August 2012 • Issue 15
We Communicate, We Educate, We Advocate!
ummertime S and the Picking is Easy! by Stefanie Cloutier
also isnue this is When It Comes to Success,
Sean Tuohy Saw It Coming by Matt Ellis
Sean Tuohy to be Keynote Speaker at the upcoming National Conference at Mohegan Sun
DDIFO IndJoe #15 covers print.indd 1
8/28/2012 5:30:06 PM
Amenities continued from page 30 According to The Back Burner Tundra Restaurant Supply blog, “The concept of the ‘third place’ was first developed by Starbucks, and anyone who has been in a Starbucks immediately understands the principle: make your business feel like a homeaway-from-home [or an office-away-fromthe-office]. Now other fast casual chains are cashing in on the third place concept, most notably Panera.” A prominent fear among establishments hesitant to embrace the third place concept
Do Your Homework Before adding a conference room or other third place features to your shop, here’s what the experts advise:
Survey customers: formally or
is that it seems counter to the idea that less comfortable surroundings encourage faster table turns. The Back Burner acknowledges, “Getting customers in and out of your establishment as quickly as possible has long been the way most restaurants make their money. When you convert part or all of your restaurant into a third place concept, you have to take the long view on the table turnover. Understand that customers who stay longer tend to invite their friends, and when those friends discover your comfortable atmosphere they’ll come back with their friends, and so on. No other approach has been as successful in the past decade in terms of creating customer loyalty and word-of-mouth marketing.” Upsell potential and increased repeat business are noted additional benefits.
informally observe and gather opinions/ideas
do anything that will interfere with or alienate regular customers make sure they’re in line with the location, customer base and brand
Avoid wasted space: consider
a meeting/gathering room with a sliding door so it can be open for “regulars” or closed for reservations
Be flexible: adjust practices ac-
cording to customer feedback; remain open to possibilities outside your initial vision
Use common sense: for exam-
ple, price amenities competitively for your market
Be creative: develop innovative marketing/promotional strategies that meet different customer needs
Sources: Andrew Swedenborg, King Retail Solutions; Jeff Riggs, Clarks Fork/Wheat Montana; Bob Krim, Clark University Graduate School of Management; Tony Eonas, Suffolk University
“Don’t drop everything to become a third place. For most restaurants the most effective way to leverage the concept is a hybrid approach. For example, convert one section of your restaurant into a comfortable lounge and keep the rest an efficient table-turning machine.” Swedenborg of King Retail Solutions says, “Every case is different, but we always talk about design with a purpose. It’s vital to ask all the right questions before moving forward. For example if we take away 25 percent of your seating space to build a conference room when you only have 10 tables to begin with, what does that do to your regular coffee customer? It’s more than physical design and amenities; it’s the effect on your guests. In the end, it all boils down to increasing sales through a better customer experience.”
index
Be careful and thoughtful: don’t Identify goals and objectives:
And it doesn’t have to be an all or nothing situation.
®
Independent Joe Advertisers
19 15 24 14 12 23 6 23 18
3WIRE Group, Inc. Access to Money ATM, Inc. Adrian A. Gaspar & Company, LLP Bright House Network Comcast Business Services DDFO MassPAC Direct Capital Franchise Group Exchange Authority Fidelity Bank
4 32 10 2 26 28 20 22 19
HyperActive Technologies Joyal Capital Management, LLC Kensington Company & Affiliates Lisa & Sousa Attorneys at Law Performance Business Solutions RF Technologies Siemens Sprint Starkweather & Shepley Insurance
AUGUST 2012 • INDEPENDENT JOE
DDIFO IndJoe #15 covers print.indd 2
31
8/28/2012 5:30:11 PM
Stars Will Shine at DDIFO Hall of Fame Gala by Matt Ellis
This year’s inductees into the Dunkin’ Donuts Franchise Owners Hall of Fame will be:
that he was honored that way,” Gabellieri said.
r
ne
a Fr
The Franchise owners Hall of Fame was established to recognize the nc pioneers and visionaries h is e O w that helped build the Brand; those who have had a lasting impact as Fred The Baker on Dunkin’ Donuts. The group will be honored at a gala Seven people were inducted into the held in conjunction with the DDIFO inaugural class, all posthumously: John National Meeting on September 27 at Boujoukos, Antonio Couto, Jose Couto, Mohegan Sun. Ralph Gabellieri, John Henderson, George Mandell and Dunkin’ Donuts “We need to recognize the pioneers Founder William Rosenberg. and those who got us to where we are today,” said John Motta, chairman of This year’s class represents some of the Hall of Fame Nominating Committhe Brand’s earliest franchise owners tee. who got involved when Dunkin’ was a family business, as well as a member Since the call for nominations went out of the Rosenberg family. The inclusion to DDIFO members over the summer, of actor Michael Vale speaks to the the committee – comprised of Motta, influence Fred the Baker had as the Bill Daly Sr., Mark Dubinsky, Steve face of Dunkin’ Donuts for 15 years – a Gabellieri, Dennis Gramm and Anthony time marked by Dunkin’s ascension as Pellizzi –established a set of criteria for a significant brand. induction. “When you’re elected to a hall of fame, “When we first started talking about it’s extremely rewarding. To me the criteria I thought, we need to judge highest honor is being recognized by whether the Dunkin’ Donuts system franchisees because you have contribwould be materially less than what it uted to their success,” said Carl Lisa, is today had that nominee not been who has been working with Dunkin’ Doinvolved,” said Dubinsky. nuts franchise owners since the 1960’s “One of the important attributes is being and accepted the Hall of Fame honors able to determine whether the nominee for John Henderson at last year’s gala. has made a lasting impression on the “We agreed the criteria had to be Brand and system. There are a lot of based on whether the nominee had good nominees that have done well in made an impactful difference and how their network but the Hall is about imtheir contribution to the Dunkin’ Donuts pact on brand or on system as a whole. system mattered,” said Dubinsky. “The That’s a factor that I’m looking for – the character of the person is important bebigger impact,” said Gabellieri, whose cause, ultimately, this about leadership father, Ralph, was part of the inaugural and leaders have to have outstanding class of inductees. character. They have to be respected “When my dad was selected it was an by their peers.” honor and a surprise because DDIFO When the names are called and inhas always been an organization cenductees – or their families – step up to tered on franchisees and my dad was a receive their Hall of Fame honors, their lifer with the Brand. So it was touching
Manual Andrade Brooks Barrett Jason Dubinsky John Rader Robert Rosenberg Michael Vale – better known
03 05 07 08 11 13 15 16 21 31
Stars Will Shine at DDIFO Hall of Fame Gala Matt Ellis
Franchise Owners Target Capitol Hill Matt Ellis
New Remedies for High Costs at Peak Season Perry Ludy
DDIFO Directory of Sponsors Franchisees Add Amenities Susan Minichiello
Success...Sean Tuohy Saw It Coming Matt Ellis
Mandell Golf Tournament...15th Year Betsy Lawson
Summertime and the Picking is Easy Stefanie Cloutier
Pride in Community Drives Franchisees Elaine Gottlieb
Index of Advertisers
contributions will be clearly defined and their impact will be immediately recognized. “I think this is a wonderful way to recognize people in the system who have made a difference. I think it’s important to be recognized by your peers, particularly in this system where there are so many dedicated franchisees that have worked so hard over the years to make Dunkin’ Donuts the successful brand it is today,” Dubinsky said. AUGUST 2012 • Independent Joe
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Independent Joe • AUGUST 2012
Foster Plaza 8, 730 Holiday Drive • Pittsburgh, PA 15220
Franchise Owners Target Capitol Hill This year, small business owners have kept a keen eye on Washington, DC. Perhaps never before has there been such concern over how Presidential policy and Congressional activity would impact the bottom line. For franchise owners, how a new regulation is written could mean the difference between profit and loss. So it was notable when 58 franchisees from 14 different systems visited members of Congress and their staffs in July as part of the 2012 Coalition of Franchisee Associations (CFA) Day Forum. They were looking beyond health care, tax reform and other issues framing the 2012 elections. They were interested in promoting legislation for next year. It was just a year ago – at the CFA Day Forum – that representatives from different franchisee associations saw the official unveiling of the Universal Franchisee Bill of Rights (UFBOR), a one page fairness doctrine designed to identify the imbalances that exist in most agreements franchisees sign with their franchisor. Since then, over 1,150 franchisees and organizations have endorsed and ratified the Bill of Rights. You can endorse it online; the Web address is www.franchiseebillofrights.org. “The Franchisee Bill of Rights was the written embodiment of the goals of a future statute,” said DDIFO Board Member Pat Kaufmann, who was attending his first CFA Day Forum. “People hope this will come in the next Congress, but for now it was a good leave behind for the Congressmen.” “We got good feedback from the Members of Congress and their staffs and attendees and they felt good about the messaging in the document,” said Keith Miller, a Subway franchisee and chairman of the CFA. “The messaging has to communicate that we are pro franchising because if our brand expands, our investments are worth more. These are the assets we live and die on.” “We stressed we weren’t there to tear down franchising. It’s important that the brands stay healthy but, in our
by Matt Ellis
opinion, it had become imbalanced,” said Ed Wolak. “On the one hand, franchisors need control to keep franchisees following the rules but there are a lot of companies there that are taking advantage of their franchise owners.” Wolak, who was attending his first CFA Day Forum, NH and VA Franchise owner John Motta and U.S. Senator Kelly Ayotte at the 2012 CFA Day Forum in Washington, D.C. was quick to point out Dunkin’ Donuts franHill – is that franchising represents chise owners now have a collaborative Wall Street brands with Main Street relationship with Dunkin’ Brands and investors. And, because the franchise a lot of the issues franchisees owners owners are the people hiring a workin other systems are facing aren’t of force, paying taxes and supporting local concern to them. charities and initiatives, they have an A common theme during meetings and presentations – as well as on Capitol CFA Day continued on page 26
August 2012 • Issue #15
Independent Joe is published by DD Independent Franchise Owners, Inc. ®
Editors: Jim Coen, Matt Ellis Contributors: Stefanie Cloutier, Elaine Gottlieb, Betsy Lawson, Perry Ludy, Susan Minichiello Advertising: Joan Gould • Graphic Design/Production: Susan Petersen Direct all inquiries to:
DDIFO, Inc. • 150 Depot Street • Bellingham, MA 02019 508-422-1160 • 800-732-2706 • 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 © 2012 • Printed in the U.S.A. AUGUST 2012 • Independent Joe
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6
Independent Joe • AUGUST 2012
New Remedies for High Costs at Peak Season
By the author of Profit Building: Cutting Costs without Cutting People
The summer of 2012 will be remembered for its punishing weather. Depending on where you live, it’s either the extreme heat, the widespread drought or the powerful storms. For Dunkin’ Donuts franchise owners and other quick service restaurant (QSR) operators the weather is always a concern because it impacts our energy costs. The summer’s high temperatures may bring more customers in for an iced coffee and a drink of air conditioning, but the heat and humidity can also make our shops havens for odors. Even if the food tastes great and the service is excellent, insufficient air conditioning highlights odors and makes the environment uncomfortable. This could leave a bad taste in customer’s mouths and keep them from returning. The bottom line is that energy demand rises when we are faced with summer’s heat and humidity. And this year many parts of the nation are reporting peak demand. Record high temperatures in Michigan, for example, have caused near record load levels for utilities. Consumers Energy, one of the nation’s largest combination utilities, providing electric and natural gas service to millions of residents and businesses in Michigan, says July’s hot weather pushed customer demand for electricity to its highest level this year. It was the third highest daily load in the company’s 125-year history. It’s a common story across the country.
To address this, many franchisees simply budget for higher costs during peak season and handle repairs to air conditioning and refrigeration units as they are needed. But, energy experts recommend taking specific, proactive, measures to reduce energy consumption. Recently, while working with a client in the Chicago area on a refrigeration project, I participated in the testing of a new energy-efficient system that doesn’t cost a lot of money and works extremely well. The system is designed to upgrade existing coolers, freezers, and rooftop air conditioning units to run more efficiently by reducing compressor cycles and other sources of energy consumption. The company conducting the test, Powerful Energy Savings, sells and installs the upgrade to a cross-section of businesses that are reporting savings of 30 percent or more on kilowatt hours (kWh) and utility costs. They provide regular reports based on third-party monitoring and verification by GreenTraks, a leading monitoring and energy tracking company.
The chart below is an example of how energy use and savings are reported. Demand is measured in kilowatts and is reflective of compressors going on and off and air conditioning use. The chart shows a significant reduction in kilowatt demand after the upgrade was installed, and going into peak season compared to the previous year. The charts shows demand savings for this particular location at $404.19 in the June utility bill. I was impressed that the parts of Powerful Energy Savings system fit inconspicuously on the refrigeration and rooftop air conditioning units. This eliminates any issues regarding bulky equipment or use of space. The system is affordable for any size operation and has a remarkably short payback period because the monthly savings are so substantial. The demand chart example shows how the upgrade is an attractive solution for Perry continued on page 27
Restaurants are among the most energy intensive businesses for their size and sales and heating, ventilation and air conditioning (HVAC) systems typically consume the most energy —accounting for as much as one-third of the total energy used in the average QSR. Refrigeration accounts for about 30 percent of the utility bill for the average Dunkin’ shop. With higher temperatures come higher demands on our utility and repair costs. AUGUST 2012 • Independent Joe
7
Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org
Accounting
Adrian A. Gaspar & Company, LLP, CPAs 1035 Cambridge Street, Suite 14, Cambridge, MA 02141 Robert Costello • cpas@gasparco.com 617-621-0500 • www.gasparco.com Bederson & Company LLP - CPAs and Consultants 405 Northfield Avenue, West Orange, NJ 07052 Steven Bortnick, CPA • sbortnick@bederson.com 973-736-3333 • www.bederson.com
ViewPoint Sign and Awning 35 Lyman Street, Northboro, MA 01532 Bill Gavigan • billg@viewpointsign.com 508-393-8200 • www.viewpointsign.com WatchFIre Signs 1015 Maple Street, Danville, IL Devon Mourer • devon.mourer@watchfiresigns.com 217-442-0611 • wwwwatchfiresigns.com
Business Broker
Bedford Cost Segregation, CPAs 60 State Street, Suite 700, Boston, MA 02109 Bill Cusato • bcusato@bedfordcostseg.com 978-263-5055 • www.bedfordcostseg.com/who_we_serve/ddifo.asp
Hirshon Associates LLC 425 Broadhollow Road, Suite 428, Melville, NY 11747 Andrew Hirshon • hirshonrep@aol.com 631-249-8989 • www.hirshon.com
Cynthia A. Capobianco, CPA 60 Quaker Lane, Suite 61, Warwick, RI 02886-0114 Cynthia Capobianco • 401-822-1990 cynthia@capobianco.necoxmail.com
Kensington Company & Affiliates 185 Roslyn Road, Roslyn Heights, NY 11577 David Stein • kstein@kensingtoncompany.com W: 516-626-2211 • M: 718-490-2218 • www.kensingtoncompany.com
James P. Ventriglia, CPA, Inc. 145 Phenix Avenue, 2nd Floor, Cranston, RI 02920 Jim Ventriglia • jimv@jpvcpa.com 401-942-0008 • www.jpvcpa.com Gray, Gray & Gray, CPA 34 Southwest Park, Westwood, MA 02090 Paul Gerry, CPA • pgerry@gggcpas.com 781-407-0300 • www.gggcpas.com Performance Business Solutions, LLC 87 Lafayette Road, Suite 11, Hampton Falls, NH 03844 Jeff Hiatt • jdh@revenuebanking.com 508-878-4846 • www.revenuebanking.com Rubiano & Company, CPA’s 5 Austin Avenue, Suite 1, Greenville, RI 02828 Daniel J. Rubiano, CPA • dan@rubianocpa.com 401-949-2600 • www.rubianocpa.com Sansiveri, Kimball & Co., LLP 55 Dorrance Street, Providence, RI 02903 Joseph Mansour • jmansour@sansiveri.com 401-331-0500 • www.sansiveri.com Thomas Colitsas and Associates, CPA 103 Carnegie Center, Suite 309, Princeton, NJ 08540 Tom Colitsas • tcolitsas@tcacpa.com • 609-452-0889 “A Member of Franchise Pros”
Back Office
IKMS Group, Inc. PO Box 6221, Manchester, NH 03108 Cliff Pratt • ctp@ikmsgroup.com 603-644-4683 • www.ikmsgroup.com Jera Concepts - Order and Production Management Software 17 Fruit Street, Hopkinton, MA 01748 Wynne Barrett • wynne@jeraconcepts.com 508-686-8786 • www.jeraconcepts.com SIB Development & Consulting 288 Meeting Street, 3rd Floor Charleston, SC 29401 Al Rush • al@sibdevelopment.com 843-284-1007 • www.sibdevelopment.com
Building
Trane HVAC 225 Woldwood Avenue, Woburn, MA 01801 Jonathan Ralys • Jonathan.Ralys@Trane.com 781-305-1335 • www.Trane.com/commercial 8
Independent Joe • AUGUST 2012
CML Operations
Mid-State Isuzu 35 Southwest Cutoff, Worcester, MA 01604 Craig Judge • craig@midstateisuzu.com 860-281-4117 • www.midstateisuzu.com
Communications
Comcast Business Services 500 South Gravers Road, Plymouth Meeting, PA 19462 Comcast National Sales • Dunkin_National_Sales@comcast.com 866-407-6338 • www.business.comcast.com/internet/index.aspx Sprint 3 Van De Graaff Drive, Burlington, MA 01803 Caroline Fedele • caroline.fedele@sprint.com 781-367-1057 • www.sprint.com/ddifomembers
Energy
Energy Gateway, Inc. 451 Worcester Road, Charlton, MA 01507 Christopher Tremblay • Chris@energygateway.org 508-207-9740 • www.energygateway.com Glacial Energy 24 Route 6A, Sandwich, MA 02563 Kristy Solt • kristy.solt@glacialenergy.com 340-201-4323 • www.glacialsales.com/dunkindonuts Metromedia Energy 200 West Park Avenue, Suite 125, Westborough, MA 01581 Scott Werman • swerman@mmenergy.com 508-329-0186 • www.mmenergy.com Secure Energy Solutions, LLC 12-14 Somers Road, East Longmeadow, MA 01028 Mike Schmidt • mschmidt@sesenergy.org 413-733-2571 ext. 223 • www.sesenergysolutions.org
Finance
Business Financial Services 3111 N. University Drive, Suite 800, Coral Springs, FL 33065 Scott Kantor • skantor@businessfinancialsservices.com 954-509-8019 • www.businessfinancialservices.com Capital One Bank 710 Route 46 East, Suite 306, Fairfield, New Jersey 07004 Stuart Vorcheimer • Stuart.vorcheimer@capitalone.com 732-439-7626 • www.capitalone.com
Thank You to Our Sponsors!
Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org Centrix Bank & Trust 1 Atwood Lane, Bedford, NH 03110 Deborah Blondin • dblondin@centrixbank.com 603-589-4071 • www.centrixbank.com Direct Capital Franchise Group 155 Commerce Way, Portsmouth, NH 03823 Robyn Gault • rgault@directcapital.com 603-433-9476 • www.franchise.lendedge.com Fidelity Bank 465 Shrewsbury Street, Worcester, MA 01604 Sally Buffum • sbuffum@fidelitybankonline.com 508-762-3604 • www.fidelitybankonline.com GE Capital, Franchise Finance 201 Merritt 7, 2nd Floor, Norwalk, CT 06851 Ab Igram • ab.igram@ge.com 203-229-1885 • www.gefranchisefinance.com Joyal Capital Management Franchise Development 50 Resnik Road, Plymouth, MA 02360 Daniel Connelly • dconnelly@joycapmgt.com 508-747-2237 • www.jcmfranchise.com Merchant Cash & Capital 450 Park Avenue South, 11th Floor, New York, NY 10016 Seth Broman • sethb@merchantcashandcapital.com 212-545-3185 • www.merchantcashandcapital.com Priority Capital 174 Green Street, Melrose, MA 02176 Brian Gallucci • bgallucci@priotiycapital.com 800-761-2118 Ext 14 • www.prioritycapital.com Susquehanna Commercial Finance 2 Country View Road, Suite 300, Malvern, PA 19355 Brian Colburn • brian.colburn@susquehanna.net 443-996-1792 • www.susquehanna.com TCF Franchise Finance 300A Lake Street, Suite B, Ramsey, NJ 07446 Mike Vallorosi • mvallorosi@tcfef.com 201-818-2700 • www.tcfef.com United Capital Business Lending 215 Schilling Circle Suite 100, Hunt Valley, MD 21031 Trey Grimm • tgrimm@ucbl-inc.com 410-771-9600 • www.unitedcapitalbusinesslending.com
Food Products
CSM Bakery Products 1901 Montreal Road, Suite 121, Tucker, GA 30084 Marla Cushing • marla.cushing@csmglobal.com 770-723-2083 • www.csmbakeryproducts.com Quaker Oats A Division of PepsiCo 402 Kilarney Way, Royersford, PA 19468 Ed Bowes • Ed.bowes@pepsico.com 610-948-8309 • www.pepsico.com
Human Resources
CareerBuilder.Com 400 Crown Colony Drive, Suite 301, Quincy, MA 02169 Maureen O’Neill • maureen.oneill@careerbuilder.com 781-453-3570 • www.careerbuilder.com Employers Reference Source 1587 Hamilton Avenue, Waterbury, CT 06706 Sandra Fabrizio • sandra@employersreference.com 888-512-2525 • www.employersreference.com
Gecko Hospitality 1415 West 22nd Street, Tower Floor Oakbrook, IL 60523 Robert Krzak • robert@geckohospitality.com 630-390-1000 • www.geckohospitality.com Granite Payroll Associates 176 Granite Street, Qunicy, MA 02169 Marco Schiappa • marco@granitepayroll.com 401-263-7921 • www.granitepayroll.com JobOn 141 Log Canoe Road, Stevensville, MD 21409 Pete Steiner • pete.steiner@jobon.com 774-217-0340 • www.jobon.com Ovation Payroll 2 Stamford Landing 68 Southfield Rd. #100, Stamford, CT 06902 Jim Ferreira • jferreira@ovationpayroll.com 203-530-3512 • www.ovationpayroll.com Snagajob 4851 Lake Brook Drive, Glen Allen, VA 23060 Erin Brumfield • ebrumfield@snagajob.com 804-822-4604 • www.snagajob.com/employer-solutions The PCI Group 303 Molner Drive, Elmwood Park, NJ 07407 Robert Boffa, Sr. • rgb@pcihr.com 201-797-8000 ext. 223 • www.pcihr.com
Insurance
The Hill Agency 5 Washington Avenue, Endicott, NY 13760 Rita Frailey • rfrailey.hilla01@insuremail.net 800-446-1775 • www.thehillagencyinc.org KK Insurance Agency 541 Broadway, Long Branch, NJ 07740 Ashish Vadya • ashish@kkinsuranceagency.com 866-554-6799 • www.kkquote.com Paris-Kirwan Insurance 1040 University Avenue, Rochester, NY 14607 John Mulcahy • johnm@paris-kirwan.com 585-473-8000 • www.paris-kirwan.com RMS Insurance Brokerage, LLC 575 Jericho Tpke, Suite 102, Jericho, NY 11753 Donna Mis • dmis@rmsinsurance.com 516-742-8585 • www.rmsrestaurants.com Sinclair Insurance Group - Risk Management 4 Tower Drive, Wallingford, CT 06492 Matt Ottaviano • mottaviano@sinclair-insurance.com 203-284-3235 • www.srfm.com Starkweather & Shepley Insurance Brokerage, Inc. 60 Catamore Boulevard, East Providence, RI 02914 Sabrina San Martino • ssanmartino@starshep.com 800-854-4625 ext. 1121 • www.starkweathershepley.com Wells Fargo Insurance Services 2502 North Rocky Point Drive, #400, Tampa, FL 33607 Mark Stokes • mark.stokes1@wellsfargo.com 813-636-5301 • wfis.wellsfargo.com
Legal
Lisa & Sousa Attorneys at Law 5 Benefit Street, Providence, RI 02904 Carl Lisa, Sr. • clisa@lisasousa.com 401-274-0600 • www.lisasousa.com Sponsors cont. page 18 AUGUST 2012 • Independent Joe
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In 2012, 21 stores have been sold/under contract/ letter of intent. We currently represent 12 DD owners in 7 states looking to sell their network of stores.
10
Independent Joe • AUGUST 2012
Franchisees Add Amenities and by Susan Minichiello More Comfortable Space “Road Warriors” Wanted to Drive New Business If it’s true that America Runs on Dunkin’, is it contradictory to create a Dunkin’ Donuts environment where customers are encouraged to do the exact opposite—sit down and stay a while? Maybe not. Recent years have seen an increase in the number of locations offering features that urge, or at least enable, guests to spend more time in the shop, remain connected to work and even hold business meetings. Michael Friedman, President and CEO of Paramount Restaurant Supply Corp., says this emerging trend reflects a shift in the general workforce. “I believe the driving force behind the roll-out of business amenities in QSRs and fastcasual restaurants is the mobilization of the workforce,” says Friedman. “No longer are employees working just from their office. And many are independent contractors, small business start-ups or ‘road warriors’ traveling near and far from home to complete their work. Making QSRs inviting places to park one’s self for an hour or two is essential to drive this road office segment.” Paramount offers restaurant design consultation, foodservice equipment, millwork and installation services and has been involved with Dunkin’ Donuts from day one. In his work with all types of food service establishments, Friedman is seeing a rise in restaurants offer-
ing business-friendly services.
Friedman’s assessment.
“This trend is popping up across many brands. Besides Wi-Fi, other amenities we have seen include soft seating, community tables—longer multi-person tables where meetings can take place— private rooms, and electronics cabling
“QSRs are quickly changing their business model and incorporating amenities like Wi-Fi, board rooms, catering menus, etc. This is indicative of a greater shift, particularly in major business centers where QSRs are absolutely positioning Aside from the 200 square foot conference room, soft seating is another feature designed to attract business people to Andy Patel’s Morris Plains, NJ shop.
themselves to serve business people as a remote worksite, casual meeting place and even corporate meeting space.” says Swedenborg. “In the past, the goal was to drive people in, serve them quickly, and then shepherd them out the door equally quickly. Today, with more people working independently and via mobile Andy Patel hopes to attract devices, the goal is to offer business people from two nearby more than just quick food and office complexes to his conference drinks, the new draw is real space in Morris Plains, NJ estate—a comfortable space and charging stations,” people can inhabit, basically a virtual Friedman says. “We office.” believe this trend is goNo one is suggesting a rejection of ing to continue to grow Dunkin’s fundamental business of keepin all segments of food ing busy Americans “fueled and on the service including QSRs go,” but it’s important to recognize and as Internet-based busiadjust to an evolving customer base. nesses and remote employees become a Trailblazers greater percentage of the workforce. Andy Patel, a franchise owner with Having a strategy to serve this segment nearly 30 Dunkin’ locations in central of the clientele is essential. They not and west New Jersey just opened a new only spend a tremendous amount on store in Morris Plains that offers free Wifood and beverages, they also utilize the Fi and other business-friendly amenities. store in between peak day parts and are According to Patel, the 2,300 square-foot extremely socially networked, which creshop is surrounded by two corporate ates additional marketing opportunities.” complexes that attract a great deal of Andrew Swedenborg, Executive Vice business people. President of King Retail Solutions, a reAmenities continued on page 30 tail and food service design firm, echoes AUGUST 2012 • Independent Joe
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Independent Joe • AUGUST 2012
When It Comes to Success, Sean Tuohy Saw it Coming
by Matt Ellis
Franchisee made famous in the movie The Blind Side will share his inspirational story with DDIFO Sean Tuohy always wanted to be his own boss. Today, as the owner of 89 Taco Bell and Long John Silver’s restaurants, he has achieved his dream. But his story, and the lessons he has learned, are an inspiration to all. On September 28, Tuohy will make the keynote address at the DDIFO National Members Meeting at Mohegan Sun. Because Sean’s dad was the basketball coach at a prestigious private school in New Orleans, Sean was granted a private school education even though it was not something his family could afford. He says he knew what it meant to the poor kid in private school. What he didn’t know is how that experience would change him forever.
picture The Blind Side. The Tuohys took Michael off the street, gave him a loving home and the support he needed to succeed in the classroom and excel on the football field. “I wouldn’t be the same had I not gone through this. When you eyes are open wider than the sockets you tend to see more than you did before,” he told Independent Joe in a recent interview.
Sean and Leigh Anne Tuohy
The Tuohy family: Sean, Leigh Anne, Michael, Collins and Sean Jr. Sean started his franchise business with one Taco Bell in Meridian, Miss.
After a stellar basketball career of his own at the University of Mississippi, Tuohy played professionally overseas. When his father became ill, Tuohy returned home to be with him during his final days. Then he started building a career off the basketball court. Today, Tuohy is well known as a successful businessman and as a broadcaster for the Memphis Grizzlies NBA franchise. But he is world renowned as the man who adopted Michael Oher, an NFL star who might have never reached his own dreams if not for Tuohy, his wife, Leigh Anne, and their children, Collins and Sean Jr. The story of the Tuohys and Oher was made famous in the best-selling book and major motion
By opening their home to a wayward teenager – the Tuohys took a risk. They were a comfortable family enjoying the success of their hard work. When they took Michael in from the cold during Thanksgiving, they had no idea that Michael was so close to falling through the cracks; nor did they know the tremendous potential he had. They knew it was a risky step, yet they weren’t afraid. “You know, you take a risk every day of your life. When you get in your car and drive across a bridge, you take a risk. You don’t know if your tires are good, or if the pilings are going to hold, or if the bridge will fall in. But you don’t really stop and think about it, do you?” the Tuohys said in a 2010 Charisma magazine interview.
Sean Tuohy took a different kind of risk in 1988. He was 25 years old, the father of a three year-old girl and the president of a local security company. He remembers walking into the owner’s office and asking permission to leave work early so he could watch his little girl perform in an Easter play. “When I walked out of his office, I said, ‘I don’t ever want to have to do that again.’ I knew he wouldn’t say no but I couldn’t stand the thought of having to ask. I didn’t want to work for someone else. I wanted to be my own boss,” he said. So, he left his job and amassed all the capital he had – $19,000 – and got a bank loan to cover the balance of the cost of buying what he called a “rundown, one-off Taco Bell” in Meridian, Mississippi. Tuohy likes to joke that they would have probably given him the restaurant if he had asked because they really didn’t see any value in it. But, he did. The store finally earned a profit and Tuohy bought his second franchise; he is now working on adding the 90th shop to his network. “I always aspired to own my own company and what inspired me was my daughter’s Easter play. Now, I just have to answer to myself,” Tuohy told Independent Joe. “I really believe there is no better avenue to building wealth than the franchise business.” Along that avenue, Tuohy admits, there is hard work and much to learn. He recalls a time early in his franchise career when a district manager was coming to inspect the restaurant and he was out in the back washing the dumpster. He wanted to make sure it was clean enough to pass inspection and the thought never occurred to him that the Tuohy continued on page 25 AUGUST 2012• Independent Joe
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14
Independent Joe • AUGUST 2012
Mandell Golf Tournament Celebrates 15 Years of Raising Money to Fight Cancer by Betsy Lawson The 15th Annual George Mandell Memorial Golf Tournament and Auction, held at The International in Bolton, Mass. on Monday, August 13, was a rousing success again this year, raising more than $580,000 for the Jimmy Fund and Dana-Farber Cancer Institute. About 300 people in all attended the all-day event that included the golf tournament, dinner and live and silent auctions. Of that, some 250 were golfing – including some 50 franchisees – according to event cochair Melanie King. King is Director of Marketing & Communications at Dunkin’ Donuts National DCP (NDCP).
Bobby Jose, and Franchisees Mike Lincoln, Marc Lincoln and Fred Lincoln show off the nautical theme at this year’s Mandell Tournament.
“It’s like a big family reunion every year,” King said of the event that takes months of preparation and a very early start time on the actual day. “The volunteers show up at 6:30 am to help with logistics and goody bags,” she said, and all the details that go into making the event a fun and successful fundraiser year after year.
Fund has helped make Dana-Farber Cancer Institute a proven leader in the field of cancer medicine. Your support has provided DFCI researchers with the freedom to pursue basic forms of laboratory discovery that often leads to groundbreaking clinical and scientific advancement. Although there have been exciting research advances in 2011, the work remains unfinished.
The tournament began in 1998 to honor George Mandell, a franchise owner who lost his battle with cancer. In their welcome letter to participants, King and co-chair Maria Ambach, Administrative Assistant / Event Planner at National DCP, wrote: “We are constantly reminded of the need for cures to rid cancer. Even though cancer death rates are falling steadily, it is estimated that 1.5 million new cancer cases will be diagnosed in 2012. The increased mortality is driven in large part by better prevention, increased use of early detection practices, and improved treatments for cancer. While funding for essential research is becoming restrained due to budget cuts, the country is closer than ever to promising breakthroughs in cancer treatments. Thanks to your generosity and continued support, the Dunkin’ Donuts “Right Treatments Rid Cancer” Research
Thank you for your support and participation in today’s event as we continue our passionate quest for a cure.” According to King, this is the largest private golf tournament that raises money for the Jimmy Fund, which has been leading the fight against cancer since 1948. Dunkin’ Donuts became an official sponsor of the Jimmy Fund in 2000. There are only a few courses in the area that can offer two, 18-hole courses, King said, enough to accommodate the close Mandell continued on page 24
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15
S
r e t i m m m e uand the Picking
by S
is Easy!
tephanie Cloutier
Blueberries – those purple-blue orbs of juicy sweetness. When we think of the perfect berry, we usually picture them big and round, the bigger the better. And what you see in the grocery store produce section is just that. But those aren’t the kind of blueberries Dunkin’ Donuts puts in their scrumptous blueberry muffins. No, Dunkin’ Donuts muffins are studded with the much smaller wild blueberry, grown primarily in places with sandy, acidic soil and cold winters. Places like Maine. These are the sought-after berries that are perfect for baking, and that have more flavor and more health benefits than their cultivated cousins. Maine is the number one producer of wild berries in the world, and Dunkin’ Donuts is one of the largest single buyers of blueberries overall. It’s a match made in heaven. Historically, Maine blueberries have always been a part of Dunkin’s muffins, even back when the muffins were mixed and baked in the individual shops. They provide the desired finished profile and experience customers have come to expect from Dunkin’ Donuts. In fact, the reduced fat blueberry muffin has the same high-quality flavor as its fuller fat sibling; the executive chef for Dunkin’ Brands (DBI) insists that there be no reduction in taste, regardless of fat content.
Photo above: Maine blueberries have a higher skinto-fiber ratio which makes them sweeter and healthier. David Walack, a franchise owner with a store in midcoast Maine as well as one in Virginia, says he loves blueberries and really loves Dunkin’ Donuts’ blueberry muffins. “There are very few things I would categorize as to die for,” says Walack. “(Our muffins) would be one of them.” According to Walack, one of the things that make them so good is that the mix doesn’t overpower the blueberry taste. He says the blueberry muffins are a year-round bestseller. Why Maine wild blueberries? The short answer is that they are sweeter and tastier than their larger cousins. Because they are smaller, they have a higher skin-to-fiber ratio, meaning less water and more berry flavor. And since the skin is where the antioxidants reside, smaller berries are actually healthier for you. Antioxidants are the things that protect your cells from the damaging effects of free radicals; the higher the antioxidants in something, the better it is for you. According to Dr. David Yarborough, Wild Blueberry Specialist at University of Maine Cooperative Extension, wild blueberries have
Cover photo: To control pests, Maine blueberry farmers manage their crops on a two-year cycle to minimize the use of pesticides.
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Independent Joe • AUGUST 2012
twice the number of antioxidants as the larger cultivated berries. The interesting thing about Maine wild blueberries is exactly that: they are wild. Growing close to the ground, they have an extensive underground root system; there is no easy way to take a cutting and transplant it elsewhere to cultivate. Instead, Maine blueberry farmers manage the crop by clearing the area around existing berries, giving the plants room to spread and grow. Because of that, the farmers haven’t bred different varieties of the berries, so these are the same berries that have been growing in Maine for as long as anyone remembers. Even so, hundreds of varieties have occurred naturally, resulting in different leaves, stems, and colors of the fruit. This has created a genetic diversity that makes these berries more resistant to pests, and therefore less likely to succumb to disease. Still, Mother Nature is the one who determines the blueberry supply from Blueberries continued on next page
Blueberries continued from page 16 year to year. In the last decade or so, the blueberry crop, both wild and cultivated, has been increasing, but so has demand. To manage the ups and downs, farmers invest a lot in irrigation; their goal is to have an ample crop at a fair price. Growers understand that wild blueberries are a premium product, and they work to hit the sweet spot with customers, maintaining their symbiotic relationship.
taught this method of managing the wild berries to Maine settlers.
According to Mark DiPietro, the Director of Quality Assurance for the National DCP, DBI selects and specifies the blueberries that are chosen for the muffins. And, he agrees, from a flavor perspective, the wild Maine blueberries just can’t be beat. “They are regarded as high quality in terms of flavor and size.”
A sampling of this year’s Maine wild blueberry crop. Berries like these are one of the reasons why Dunkin’ Donuts blueberry muffins have a unique, sweet taste.
“Our growers and processors are proud to supply Maine wild blueberries to Dunkin’ Donuts – when they put our blueberries in their products and people recognize it as a Maine product, the premium halo will be there,” said David Bell, executive director of the Maine Wild Blueberry Commission. To supplement the Maine crop, DBI also buys blueberries from Canada. According to the Research and Development group, the division is usually 80/20, with the percentage from each varying year-to-year based on crop availability and quality.
Nowadays, Maine blueberry farmers manage their crops on a two-year cycle: after the harvest, they prune the fields. The next year is for vegetative growth, with the berries coming back the following year. Early on, this pruning and clearing was done as the Native Ameri-
Therefore they can’t ruin the crop, and farmers can minimize their agricultural inputs as compared to other fruits and vegetables. Fewer pesticides mean healthier berries. There are 575 growers in Maine, ranging from the very smallest family-run farms to large commercially managed farms, with the larger farms integrat-
A recent harvest of Maine blueberries
The history of the Maine wild blueberry as a commercial endeavor goes back to the 1840’s, when settlers learned to manage the crops from local Native Americans. For almost 5,000 years, the Native Americans would come down to the coast, where the blueberries grow best, for the summer. They used the berries both fresh and dried, for eating as well as medicinal purposes. Over time, they noticed that after a fire, the berries grew back within two years. So they began setting wildfires in the barrens to prune the wild blueberries. They
cans had, with setting fires. Later the farmers would use straw to enhance the burn, and then propane burners; since the 1970s, they have used mechanical mowing. David Bell says that the beauty of the two-year system is that it interrupts the natural cycle of pests. According to Bell, blueberry fruit flies propagate by laying their eggs in the ripening berries. In a year of regrowth, the new flies hatch in the spring, and instead of finding fruit, emerge into a field of green grass.
ing growing and processing of the berries. Bell says that it was just seventeen years ago that the majority of the harvest was done by hand, with rakes; nowadays, 80% of the crops are mechanically harvested. “The tradition in central and eastern Maine was for factory workers to take a week or two off to pick blueberries,” says Bell. Because whole families would get involved, “it was a great way to teach work habits to kids.” Those traditions are long gone, due to things Blueberries continued on page 23 AUGUST 2012 • Independent Joe
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Sponsors continued from page 9 Paris Ackerman & Schmierer LLP 101 Eisenhower Parkway, Roseland, NJ 07068 David Paris • david@paslawfirm.com • 973-228-6667 www.paslawfirm.com “A Member of Franchise Pros” Zarco, Einhorn, Salkowski & Brito, PA 100 SE 2nd Street, 27th Floor, Miami, FL 33131 Robert Zarco, Esq. • rzarco@zarcolaw.com Robert Salkowski, Esq. • rsalkowski@zarcolaw.com 305-374-5418 • www.zarcolaw.com
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Independent Joe • AUGUST 2012
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Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org Payless Shoe Source 3231 SE 6th Avenue, Topeka, KS 66607 Matt Lemke • matt.lemke@payless.com 785-368-7530 • www.payless.com
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DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor 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.
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Independent Joe • AUGUST 2012
Pride in Community Drives Franchisees to Contribute
by Elaine Gottlieb
Last Christmas, hundreds of children crowded into the Germantown Neighborhood Center in Quincy, Massachusetts for the annual Breakfast with Santa event. Every child got to sit on Santa’s lap, have their picture taken and receive a gift that they requestOctavio ed weeks earlier. Parents and Carvalho, children enjoyed a breakfast Victor Carvalho of Dunkin’ Donuts coffee, hot and Quincy chocolate, donuts and muffins. Mayor Thomas Koch at last “Most of these kids never had year’s Breakfast their picture taken with Santa,” with Santa said Victor Carvalho, who, with his brother, Octavio, owns nine Dunkin’ Donuts stores in Quincy and neighboring Weymouth and Hingham. For the past nine years, the Carvalhos have sponsored Breakfast with Santa. “One year, a three-year-old girl came running over to thank me. That’s what Christmas is about – the look of excitement in her eyes.” Over the years, word of Breakfast with Santa has spread through the community, bringing the mayor and city councilors to the event. “We usually try to do things quietly. We’re not chasing glory but it’s a great feeling when people look you in the eye and thank you and know that you are trying to make a difference,” said Carvalho.
The Carvalhos help sponsor the annual Breakfast with Santa event in Quincy, Mass.
The Carvalhos also support Weymouth Youth and Family Services, making it possible for teens to attend baseball games and visit places like Canobie Lake amusement park. Community involvement is a Carvalho family tradition, starting with their father, Joe, who purchased the original Dunkin’ Donuts shop along with two others in Quincy, and immediately began sponsoring Little League, basketball and soccer teams, which the brothers continue to support.
Local sports teams in northern New Jersey benefit from the support of Tom Oliver and his wife, Rana, owners of a Dunkin’ Donuts in Allendale, New Jersey. They also support churches, synagogues, a Veterans of Foreign Wars (VFW) post, and a community food bank. “I very rarely turn down solicitations,” said Oliver, who previously owned 12 Dunkin’ Donuts shops in New Jersey and New York’s northern suburbs.
“My wife and I believe that it is really important to give back to the community. We don’t want to be viewed as business owners who are just trying to make a dollar and don’t care about the community. We love the brand and are blessed to have a Dunkin’ Donuts franchise and are happy to be here. There’s nothing nicer than when people walk in and say ‘thanks for helping out’.” Community Pride continued on page 28 AUGUST 2012 • Independent Joe
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Independent Joe • AUGUST 2012
Blueberries continued from page 17 such as child labor laws and health rules. Now some companies even have lights on their tractors so they can harvest twenty-four hours a day, waiting for the cool of the night to chill down the berries and minimize the damage to the crop. Because of their thin skin, the majority of the crop is frozen; only a small percentage is sold fresh. They are shipped the world over, to Europe, Japan, Korea, Israel and China. Japan, in particular, demands perfect berries, which has forced the Maine growers to improve conditions. Chances are good that the frozen berries you find in your neighborhood grocery store have come from Maine. The importance of the wild blueberry crop to Maine culture is illustrated beautifully in the classic children’s story, “Blueberries for Sal,” by Robert McCloskey. In the story, little Sal and her mother go off to pick wild blueberries to can for the winter. At the same time, a mother bear and her cub scour the fields to fill up on wild berries in preparation for the winter hibernation.
Dunkin’ Donuts takes on the task of collecting the sweet Maine blueberries...thus making them available year-round So absorbed are they in their pursuit of the juicy little blue orbs that the mothers inadvertently swap children: little Sal starts following the mama bear while the cub begins eating berries out of the pail. In the end, of course, the bears go off to hibernate while the humans put up jars of berries for the cold months ahead. The good news is, Dunkin’ Donuts takes on the onerous task of collecting the berries, meaning those sweet Maine blueberries are available yearround, ready to be baked into their sought-after muffins. Says Walack, the franchise owner in Maine, “The most important thing is to enjoy them (the muffins), but don’t overindulge. They’re a special treat.”
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Mandell continued from page 15 to 250 players who range in skill from novice to seasoned pro. “Players love it at The International in Bolton,” King said. Its central Massachusetts location right off I-495 makes is accessible to those from all over New England.” A few years ago, the tournament’s format was changed to a scramble so that they could quicken the pace and making it fun for golfers of all levels. Bristol, RI, franchisee Chris Prazeres has played in the tournament along with his brother, Cliff, and father, Joe, since the tournament’s inception in 1998. Joe Prazeres, originally from Portugal, opened his first Dunkin’ Donuts store in 1989 in Raynham, Mass., and his sons have followed him into the business, developing a network of shops in Rhode Island. Chris joked that he’s “not much of a golfer” but he looks forward to participating in the annual event. He doesn’t hit the driving range ahead of time or do any special preparation other than Mandell continued on next page
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Independent Joe • AUGUST 2012
In 2011, George Mandell was inducted into the Dunkin’ Donuts Franchise Owners Hall of Fame. The following excerpt is from the Hall of Fame program created for the 2011 Hall of Fame Gala:
George Mandell 1935-1998 George Mandell was a pharmacist at a neighborhood drug store when his brother-in-law Bob Rosenberg became President of Dunkin’ Donuts. George shared Bob’s vision for expanding the chain through franchising and opened his first two stores in Dorchester and Mattapan, Mass. then branched out into Boston’s south shore. Through hard work, perseverance and building a loyal following of happy customers, George emerged as a leader among franchisees, particularly those who were just joining the system. When he lost his battle with cancer in 1998, a golf tournament was established in his name to raise money for cancer research and has raised millions of dollars for Dana Farber and the Jimmy Fund over the years. His legacy lives on with the principles he taught to his four children and grandchildren. Daughters Sharon and Lynne still run the Weymouth store. “We are very proud to be associated with such a wonderful event,” Lynne Mandell said. “My dad would be honored. Just knowing that the money is being used for finding ways to cure cancers means a lot to our family. We know how hard the battle is, and we just want to make it easier for others going through it.”
Mandell continued from page 24 encourage others in the Dunkin’ community to come out and support a good cause.
to promote a relatively new in-store program that invites guests to donate $1 to support the Jimmy Fund and The DDBRCF.
“It’s a great day and wonderful way to raise money to fight cancer,” Prazeres From Saturday, August 4 through Sunsaid. And raise money they do. This day, August 12, each guest who made a year, the family was recognized for all their contributions and were named recipients of the John Henderson Award (see sidebar at right). “We were all surprised when our names were announced,” Prazeres said, “It was a great moment to be associMaria Ambach, Joe Prazeres, Cliff Prazeres, Chris Prazeres ated with the award.” and Melanie King at the 2012 George Mandell Golf Those in attendance Tournament felt the same way–they gave Chris, Cliff and Joe Prazeres a donation was invited to write his or her standing ovation. name on a paper cup icon. It was then added to the display in the restaurant.
In-store Initiative Helps Customers Contribute to Fight against Cancer The campaign, launched just last year, Dunkin’ Donuts franchise owners in New England have developed a strong and heartfelt relationship with the Jimmy Fund and Dana-Farber Cancer Institute (DFCI) over the years. This summer, the Northeast Chapter of The Dunkin’ Donuts & Baskin-Robbins Community Foundation (DDBRCF) once again partnered with the Jimmy Fund and Dana-Farber
supports Dunkin’ Donuts’ desire to bring their franchisees’ passion for the Jimmy Fund to life in-store and provide a means for consumers to participate in the fundraising efforts. Last year, this program collected $127,000 in donations. This year’s totals are still being calculated, but from initial estimates it looks like this fundraiser was again a tremendous success.
John Henderson Award Announced during the Mandell Golf Tournament, this award is given to people in the Dunkin’ Donuts community who have a sincere passion for cancer research. Like John Henderson himself, the recipients have made a difference in the lives of cancer patients, researchers and doctors through their selfless acts of generosity over the years. This year’s recipients were Joe, Chris, and Cliff Prazeres, franchisees from Bristol, RI.
Past Recipients 2008 Michael Higgins from Mother Parkers Tea & Coffee 2009 Tom Denesowicz, franchisee from Northbridge, MA 2010 Mark, David and Greg Cafua, franchisees with stores located in the Northeast and Mid-Atlantic areas 2011 In Memory of Helen D’Alelio - Mitzi Lawlor, Ralph D’Alelio Jr and Gary D’Alelio, franchisees from Medford, MA
Tuohy continued from page 13 hauling service he had contracted would give him a brand new one if he asked.
you help others if you don’t have a lot of money?
“I loved it anyway because it was my dumpster, it belonged to me.”
The answer, he says, is found in this Biblical passage from 2 Corinthians 9:7, “Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”
Tuohy doesn’t have the time to clean the dumpsters much these days. Aside from operating his network and keeping up with his TV commentating gig, he accepts speaking engagements to share his story with others. When he takes the stage at the DDIFO National Members Meeting, Tuohy says he will be with people who understand him. “These are my folks and I just want to inspire and entertain them a little.” On stage, he likes to engage with his audience. Often, he’s asked, how can you only rescue one person’s life when so many are in need? And, how can
“Cheerful giving” is how Sean and Leigh Anne frame the life-altering experience of adopting Michael Oher. In 2010, the couple wrote their own book on the subject – In a Heartbeat: Sharing the Power of Cheerful Giving. It became a New York Times bestseller and popularized the phrase, “the popcorn theory”, which the couple uses to describe their philosophy. “The Popcorn Theory is about noticing others. It’s about seeing, not turning
away from the immediacy of someone in need,” they told Charisma. “Like popcorn, you don’t know which kernel’s gonna pop. They just show up. It’s not hard to spot them. The Popcorn Theory goes like this: You can’t help everyone, but you can try to help the hot ones who pop right up in front of your face.” It’s a simple concept that Tuohys are spreading through their work with the Grace Evangelical Church in Memphis – a church they helped to create. Sean also shares his message of hope and opportunity with his audiences. “The smallest of things can make the biggest of differences. It’s key to my story, the tiny step that leads to the long journey.”
AUGUST 2012 • Independent Joe
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CFA Day continued from page 5 important voice in the way their business is conducted. “The aggregate of all the franchisees out there, single unit and multi unit – in all the different brands – gives us the kind of clout a large company like Verizon has. Our employees and customers represent an overwhelming number of registered voters, and our taxes and combined campaign contributions are major amounts. Together we can command the kind of attention a single franchisee could never get alone” said Rob Branca, CFA vice-chairman. He and others who visited Capitol Hill this summer believe public officials are beginning to understand more about the role franchisees play in the nation’s economy. “I got the sense that people we were talking to understood what franchisees do; they got it. I think efforts like this are having some effect,” said Kaufmann. The next step, according to Kaufmann and others, is to help Members of Congress recognize the need for government intervention to level the playing field. “I went to a few different Congressional offices and there was definitely interest
with both Democrats and Republicans,” said John Motta, another first-time attendee. “We told them how franchise agreements have changed over the years. They used to be 10 pages, now they’re 50. It’s much more in favor of the franchisor. We told them we needed sponsors to introduce the legislation on our behalf and there was genuine interest. But, Motta admits, a lot depends on the outcome of this November’s elections. The Affordable Care Act, for example is still expected to draw legislative and judicial challenges. Some franchise owners took the opportunity to explain to their Congressmen and staffs how regulations calling for owners to provide health insurance to their full-time employees will significantly impact operating costs for franchisees. Some franchisees say it could ultimately put more people out of work. Many franchise owners are also concerned that automatic cuts triggered by the Budget Control Act of 2011, will hurt their business.
Motta, who owns Dunkin’ Donuts shops in New Hampshire and Virginia, got a sense of the fallout of those cuts when he attended a town hall meeting in Norfolk, VA after his visit to Washington, D.C. “Senator (John) McCain, Senator (Kelly) Ayotte (R-NH) and Senator (Lindsey) Graham told the town meeting that a huge chunk of these cuts will be in defense spending. Well, Norfolk is a military town. They could lose 11,000 jobs. That will definitely affect my business.” Now in its 4th year, the CFA Day Forum is more than a leadership conference for franchisee associations. It is becoming one of the best ways franchisees can learn about how new federal laws and regulations will impact them, communicate concerns to directly to Congressmen and their staffers, and frame the issues around how the fallout will affect their constituents. “When we add up our locations, number of employees and taxes paid in that person’s district, we have much more clout,” said Branca. CFA Day continued on next page
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Independent Joe • AUGUST 2012
CFA Day continued from page 26 “One of the most interesting things I saw was this convergence of issues across the different systems. It was reassuring to see this meeting of the minds,” said Kaufmann. “Though we are in different industries, and some of us are even competitors, we have many of the same issues. That resonates that a particular tax or other policy cannot be pigeon-holed as just a Dunkin’ Donuts problem,” said Branca.
only need stay over one night thus lowering the cost. “If we make it more convenient and more affordable, we can probably attract more franchisees,” he said. Robert Branca and Pat Kaufmann on the U.S. Sentate tram.
The 2012 CFA Day Forum was the largest ever and Miller says the CFA wants to double its franchisee participation in 2013 to help “broaden the base and make an even stronger showing on the Hill.” He says the coalition is looking at shortening the event so attendees Perry continued from page 7 soaring energy consumption – especially during peak season. In planning for 2013, consider the factors that affect increases in demand such as air-conditioning and ventilation. This is a good time to investigate your options for profit improvement with the goal of continuing to offer value, service and a healthy atmosphere for your customers. There are other affordable energy-efficient measures to consider. A measured rollout of all of the appropriate products is a good way to ensure maximum efficiency in your shop. • • • • • • • •
Humidity controls Door heater controllers Energy-efficient water heaters Solar hot water pre-heater for dishwashing Ceiling fans to better circulate air Air-to-air heat exchangers Upgrade insulation on refrigeration systems, equipment, freezer rooms, or suction lines High efficiency motors to replace old motors that wear out
Most states offer incentives and rebates to businesses with energy reduction programs. According to the U.S. Environmental Protection Agency’s Energy Star Website, one Subway franchise owner saved $20,000 by installing energy-effi-
save 50 percent or more of projected annual energy costs for heating, cooling, and lighting. Partial deductions for efficiency improvements to individual HVAC, lighting, and water heating are also available. In addition, you can contact your local utility company and request an energy audit. For no cost, they will give you recommendations for reducing energy demand within specific areas in your shops.
Federal tax credits are available for energy efficiency upgrades. cient air-conditioning, heating, ventilating, lighting, ceiling fans, and ice makers throughout seven Subway locations in Oklahoma. With these improvements, he reduced his energy costs by 40 percent and “made his restaurants more attractive and comfortable for customers.” There are also federal tax credits available to small businesses for making energy efficiency upgrades. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. More information is available online at http://www.energytaxincentives.org/business/. The federal government also offers the Tax Incentives Assistance Program (TIAP) where businesses can get deductions for new or renovated buildings that
If you install new, energy-efficient products and need to train your employees on how to use them, you can qualify for state and federal funds to cover the cost of training. “Going green” has become a buzz phrase encompassing so many different things. But, for Dunkin’ Donuts franchise owners, going green could be a path to better profitability. When you improve energy efficiency you will also improve your customer’s experience, and your bottom line.
Perry Ludy is a senior executive, business consultant, and author of business books. He is president of LudyCo International. Contact Perry at perryludy@earthlink.net. AUGUST 2012 • Independent Joe
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Community Pride continued from page 21
Pride and Community Involvement Community involvement comes naturally to franchise owners. It comes with the pride they have representing the Dunkin’ Brand. Having a shop in a community means being part of that community, not just as a business owner but as a partner in local initiatives. This summer, franchise owners in Philadelphia awarded $25,000 to recipients of the third annual Dunkin’ Donuts Philadelphia Regional Scholarship Program. A similar program in Rhode Island and Bristol County, Massachusetts is in its 14th year of awarding scholarships to 100 high school seniors and college students who excel academically, demonstrate leadership qualities, and are involved with the community. Over the years franchisees have provided $1.4 million in funding for the scholarship program so area students can further their education.
The Premier Cricket League in Paterson, NJ supports the community’s growing Bengali community. Adam Goldman’s “Team Dunkin’” finished second in league play in 2011 “Now more than ever, hard-working families are watching every penny, and we are pleased to have the opportunity to offer the Dunkin’ Donuts Scholarship
to the students in our communities once again,” franchise owner Joe Prazeres told QSR magazine.
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Independent Joe • AUGUST 2012
Community Pride continued from page 28 Prazeres owns eight shops in Rhode Island and serves as chairman of the local Advertising Committee. This year, he received the Presidents’ Award for contributions to the Special Olympics; in 2010, Dunkin’ Brands named him Philanthropist of the Year. In Illinois, franchisees support the Special Olympics with a unique fundraising event, “Cops on the Roof.” This past June, Illinois Attorney General Lisa Madigan and police officers in Glenview, Illinois, and surrounding towns, stood on the rooftops of 130 Dunkin’ Donuts stores, shouting out to customers to support the Olympics, raising $243,000. Attorney General Madigan told the Chicago Sun-Times: “It’s one of the most meaningful things I do. We can help these kids have terrific opportunities, [and] it’s better than sitting in the office.”
Supporting Public Safety Employees Police officers are typically found in – not on top of – Dunkin’ Donuts stores. A hot cup of coffee and a tasty snack are always a welcome diversion for public safety workers. At Adam Goldman’s Dunkin’ Donuts shops in Paterson, New Jersey, public safety workers always get a warm welcome. Before becoming a franchisee, Goldman worked as an executive consultant and a paramedic. During his nine years on the ambulance crew in North Jersey, Goldman would always head to Dunkin’ for a cup of coffee to get through his shift. His way of thanking paramedics, police officers and firefighters is to give them a discount. In fact, because one of his restaurants is located across from a funeral home, there are often police officers on funeral duty stopping in. “I know how hard they all work so I make sure we take care of them and they get products from us,” he said. Goldman is also a major supporter of the 200 Club, an organization that helps those who keep the community safe: police officers, firefighters, state troopers and first responders. It offers college scholarships to their children and pays funeral expenses for those killed in the line of duty. “Dunkin’ is a high-profile name. When I walk through
Paterson, people know me as a Dunkin’ owner. I’m the only franchisee in the city with two stores. I want people to realize that we are part of the community; we’re not here just to make money. I chose to buy stores in Paterson to serve a forgotten community,” said Goldman. The third largest city in New Jersey, Paterson has been battered by the economic downturn, with cutbacks in city services and employees. When a lot filled with construction debris next to one of Goldman’s shops became a drug hangout, he worked with the city and the shopping mall next door to get it cleaned out. “The city is working harder with fewer resources. I’ve gotten to know the mayor and town council and Chamber of Commerce to try to make a difference,” he said. Paterson is home to the country’s second largest Bengali community; so many Bengalis live there that the city now features the Paterson Premier Cricket League. A number of Goldman’s employees are Bengalis so he sponsors a team and helps fund the league. Last year, one employee was named the league’s Player of the Year. “Here I’m in a position to employ new citizens and give them the opportunity to have what I’ve had,” he said. “The first time a Bengali ran for city council, he used our store as an informal meeting place. I don’t mind when people take up seats. When I was a consultant, I spent hours working at my local Dunkin’ Donuts.” Carvalho’s shops are also gathering places. A city councilor meets regularly with constituents at one of the Quincy Dunkin’s. At other stores, exercise groups meet for coffee after their walks and the local bowling league congregates on game nights. “We have a lot of regulars,” said Carvalho. “People feel comfortable at our stores.”
Adam Goldman’s shop was the only restaurant to take part in this year’s Paterson 4th of July downtown merchants event
Carvalho and his fellow franchisees know that comfort comes not just from excellent service and quality products; but because they regularly give back to their communities and earn their place as loved and trusted neighbors. AUGUST 2012 • Independent Joe
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Amenities continued from page 11 room rental plus coffee, or the room rental plus coffee and cookies, for an additional fee. We’re also considering what other amenities we may develop,” says Patel. Patel says they are open to non-business uses of the conference room, such as small family gatherings or birthday parties. “It’s all still very new, but when people walk in, they’re excited. They feel good, like we’re doing something positive for our customers.”
Jay Pandya’s shop in Whitehall Twp., PA is 3,000 square feet. The conference room is 298 square feet, features a projection screen and will seat up to 16.
“When we started planning the layout of the new location, we thought about how we can add more value and more reason for people already in the area to walk in the door,” Patel says. “Another goal is to attract more new visitors to choose to come to this Dunkin’ Donuts.” With so many business people stationed at and traveling through the Route 10 East strip where the shop is located, developing amenities to serve these individuals seemed a smart way to go. Patel and his partners decided to designate part of the store seating for more comfortable, soft chairs to invite customers to sit for a bit while they enjoy their coffee and catch up on email or surf the Web. They also built a 200 square-foot conference room that seats up to eight people and has a projection screen for presentations. Patel noted that other meeting room spaces in the area charge upwards of $150 to $200 per hour, which seemed cost-prohibitive especially for smaller groups, so he is initially renting his conference room for $25 per hour. “We just opened on June 27th, so we’re still figuring out how best to market the conference room. We’re working on creating packages that would include the 30
Independent Joe • AUGUST 2012
The location’s 288 square-foot conference room features a projection screen and seats 12 to 16 people. It can be booked in advance with the store manager or used on a first come, first served basis. Pandya charges $50 for the first hour and $35 for each additional hour. A Box O’ Joe and a dozen donuts are included with all reservations over an hour. A dedicated server can be requested to take individual orders at no extra charge. Aside from business meetings, the room is used for family gatherings, birthday parties and other approved social gatherings. “Customers like the idea of having a conference room to rent as they know the coffee and donuts are preferred by their participants. Plus, the atmosphere is welcoming and the rate is comparably affordable,” says Pandya. “It’s working so well that we will consider similar design and amenities when building or remodeling restaurants in central business districts.” But that doesn’t mean Pandya didn’t have some doubts leading up to the grand opening nine months ago.
Jay Pandya is a franchisee who owns 25 Dunkin’ Donuts stores in Pennsylvania and New Jersey as part of the Rohan Group. His newest shop in Whitehall Township, PA is a “Just Baked on Demand” store—with all pastries, bagels and croissants baked on-site— and has several unique features. Special light fixtures and flowers at the entrance inject a more attractive and welcoming ambiance. Converted from a former bank branch, the 3,000 square-foot location has a conference room, a 32-inch flat screen TV, ample seating, free Wi-Fi and additional power/outlets. “There are a lot of small businesses and offices located in the area. We wanted to take advantage of the diverse opportunities the market presented, fully utilize the space and effectively support and serve our different customers,” Pandya says. “Our decisions were based on the assessment of the trade area and aimed at fulfilling the needs of customers while maximizing our return.”
“This was a brand new concept and we weren’t sure how customers would interpret and respond to the changes. We had some trepidation about interfering with the more traditional ‘in-and-out’ type of customer,” Pandya admits. “But after we opened, we realized that it was a great move. It is a big enough restaurant with the ability to cater to all our customers. We also joined the Whitehall Area Chamber of Commerce to align ourselves with other local businesses and build a greater relationship with the community, which demonstrates our dedication to the area and all types of guests.”
“Third Place” Evolution Ray Oldenburg, an urban sociologist from Florida, is credited with coining the term “third place” in 1990. He defined third places as public spaces that “host the regular, voluntary, informal and happily anticipated gatherings of individuals beyond the realms of home (the first place) and work (the second place).” But today’s third place often serves as an extension of the workplace, whether one’s workplace is a traditional office, a home office or largely on the road. Amenities continued on next page
Amenities continued from page 30 According to The Back Burner Tundra Restaurant Supply blog, “The concept of the ‘third place’ was first developed by Starbucks, and anyone who has been in a Starbucks immediately understands the principle: make your business feel like a homeaway-from-home [or an office-away-fromthe-office]. Now other fast casual chains are cashing in on the third place concept, most notably Panera.” A prominent fear among establishments hesitant to embrace the third place concept
Do Your Homework Before adding a conference room or other third place features to your shop, here’s what the experts advise:
Survey customers: formally or
is that it seems counter to the idea that less comfortable surroundings encourage faster table turns. The Back Burner acknowledges, “Getting customers in and out of your establishment as quickly as possible has long been the way most restaurants make their money. When you convert part or all of your restaurant into a third place concept, you have to take the long view on the table turnover. Understand that customers who stay longer tend to invite their friends, and when those friends discover your comfortable atmosphere they’ll come back with their friends, and so on. No other approach has been as successful in the past decade in terms of creating customer loyalty and word-of-mouth marketing.” Upsell potential and increased repeat business are noted additional benefits.
informally observe and gather opinions/ideas
do anything that will interfere with or alienate regular customers make sure they’re in line with the location, customer base and brand
Avoid wasted space: consider
a meeting/gathering room with a sliding door so it can be open for “regulars” or closed for reservations
Be flexible: adjust practices ac-
cording to customer feedback; remain open to possibilities outside your initial vision
Use common sense: for exam-
ple, price amenities competitively for your market
Be creative: develop innovative marketing/promotional strategies that meet different customer needs
Sources: Andrew Swedenborg, King Retail Solutions; Jeff Riggs, Clarks Fork/Wheat Montana; Bob Krim, Clark University Graduate School of Management; Tony Eonas, Suffolk University
“Don’t drop everything to become a third place. For most restaurants the most effective way to leverage the concept is a hybrid approach. For example, convert one section of your restaurant into a comfortable lounge and keep the rest an efficient table-turning machine.” Swedenborg of King Retail Solutions says, “Every case is different, but we always talk about design with a purpose. It’s vital to ask all the right questions before moving forward. For example if we take away 25 percent of your seating space to build a conference room when you only have 10 tables to begin with, what does that do to your regular coffee customer? It’s more than physical design and amenities; it’s the effect on your guests. In the end, it all boils down to increasing sales through a better customer experience.”
index
Be careful and thoughtful: don’t Identify goals and objectives:
And it doesn’t have to be an all or nothing situation.
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AUGUST 2012 • INDEPENDENT JOE
DDIFO IndJoe #15 covers print.indd 2
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August 2012 • Issue 15
We Communicate, We Educate, We Advocate!
ummertime S and the Picking is Easy! by Stefanie Cloutier
also isnue this is When It Comes to Success,
Sean Tuohy Saw It Coming by Matt Ellis
Sean Tuohy to be Keynote Speaker at the upcoming National Conference at Mohegan Sun
DDIFO IndJoe #15 covers print.indd 1
8/28/2012 5:30:06 PM