April/May 2017
Award-Winning Magazine
for D D Independent Franchise Owners
ON-THE-GO ORDERING Game-changer for Dunkin’ Franchisees
Real News or Fake News
Thriving in the Green Mountain State
A team of experienced financial professionals, all dedicated to a singular corporate mission. Yours. Imagine a single point of contact—a relationship manager who takes personal responsibility for bringing you tailored financial solutions that meet the needs of your business. No waiting for days for someone to call you back. That’s Sterling. Sterling relationship managers are not merely responsive. They’re able to draw upon a unique breadth of tools and expertise, applying a thorough understanding of your business. Whether you’re investing in location refreshes, growth through acquisition or aspire to refinance or recapitalize, your Sterling relationship manager will provide you with the information you need to make smart decisions for better outcomes. For more information, please contact: Keith Smith SVP, Senior Managing Director 212-575-2473 ksmith@snb.com
Lindy Baldwin VP, Managing Director 402-312-2542 lbaldwin@snb.com
Expect extraordinary. Member FDIC
snb.com
FRANCHISEE INDEPENDENCE IS NO BULL They say a picture is worth a thousand words, and that age-old adage has again been proven true by the “Fearless Girl” statue now perched in seeming defiance of Wall Street’s famous “Charging Bull” statue. For those of you who might not have seen the latest, allow us to catch you up. On March 8, “International Women’s Day,” a statue of a young girl with closed fists defiantly perched on her hips was placed opposite the famous Charging Bull that has made its home on Wall Street for the past 28 years. According to State Street Global Advisors, which commissioned the statue known as the “Fearless Girl,” it was done as part of a campaign to promote gender equity in corporate leadership. It is unclear how a statue of a 7-year-old girl translates into more professional women on corporate boards, but since its placement, the visual has prompted charges that it has demeaned Wall Street, violated the Charging Bull copyright and transformed an iconic symbol of American economic power from a positive and encouraging statue to a negative and threatening diorama. Metaphorically speaking, it makes quite the universal statement.
Christopher Penler / Shutterstock.com
As we’ve noted in this space time and again, the power of the big national franchise brands is so often unchecked as to be analogous to that of a charging and muscular wild animal. Until the franchise owners within a franchised system join together and create an independent franchisee association to protect and defend their interests as an integral part of that brand, the bull is allowed to run free (pun intended!). With the creation of the independent franchisee association however, that unbridled power is changed in some way – not necessarily by turning it into a negative (as the Fearless Girl is alleged to have done to the Charging Bull on Wall Street), but certainly giving the relationship more of a sense of balance. As a case in point, let’s consider the franchisee-driven changes in the Tim Horton’s franchise system.
When it was acquired by Burger King in 2014, Tim’s had in place a functioning brand advisory council (BAC) that ostensibly represented the interests of its franchisees. Not unlike the Dunkin’ Donuts BAC, Tim Horton’s members were freely elected from within the franchisee community to protect and defend the collective interests of those franchise owners. But, in Tim’s case (as in Dunkin’s), the franchise brand set the agenda for the franchisee representatives to discuss at advisory council meetings. Issues of concern to the franchise owners were not necessarily the priority of the brand’s executives and were pushed to the back burner, if not dropped off the stove completely. After all, he who pays the piper, calls the tune. In such scenarios, the franchisee representatives can become too close to the franchisor to objectively represent the interests of the franchise owners, particularly when resolution of their major issues is not even on the agenda. Notwithstanding the best interests of the franchisees, they can too easily become corporate surrogates and adopt the corporate party line on most issues, betraying their constituents, but winning favor with their corporate brethren.
he had no clothes; and, they did it all on their own terms. Tim Horton franchisees now join Dunkin’ franchise owners in more ways than just making and selling coffee. And, any of Tim's franchisees could ask a member of the Dunkin' franchise owner community about the benefits of the independent representation they've been receiving through DDIFO for the past 28 years and our friends north of the border would likely be told that while they may still have to face Charging Bull of corporate, with their own franchisee association, they can now do so with their fists clenched defiantly on their hips, for the ultimate mutual benefit of their business - and the Bull! Ed Shanahan DDIFO Executive Director
Tim’s elected franchisee representatives went in a different direction though. They abandoned the brand advisory council structure in favor of an independent franchisee association. They chose a structure where independence is sacrosanct; where the interests of the franchisees are primary; and where collectively, they can rise up as necessary. By creating an independent franchisee association, The Great White North Franchisee Association, they spoke truth to power; they told the corporate emperor that
INDEPENDENT JOE • APRIL/MAY 2017 3
SUB HEADLINE
CONTENTS
From the Executive Director Franchisee Independence is No Bull • • • • • • • • • • • • 3 What’s Brewing: A Look at State Issues Around the Footprint • • • • • • • • 7 Legal: What the NLRB’s ruling means for your Employee Handbooks • • • • • • • • • • • • • • • 11 Real News or Fake News: How do you respond when stories go viral?• • • • • • • • • 12 On-the-Go Ordering: Game-Changer for Dunkin’ Franchisees • • • • • • • • • • • 14 Many ‘Waze’ to order Donuts • • • • • • • • • • 19 Franchisee Profile: Thriving in the Green Mountain State• • • • • • • • • • • 20 Directory of Sponsors • • • • • • • • • • • • • • • 23 Community Corner: Duke Carvalho • • • • • • • • • 26
3 7
12
14
4 INDEPENDENT JOE • APRIL/MAY 2017
20 26
EVERYTHING FOR
Your DRIVE-THRU
new $
NATIONWIDE INSTALLATION
SAME DAY SERVICE
BEST PRICE GUARANTEE
FREE INBOUND SHIPPING
• Drive-Thru Systems & Accessories
• Drive-Thru Listen-in Technology HD Audio System • Order Confirmation • Drive-Thru Timers • Digital Surveillance Systems
Call us today: 800-598-2370 or email us: sales@rftechno.com
DRIVE-THRU SURVEILLANCE AND ENTERTAINMENT SOLUTIONS www.rftechno.com
IT’S YOUR empIRe. LET US HELP YOU BUILD IT.
倀爀漀瘀椀搀椀渀最 唀渀瀀愀爀愀氀氀攀氀攀搀 䌀漀瘀攀爀愀最攀ᤠ猀Ⰰ 倀爀椀挀椀渀最 ☀ 匀攀爀瘀椀挀攀 昀漀爀 伀瘀攀爀 ㌀ 夀攀愀爀猀
Bridge Funding Group is proud to finance franchisees of some of the most recognized brands in the United States. Our experience makes the franchise financing process easy, informative and timely. If you are a franchise owner who needs financing for acquisition, refinance, remodel or equipment purchases, contact Bridge Funding Group today.
Let’s talk. Call us at (800) 928-8537 or email Franchise@BankUnited.com
䌀漀渀琀愀挀琀 匀愀戀爀椀渀愀 匀愀渀 䴀愀爀琀椀渀漀 㠀 ⴀ㠀㔀㐀ⴀ㐀㘀㈀㔀 砀 ㈀ 眀眀眀⸀猀琀愀爀猀栀攀瀀⸀挀漀洀
NEW DEVELOPMENT | ACQUISITION | REFINANCE REMODEL | SHAREHOLDER BUYOUT www.bridgefundinggroupinc.com This is not a commitment to lend. All loans are subject to credit and collateral approval.
Independent The Magazine for DD Independent Franchise Owners
•
April/May 2017 Issue #43 Independent Joe® is published by DD Independent Franchise Owners, Inc. Editors: Edwin Shanahan, Matt Ellis Contributors: Cindy Atoji Keene, Cathy Cassata, Lisa Iannucci, Scott Van Voorhis Business Member Coordinator: Joan Gould Creative Director: Caroline Cohen Direct all inquiries to: DDIFO, Inc. 2 First Avenue, Ste. 127 – 3, Peabody, MA 01960 978-587-2581 • info@ddifo.org • www.ddifo.org DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts Franchise Owners. INDEPENDENT JOE®, INDY JOE®, and DDIFO® are registered trademarks of DD Independent Franchise Owners, Inc. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc. All Rights Reserved. Copyright © 2016 Printed in the U.S.A.
6 INDEPENDENT JOE • APRIL/MAY 2017
WHAT’S BREWING A LOOK AT STATE ISSUES
AROUND THE FOOTPRINT By Scott Van Voorhis Even as challenges and roadblocks loom for small business owners in 2017, franchise owners have reason to believe the playing field is leveling with regard to how they are treated by their brands. Having secured Fair Franchising legislation in California, franchisees are closely watching another battleground state. This as they also keep an eye on Washington and the president’s plans to lower taxes on businesses. It remains to be seen if efforts to repeal Obamacare will truly succeed; what is clear is the cost franchisees have to pay to insure their employees, along higher minimum wages and benefits. Costs of doing business continue to go up, but sales may have a hard time keeping pace.
pollsters they aren’t willing to pay more for their favorite items. “It’s a challenge,” says Adam Werner, managing director of AlixPartners, a New York consulting firm. “You don’t have room to raise prices.” Fair franchising makes headway in Florida After the passage of California’s historic
fair franchising legislation, industrywatchers knew it wouldn’t be long before the momentum carried into other states. Now comes Florida. A fair franchising bill filed by a top Florida state senator has cleared the Regulated Industries Committee by a vote of 7-2. The Protect Florida Small Business Act, sponsored by Sen. Jack Latvala,
A new poll indicates even the most faithful customers of quick service restaurants may be looking at cutting back their spending. And even as they face potential challenges with customers re-evaluating their dining habits, franchise owners are facing rising labor costs, resulting from both a tighter labor market and from increasingly successful efforts around the country to raise the minimum wage to $15 an hour. Customers, in turn, are supportive of wage-raising initiatives, even as they tell
Sen. Latvala & Rep. Brodeur Introduce the Protect Florida Small Business Act
INDEPENDENT JOE • APRIL/MAY 2017 7
WHAT’S BREWING
(R-Clearwater), chairman of the Senate’s Appropriations Committee, is aimed at restoring balance in the relationship between franchisees and franchisors, as California’s law does. This bill deals with issues that have been of top concern to Dunkin’ franchise owners, including “unjust terminations, restrictions on transfers and non-renewals,” according to DDIFO Executive Director Ed Shanahan. The Florida Legislature is set to adjourn May 5 after its annual, two-month session. However, there’s still hope the fair franchising bill will also clear the judiciary and rules committees before lawmakers head home.
This bill deals with issues that have been of top concern to Dunkin’ franchise owners.
8 INDEPENDENT JOE • APRIL/MAY 2017
But even if the bill doesn’t clear the committee hurdle in time, DDIFO will still be working to promote the bill during Florida’s relatively active legislative off-season, says Shanahan, with the aim of getting the fair-franchising legislation off to a fast start after the Legislature comes back into formal session next January. DDIFO is urging Florida members and franchise owners to call their local state representatives and senators to urge support of this key legislation “It’s a short session but a long process,” Shanahan says. Belt tightening ahead? The unemployment rate hasn’t been this low in years and wages are finally rising again after taking a hit during the Great Recession. But quick-service restaurants may not fully benefit from those gains. In fact, a new survey finds, they may even see a drop in spending by their most faithful
customers over the course of the year. Regulars at various quick-service chains – those who stop by multiple times a week – say they plan to cut back on their trips by six percent over the course of 2017, according to the survey by AlixPartners. Asked why, half said they wanted to save money while 44 percent cited a desire to eat healthier. That’s an important finding for quickservice brands, which generate large amounts of revenue from their “heavy users,” who are their “bread and butter” when it comes to sales, according to Werner. Of those who cited saving money as a reason, Millennials were interested in spending more on personal services like haircuts and housekeeping, while Boomers cited the need to save for retirement. As regulars cut back, Dunkin’ franchise owners should consider focusing on keeping up sales and promotions, with an effort to entice more visits from customers now stopping once a week or less, Werner says.
Still, pledges made at the beginning of the year to eat out less, whether for health reasons or to save money, are one thing. Actually, carrying through with them is something else entirely. “There are two ways to look at this,” Werner says. “Every one of us has the best intentions in January: ‘I wanted to shed that last 10 pounds. Where we dine versus where we say we will dine is TBD,’” he adds. Calorie counts back on The failure so far of the Republicancontrolled Congress and President Trump to repeal Obamacare has a wide range of implications for business owners large and small. For franchise owners, one key irritant embedded in the Affordable Care Act is the requirement that quick-service and other restaurants post calorie counts next to menu items. Along with concerns over the impact
calorie disclosures might have on diners’ eating habits, franchise owners are typically left with the burden of picking up the cost for the new signage and menu. After years of angst and debate, the menu labeling requirement is which was to go live on May 5, was postponed for another year by the Trump administration. It is currently scheduled to become effective in May of 2018. The new rules cover all chains with 20 or more restaurants. Along with calorie counts beside each item, menus and menu boards must include a statement which effectively says “2,000 calories a day is used for general nutrition advice, but calorie needs vary.” The aim, the FDA notes in its explanation of the new rules, is to give consumers context when weighing what items to order. Upon request, establishments must also offer “written nutrition information about total calories, total fat, calories from fat, saturated fat, trans fat, cholesterol,
sodium, total carbohydrates, fiber, sugars and protein,” according to the FDA. Still, it’s an open question whether knowing how many calories your favorite treat has will stop you from ordering it. New York City led the way a decade ago in requiring calorie labeling. A USDA study in 2008 came to the conclusion that posting calorie information was ineffective, with diners simply ignoring the information. However, a 2014 study published in the American Journal of Public Health that looked at calorie labeling in a county in Washington State came to a very different conclusion. “Calorie information awareness and use increased significantly from 2008 to 2010,” the study found. “Unadjusted analyses indicated that the proportion who saw and used calorie information tripled, from 8.1% to 24.8% … Women, higher income groups, and those eating at a fast-food
Increase Profits COST SEGREGATION STUDIES • Improved Cash Flow • Accelerated Depreciation • New Construction/Remodels
ENERGY MANAGEMENT
Lower Rates, Aggregated Purchasing & Online Reverse Auctions. All Utilities - Gas, Electric, Water and Sewer CT US CONTA AY! TOD
AUDITED AND TRACKED! Call Jeff Hiatt at 508-878-4846 jdh@revenuebanking.com
www.revenuebanking.com
PERFORMANCE BUSINESS SOLUTIONS, LLC INDEPENDENT JOE • APRIL/MAY 2017 9
WHAT’S BREWING
versus a sit-down chain restaurant were more likely to use this information.” According to Werner, quick-service customers are more likely to use the calorie information to guide what they order for their children rather than themselves. “Health and wellness have continued to tick up as extremely important,” he says. Minimum wage hikes roll on So much for the idea that the Republican takeover in Washington, D.C. would slam the brakes on efforts to boost the minimum wage across the country. The new Trump Administration has certainly signaled it will take a much more business friendly approach to regulation.
In Minneapolis, a proposal to boost the minimum wage had gained the support of more than half the 13-member City Council, with passage possible this summer, the Star Tribune reports. Two new proposals at the Illinois State House would boost the minimum wage to $15 across the state, with one bill calling for an immediate jump to $15, while the second would phase in the increase by 2022. And a key committee in the Texas House of Representatives recently considered nine different minimum-wage hiking bills that would raise base pay in the state from the current $7.25 to anywhere from $10.10 an hour to $15 an hour.
But the push to raise the country’s base wage to $15 an hour has long been driven by efforts on the city and state level.
Los Angeles, San Francisco, Washington and Seattle are either at $15 an hour or headed there soon, not to mention two of the country’s biggest states, New York and California.
And given the latest news, it’s hard to see any evidence of a slowdown here.
However, so far the Service Employees International Union, which has
10 INDEPENDENT JOE • APRIL/MAY 2017
spearheaded the Fight for $15 campaign, has failed to pick up any big membership gains from its multimillion-dollar campaign. In fact, the union, struggling with budgetary issues, last year cut spending on the campaign to $14.7 million from $16.4 million the year before, according to the Center for Union Facts, a conservative think tank. Summing up If the first four months of 2017 are any indication, Dunkin’ franchise owners will have a lot to keep their eye on in the months ahead, both in their local state capitals and in Washington, D.C. While the repeal of Obamacare may seem like a pipe dream to some now, we probably haven’t seen the end of that story. And let’s not forget all those proposals out there to increase the minimum wage, as well as potential changes in how customers are spending their hard-earned free dollars. We’ll keep an eye out for you so you can do what you do best, making your customers happy.
•
BY PETER BENNETT AND ASHLEY ARRA
A LOOK ON THE LAW
What the NLRB’s ruling means for your Employee Handbooks
I
n its recent ruling on the case involving the metals manufacturer Minteq International, Inc., the National Labor Relations Board (NLRB) continued its expansion of employee rights by finding that two common provisions in a noncompete agreement were “unlawfully overbroad rules” that interfered with employees’ rights in violation of Section 8(a)(1) of the National Labor Relations Act (“the Act”).
lawful. The provision defined confidential information, and then further buttressed it with examples, which illustrated its scope and meaning. The NLRB emphasized that a prohibition must not be read “in isolation,” and the phrase containing this prohibition “does not stand alone and must be read in context.” Therefore, when considered in this context, the NLRB determined that employees reading the rule “would
By way of background, a union represented some of Minteq’s employees. The collective bargaining agreement contained a probationary period for employees for their first six months of employment, and after six months, a “just cause” standard was imposed for any discipline, suspension, or discharge. Minteq began requiring that new employees sign a Non-Compete and Confidentiality Agreement (NCCA), which contained various provisions, including an “Interference with Relationships” rule, an “At-Will-Employee” rule, and a “Confidential Information” rule. Of significance to both unionized and union-free employers, the NLRB held that the “Interference with Relationships” provision and the “At-Will Employee” provision were unlawfully overbroad rules.
Importantly, your handbook should contain clear drafting, including illustrations, examples, and limiting or clarifying language
In its lengthy decision, the NLRB explained that, under Section 7 of the Act, employees are permitted to communicate with customers about terms and conditions of employment for mutual aid or protection. However, according to the NLRB, the prohibitions on interfering with customer relationships in the “Interference with Relationships” provision was illegal because it could be construed to prohibit such activity. With respect to the “At-Will Employee” rule, the NLRB found that the provision had a reasonable tendency to discourage employees from engaging in conduct that would be protected by Section 7 of the Act. Surprisingly, the NLRB found that the “Confidential Information” rule was
reasonably understand it to refer to the preceding examples of proprietary information,” rather than information related to wages or working conditions. Overall, the decision in Minteq demonstrates the NLRB’s continued attack on employer policies on grounds that employees might interpret such policies to bar or restrict their right to engage in protected activities. The NLRB’s analysis of the Non-Compete and Confidentiality Agreement in this case also impacts the drafting of employee handbooks. Over the last several years, the NLRB has been aggressively reviewing and policing employee handbooks that it believes “chill” employee rights under the NLRA, the National Labor Relations Act. For Dunkin’ Donuts franchisees, employee handbooks are an important source for communicating your company’s policies and procedures. We recognize that most employers do not draft their handbooks with the object of prohibiting
or restricting conduct protected by the NLRA, but, even well-intentioned rules can be found unlawful if employees would reasonably construe the rule’s language to prohibit Section 7 activity. Determining what language employees would “reasonably construe” as prohibiting Section 7 activity is certainly a challenge. Although we do not necessarily recommend that you follow its guidance given that it was issued by a government employee with a decidedly pro-union bent, the NLRB General Counsel also issued a 30 page memorandum in which he explained and provided examples of employer rules/ policies that were found to be lawful or unlawful. While following the examples set forth in the memorandum may be safe, they do not necessarily portray the real state of the law. And with a new president, we expect his nominees to the NLRB to shift the state of the law back to the right as cases come before them. Nonetheless, the General Counsel’s memorandum and the NLRB’s decision in Minteq both convey an important message to employers that can be applied to the drafting of handbook rules and policies: the language must not be read in isolation, but instead be read in the context of the employer’s practices, other policies and procedures. As such, you should have experienced labor law counsel review your company’s handbook rules and policies in order to avoid unintended and unfavorable interpretations of specific provisions. Importantly, your handbook should contain clear drafting, including illustrations, examples, and limiting or clarifying language, which refers to your company’s practices and other relevant policies and procedures. As a good rule of thumb, keep in mind that context matters.
•
Peter Bennett is president of the Bennett Law Firm. Ashley Arra is an associate at the firm, which specializes in labor and employment law.
INDEPENDENT JOE • APRIL/MAY 2017 11
Real News or Fake News How do you respond when stories go viral?
By Matt Ellis
T
here are plenty of great stories about restaurants and food that go viral. There’s the one about Mr. Fries Man in Gardena, California, whose variations on the French fry include melted cheese, braised oxtail and Caribbean jerk sauce. Mr. Fries Man only takes orders on the social platform Instagram, and things really got sizzling for Mr. Fries Man when the rapper Nipsey Hussle posted a photo of an order of lemon garlic shrimp fries. The news spread and resulted in a banner headline from Eater of Los Angeles, an influential food blog, which said: “One of South LA’s Most Popular Street Vendors Goes Legit in Gardena.” Unfortunately for every story like that, restaurant operators can point to many more that go viral for all the wrong reasons causing them great stress and misery. Over the years, virtually every food chain has experienced bad news about its food safety, product ingredients or cleanliness. And, with the rise of social media, any franchise owner in any system can be concerned something negative about them will go viral. Many Dunkin’ Donuts operators are still dealing with the backlash of a recent lawsuit claiming margarine was used instead of butter on bagels ordered at some shops in Massachusetts. While bad news travels fast, it can take much longer for the fallout to die down. When people started getting sick at Chipotle restaurants, social media lit up with posts about bad food. And Chipotle is battling the aftermath to re-establish
12 INDEPENDENT JOE • APRIL/MAY 2017
its credibility. The brand is hoping its new "As Real as It Gets" ad campaign will help erase past bellyaches. Chipotle stock is up slightly but hasn’t come close to its high of $749 a share in mid-2015—before its first case of bad press. Keith Miller, a long-time franchisee with three Subway shops in Northern California, knows all too well that customers are fickle and positive feelings can turn foul, even against brands they like. So, when an explosive report about the makeup of Subway chicken aired in Canada, news spread fast throughout the U.S. and customers reacted. “There were those customers who teased us and laughed it up, but there were others who believed the news and stopped coming in,” Miller says. It’s the customers you don’t hear from that impact you.
“A little hard to swallow”
CBC Marketplace is the investigative arm of the Canadian Broadcasting Company. Recently it commissioned DNA tests of the chicken sold by several chain restaurants, including McDonald’s, Tim Hortons and
Subway. Of those tested, all but Subway averaged over 80% real meat. The CBC warned customers they may find the news “a little hard to swallow.” According to the CBC, “Subway's results were such an outlier that the team decided to test them again, biopsying five new oven roasted chicken pieces, and five new orders of chicken strips. Those results were averaged: the oven roasted chicken scored 53.6 per cent chicken DNA, and the chicken strips were found to have just 42.8 per cent chicken DNA. The majority of the remaining DNA? Soy.” Subway was understandably surprised by the report. Its first public statement said: “Subway Canada cannot confirm the veracity of the results of the lab testing you had conducted. However, we are concerned by the alleged findings you cite with respect to the proportion of soy content.” It went on to point out its chicken contains 1% or less of soy, which is used to help stabilize and moisten the meat.
Subway promised to “look into this again with our supplier to ensure that the chicken is meeting the high standard we set for all of our menu items and ingredients.” In lab tests and surveys, results can vary by a few percentage points up or down— that’s known as the “margin of error.” But, when Subway had its chicken tested at two independent labs, one in the U.S. and one in Canada, those results contradicted the CBC report, showing results way beyond the margin of error. In fact, they questioned whether the CBC’s report was a total error. “The allegation that our chicken is only 50% chicken is 100% wrong.” Suzanne Greco, Subway's President and CEO said in a statement, echoing a now famous statement made by another president, Donald J. Trump.
News or fake news?
“The news is fake because so much of the news is fake.” The President’s statement, uttered during a White House press conference, sent newspaper editors and broadcast journalists into a tailspin. But, the truth is that what is news and what is believable is under greater scrutiny than ever before. So, when allegations against a well-known and popular food chain like Subway arise, many would be quick to dismiss it as a “fake news” story. “One of the biggest concerns any restaurant has is maintaining its customer base. If you lose repeat customers it can have consequences on sales,” says Erik Thoresen, a principal at the food research firm Technomic. “The danger of these kinds of stories for brands like Subway comes with ensuring the facts are out there properly.” Subway was able to change the narrative of its crisis by commissioning and then releasing its own DNA test of the chicken it serves, but that was five days after the CBC story made its way around social media and news websites across North America. When the news first broke, Miller says, the response was too slow, and when the statement finally came, it was released in Canada before it was released in the U.S.
“In my opinion, the brand needed to respond more quickly to restore customer and franchisee confidence,” Miller says. “News travels fast and five days [to respond] is an eternity. Franchisees depend on the franchisor to protect the brand. The delay allowed many U.S. outlets time to pick up the story and run it.” Thoresen agrees that today’s consumer expects immediate answers, but that is not always possible. “There can be a downside to responding too quickly in instances where facts are critical to resolving the issue. So, Subway collected its facts and then provided a statement, which may have actually benefitted the brand,” Thoresen says. Franchisees and their employees are accustomed to fielding questions from customers about something they heard,
restaurants. This kind of story adds to that skepticism.” Then again, as Thoresen points out, customers of quick service restaurants are typically driven by the price point. “Ingredient concerns have more to do with how the consumer values what they are eating. For a lot of consumers, if it tastes good that’s the number one thing.” In addition, he says, soy is an all-natural food source that is not just a common filler, but also a main course in its own right. “There is soy filler in a lot of products. It doesn’t mean it’s a worse tasting product,” Thoresen says.
Lessons learned
Of all the events that transpired in the days and weeks after the CBC story broke, Miller says he was not surprised that his
“ One of the biggest concerns any restaurant has is maintaining its customer base. If you lose repeat customers it can have consequences on sales. The danger of these kinds of stories for brands like Subway comes with ensuring the facts are out there properly." saw or thought about the restaurant. Sometimes these questions are easily addressed with information the franchisee has at hand, or receives from the brand. Miller says in the case of the CBC chicken story, he and other Subway franchisees were in the dark because they did not know the specifications Subway sets for its chicken provider. They couldn’t reliably tell customers that Subway demands 1% or less of soy protein, which was what the brand told the CBC when it was first contacted. According to Miller, even after the CBC story was debunked by Subway’s independent tests, franchisees in the Subway system still had to field comments or questions about “other stuff’ in their food. “One of the hurdles a restaurant chain faces is that consumers are not familiar with food processing. Often things are added and consumers eat them every day,” Thoresen says. “Consumers today are fairly skeptical about what is included in processed foods that are sold in
competitors chose to ignore the story instead of mounting a campaign touting their own chicken sandwiches. At the end of the day, he says, there are not that many food service suppliers that can handle the kind of demand Subway and other large chains have for chicken. It may be an example of those living in glass houses choosing not to throw stones. The lesson he hopes his brand has learned is that it needs to respond quicker to media – and franchisee – questions, particularly in cases when the news is about a core product, especially one that helps promote the healthfulness of the brand. “It’s a real challenge for franchisees, but these things come up all the time in the food industry,” Thoresen says. “There is a difference between the way consumers interpret news about food safety versus news about unknown ingredients.” And, that’s important to remember, even if the news itself isn’t exactly what the headline claims it is.
•
INDEPENDENT JOE • APRIL/MAY 2017 13
ON-THE-GO ORDERING Game-changer for Dunkin’ Franchisees
I
t may be the only Dunkin’ Donuts in Springfield, Mo., but that’s not this shop’s only claim to fame. This new location, open only for about two years, is number one in the nation for On-the-Go mobile ordering; more customers use the app here than at any site in the U.S. The reason for the high app usage? Franchisee Cory Roebuck is blunt: “I hate to admit it, but we may not be the quickest store and so there are lines. Guests avoid lines by using the app.” Customers can order their coffee and a donut, pay in advance with a swipe of their finger, and then skip the in-store line to pick up their favorite menu items. For the Springfield store, two percent of orders come through the app. That’s not an extraordinary number, but it indicates an important trend: smartphones are transforming coffee shops as we know them, offering a new level of speed and convenience for busy customers. Orders placed via smartphone will make up more than 10 percent of all quick-service restaurant sales by 2020, projects Business Insider Intelligence. At that point, mobile ordering is expected to be a $38 billion industry. And QSRs are jumping on board. McDonald's is adding a mobile ordering platform later this year. Pizza chains Domino's, Papa John's and Pizza Hut already up and running; Starbucks also has already launched its mobile order and pay platform.
14 INDEPENDENT JOE • APRIL/MAY 2017
INDEPENDENT JOE • APRIL/MAY 2017 15
16 INDEPENDENT JOE • APRIL/MAY 2017
COVER STORY: ON-THE-GO ORDERING
“ In this day and age people always in a hurry no matter what time of day or what day of week and On-the-Go serves them well. It’s exponentially faster.” “Mobile ordering is game-changing in our industry,” says Tim Cloe, a long-time Dunkin' Donuts franchisee in Orlando, Fla., who says that on-the-go ordering drives membership to the DD Perks Rewards loyalty program and attracts customers who may not have the time to order through traditional methods. “Many brands have not yet embraced it, but Dunkin’ has jumped in with a strong product,” says Cloe, who has more than 20 Dunkin’ Donuts’ stores in the southeast. When franchisee Matt Cobo opened his new Dunkin’ Donuts restaurant in Walnut Creek, Calif. last June, lines began stretching out the door. But, Cobo says he delayed offering On-the-Go ordering for most of the first month until operations were up and running. Once mobile ordering was offered, he says, customers pulled out their phones, loaded the app and placed
their order. Word spread quickly – often, a cashier would tell the guests about the app while other times, it was straight word of mouth: one customer would ask the other how they were getting their beverage so quickly. “People just had to use it once to fall in love with it,” says Cobo, who is committed to opening 12 stores throughout the Bay Area. “In this day and age, people always in a hurry, no matter what time of day or what day of week, and On-the-Go serves them well. It’s exponentially faster.” As with many new technologies, mobile order-and-pay programs inevitably have growing pains. Starbuck’s was jolted by too much online traffic when it launched its mobile app, causing congestion, longer lines and bottlenecks, which resulted in plenty of angry social media posts.
INDEPENDENT JOE • APRIL/MAY 2017 17
COVER STORY: ON-THE-GO ORDERING So far, customers are finding Dunkin’s On-the-Go app simple and seamless – the order is placed, an alert beeps and an employee turns off the signal to acknowledge the order has been received. The item is displayed on the visual display unit – coffee, black – and two minutes later the customer can pick up in a designated area. If there is a complaint, Orlando franchisee Sonia Lemos says it has to do with the products that are available through the app. Not everything in the donut case is offered, nor can you make bulk orders for 10 boxes of Joe or 20 dozen donuts. And, technology being what it is, the system can fail or be subject to technical difficulties. But most glitches happen when the food is not ready or customers have to wait too long, says Paul Soaref,
operations manager for a chain of stores in South Carolina operated by franchisee Moshe Aroch. Many franchisees contacted by Independent Joe said On-the-Go has helped improve ordering accuracy by eliminating back-and-forth conversation. “There’s no more communication stumbles, like a guest ordering a caramel swirl and instead getting coconut cream,” says Roebuck. The app keeps lines down during peak hours and often creates a ripple effect of downloads. “Guests that see others grabbing a beverage and walking out without a cash or credit transaction want to know, ‘What is that person doing and how can I do that? Why have I been waiting six minutes in line when they just walk in and pick up their drink?’ It’s even faster than the drivethrough,” says Lemos. What’s more, it also creates a more personalized experience, because the customer’s name is on the receipt, so the server can call out, “Maria, here’s your iced coffee. Have a great day!” Franchisees we spoke with have a list of additions they would like to see offered through the app including: ease of finding allergens; more variety of donuts; the ability to place catering orders; and more promotion of the app itself. As adoption of On-the-Go ordering grows, we may well see store designs emphasizing mobile front and center, creating larger designated pick-up areas. Other possible developments reflecting the shift to online ordering include delivery services – an instant order of munchkins and a hot coffee at your door. These and more developments surely lie ahead for the mobile-first mentality that is reshaping how so many Americans order and purchase products. But even as technology reshapes the industry, people will still choose Dunkin’ Donuts because franchisees offer hot, fresh coffee and made-to-order beverages. They don’t have to wait in line and stand at the counter to place their order anymore. On-the-Go ordering provides customers fast access to their beverage and franchisees greater control over the process.
•
18 INDEPENDENT JOE • APRIL/MAY 2017
MANY ‘WAZE’ TO ORDER DONUTS SUB HEADLINE
With the widespread use of Global Positioning Systems (GPS), people have been able to ditch their paper maps and get where they are going without getting lost or stopping to ask for directions. What GPS did for cars – embedding navigation systems in the dashboard – Waze has done for smart phones. People use Waze to avoid traffic jams and maneuver past pesky potholes. But, there is an added benefit with Waze, the ability to see ads on the app alerting drivers to nearby fast food locations. Dunkin’ Donuts has jumped on the Waze bandwagon, allowing drivers to purchase coffee and donuts from the comfort of their car. This order-ahead option is the first for Waze, the popular app which is owned by Google. If the program is successful, we should expect other merchants to provide on-demand services soon as well. For now however, before caffeine-hungry drivers can begin using Waze’s “order ahead” option for a cup of Dunkin’ Donuts coffee, they need to have the DD app on their smartphone and be registered with Dunkin’s customer loyalty program.
Interestingly, because of the way the Waze app works, drivers don’t have to open the app; the two technologies talk to one another allowing for a seamless order-while-you-drive experience. Scott Hudler, chief digital officer for Dunkin' Brands, said that working with Waze made sense. “Waze involves the ritualistic behavior of driving to work on your daily commute, and we are a brand built on a ritual, too,” he told the Associated Press. Waze will not earn a commission on the Dunkin’ sales made through its app, but Dunkin’ Brands has agreed to increase its advertising on Waze. And soon drivers won’t just be able to order donuts, but maybe fill prescriptions, reserve parking spaces, and buy groceries.
INDEPENDENT JOE • APRIL/MAY 2017 19
Thriving in the Green Mountain State
By Cathy Cassata
M
ost everyone within the Dunkin’ Donuts system knows that Vermont is among the most challenging markets. The Green Mountain state has the second smallest population in the U.S. and is far-removed from major urban centers along the East Coast. In 2015, Forbes Magazine ranked Vermont as the 42nd best state in which to do business. Still, franchisee Aristotle Souliotis took his chances on the market in 2007. “New England had done so well for such a long time that Vermont was kind of an anomaly to the rest of New England. Things were so slow comparatively,” says Souliotis. “Although it’s New England, it needed boots on the ground, and I think we differentiated ourselves from other franchisees by really getting into the communities and becoming the face of the brand for Vermont.” Making it in Vermont was far from easy, though.
The Family Business A first generation American, Souliotis’s parents migrated from Greece to Massachusetts as teenagers, and then eventually
20 INDEPENDENT JOE • APRIL/MAY 2017
moved to New Hampshire where they raised their family.
Donuts shops for sale in Morrisville and Waterbury, Vermont.
His dad and uncle started a brand of pizza restaurants called Pizza Chef. Over time, the family owned 14 stores throughout New Hampshire and Vermont. “We’d open a restaurant and then sell it to a friend or family member,” says Souliotis.
His entrepreneurial spirit took over and in July, 2007, he sold his Pizza Chefs and leveraged his commercial real estate and personal savings to buy both Dunkin’ franchises.
When he was in his mid-20s, Souliotis bought two Pizza Chef restaurants from his parents. “I’m not sure if I’m regretful or not, but I was a college dropout. I had a hard time sitting in business class listening to a professor when I had real life experience working in the pizza business my whole life. From the time I was seven, my dad always had me in business meetings with him that involved all kinds of business issues from negotiating a lease to talking inventory. Whether he meant for me to listen or not, I always was,” Souliotis remembers. His two pizza stores were thriving when family friends who were Dunkin’ franchisees told Souliotis about a few Dunkin’
“I made a pretty big leap. I had no experience with Dunkin’. There was very little room for error. At the time, the Vermont market was an underperforming market. There were some franchises who had come to the market who struggled, so being green to the business I kind of went in without knowing what I’d be getting myself into,” he says.
Facing the challenges His biggest surprise was the cost to remodel his free-standing store with a full kitchen. He knew the store needed a remodel, but assumed it would cost around $100,000. It ended up costing at least four times that much. “I had to go back to the bank and ask for another $400,000. I was lucky and they took a leap of faith in me,” he says.
To make matters worse, Souliotis says, coffee prices spiked. At the time of his opening, coffee was selling in the mid 30-dollar to low 40-dollar per case range, but by the time the remodel was finished, coffee was fetching $100 per case. “The U.S. was coming into a depression. It was a rude awakening. My wife would work one store and me the other. Like a lot of Dunkin’ franchisees, we were putting in late nights baking to keep the doors open,” he says. Souliotis had some difficult conversations with Dunkin’ Brands and made a pledge to himself and his family to keep pushing forward. “But there were some days when I thought ‘what the hell did I get myself into? I had a pretty good deal going in the pizza world.’ I had invested so much at that point that failing wasn’t an option, so we did what we had to do to make it work,” he says. The first two years of business, Souliotis says required him to forego several paychecks to keep the doors open. “I don’t know that I would have had it any other way because that period made me a really good operator. You don’t realize how good you have to be until you’re in a situation that forces you to. I learned every square inch of the business during that time from food cost and inventory management to everything else. I don’t
think my success would have reached what it is now if I hadn’t gone through that process,” he says.
On the Up About two years into the business, which Souliotis calls Vermont Donuts, he heard about two more stores for sale in the Burlington area, just north of his existing locations. Burlington is on the eastern shore of Lake Champlain, about 45 miles south of the Canadian border and an hour-long ferry ride to New York State. Home to the University of Vermont, Burlington is the state’s most populous city. “They were struggling for some of the same reasons we were. We did what every crazy entrepreneur does. When you’re having a hard time running two stores and barely making it, you buy two more,” he says. “Looking back, we were kind of oblivious to risk. We were young and willing to work hard until things got better.” About five years in, Souliotis purchased the central kitchen (CML) and eventually acquired 10 more Dunkin’ Donuts restaurants in areas he believed were good distribution points to block out competition. Today, he owns 22 stores in Vermont, making him the biggest franchisee in the state. There is one franchisee south of him that owns three stores, another nearby that owns three stores, and then a franchisee group two hours southwest in Rutland City, Vermont. "We all have a
" You don’t realize how good you have to be until you’re in a situation that forces you to. I learned every square inch of the business during that time from food cost and inventory management to everything else. I don’t think my success would have reached what it is now if I hadn’t gone through that process" INDEPENDENT JOE • APRIL/MAY 2017 21
FRANCHISEE PROFILE: SOULIOTIS employees play and the company is a longtime sponsor. Held near Lake Champlain on baseball fields built as replicas of Fenway Park, Wrigley Field and the field depicted in the movie “Field of Dreams,” the tournament drew more than 400 players making up over 32 teams last year. “It’s an awesome experience,” says Souliotis. Vermont Donuts has also donated over $4,000 to American Cancer Society Relay for Life events, and Souliotis hosts an annual “Hot Chocolate Day” at his shops to raise money for Camp Ta-Kum-Ta, a year-round camp for children with cancer located in South Hero, Vermont. For the past three years, he has teamed up with two other franchisees to film local commercials where they promote seasonal drinks and present checks to the hospital. “In stores, customers will say ‘we saw you on the TV this morning.’ So not only do they see us behind the counter, they also see us making a difference in their community and on TV,” he says.
An Advocate for Fellow Franchisees good relationship and collectively drive the market in Vermont," says Souliotis. While he believes the market is close to saturation, he says there may be some opportunity to open nonconventional Dunkin’ locations. “We are one of the only franchise groups who have had a long run with positive customer counts and sales. While New England as a whole started to get saturated we just continued to see growth,” Souliotis says. Being successful doesn’t mean Souliotis is taking anything for granted. He visits his stores daily. “We took an approach to elevate the experience for the guest and through that we elevated the expectations of our crew members and ourselves. It’s worked well. We have kind of a guerilla style approach to our business where we are the face of this market now,” he says. Souliotis is especially proud of this given
22 INDEPENDENT JOE • APRIL/MAY 2017
the fact that the Dunkin’ brand has been able to overcome the strong coffee competition in the state. “When we came up here, many Vermonters thought they already had their favorite local coffee brewer, but about five to six years in, our stores started to be recognized as the locally owned and operated coffee shops in town. “We’re considered ‘the local guy’ even though we’re flying the Dunkin’ flag,” says Souliotis, who credits the Dunkin’ Brands marketing people along with his managers and crew. “I couldn’t have done it without them,” he says.
A Friendly Face Vermont Donuts is also well recognized in the community for its participation in charitable efforts. Among their favorites are the various events around the annual Wiffle ball tournament held by the Travis Roy Foundation, which raises money for spinal cord injury research in the name of the Boston University hockey player who was paralyzed in his first collegiate game in 1995. Several Vermont Donuts
Because of his experience and the challenges he has overcome in Vermont, Souliotis sees himself as an advocate for other franchisees in more rural, less-populated markets. It’s why he gives his time to serve on the Regional Advisory Council (RAC) and the Development Committee. “It’s important to be an advocate for our market because sometimes I think the brand forgets there are stores that are lower volume in this region,” Souliotis says. “My objective as a RAC leader is to make sure that we are having productive conversations about how to make the brand better. “We’re at a pivotal moment that requires us to drive home and establish ourselves as the choice for consumers,” says Souliotis. “Growing up in New England, [I see] there is a lot of magic around this business and our customers treat it like a badge of honor, whether they’re driving a BMW or a pickup truck, they’re proud to have a Dunkin’ coffee in their hand. When you take away that brand loyalty it’s tough to get it back.”
•
2017
Directory of Business Members ACCOUNTING Adrian A. Gaspar & Company, LLP, CPAs
Robert Costello 617-621-0500 • cpas@gasparco.com 1035 Cambridge Street, Ste. 14, Cambridge, MA 02141 www.gasparco.com
Brendon Pierson
Peggy Pierson 732-681-4800 • peggy@brendonpierson.com PO Box 1750, Wall, New Jersey 07719 www.brendonpierson.com
Marcovich, Mansour & Assoc. Inc.
Joseph Mansour 401-334-9099 • jmansour@mm-cps.net 640 George Washington Hwy., Lincoln, RI 02865
Jera Concepts
Wynne Barrett 508-686-8786 • wynne@jeraconcepts.com 17 Fruit Street, Hopkinton, MA 01748 www.jeraconcepts.com
BUILDING Duro-Last Roofing
Samantha Pickelman 525 Morley Dr., Saginaw, Mi 48601 (989) 758-1048 • spickelm@duro-last.com www.duro-last.com
Persona Signs, Lighting, Image
MFA - Moody, Famiglietti & Andronico, LLP
Susan Koelzer 700 21st Street SW, Watertown, SD 57201 800-843-9888 x390 • skoelzer@personasigns.com www.personasigns.com
Neovision Consulting Inc.
Jackie Linhares 125 Samuel Barnet Blvd, New Bedford, MA 02745 508-207-1273 • jlinhares@poyantsigns.com www.poyantsigns.com
Sansiveri, Kimball & Co., LLP
Jonathan Ralys 978-737-3814 • Jonathan.Ralys@Trane.com 181 Ballardvale St., Wilmington, Ma 01887 www.Trane.com
Joanna Davidian 978-557-5325 • jdavidian@mfa-cpa.com 1 Highwood Dr., Tewksbury, MA 01876 www.mfa-cpa.com
Nish Parekh 609-531-4444 • info@neovisioncpa.com 1246 South River Road, Ste. 101 Cranbury, NJ 08512 www.neovisioncpa.com Michael A. DeCataldo 401-331-0500 • mdeca@sansiveri.com 55 Dorrance Street, Providence, RI 02903 www.sansiveri.com
BACK OFFICE BlumShapiro Consulting
David Fionda 781-610-1206 • dfionda@blumshapiro.com 2 Battermarch Pk.;1 Pine Hill Dr Ste. 301, Quincy, MA 02169 consulting.blumshapiro.com
Poyant Signs
BUSINESS MEMBER
Granite Telecommunications
Daryl Chelo 401-334-3176 • dchelo@granitenet.com 1 Albion Rd., Lincoln, RI 02865 www.granitenet.com
COST RECOVERY EF Cost Recovery
Ed Craig 774-263-7388 • ecraig3@efcostrecovery.com 32 William St., New Bedford, MA 02740 www.efcostrecovery.com
Performance Business Solutions, LLC
Jeff Hiatt 508-878-4846 • jdh@revenuebanking.com 87 Lafayette Road, Ste. 11, Hampton Falls, NH 03844 www.revenuebanking.com
ENERGY Secure Energy
Trane Commercial Systems
Jodi Maurer 413-733-2571 x218 • jmaurer@sesenergy.org 12-14 Somers Rd., East Longmeadow, MA 01028 www.sesenergy.org
Watchfire Signs
Bank of America/Merrill Lynch
David Watson 205-542-7881 • David.Watson@watchfiresigns.com 1015 Maple Street, Danville, IL www.watchfiresigns.com
COMMUNICATIONS Charter Business
Chris Lawrence 207-632-0562 • Chris.Lawrence1@charter.com 477 Congress St. Portland, ME 04102 www.charter.com
FINANCE Earl Meyers 585-546-9162 • earl.w.meyers@baml.com 1 East Ave., Rochester, NY 14450 www.bankofamerica.com
Bank RI
Tom Fitzgerald 401-574-1119 • tfitzgerald@bankri.com One Turks Head, Providence, RI 02903 www.bankri.com
Thank You to Our Business Members! INDEPENDENT JOE • APRIL/MAY 2017 23
2017
BUSINESS MEMBER
Directory BusinessMembers Members Directory ofofBusiness
BMO Harris Bank N.A.
Angelo Maragos 949-293-0152 • angelo.maragos@bmo.com 7700 Irvine Center Drive, Ste. 510, Irvine, CA 92618 www.bmoharris.com/franchisefinance
Bridge Funding Group, Inc.
Northern Bank & Trust Company
Kelley Munsell 781-569-1584 • kmunsell@nbtc.com 275 Mishawum Road, Woburn, MA 01801 www.nbtc.com
Pacific Premier Franchise Capital
Rick Riecker 800-928-8537 • Franchise@BankUnited.com 215 Schilling Circle, Suite 100, Hunt Valley, MD 21031 www.bridgefundinggroupinc.com
Sharon Soltero 402-562-1801 • ssoltero@ppbifranchise.com 3154 18th Avenue, Ste. 3, Columbus, NE 68601 www.ppbifranchise.com
CIT
Pinncale Commercial Capital
Douglas Solomon 603-433-9413 • DSolomon@cit.com 155 Commerce Way, Portsmouth, NH 03823 www.cit.com
Mylan Dawson 317-472-2828 • dawson@pincomcap.com 101 W. Ohio St., Suite 2000, Indianapolis, IN 46204 www.pincomcap.com
Eastern Bank
Santander Bank
Deborah Blondin 603-606-4724 • D.Blondin@Easternbank.com 11 Trafalgar Square, Ste. 105, Nashua, NH 03063 www.easternbank.com
Fidelity Bank
Paul Sousa 401-276-1954 • Psousa1@santander.us 95 Amaral St., East Providence, RI 02915 www.santanderbank.com
Signature Financial
Sally Buffum 508-762-3604 • sbuffum@fidelitybankonline.com 465 Shrewsbury Street, Worcester, MA 01604 www.fidelitybankonline.com
Trey Grimm 410-419-7107 • tgrimm@signatureny.com 502 Club Ln., Towson, MD 21286 www.signatureny.com
Joyal Capital Management Franchise Development
Sterling National Bank
Daniel Connelly 508-747-2237 • dconnelly@joycapmgt.com 50 Resnik Road, Plymouth, MA 02360 www.jcmfranchise.com
Lindy Baldwin 402-312-2542 • lbaldwin@snb.com 500 7th Ave., 3rd Floor, New York, NY 10018 www.snb.com
LCR Franchise Finance
TCF Franchise Finance
Robert Obolewicz 203-644-8481 • robolewicz@lcrcapital.com 315 Post Road West, Suite 200, Westport, CT 06880 www.lcrfinance.com
Bill Johnson 952-656-3268 • wjohnson@tcfef.com 11100 Wayzata Blvd., Ste. 801, Minnetonka, MN 55305 www.tcfef.com/franchise
Marlin Franchise Finance Group
Wells Fargo Bank
Julianna Fritz 203-225-5894 • Julianna.M.Fritz@wellsfargo.com 4 Corporate Dr. Suite 495, Shelton, CT 06484 www.wellsfargo.com
HUMAN RESOURCES The Ahola Corporation
Tim Yonek 440-717-7620 • tyonek@ahola.com 6820 West Snowville Road, Brecksville, Ohio 44141 www.ahola.com
HigherMe
Shannon Cassidy 617-890-6476 • shannon@higherme.com 77 Franklin St., Suite 510, Boston, MA 02110 www.higherme.com
Paychex
Ryan Birtles 843-576-9337 • rbirtles1@paychex.com 7204 Copperfield Ct, Wilmington, NC 28411 www.paychex.com
Paycor Inc.
Jim Ferreira (203) 530-3512 • jferreira@paycor.com 12 Dale Dr., Greenwich, CT 06831 www.paycor.com
TalentReef
Cassie Altbrandt 303-667-2328 • caltbrandt@talentreef.com 210 University Ste. 300, Denver, CO 80206 www.talentreef.com
INSURANCE American Family Insurance
Chris Holland 856-505-4206 • cholland@marlinfinance.com 300 Fellowship Rd, Mount Laurel, NJ 08054 www.marlinfinance.com
TD Bank
Peter J. DiFilippo 401-525-6771 • Peter.DiFilippo@td.com 180 Westminster Street, Providence, RI 02903 www.tdbank.com
Todd L Laczynski 219-406-8633 • tlaczyns@amfam.com 2502 Beech St Ste 70, Valparaiso, IN 46383 www.ToddLaczynski.com
The MINT National Bank
United Bank
Sabrina San Martino 800-854-4625 ext. 1121 • ssanmartino@starshep.com 60 Catamore Boulevard, East Providence, RI 02914 www.starkweathershepley.com
Samir Ruparel 732-485-3331 • samir.ruparel@themintbank.com 1585 Oak Tree Rd., Ste. 205, Iselin, NJ 08830 www.themint.bank
Mark McGwin 508-793-8342 • mmcgwin@bankatunited.com One Mercantile St., 7th Flr, Ste. 760, Worcester, MA 01608 www.bankatunited.com
Starkweather & Shepley Insurance Brokerage, Inc.
DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® Business Member is paying to advertise, and it is not to be considered a product or service endorsement by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.
24 INDEPENDENT JOE • APRIL/MAY 2017
LEGAL Constangy, Brooks, Smith & Prophete, LLP
Jeffery Rosin 617-849-7882 • jrosin@constangy.com 535 Boylston St., Ste. 902, Boston, MA 02116 www.constangy.com
Lisa & Sousa Attorneys at Law Ltd.
Carl Lisa, Sr. 401-274-0600 • clisa@lisasousa.com 5 Benefit Street, Providence, RI 02904 www.lisasousa.com
Marks & Klein LLP
Justin Klein 732-747-7100 • justin@marksklein.com 63 Riverside Avenue, Red Bank, NJ 07701 www.marksklein.com
Paris Ackerman & Schmierer LLP
David Paris 973-228-6667 • david@paslawfirm.com 103 Eisenhower Parkway, Roseland, NJ 07068 www.paslawfirm.com
OPERATIONS 3M Company
Bill Muenkel 952-484-4875 • wemuenkel@mmm.com 3M Center, 220-12E-04, St. Paul, MN 55144 www.3M.com/communications
Armor SafeTechnologies, LLC
Patrick Moore 214-636-8409 • prmoore@armorsafe.com 5916 Stone Creek Dr., The Colony, TX 75006 www.armorsafe.com
Bunn-O-Matic Corporation
Todd Rouse 800-637-8606 • Todd.Rouse@bunn.com 1400 Stevenson Drive, Springfield, IL 62703 www.bunn.com
Cardtronics
Tom Spooner 973-452-4131 • tspooner@Cardtronics.com 628 Route 10 - Ste. 8, Whippany, NJ 07981 www.cardtronics.com
Carrier Corp
Bob Eckweiler 973-222-6742 • Bob.Eckweiler@carrier.utc.com 3 Hollyhock Way, Newton, NJ 07860 www.carrier.com
Crane Payment Innovations
2017
PLEASE VISIT THE DDIFO BUSINESS MEMBER DIRECTORY ONLINE AT WWW.DDIFO.ORG R.F. Technologies, Inc.
Michael Murdock 847-495-7350 • michaelm@rftechno.com 330 Lexington Drive, Buffalo Grove, IL 60089 www.rftechno.com
safeTstep by Payless Shoesource
Ray Picard 603-809-3584 • ray.picard@cranepi.com 1 Executive Pk. Dr. #202, Bedford, NH 03110 www.CranePI.com
Kyle Clendennen 785-295-6664 • kyle.clendennen@safetstep.com 3231 Southeast Sixth Ave, Topeka, KS 66607 www.payless.com/safetstep-1/
DTT
SKAL East, Inc
Mira Diza 800-933-8388 • mdiza@dttusa.com 1755 North Main Street, Los Angeles, CA 90031 www.dttusa.com
Ecolab
BUSINESS MEMBER
Kevin Huerth 781-806-3139 • kevin@skaleast.com PO Box 303, 31 Eastman Street, Easton, MA 02334 www.skaleast.com/index.cfm?keyword=dunkin
Solink
Arliene Bird arliene.bird@ecolab.com 8300 Capital Drive, Greensboro, NC 27409 www.ecolab.com/Businesses
Christopher Beaudoin 884-463-5730 • cbeaudoin@solinkcorp.com 390 March Road, Ste, 110, Ottawa, Ontario k2k 0g7 www.solinkcorp.com
HME Drive-Thru Headsets
Squadle
Brady Campbell 858-535-6034 • bcampbell@hme.com 14110 Stowe Drive, Poway, CA 92064 www.hme.com
Jarrett Services ATM, Inc.
Alexander Pezzolla 732-572.0706 ex 202 • alex@jarrettforcash.com 1315 Stelton Road, Piscataway, NJ 08832
Kronos
Loree Miller 704-968-1582 • loree.miller@kronos.com 2005 Millbridge Parkway, Waxhaw, NC 28173 www.kronos.com
New England Drive-Thru Communications
Angela Bechard 603-475-2046 • angela@nedrivethru.com 999 Candia Rd. Ste. 7, Manchester, NH 03032 www.nedrivethru.com
Prince Castle/Silver King
Zachary Waas 630-873-0088 • waaz@princecastle.com 355 East Kehoe Blvd., Carol Stream, IL 60188 www.princecastle.com
Michael McAuliffe 617-571-6807 • michael@squadle.com One Broadway, Floor 14, Cambridge, MA 02142 www.squadle.com
Staples Advantage
Joe Shea 508-238-0106 • joseph.shea@staples.com 31 Commercial St. Sharon, MA 02067 www.staplesadvantage.com
SuzoHapp
Tom Orton 847-660-4289 • Tom.Orton@suzohapp.com 1743 Linneman, Mt. Prospect, IL 60056 www.suzohapp.com
Torrco
301-775-5046 • tej.guthalagowda@workpulse.com 2 Eastwick Dr., Suite 200, Gibbsborro, NJ 08026 www.workpulse.com
Workpulse, LLC
Tej Guthalagowda 301-775-5046 • tej.guthalagowda@workpulse.com 2 Eastwick Dr., Suite 200, Gibbsborro, NJ 08026 www.workpulse.com
INDEPENDENT JOE • APRIL/MAY 2017 25
COMMUNITY CORNER
BY LISA IANNUCCI
Duke Carvalho D
uke Carvalho remembers her eyes. She was a four or five year-old who had come into his Dunkin’ Donuts shop in the early 1980s. It was a weekend and Duke was handling the day baking as well as working the counter. The girl’s mom bought her a snack and Carvalho gave her extra Munchkins to take home. “Her eyes were so big and happy,” Carvalho remembers. “It meant so much to her. It really touched me.” For Carvalho, a member of the DDIFO Hall of Fame, the moment crystallized the connection Dunkin’ Donuts – and its shop owners – have with the communities they serve. Sure, it’s about coffee and snacks, but there’s a lot more to it, especially when you are a located in tight knit communities.
It’s why Carvalho, who owns a network of 20 shops in Watertown and nearby Belmont, Mass., has made supporting charities that involve children core to his philanthropic mission. Over the years, the family has supported numerous different organizations, the largest among them is the Boys and Girls Club, Perkins School for the Blind and the Watertown Food Pantry. But there are also a lot of small ones, like Little League Baseball and the post-prom parties at Watertown and Belmont High Schools. “They have these all-night parties to keep kids in a safe place after the prom. We provide coffee, donuts and treats for the prom-goers, as well as the adult chaperones who stay up all night with the kids,” says Jessica Moller, Carvalho’s daughter and vice president of operations for the family business. It is her job to say “yeah” or “nay” to the hundreds of requests that come in every year. “I try my hardest to do something for everyone but we can’t. Anything children related is important to me. I have three young ones so I believe giving back to
programs for kids is important.”
Moller says the family likes to focus on those charitable causes that have a direct benefit to the local community. She recalls the story her uncle Arthur told her after he made the latest delivery to the local food pantry. Since 2010, 40 or so members of the office staff and the company’s managers have held a drive to collect food for the pantry, which is located at a church in Watertown. This year, the group collected so much food, it wouldn’t fit in Uncle Arthur’s car. So, they loaded it into a delivery truck. “Uncle Arthur told me there were these two ladies who were volunteering at the church to accept the donation and one of them started crying when she saw how much stuff he brought over. That’s what keeps me doing it,” says Moller. “It’s not huge money, but it is so important,” says Carvalho. “I’ve always wanted to give back to the community. They are our guests. Everything we do is to satisfy the guest. We do it with product we serve and the support we give them.” Thank you cards are delivered to the office from all over the community. “I read all the thank you notes and plaques we get from those we sponsor. The handwritten notes from kids mean so much to me. They really show how they appreciate what we are doing,” says Moller. “It really shows us how we are touching the people in our community. It’s something I’ve always seen my Dad do and we are proud to continue the tradition.”
•
"I’ve always wanted to give back to the community. They are our guests. Everything we do is to satisfy the guest. We do it with product we serve and the support we give them." 26 INDEPENDENT JOE • APRIL/MAY 2017
What Matters To You?
EXPERIENCE MATTERS Working with PPFC gave me a lot of
With decades of franchised restaurant lending experience, we can quickly review your business performance and financing requirements, and then recommend a loan structure that best
confidence. They really understand the restaurant business. They helped me move through the loan process quickly and were great to work with. — 6-Unit Midwestern Franchisee
fits your needs.
www.ppbifranchise.com ∙
402.562.1800
Exceptional An
Family OfďŹ ce Experience JCM PRIVATE CLIENT GROUP Joyal Capital Management is a leader in providing very sophisticated deliverables for every client on demand. With more than fifteen companies and thirty years of experience, JCM provides solutions for Proprietary Estate Planning, Growth Financing, Franchise Development, Mergers and Acquisitions, Strategic Recapitalization, Business Advisory Services and Private Equity Investments.
FOR MORE INFORMATION CONTACT PRINCIPAL RICHARD P. JOYAL AT 508.283.1434 OR VISIT WWW.JOYCAPMGT.COM.