending and its strong corporate initiative to further transform vending technology and elevate the consumer experience.
Seeing The Future‌Again Soon after launching Fresh Healthy Vending, Chairman and founder Nick Yates, explored the open landscape for future franchise opportunities to expand the company portfolio and revolutionize the vending franchise industry. Yates, whose background within the vending arena went back 20-plus years, kept a close eye on what consumers and more importantly franchisees, wanted in the marketplace. Frozen yogurt was in high demand, with both consumers and individuals looking to enter the franchise marketplace.
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“With the current success of the Reis & Irvy’s franchise concept, Generation NEXT Franchise Brands continues to move forward in the development of both technology and franchise opportunities.”
Recognizing the potential to fill this void with a unique concept delivered by breakthrough technology, Yates began working on a business strategy that would instantly create a quality product with advanced robotic innovation, benefiting both consumers and franchise operators. “We began a concerted effort to become disruptors in the marketplace,” says Yates. “We knew we wanted to revolutionize frozen yogurt and do it in a big way. By utilizing vending as the vehicle we began to visualize the perfect strategy to accomplish our goals. The development of the world’s first robotic frozen yogurt vending machine. One which would deliver frozen yogurt the way it was meant to be.”
Froyo Meets Robo The result of that vision? The company’s newest, ground-breaking franchise marvel: the Reis & Irvy’s Froyo Robot. The world’s first robotic frozen yogurt
vending machine introduces the perfect combination of quality froyo with groundbreaking robotic technology. As the company states in many of its communications, it’s frozen yogurt done right, with a self-contained vending unit capable of delivering on-demand customized frozen yogurt creations to on-the-go-consumers in almost any environment. The amazing robot delivers premium frozen yogurt creations within 60 seconds or less. It features two soft-serve options, the Reis & Irvy’s Froyo Robots offer both traditional premium froyo and a premiere non-fat, gluten free, frozen fruit froyo, made with 100 percent fruit juice. Whether consumers are looking for a delectable treat or a refreshing healthy option, the Froyo Robots cater to virtually any flavor palate. Offering over 82 possible flavor combinations and a choice of six delicious toppings, the “Red Box” sized kiosks have truly given rise to a new era of the frozen yogurt experience. Now customers in almost any environment – malls, shopping centers, movie theaters, college campuses, corporate offices or theme parks – can enjoy frozen yogurt without lines, weighing cups and quantities, or the crowded “sneezeguarded” buffet line of brick and mortar concepts.
An Instant Sensation at Any Destination Even more exciting than the machine itself was the vision to offer the “Reis & Irvy’s Experience” as a unique and exclusive franchise opportunity for both entrepreneurs and premiere locations domestically and internationally. Select
and qualified business owners may now purchase Froyo Robots in packages of four and eight machines. This not only opens the door to profits, but the chance to be first-to-market with a first-of-a-kind technology. Since the launch Reis & Irvy’s in April of this year, the company has averaged over 20 new franchisees a month, with demand for the Froyo Robots growing substantially on a daily basis. At the root of the buzz? The dual benefits to both the franchisee, as well as the location in which the robot is placed, represent a powerful combination of profits and entertainment value that pays dividends to owners, operators, locations, and customers in multiple ways. The Froyo Robot truly delivers a “food theater” experience to consumers with its interactive platforms, customer interface and process of delivery. An experience that attracts children, adults and people of all ages by assembling customized frozen yogurt creations in full view of the consumer and with intricate precision. Early customers have lined up just to experience the process and people walking by the units are immediately drawn into its engaging operation and performance. In turn, its attractive, captive and repeat audience benefit both franchisee and host location with a “win-win” situation. Captive customers equal repeat customers. Repeat customers equal consistent and increased foot traffic. Increased foot traffic means additional profits per square foot, destination awareness, brand exposure and ultimately the ability for any retail, business or attraction location to increase their product offerings and value to customers.
Franchising USA
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G eneration N E X T Fra nchise B ra nds
“We began a concerted effort to become disruptors in the marketplace. We knew we wanted to revolutionize frozen yogurt and do it in a big way. By utilizing vending as the vehicle we began to visualize the perfect strategy to accomplish our goals.” A Commitment to Success and Growth
This includes:
These benefits (to both a franchisee and host location) drive the passion and commitment of the Reis & Irvy’s brand by Generation NEXT Franchise Brands to go above and beyond in terms of support and operations. As the Reis & Irvy’s concept continues its expansion across the United States and Internationally, the corporate team remains dedicated to providing an opportunity and a franchise model which promotes the highest level of opportunity and success for its brand ambassadors. Focused on turn-key solutions for new and existing franchisees, the company provides a wealth of resources, tools and standards that help pave the way for successful placement, operation, support and management within the marketplace.
• Comprehensive Training
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• Location Procurement • Operations and Logistical Support • National Marketing and Branding Support With all of these amazing product features, franchise support and benefits, it’s no wonder the rebirth of one of the world’s most desired treats will soon be delivered by the robotic hand of Reis & Irvy’s. Momentum for the product continues to grow consistently within the market since its launch in April of this year. Currently Generation NEXT Franchise Brands reports that Reis & Irvy’s has already built a network of over 85 exclusive newly appointed franchisees across the United States, a number that continues to grow on a monthly basis. Additionally, Generation
NEXT Franchise Brands has announced the development and implementation of a national marketing and advertising campaign, both to support its franchise network as well as bolster brand awareness and loyalty among potential franchisees, interested host locations and consumers.
Generation NEXT, The Future of Frozen Yogurt and You With the current success of the Reis & Irvy’s franchise concept, Generation NEXT Franchise Brands continues to move forward in the development of both technology and franchise opportunities. As the company maintains its original Fresh Healthy Vending franchise network while focusing on the expansion of the newly launched Reis & Irvy’s brand concept, they have also announced the addition of a third brand concept launching in 2017: 19 Degrees Premium Frozen Yogurt. Another step in the evolution of one of America’s favorite desserts and one which will open new doors to large retail, big box and corporate partnerships. Generation NEXT is truly paving the way for both vending… and the return of a delicious favorite. www.reisandirvys.com
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