Independent Joe Magazine February 2013 #18 by Dunkin' Donuts Independent Franchise Owners

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February 2013 • Issue 18

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Franchisee Bryce Bares Brings Dunkin’ to Nebraska by Betsy Lawson

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This Isn’t Bill Rosenberg’s Dunkin’ Donuts Anymore... by Adam Goldman Tax Changes for 2013 – What it Means for You by Stefanie Cloutier

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Perspective by Adam Goldman

This Isn’t Bill Rosenberg’s Dunkin’ Donuts Anymore… When Bill Rosenberg opened the first Dunkin’ Donuts in 1950, the menu was not a major consideration. Rosenberg offered customers great tasting coffee and donuts, and the people who lived and worked near Quincy Mass. began a tradition of starting their mornings off with this staple. For almost two decades Dunkin’ was primarily known for coffee and donuts. It was not until 1978 that the first major menu change occurred with the addition of muffins. In the mid to late 20th century, the standard American breakfast consisted of eggs, bacon, toast and coffee, enjoyed at home. In the 1970’s and 80’s, as more women entered the workforce, the traditional at home breakfast started falling out of style. No one had time to cook a traditional breakfast. Recognizing the need for a quick, on-the-go breakfast offering, McDonalds introduced the Egg McMuffin. It wasn’t until the mid 90’s that Dunkin’ begun offering breakfast sandwiches. While it was well before my time, franchisees have told me the products were just “ok.” Some described them as, “A synthetic tasting egg on a soggy English muffin.” If it wasn’t for the coffee, most customers would probably have bypassed them completely. Since that time, Dunkin’ has committed to innovating its menu, adding new and better tasting products to the menu board. What’s more, Dunkin’ has successfully taken the traditional

breakfast image and expanded the concept to drive sales throughout the day parts, into lunch, dinner and late night snacks. In the last five years our menus have expanded to offer flatbread sandwiches, tuna and chicken salad, plus a multitude of breakfast LTO’s and, now, the bakery sandwich line. With the expanded menu come expanded operational challenges. Franchisees spend more on food, inventory and electric usage—plus a significant increase in labor costs. We have to juggle the work schedule to accommodate at least one— and sometimes two—additional people at the sandwich station both in the morning and afternoon in order to meet the increased volume and accommodate the brand’s twominute service standard. Recognizing this challenge, Dunkin’ has done an excellent job over the last 16 months consolidating food inventory and creating new menu items that allow franchisees to control food costs. For example, fresh bakery sandwiches that are made to order cost less than the old frozen, pre-made flat breads; French rolls can be used for both breakfast and lunch items; and the Big N’ Toasted lets operators reuse the Texas Toast for the grilled cheese sandwich (which also uses the existing cheese SKU). Customers are responding favorably to these changes. Dunkin’ now offers a menu covering most day-

3 4 7 8 11 13 17 26

My Perspective Adam Goldman

Phoenix DCP Center Opens Cheré Coen

Pennsylvania Shop Has A Legacy of Connecting Its Community Stefanie Cloutier

DDIFO Calendar Tax Changes for 2013 – What it Means for You Stefanie Cloutier

DDIFO Directory of Sponsors Bryce Bares Opens Nebraska Betsy Lawson

Index of Advertisers

parts—providing customers with a wide variety of items that are tasty, filing and priced right. In addition, the DDSmart menu offers a multitude of healthy offerings, helping differentiate Dunkin’ from its competitors. Not a day goes by that I don’t hear a customer asking if it’s too late to get a breakfast sandwich. This proves that Dunkin’ has successfully changed how customers view our menu. They know we really have a varied, full-day menu. I don’t know if Bill Rosenberg would recognize his own concept 63 years later, but I am convinced he would be pleased how Dunkin’ has morphed from America’s best loved coffee, to America’s all-day, everyday stop for coffee, baked goods and great tasting sandwiches. Adam Goldman is a DD franchise owner with a successful multi-store network in upper New Jersey. Contact him at njddonuts@gmail.com. February 2013 • Independent Joe

DD DD DD

The National DCP’s new facility in Phoenix will eventually supply franchisees in seven western states.

National DCP’s Phoenix Facility to Drive Western Expansion

The new DCP 65,000-square-foot distribution center opened in Phoenix in October and now provides food, paper and equipment supplies to more than 100 Dunkin’ Donuts restaurants in the southwestern states, according to Kevin Bruce, CEO of National DCP. The Phoenix center is the first located west of the Mississippi and the seventh warehouse in the National DCP (NDCP) network. Until this past fall, the southwestern restaurants had been serviced out of Mokena, Ill.

DD DD DD by Cheré Coen

Last fall, DBI announced its plans to open 25 new Dunkin’ Donuts restaurants in Texas with the first Houston

In a press release announcing the Southern California expansion, Dunkin’ Brands CEO Nigel Travis said, “Expansion to CaliThe new Phoenix facility is a vital fornia has always been step in Dunkin’ Brands’ dedication part of our plan to grow Dunkin’ Donuts’ presto westward expansion. ence in the U.S. We have maintained our disciplined restaurant opening this year. More approach to expand steadily while recently, Dunkin’ announced it will focusing on initiatives to improve expand into Southern California. restaurant economics and franchiPhoenix continued on next page

“I’ve never seen that in my experience,” Bruce said of the vast western territory and network of franchises serviced from Mokena. “And it was expensive.” Dunkin’ Brands (DBI) is dedicated to expanding westward and the new Phoenix facility is a vital step to servicing this expansion. In January, 2012, NDCP and DBI signed a longterm, performance-based agreement for NDCP to be the exclusive supply chain provider for all Dunkin’ Donuts restaurants in the continental United States. The agreement backs the brand’s desires to expand into new markets as well as offer the same product costs to western franchisees as in the more established Dunkin’ Donuts markets on the East Coast and Midwest. 4

Independent Joe • February 2013

February 2013 • Issue #18

Independent Joe is published by DD Independent Franchise Owners, Inc. ®

Editors: Edwin Shanahan, Matt Ellis Contributors: Stefanie Cloutier, Cheré Coen, Adam Goldman, Betsy Lawson 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.

Phoenix continued from page 4 see profitability. These initiatives include our recent agreement with our franchisee-owned and operated distribution and procurement facility, which ensures the same cost of goods to franchisees in both established and new markets by 2015.”

fornia restaurants from Los Angeles to the Bay Area. Bruce says expansion in the northwest would likely require another facility.

Birthing Pains The upside of the Phoenix facility — offering freezer, cooler, dry space and office — is the closer proximity to southwestern stores, Bruce said. “And we’re able to respond more quickly.”

291 new Dunkin’ locations opened in the U.S. in 2012. The ultimate goal is to have more than 15,000 Dunkin’ Donuts restaurants nationwide, and new distribution outlets will work to lower prices, The Phoenix Bruce explained.

DCP earns praise for the price points, delivery and customer service.

“The idea of the Phoenix center was to be in a position to support where the brand wanted to go, which was the western seven,” Bruce said.

The Phoenix DCP distribution center is now servicing Texas, New Mexico, Colorado, Nevada, Arizona and Camp Pendleton in Southern California with future plans to include Utah and Cali-

Currently, Phoneix offers 800 stockkeeping units (SKU) to Chicago’s 2500 SKUs, which means inventory is limited. Bruce insists many of these items are parts and equipment and “slower-moving items.” “We’re still adjusting,” Bruce said. “More items are available. We had

some difficulty at first. Some stores came online and carried items we didn’t have.” Jordan Eads, Dunkin’ Donuts district manager in Colorado Springs, has nothing but praise for the price points, delivery and customer service at the Phoenix DCP—and for Scott Besnyi, the facility’s operations manager— but expressed early concerns regarding the quantity of items available. “Scott bends over backwards on the back end,” Eads said. “The customer service is great, everything else is fine, but the quantity is an issue.” National DCP Chief Operating Officer Kevin Mellifont agrees the quantity of products was limited when the Phoenix facility first opened. “We did have start up issues that hampered ability to reach our normally high level of service right away. But, Scott has done a great job of taking on Phoenix continued on page 6

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Phoenix continued from page 5 those challenges and solving the issues,” he said. Dunkin’ Donuts’ western expansion will mean greater density in stillundeveloped areas—like Texas, California, Colorado, Wisconsin and Nebraska. As more stores open in the West, this “density” will help to improve inventory issues, as well as price points, Bruce said. “We welcome western expansion,” he said, “the sooner the better. We’re constantly balancing that out. Cost will go down with new density. And anytime costs are reduced, everyone benefits.”

Conveniently located near Interstate 10 and several other highways, the Phoenix DCP previously housed a Jack-in-the-Box distribution center.

Bruce calls the Phoenix and Mokena distribution centers “a classic

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Independent Joe • February 2013

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Pennsylvania Shop Has A Legacy of Connecting Its Community by Stefanie Cloutier

On the wall in Ann Caruso’s family room hangs a pastel of a conservation area in the town where she lives. She loves it not because the colors match the ones in her rug, though that’s nice, too, but because it’s a walk she has taken with her husband and kids many times. It’s the feeling she gets when she looks at the picture, a feeling of belonging and joy, that make that particular picture the absolute right one for the room. That’s the feeling Jim Bower wanted to create Bower was going for a meeting place where when he commissioned everyone in the area a mosaic for his refurbished Dunkin’ Donuts would want to go. store in Muncy, Pennsylvania. “I wanted to create a meeting place,” Jim says, “a place that everyone in the area would want to go.” And he wanted to infuse it with artwork that would speak to the community. A community that is primarily rural, one that goes back hundreds of years, with a population that is fairly spread out. Bower is a thoughtful man, one who clearly cares about more than just serving the best coffee and donuts around. He thought carefully about how his shop should integrate into its community.

All Roads Lead Here Muncy is actually three small communities, each with about 4000 residents, spread over a wide area of rural Pennsylvania. According to Bower, you can drive for miles and miles seeing nothing but rolling farmland, certain you’ve gone the wrong way, when –suddenly— a store pops up and you breathe a sigh of relief, knowing you’re not lost.

The mural (above) illustrates Muncy’s early days when donkeys and canal boats moved goods through the region.

But in the middle of all this vast space, the roads leading from the different towns all converge on the corner where Bower has his Dunkin’ Donuts. “When I looked at that building, I knew that’s where I wanted to go,” said Bower. “It’s on the way for everybody.” Unlike towns with dense populations, where people are frequently passing by and congregating in retail areas, Muncy’s geography makes a casual stop at a coffee shop a little more challenging. Says Bower, “You have to run stores in a way that brings people in more than once a month – you have to execute at a high level.” Mosaic continued on page 9 February 2013 • Independent Joe

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Mosaic continued from page 7 So Bower set about making his shop a destination, a place people would want to make an effort to get to, as well as one that would attract people driving from one town to the next. He began by completely gutting the building, and then creating an attractive meeting place, with a soaring cathedral ceiling and a fireplace. Much different from the urban stores most people are used to.

Local artwork helps make the Muncy shop an attractive meeting place.

Given the areaâ&#x20AC;&#x2122;s rich history, Bower went to the historical society to fold that aspect into his shop. According to Bower, this is an area with pride in its history, its farming background, so much so that even as small as their population is, they have a museum in town, one that commemorates their community. He wanted to honor that in his shop.

Connecting Through Art Lucky for Bower, the historical society gave him access to a number of old, old pictures of the town in its early days, which he had professionally reproduced and framed to hang on the walls. And when he wanted something special to fill the space over the fireplace mantel, something appropriate to the history of the community, the historical society obliged with an original 1852 painting of Muncy Valley. It was the first time in 160 years that someone had been allowed to make a copy of that painting.

needed something much bigger and much more eye-catching. So Bower approached two local, well-known

artists and asked them to fill the wall with an historical picture. The artists, Nella Godbey Storm and Selinda Kennedy, have worked Mosaic continued on page 25

Bower not only copied it - and hung the piece over the mantel in his Dunkinâ&#x20AC;&#x2122; shop - he gave the negative to the community for them to use to make posters and postcards to sell. Just another way for Bower to support the community that would eventually support his store. Still, even with all these great photos and prints, Bower had a bigger wall to fill: the six by twenty foot flat wall in his cathedral ceiling area. A wall that February 2013 â&#x20AC;˘ Independent Joe

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Independent Joe • February 2013

Tax Changes for 2013: What it Means for You Among the many challenges of owning a small business are the yearto-year tax changes that can affect your bottom line and complicate your accounting. And this year was especially anxiety inducing as Congress and the President wrangled over a plethora of expiring tax breaks until the last moments of 2012, leaving individuals and business owners unsure of what to expect as they rang in the New Year. And after the bargaining ended and the dust had cleared, the good news is that not much has changed for small business owners. That’s great news, especially as one of the major changes expected was the amount business owners would be able to write off as a business expense with regards to their equipment. The existing amount of

$500,000 was anticipated to decrease to just $25,000, a pretty major decline. Given that franchise owners are required to renovate their stores every five years, a change of this magnitude would require completely rethinking how to classify equipment as an asset. To defend against this, owners would have had to hire an engineering firm or architect to do a segregation study, adding to the cost of renovating or building new. With the deal struck in the waning hours of 2012, this write off stayed at $500,000, making construction a little less onerous.

by Stefanie Cloutier Tax Changes for Individuals The majority of the changes are primarily aimed at individuals, namely your employees. Which means that it affects you, since many of them may have questions. The most visible, and immediate, change is the expiration of the 2% Payroll Tax Cut, a change obvious on every employee’s paycheck as of the beginning of the year. The former rate for employee social security tax withholding had been held at 4.2%; unless Congress acts to

Tax Changes continued on page 12

So just what did change, and how will it affect you in the coming year?

February 2013 • Independent Joe

Tax Changes continued from page 11 extend that lower rate, the new rate of 6.2% will stand. And while franchise owners didn’t cause this change, it certainly affects them, as employees question what happened to their paychecks. “I’m afraid to walk into my stores,” said one franchise owner. “My employees all want to know why they suddenly have less money in their paychecks. As you can imagine, they’re pretty upset.” It’s not easy to explain to workers, many of who make minimum wage, that the 4.2% rate was always meant to be temporary, that it was put in place back in December of 2010 as a “payroll tax holiday” designed to stimulate spending. It was only supposed to last one year, and was instead extended through December 2012. This money goes directly to the support of Social Security, which ultimately will go back to workers, hopefully,

when they retire. But that doesn’t matter right now, when it directly affects the amount they take home, which in turn affects how they feel about their jobs and their employers. Employers have until February 15, 2013, to implement this change, and until March 31, 2013, to correct any underwithholding. The rest of the changes – including the increase in the standard deduction and personal exemption – will only be seen once workers file their taxes for 2013, a whole year from now, meaning few will notice their tax benefits, instead only seeing the one liability. On February 11, New Jersey Governor Chris Christie vetoed a bill calling for a $1.25 increase in the state’s minimum wage and, instead, proposed a one dollar increase to phase in over three years. Franchise owner Shub Hegde, who was part of a delegation of local Dunkin’ Donuts franchisees that met with advisors to the Governor in Janu-

ary, says this is a much better outcome for small business owners. “We are still concerned over a proposed cost of living adjustment (COLA) tied to the minimum wage,” he said. “But we are happy with the Governor’s veto. I would rather the legislature consider a gradual increase, say, of .25 yearly,” says Hegde, “but a one time increase of that kind of number, I’ll end up losing a lot.” In a business where minimum wage is the norm, this kind of change is one all franchise owners have to pay attention to.

Future Planning One aspect of the new tax laws that hasn’t gotten as much press is the impact on the estate tax. At first glance, this may not seem as important as how you fill out your tax returns, but in the long run, it could have a sizeable impact on how you do your estate planning. Particularly if you own several stores. Tax Changes continued on page 15

Independent Joe • February 2013

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

Sprint 3 Van De Graaff Drive, Burlington, MA 01803 Caroline Fedele • caroline.fedele@sprint.com 781-367-1057 • www.sprint.com/ddifomembers

Cost Recovery

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

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

Cynthia A. Capobianco, CPA 60 Quaker Lane, Suite 61, Warwick, RI 02886-0114 Cynthia Capobianco • 401-822-1990 cynthia@capobianco.necoxmail.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

Energy

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

Jera Concepts - Order and Production Management Software 17 Fruit Street, Hopkinton, MA 01748 Wynne Barrett • wynne@jeraconcepts.com 508-686-8786 • www.jeraconcepts.com

Building

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

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 Centrix Bank & Trust 1 Atwood Lane, Bedford, NH 03110 Deborah Blondin • dblondin@centrixbank.com 603-589-4071 • www.centrixbank.com

Trane HVAC 225 Woldwood Avenue, Woburn, MA 01801 Jonathan Ralys • Jonathan.Ralys@Trane.com 781-305-1335 • www.Trane.com/commercial

Direct Capital Franchise Group 155 Commerce Way, Portsmouth, NH 03823 Robyn Gault • rgault@directcapital.com 603-433-9476 • www.franchise.lendedge.com

ViewPoint Sign and Awning 35 Lyman Street, Northboro, MA 01532 Bill Gavigan • billg@viewpointsign.com 508-393-8200 • www.viewpointsign.com

Fidelity Bank 465 Shrewsbury Street, Worcester, MA 01604 Sally Buffum • sbuffum@fidelitybankonline.com 508-762-3604 • www.fidelitybankonline.com

WatchFIre Signs 1015 Maple Street, Danville, IL Devon Mourer • devon.mourer@watchfiresigns.com 217-442-0611 • wwwwatchfiresigns.com

First Franchise Capital 2715 13th Street, Columbus, NE 68601 Karen Johnson • karen.johnson@firstfcc.com 402-562-5111 • www.firstfranchisecapital.com

Business Broker

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

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

GE Capital, Franchise Finance 201 Merritt 7, 2nd Floor, Norwalk, CT 06851 Christine Keating • christine.keating@ge.com 203-229-1804 • www.gefranchisefinance.com Infinity Franchise Capital 3154 18th Avenue, Suite 3, Columbus, NE 68601 Sharon Soltero • ssoltero@infinityfranchise.com 402-562-1801 • www.infinityfranchisecapital.com Joyal Capital Management Franchise Development 50 Resnik Road, Plymouth, MA 02360 Daniel Connelly • dconnelly@joycapmgt.com 508-747-2237 • www.jcmfranchise.com

Sponsors continued on page 14

Thank You to Our Sponsors! February 2013 • Independent Joe

Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org Merchant Cash & Capital 450 Park Avenue South, 11th Floor, New York, NY 10016 Seth Broman • sethb@merchantcashandcapital.com 212-545-3185 • www.merchantcashandcapital.com NFA Restaurant Finance 400 E. 22nd Street, Suite A, Lombard, IL 66148 Larry Howard • lhoward@nfaloans.com 205-871-8450 • www.nfaloans.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

Priority Capital 174 Green Street, Melrose, MA 02176 Brian Gallucci • bgallucci@priotiycapital.com 800-761-2118 Ext 14 • www.prioritycapital.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

Susquehanna Commercial Finance 2 Country View Road, Suite 300, Malvern, PA 19355 Brian Colburn • brian.colburn@susquehanna.net 443-996-1792 • www.susquehanna.com

Employers Reference Source 1587 Hamilton Avenue, Waterbury, CT 06706 Sandra Fabrizio • sandra@employersreference.com 888-512-2525 • www.employersreference.com

TCF Franchise Finance 300A Lake Street, Suite B, Ramsey, NJ 07446 Mike Vallorosi • mvallorosi@tcfef.com 201-818-2700 • www.tcfef.com

Gecko Hospitality 1415 West 22nd Street, Tower Floor Oakbrook, IL 60523 Robert Krzak • robert@geckohospitality.com 630-390-1000 • www.geckohospitality.com

TD Bank 40 Danbury Road, Wilton, CT 06857 Brian Frank • brian.frank@td.com 203-761-3818 • www.tdbank.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

A Partner You Can Count On

Granite Payroll Associates 176 Granite Street, Qunicy, MA 02169 Marco Schiappa • marco@granitepayroll.com 401-263-7921 • www.granitepayroll.com Gulpfish.com 1005 Main Street, Pawtucket, RI 02860 Ilya Reikhrud • ceo@gulpfish.com 800-974-4514 Ext 101 • www.gulpfish.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

Hot

Winter Beverage Dispenser

• Single-serve or BOX-O-JOE dispense options • Rich, frothy drink quality • Sturdy, all-metal auger system

Snagajob 4851 Lake Brook Drive, Glen Allen, VA 23060 Erin Brumfield • ebrumfield@snagajob.com 804-822-4604 • www.snagajob.com/employer-solutions

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

Sponsors contIinued on page 22

TRUST • SUPPORT • PROFIT www.bunn.com

Independent Joe • February 2013

Dunkin Ad.indd 1

2/1/13 3:56 PM

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.

Tax Changes continued from page 12 It’s never pleasant to think about what will happen to your assets once you die, but if you own multiple shops, it’s worth your while to do some planning. Otherwise, everything you’ve worked for can get swallowed up in red tape instead of going to your heirs. First, a little background: in 2001, President George W. Bush enacted legislation to change the estate tax laws. Over the past twelve years, the federal cap on the amount that could pass tax-free to heirs has fluctuated from $675,000 up to $5 million in 2010. The uncertainty around how that number might change in 2012 caused some people to rush to make tax-free gifts before the new year began. All that has changed, with a permanent estate tax fix beginning in 2013: every individual now gets an estate tax exemption of $5.25 million per person, or a total of $10.5 million per married couple.

2013 Tax Changes Affecting Your Employees CHANGE

NEW

OLD

Standard Deduction

$6,100 for individuals

$5,950

$12,200 for married couples filing jointly

$11,900

Personal Exemption

$3,900

$3,800

Alternative Minimum Tax

$51,900 $80,800 for married couples filing jointly

$50,600 $78,750

Earned Income Credit Maximum

$6,044 for taxpayers w/3 or more children

$5,891

Transit Pass and Transportation Exclusion

$245

$240

Here’s the deal: it used to be, if you died, your heirs could inherit up to $5.125 million before having to pay a federal tax on the money. If you owned several Dunkin’ Donuts franchises, your estate could easily be worth more than that, meaning your heirs would now be paying taxes on money you’ve already paid taxes on, through your years of earning profits and running a business. Now, with the new, permanent limit of $10.5 million per married couple, you have a much bigger cushion of how much you can leave to your children without needing to be concerned about the IRS wanting their share. You also can be fairly certain about this amount going forward, making estate planning that much less worrisome. Of course, the new law also increases the highest tax rate, so any amount over the $10.5 million will now be taxed at the higher rate of 40%, versus 35% last year.

“That’s great news.” Seth Ellis is an estate planning attorney with a number of Dunkin’ Donuts franchise owners among his clients; he sees this new limit affecting, and ultimately protecting, almost every owner. “It allows them to transfer real estate and assets to family, etc., without worry about an IRS audit,” says Ellis. “That’s great news.” Ellis feels that this legislation will give franchise owners the incentive to take action and make future plans for their assets. “By creating trusts for the benefit of their spouse and children, they can lock in their money and allow appreciation going forward,” he says. “They can have their cake and eat it, too.”

DDIFO SPONSOR ADVERTORIAL

R.F. Technologies, Inc. (RFT) provides Dunkin’ Donuts franchisees with complete The law firm of Paris Ackerman & Schmierer defends drive-thru communication systems asfranwell chisees in litigation filed by Dunkin’ Brands; provides legal as digital surveillance solutions, music and counsel on succession planning, protectionthe and estate TV and digital menu boards. Two asset new products, Protecplanning; and has headset handled skin tensand of millions of dollars of acquitive DuraGuard™ the UniListen listen-only sitions and sales of Dunkin’ networks. device, are now available. “We company are intimately familiar with the franchise agreement and The is committed to supporting its customers’ have a firm grasp on a number of the legal and needs and offers 24-hour free technical support.operational RFT issues that Dunkin’ DonutsGreenwood franchiseessays face.the Ourcompany positioning Creative Director Michelle is and experience with the Brand allows us to provide unparalproud of the praise it receives. “Franchisees are amazed to leled legal services in an efficient and cost-effective manner,” see a headset back from repair in just three days. They also said founding partner David S. Paris. love dialing one number for customer service and hearing a real person on the undertakings, other end of the of all, they Among its current thephone. firm is Most handling 1031 enjoy significant pricefranchise savings we offer.”selling their netasset the exchanges, where owners works can defer paying taxes on their gains. DDIFO members are eligible for RFT’s affordable no-contract monthlyoffers maintenance program. MultiParisUnlimited AckermanRepair & Schmierer free consultations and store ownersrates can to enroll in the multi-store program discounted DDIFO members, andsavings is beginning a and receive up toin20% savings on parts. in both of program where, certain situations, it willEnrollment rebate a portion clients’ legal fees to be applied toward DDIFO memberships. programs is free.

For Sales Formore moreinformation, information,contact contactNational David Paris Manager Mark Sullivan at marks@rftechno.com at David@paslawfirm.com or (973) 228-6667, or 874-495-7400, or visit www.rftechno.com. or visit www.paslawfirm.com

Or their donut, as the case may be. February 2013 • Independent Joe

For Your Digital Menu Board Upgrades!

No Money Down and 90 Day Deferred Payments*! Direct Capital®, a national direct franchise lender, has teamed up with Dunkin’ Donuts® to offer franchisees a competitive “express” finance program for Digital Menu Board upgrade!

• Online Processing: Same day online approvals and electronic documentation! • Project Management: Upon receipt of final e-documents, Direct Capital® will coordinate order placement, payment and shipment! • Low Monthly Fixed Payments: For 24–60 months • 90 Day Deferred Payments: Defer your regular finance payment for up to 90 days*!

Express Funding for New Projects Quickly access funds for new projects (including new stores and remodels) with a simple one page schedule to your existing finance agreement!

For instant online approvals visit: http://DD.LendEdge.com or call an account specialist: 877-782-9293 Direct Capital Franchise Funder Franchise Financing

Follow us for special offers and industry news. *All programs and offers are subject to final credit approval by Direct Capital®. Applications must be processed through LendEdge by 12/2013. Processing fee of $125/location is financed with 90 day deferred payment optionavailable for $25/fee per month. Finance options are available for remodel projects and new store projects under a separate finance program. Please contact Direct Capital® for eligibility and program terms. Dunkin’ Brands® trademarks and logos are registered trademarks of Dunkin’ Brands® and used with permission.

Independent Joe • February 2013

Bares continued on next page

New Franchisee Prepares to Open Nebraska’s First Dunkin’

by Betsy Lawson

Bares says he has felt welcomed into the Dunkin’ franchisee community, and that DDIFO has given him the opportunity to connect with others in the business. Bryce Bares with his wife, Sara, and their two children. The Nebraska native is opening his first Dunkin’ Donuts shop in the Omaha suburb Papillion. Below, walkers take advantage of one of Papillion’s many nature trails

Bryce Bares is returning to his home state of Nebraska and he’s bringing Dunkin’ Donuts with him. “Several DDIFO members have told me that there’s never been a better time to be with the brand, and I believe them. Dunkin’ has been running television ads in my territory and building brand recognition even before I signed on,” Bares said. His first store is under There’s a lot of buzz construction in Papillion, in Nebraska about a burgeoning suburb of 20,000 - and growing - Dunkin’s re-entry about 20 minutes south into the market west by car of Omaha. But he’s set a goal of opening nine restaurants in the next five years. His territory includes part of Omaha, its southern suburbs, Lincoln (the state capital), and several rural communities along Interstate 80. Encouragement from friends and family, as well as several DDIFO members, has played a large role in his decision to put his experience as a practicing attorney to the entrepreneurial challenge of running a franchise operation. “There’s a lot of buzz in Nebraska about Dunkin’s re-entry into the market,” he said. Bares attended the Multi-Unit Franchising Conference last year and met former DDIFO Executive Director Jim Coen who introduced him to a number of experienced franchisees. Coen recommended Bares join DDIFO and attend last Bares continued on page 19 February 2013 • Independent Joe

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Limited time offer. Not available in all areas. Limited to Starter Internet and Business Class Voice service and service to a single outlet. Minimum 2 year contract required. Early termination fee applies. Custom installation charges may apply. Equipment, installation, taxes, franchise fees, the Regulatory Recovery Fee and other applicable charges (e.g., per-call or international charges) extra. May not be combined with other offers. Equipment required ($5/month). Internet: Actual speeds vary and are not guaranteed. Voice: $24.95 activation fee (per line, up to 4 lines) fee applies. Service (including 911/ emergency services) may not function after an extended power outage. Call clarity claim based upon August 2010 call clarity analysis by Tektronix. Call for restrictions and complete details. Comcast © 2012. All rights reserved.

Independent Joe • February 2013

Bares continued from page 17 September’s National Conference at Mohegan Sun. Bares says he felt welcomed into the Dunkin’ franchisee community, and that DDIFO gave him the opportunity to connect with others in the business. He believes it will be an invaluable resource as he begins the process of launching his first shop. Things are already in motion. The site is under construction and slated to open later this spring. Bares will attend Dunkin’ Brands University in February/March and then make the move from Chicago back to Nebraska. He’ll prepare the way for his wife, Sara, and two small sons to follow in June. “Sara is a physician who will be joining the faculty at University of Nebraska Medical Center in Omaha,” Bares said, but unlike him, she’s a native New Yorker. Omaha and its surrounding suburbs have been growing in recent years despite the recession, in part because of Offutt Air Force Base and that many multinational corporations set up regional headquarters in Omaha. They include Berkshire Hathaway, ConAgra Foods, and TD Ameritrade. Boston-based Fidelity Investments is building a $200 million data center in Papillion that is scheduled to come online in 2014. Having so many transplants in the area is good for business because Dunkin’ is a known - and welcome - brand for many. And Bares is no exception. He developed what he

The Papillion Days Parade is a local tradition dating back to 1947. The annual June event is sponsored by the Papillion Community Foundation.

Mayor David Black (left) encourages business owners to be active members of the community.

calls a “healthy addiction” to Dunkin’ coffee while an undergrad at Amherst College in western Massachusetts and then as a law student at Boston College. After earning his J.D. in 2004, he moved to Columbus, Ohio, to work as an attorney. He provided counsel on various facets of labor and employment law to businesses of all sizes, including several Fortune 500 companies and QSR chains. He then advanced to the role of corporate counsel serving as business advisor

to a small software start-up, providing legal opinions of various industry issues. Columbus is a well-developed Dunkin’ market. But Bares had the entrepreneurial spirit. He moved to Chicago (another Dunkin’ stronghold) in 2006 and opened his own law firm, where he advised individuals and businesses in corporate formation, compliance, and employment law. He got noticed by city officials and was hired three Bares continued on page 20

Cover Photos: Bryce Bares, photographed at Chicago Midway airport, is moving back to his roots to open his first Dunkin’ Donuts. Bares meets with restaurant manager Jeff Albertson. February 2013 • Independent Joe

Bares continued from page 19 years later as assistant corporation counsel for the City of Chicago’s Department of Law within its Finance and Economic Development Division. “Working for municipal government and watching the planning and development process from the inside has helped me work with local governments in Nebraska. It taught me to reach out to municipalities early, and to show them how a development will benefit the community. “While a new Dunkin’ Donuts may not mean much to Chicago in terms of economic impact, it means a lot to most of the communities in Nebraska. So far, we’ve been welcomed with open arms,” Bares said.

Going Home

Papillion, 2 miles southwest of Omaha, is growing rapidly thanks to the region’s diverse economic base. Nine colleges and universities are located within 20 miles of here.

Nebraska has enjoyed a relatively low unemployment rate of around 3.7%, compared with other parts of the country, such as Chicago which hovers closer to 10%. Finding and retaining employees is one of Bares top concerns. But his location in Papillion is a good one. There are nine colleges or universities

within a 20-minute drive as well as a high school in close proximity. All are excellent sources for workers looking for part-time hours. So, too, are military spouses who are looking for supplemenHaving a brand with national name tal income when they first relocate to Offutt recognition is a huge advantage. Air Force Base. Each branch of the US military is represented among the approximately 10,000 military and federal employees assigned there. His store will be located in an endcap on a new four-bay strip center across the street from a major commercial development that will include a number of national chains.

Sweet insurance solutions for Dunkin’ Donut franchise owners Our exclusive insurance program offers Dunkin’ Brands franchise owners peace of mind for property and casualty, workers’ compensation, equipment breakdown, foodborne and airborne illness, and other commercial risks. Our program offers: • Pre-negotiated, exclusive rates • Pay-as-you-go options for workers’ compensation • Packages that are fully compliant with strict franchise operating agreements

In terms of the current competition, Bares believes his store will offer a better product and a better price point. Starbucks is in Nebraska. But so, too, is Scooter’s Coffee & Yogurt that opened its first store in Bares’ hometown of Bellevue, which borders Papillion. Offering drive-through service for coffee and smoothies, the franchise has expanded to more than 90 stores in seven states with the goal of exceeding the 100-store mark in the near future.

Count on us for tailored insurance strategies that help safeguard your business, employees, and guests.

Having a brand with national name recognition, however, is a huge advantage, Bares said. It’s an advantage both from a hiring standpoint as well as welcoming in new customers who grew accustomed to Dunkin’ products where they used to live.

Wells Fargo Insurance Services USA, Inc. Mark D. Stokes 813-636-5301 mark.stokes1@wellsfargo.com

And then there are the old-timers from Nebraska who remember when Dunkin’ had presence there many years back.

Products and services are offered through Wells Fargo Insurance Services USA, Inc., and Wells Fargo Insurance Services of West Virginia, Inc., non-bank insurance agency affiliates of Wells Fargo & Company. ©2013 Wells Fargo Insurance Services USA, Inc. All rights reserved.

Independent Joe • February 2013

013113AMd_Dunkin_Donuts_ad.indd 1

1/31/2013 3:40:24 PM

“Even those who have never tried Dunkin’ Donuts know the brand. They are excited to try it. For those who tried the product back when Dunkin’ was in Omaha, it will be almost an entirely new experience with the expanded menu offerings and the refinement of operations over the last 20 years.” Bares continued on next page

Bares continued from page 20 Bares’ parents still live in his hometown of Bellevue. “I still have many, many long-time friends in the area,” Bares said. “This is a community where reputation matters. Everyone knows each other.”

Bares said he’s looking forward to it. “In Nebraska, both business and personal success are tied heavily to community involvement. Papillion is an amazing community, and we can’t wait to give back in whatever we way we can.”

Within three weeks of being open, that franchise owner was an integrated member of the community, Black said. “We have a healthy business culture … [and] a high level of cooperation, trust, and support of residents for businesses here,” Black said. But the expectation goes both ways, he said. Business owners are expected to

He imagines former teachers, teammates, and neighbors coming up to the counter. Bares said everyone has been very welcoming and enthusiastic about Dunkin’ coming and there has been a lot of Mayor David Black said Papillion cooperation from the town’s is a tight-knit community, but business and civic leaders. David Black is the city’s mayor, though his full-time day job is at a local bank.

welcoming to newcomers.

“I want Dunkin’ in Papillion,” Black said, adding that he remembers the brand from when he was a kid. “If you’re coming into Nebraska, I want you coming through Papillion.” And he means it. When Atlanta-based Chick-fil-A was looking to enter the Nebraska market, it chose Papillion.

give back by going into the schools, helping with the food pantry, and overall “being a part of the community.” It’s a tight-knit community, Black said, but welcoming to newcomers. “Business owners are part of the community and they are valued. Bryce is going to be part of that.”

5th location. Done deal.

ity! n i f n I s k Than

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February 2013 • Independent Joe

Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org

Sponsors continued from page 14

Insurance

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 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” Vernis & Bowling of Palm Beach, P.A. 884 US Highway One, North Palm Beach, FL 33408 Tammy Bouker • tbouker@national-law.com 561-775-9822 • 561-775-9822 • www.national-law.com 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

Operations 3M Company Bldg. 223-2N-20 St. Paul, MN 55144 Jim Sinclair • jwsinclair@mmm.com 650-736-3836 • www.3m.com/xt-1 3 Wire Group, Inc. 101 Broadway Street West, Osseo, MN 55369 Derek Knapp • derek.knapp@3wire.com 518-563-3200 • www.3wire.com Access to Money ATM, Inc./Cardtronics 628 Route 10 - Suite 8, Whippany, NJ 07981 Doug Falcone • dougf@accesstomoney.com 973-599-0600 • www.accesstomoney.com Belshaw Adamatic Bakery Group 814 44th Street NW, Suite 103, Auburn, WA 98001 Fran Kauth • fran_kauth@belshaw.com 206-718-3573 • www.belshaw-adamatic.com 22

Independent Joe • February 2013

Bunn-O-Matic Corporation 1400 Stevenson Drive, Springfield, IL 62703 Todd Rouse • Todd.Rouse@bunn.com 800-637-8606 • www.bunn.com Cashmaster Cash Solutions 2108 Trving Blvd., Dallas, TX 75207 Jayson Dunston • jdunston@cashmaster-us.com 214-747-1982 ext. 2 • www.cashmaster-us.com Delphi/Fast Track 2+2 Drive-Thru Timer 3500 West Moore Avenue, Suite M, Santa Ana, CA 92704 Mike Pierce • mike@phaseresearch.com 714-850-1320 • www.fasttracktimer.com DTT Surveillance 1755 North Main Street, Los Angeles, CA 90031 Mira Diza • mdiza@dttusa.com 800-933-8388 • www.dttusa.co Ecolab 8300 Capital Drive, Greensboro, NC 27409 Arliene Bird • arliene.bird@ecolab.com www.ecolab.com/Businesses/ eCube 5 Cold Hill Road, Building 20, Mendham, NJ 07945 Cardie Saunders • cardie.saunders@getecube.com 888-99-ECUBE • www.getecube.com Grainger 100 Grainger Parkway Lake Forest, IL 60045 Valerie Jenkins • valerie.jenkins@grainger.com 503-887-6775 • grainger.com

Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org Hi-Tech Sound 53 Brigham Street, Unit 8, Marlborough, MA 01752 Gary Hanna • gary@hitechsound.com 508-624-7479 • www.hitechsound.com

SKAL East, Inc PO Box 303, 31 Eastman Street, Easton, MA 02334 Kevin Huerth • kevin@skaleast.com 508-238-0106 • www.skaleast.com/index.cfm?keyword=dunkin

HME Drive-Thru Headsets 14110 Stowe Drive, Poway, CA 92064 Brady Campbell • bcampbell@hme.com 858-535-6034 • www.hme.com

SureShot Dispensing Systems 100 Dispensing Way, Lower Sackville, NS, Canada B4C 4H2 Steve Robert • srobert@sureshotdispensing.com 905-827-4415 • www.sureshotdispensing.com

HS Brands International 500 Myles Standish Boulevard, Taunton, MA 02780 Michael Mershimer • mike@mershimer.com 800-723-1150 • www.hsbrands.com

TredSafe/WalMart 450 West 33rd Street, New York, NY 10001 Ted Travis • ttravis@esoriginals.com 909-949-0495 • www.walmart.com

Jarrett Services ATM, Inc. 1315 Stelton Road, Piscataway, NJ 08832 Eric Johnston • ej@jarrettforcash.com 732-572-0706 • www.jarrettforcash.com

UAS Security Systems 700 Abbott Drive, Broomall, PA 19008 Chris McGurk • chrismcgurk@uas.com 800-421-6661 • www.uas.com

LED Source 402 Knights Run Avenue, Suite 150, Tampa, FL 33602 Haitham Charles • hcharles010@ledsource.com 813-279-2099 • www.ledsource.com

Waste Management 107 Silvia Street, Ewing, NJ 08628 JoAnn Bradbury • jbradbury@wm.com 215-378-1417 • www.wm.com

Macdonald Restaurant Repair Service, Inc. PO Box 61, 83 Pond Street, Norfolk, MA 02056 Mark & Debi Macdonald • debi@macdonaldcompany.com 508-384-9361 • www.macdonaldcompany.com

Tax Deferred Exchange

Mint-X Corporation 2048 199th Street, College Point, NY 11356 Amie Yee • ayee@mint-x.com 877-646-8224 • www.mint-x.com Muzak 3318 Lakemont Boulevard, Fort Mill, SC 29708 Joanna Barrett • joanna_barrett@muzak.com 803-396-1656 • www.muzak.com

Exchange Authority 9 Leominster Connector, Suite 1, Leominster, MA 01453 Marie Dias • mdias@exchangeauthority.com 978-433-6061 • www.exchangeauthority.com

Thank You to Our Sponsors!

New England Drive-Thru Communications 12 Wildwood Road, Auburn, NH 03032 Angela Bechard • angela@nedrivethru.com 888-966-6337 • www.nedrivethru.com

“Our late-night business has grown from 0.4% to 4% of sales. It’s a HUGE increase.” – Matthew Tenore, Dunkin’ Donuts® Brockton, MA

Paramount Restaurant Supply Corp. 101 Main Street, Warren, RI 02885 Jeffrey Cartier • jcartier@pararest.com 401-247-6500 • www.pararest.com Payless Shoe Source 3231 SE 6th Avenue, Topeka, KS 66607 Matt Lemke • matt.lemke@payless.com 785-368-7530 • www.payless.com R.F. Technologies 542 South Prairie Street, Bethalto, IL 62010 Jennifer Morales • jenm@rftechno.com 618-377-4063 ext. 121 • www.rftechno.com Register Tapes Unlimited 1268 Bella Vista Circle, Longwood, FL 32779 Michael Curtin • michael.curtin@rtui.com 203-240-4121 • www.rtui.co Silver King 1600 Xenium Lane North Plymouth, MN 55441 Chris Lyons • lyonsc@silverking.com 630-462-4906 • www.silverking.com

Dunkin’ Donuts® is a registered trademark of Dunkin’ Brands Group, Inc.

New England Repair Service - a div. of New England Coffee Co. 100 Charles Street, Malden, MA 02148 Jerry Brown • jerry.brown@necoffeeco.com 781-873-1536 • www.nerepairservice.com

Watchfire LED signs

can help you grow sales 10% or more. Get a FREE content preview at watchfiresigns.com/my10percent February 2013 • Independent Joe

Phoenix continued from page 6

hub and spoke facility.” The challenge right now is to find the right mix of product and ways to make deliveries more efficient while getting product to stores within their time frame, he said. Mellifont points out that some vendors have not started delivering products directly to Phoenix so those products

have to be shuttled from Mokina. With the assistance of Regina Troglia, Dunkin’s district manager for Phoenix restaurants, and her managers, deliveries are checked and any shortages are immediately communicated to Besnyi and his team so product can get to the restaurants.

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Independent Joe • February 2013

Comcast Business Services is working hard to give Dunkin’ Donuts franchise owners superior communications tools. Working with the National DCP, Comcast developed a program to give franchisees discounts on Business Class Internet, Business Class Voice and Business Class TV, aimed at streamlining operations and improving the guest experience. “Our Business Class Internet enables store applications such as PoS, security cameras and digital menu boards with premium speeds that allow for application growth. Our Voice service includes unlimited local and long distance calling, a money-saving alternative to the phone company. And our Cable TV service allows Dunkin’ Donuts guests to watch the news and their favorite shows while enjoying their morning coffee,” said Jamie Gertsen, National Account Manager for Enterprise Accounts. With Comcast Business Services, individual DDIFO members have the opportunity to leverage the larger buying power of Dunkin’ Donuts shops nationwide, and the provider’s Dunkin’ Donuts National Account Team offers special pricing for franchisees... For more information, contact the Dunkin’ Donuts National Account Team at Dunkin_NationalSales@cable.comcast.com or 866-407-6338

Mosaic continued from page 9 together before, and were featured in Muncy’s juried art show in the fall of 2011. In fact, they have done mosaics for other buildings, finding them a good art choice for restaurants especially because the tiles are easy to clean. Mosaics are made up of hundreds or thousands of tiles, ranging in size from about an inch to five inches, each one painstakingly painted and coated with clear glaze, one tiny piece of the picture at a time. Creating art this way takes time; the piece for the Muncy shop took four months. Bower wanted the artwork to weave in the history of the area, complementing his other pieces, and so the artists focused on a canal scene. Long before the railroad went through this area, canals were the preferred method for hauling goods long distances. The central theme of this mural is a canal boat being pulled by donkeys, but the overall mural is so much more.

A copy of a 1852 painting of Muncy Valley hangs over the mantle. This was the first time in 160 years that the local historical society allowed someone to make a copy.

“It has lots of flowers and animals of all kinds, in vibrant colors,” Bower said. “It’s meant to be historical but engaging; something you could look at for hours,” perfect for enticing people in to linger over coffee, with a whimsical quality that makes it appealing for kids as well as adults.

Blazing a Trail But Bower wasn’t done connecting with the community. His construction was overtaking the area his shop shared with a local gas station; to entice people to keep frequenting the station, Bower offered to supply the coffee. Even better, he tied it into a local fundraising project headed by the historical society, the same one that provided him with all the great artwork for his store. The town needed money for a nature trail and boat dock they were building down by the river. Since the new mural would be a depiction of this area when it was still a canal, it was a perfect tie-in to let people know, while they were buying gas and getting their free coffee, that they could donate to the renovation of the same area. Bower and the gas distributor would then match those donations up to $10,000. Much to everyone’s surprise, people donated $10,000, which Bower and the gas distributor matched, for a total donation to the town of $20,000. The town itself then came up with another $16,000, and that new amount - $36,000 - doubled in value as a result of a govern-

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Mosaic continued on page 26 February 2013 • Independent Joe

Mosaic continued from page 25 ment match. Bower says the $72,000 collected for the project really came about because they were giving away free coffee.

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This is what Bower loves: connecting with the people and the customers. To that end he provides fresh donuts all day and all night. His store sales at 3 pm and 6 pm are completely different, and better, than many other stores. “I know I’m not going to make as much money,” he said, “but overall I will have higher sales.” That’s evident by the reaction from customers, all of whom have been positive about the shop. By connecting with the town, and the historical society, as they were building, Bower and his crew created a place that people were excited to see open.

New Owner; Same Vision

index ®

9 12 10 14 18 16 26 24 27 26

Independent Joe Advertisers Access to Money ATM, Inc./Cardtronics Adrian A. Gaspar & Company, LLP Bright House Network Bunn-O-Matic Comcast Business Services Direct Capital Franchise Group Exchange Authority Fidelity Bank HyperActive

Independent Joe • February 2013

21 28 5 8 6 23 20 2

Infinity Franchise Capital Joyal Capital Management, LLC Performance Business Solutions RF Technologies Sprint WatchFire Wells Fargo Insurance Services The WiFi Company

Before he completely finished construction, Bower decided to sell: it was time for him to retire. But it wasn’t in him to sell to just anyone; he wanted someone who was as committed to community as he was. And after going through countless people who wanted to buy, he found his perfect match in Jerry Forger. Forger took over the shop and finished the work Bower had started. Forger is no stranger to Dunkin’ Donuts, owning seventeen stores before this one. He loved what Bower was doing with this store, in part because it’s similar to things he’s done in his other locations. Their philosophies are strikingly similar, so much so that they finish each other’s sentences. And he echoes Bower’s sentiment that it’s the connection to community that makes stores like this one so successful. “The reality is, we all go through ups and downs in society,” said Forger. By being the level, steady guy in the community, “we may not get big ups and downs, but we’ll be part of the fabric of the community. “We’re stewards for the community.”

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