DailyFranchiseNews.com

Later in Life is Perfect Timing for This Entrepreneur

Rhonda Sanderson — 2009-11-09T17:01:20-06:00

Having to find a new job in this economy isn’t easy so consider taking a page from Rob Allen’s book and starting your own business!

Portfolio.com reported that Allen shifted careers four years ago from the telecommunications business to auto transport logistics in Atlanta. When he was laid off in August 2008, he hadn’t built up enough of a record in his new field to edge out the competition, and his telecom experience was too far behind him. So after what he suspected had something to do with age discrimination in failing to land job interviews, he plunked down for a franchise business to run and bought a ShelfGenie outpost. Now 58, Allen is enjoying the autonomy that comes along with owning a business and having full control over his future.

Older workers have crafted their own recovery plans as the job market leaves them few options. Although workforce data show that older workers are faring better in many cases than their younger counterparts, those who do find themselves on the street are often shell-shocked. According to a study released September 29 by AARP, this group has growing concerns about their ability to pay the bills—and the ability to exit the workforce. More of them expect to keep working, when they had previously set their sights on retirement. An ongoing study by the University of Michigan, the 18-year Health and Retirement Study, reported an uptick in the number of older workers who expected they’d keep working past ages 62 and 65.

Happy Holidays…Grab a Gift Card!

Rhonda Sanderson — 2009-11-05T13:12:32-06:00

Instead of braving the crowds the week before, snatch up that perfect holiday gift for yourself early courtesy of First Watch: According to Chain Leader, all 80 First Watch daytime cafe locations will offer patrons $20 in Bonus Bucks for every $100 gift card purchase from November 16th through December 24th.

"Everyone likes to treat themselves and that can be difficult around the holidays. By receiving an extra $20 to First Watch, customers can enjoy coming to our restaurants without spending any more money,” said Chris Tomasso, First Watch’s chief marketing officer. “The gift card program is a great way to boost traffic in the first quarter as a result of the bounce back element inherent in the promotion. Our customers really like the fact that they actually get money 'back' to use at their favorite breakfast, brunch and lunch spot -- it's like a little gift for themselves."

First Watch is the largest and fastest-growing, privately owned, daytime-only restaurant chain in the United States. First Watch specializes in unique breakfast, brunch and lunch creations, all freshly prepared to order. Of its 80 restaurants in 11 states, three are franchised and four are licensed and future growth is expected to come from key multi-unit, regional franchises to experienced restaurateurs in new markets in 35 states throughout the continental U.S. Three additional company-owned restaurants are expected to open in 2009 and by the end of 2012; First Watch expects to grow to 110 restaurants, with about a dozen franchised locations open and more than 30 in various stages of development.

The Triangle Ups its Value

Rhonda Sanderson — 2009-11-05T10:28:53-06:00

Though many lodging chains have limited or ceased expansion in the past year, Value Place is taking the exact opposite approach.

The News & Observer reported the Wichita-based chain is calling for 500 properties to be built over the next five years – six of which will be in the Triangle area but over the course of 10 years. The first area Value Place will open in Apex in January. That the plans of the Wichita, Kan.-based company have not been scaled back because of the recession speaks to Value Place's no-frills business model. For about $200 a week, plus a $100 damage deposit, Value Place guests get a clean, safe place to stay and not much else. The approach has proven attractive at a time when corporations are slashing travel budgets and more people find themselves in housing limbo because they have relocated but can't sell the home they left behind or simply because they are out of work.

"A lot of apartment dwellers don't want to commit to another year lease because they don't know where there job is going," said Gina McKee, Value Place's vice president of franchise development. McKee said occupancy rates across Value Place's 160 properties have remained about 80 percent during the recession. She also revealed that the Triangle market is attractive because of the large number of business travelers coming for extended visits and because so many people are moving into the area.

Carter Rise, a franchisee in Richmond, Va., who hopes to start construction on a Value Place on Capital Boulevard in Raleigh early next year, said the brand fits the current economic environment. "You get basic, ultra-clean, very safe lodging in a comfortable but not ostentatious room with minimal amenities," he said.

We Have a Winner!

Rhonda Sanderson — 2009-11-05T09:15:28-06:00

We previously mentioned Cousins Subs’ Facebook Halloween Costume Contest, where individuals could submit photos of themselves in costume in hopes of winning $500 and free subs for a year. Well, a winner has been announced!

The Baraboo News Republic reported Baraboo resident Toby Thums and his fiancee, Denise Siedschlag, walked away with the grand prize in the nationwide contest for their costumes as a headless bride and groom. Toby and Denise had a picture snapped of their gruesome getups at a friend’s private Halloween party in Baraboo and then submitted the image through the social networking site for consideration.

Competition judges were won over by the creativity and entertainment value of Toby’s costume, said Justin McCoy, senior marketing manager at Cousins Subs. "One of the things I liked about his costume was that it looked like it was really homemade," McCoy said. "It just drew our attention the moment he posted it." Henry Martinez, who owns the local Cousins Subs on South Broadway in Baraboo, got his first glimpse of the costume Wednesday. "I think it was pretty incredible," he said.

Photo: Toby Thums and Denise Siedschlag in their winning costume.

Dry Cleaning Station Gets Martinized

Rhonda Sanderson — 2009-11-04T14:13:46-06:00

Martinizing has been the gold standard in dry cleaning since its inception in 1949 and is expanding its presence further with the recent acquisition of Minneapolis-based Dry Cleaning Station.

American Drycleaner reported that according to Jerry Laesser, Martinizing’s vice president of marketing and development, it’s anticipated that a combination of 10 Dry Cleaning Station full-service plants will initially convert to the Martinizing brand in four markets, including Denver; Southern California; Tulsa, Okla.; and Minneapolis, with other markets to follow. Martinizing will expand its brand into new markets and rebrand existing Dry Cleaning Station locations as Martinizing centers; stores in markets with existing Martinizing locations will retain the Dry Cleaning Station name.

“People may be cutting back on luxuries, but they will never give up their dry cleaning,” said Laesser. “By joining forces with Dry Cleaning Station, Martinizing is giving its customers the confidence that they will receive the best service possible at all times.”

Photo: Martinizing's Jerry Laesser.

Innovation in Franchising

Rhonda Sanderson — 2009-11-02T14:20:39-06:00

Did you know that McDonald’s Big Mac and Filet-O-Fish wouldn’t exist today if it weren’t for some creative franchisees? AllBusiness.com did and recently set out to find if franchising and innovation go together like two all beef patties, special sauce, lettuce, cheese, pickles, onions and a sesame seed bun.

“Some franchisees, and some franchise systems, are more effective when franchisees can innovate,” says John Hayes, a franchise consultant, former franchisee and franchisor, and author of several franchise-related books. “More often, however, when franchisees have to search for answers or experiment, the results are likely to be frustrating and quite often the franchisees lose money. Innovation belongs to the franchisor and it's the responsibility of the franchisor.” However, that’s not to say that innovation on the franchisee level hasn’t happened successfully. In fact, franchisee input was the driving force behind the aforementioned McDonald’s menu items as well as Domino's Pizza’s new American Legends pizza line and line of breadbowl pastas which was developed and tested by a Los Angeles franchisee. At WSI, an Internet consulting franchise, innovation is so highly valued that an international excellence and innovation conference is held annually to recognize franchisees who have provided internet marketing solutions in their local markets around the world. In addition, Ron McArthur, president of the franchise, personally meets with the top 30 revenue producing franchises eight times a year to discuss ideas. And 90 percent of the products and services within the WSI e-marketplace have come from franchisees. “New franchisees are trained on the basics of business but innovations are introduced on a quarterly basis to ensure that we are offering the latest and best internet marketing processes to end clients that deliver results,” says McArthur.

There’s an old adage that says two heads are better than one. If that’s true, then it naturally follows that hundreds or thousands of people can make one system run better than just one. But be sure to first research what policy the franchisor has in place for accepting new ideas and then, only after you’ve demonstrated that you can follow the system at hand, introduce your idea. Because, when it comes to innovation, not everyone sees it in the same light.

Photo: Ron McArthur of WSI.

Catering Continues to Create a Buzz

Rhonda Sanderson — 2009-11-02T10:15:30-06:00

Ladies and gentlemen, the holiday season is officially upon us and with it, an interesting statistic from foodservice consultants Technomic: More than 40 percent of consumers are buying platters or prepared food for holidays and celebrations. QSR reported that while the recession has continued to take its toll on the restaurant industry, Technomic’s study revealed a potentially vibrant market that has gone largely untapped in the quick-service sector – catering – a promising growth opportunity for quick-service outlets both large and small in the coming years. The study suggests there is a shift in consumer behavior, as the home is replacing the restaurant as the central meeting place for social gatherings. And it appears quick-service owners and operators are already beginning to adjust to the trend including Wingstop, Bruegger’s Bakery Café, Jersey Mike’s Subs, Panchero’s Mexican Grill and Cousins Subs.

Panchero’s launched its first catering program in April and has resulted in shifting the responsibilities of workers in an effort to minimize the added stress of taking large, bulk orders. “The biggest challenge for us was that we wanted to keep things the same. We didn’t want managers running around all day trying to deliver catering orders,” says Jay Hochenedel, Panchero’s director of operations. “This meant being a little more organized and shifting responsibilities. That way we didn’t have to bring on more labor to support the concept.”

Larry Weissman, vice president of marketing for Cousins Subs, which offers a full, on-site catering menu, says timing is catering’s most important element. “The big thing is really in the area of delivery,” Weismann says. “When a customer tells you, ‘I need it delivered at 12:30,’ that’s not a joke. They want it there at 12:30. In the end you have to make sure you can execute.” If these various needs can be met, quick-service operators that have experience with catering all say the same thing: The marketing benefits are significant. A catering order means a larger group of people will be snacking on the product, and the likelihood of reaching a new customer in that setting is pretty good.

Now Open for Business

Rhonda Sanderson — 2009-10-30T10:20:45-05:00

With businesses finally ramping back up, qualified candidates are in demand and in Nashville, there’s no better place to find those superstars than Express Employment Professionals. The Nashville Business Journal just posted a great interview with local owners Jason and Christi Patrick, who opened for business last month. Here are a few highlights:

Of all the places to open a business, why Nashville? Nashville is truly a thriving, diverse business community with an excellent prospect for growth. I was raised in this city, and my family and friends are here. My wife and I both felt that this is where we wanted to raise our children and grow a business together.

How did you settle on your location? We wanted to be in Metrocenter because of its central location and it has a strong diverse collection of health care, manufacturing, government, professional and other industries that are strong users of employment agencies.

Describe your business model? We offer screened, qualified associates to companies on either a temporary/contract, evaluation hire or direct hire basis. We handle all payroll taxes, insurance, recruiting/screening and benefit costs at a mutually agreed bill rate per associate hour worked.

Photo: Express Employment Professionals owners Jason and Christi Patrick.

An Easier Way to Save

Rhonda Sanderson — 2009-10-29T09:59:54-05:00

Trying to save money? There’s now an app for that!

WOWT-TV (NBC Omaha) reported Valpak, the direct mail marketing company best known for its blue envelopes stuffed with money-saving offers, has debuted an iPhone application.

“The color pops up to offer you different categories.” Scott Farkas, president of Valpak in Omaha, showed off the new coupon iPhone application. You pick a category, it pops up deals at businesses closest to you. It shows how many miles you are away, it even gives you a map to get there. Best of all, you don't have to carry around all the paper coupons. "If you forgot the coupon at home, you can pull it up on your phone, show it to the person at the register, it has a unique code so the business can actually track it and you're good to go.”

Valpak says the jump in local consumers using coupons has been dramatic. The company's Web site traffic saw its numbers jump from 190,000 visitors to 280,000 visitors per month.

Extended Stay Chain Expands in Richmond

Rhonda Sanderson — 2009-10-28T10:00:54-05:00

If you’re between residences, traveling for work or planning to visit family in the Richmond area over the next few months, there will be a new extended stay lodging option to consider when making your plans.

Richmond BizSense reported Value Place will open in Colonial Heights within the next few weeks. The local franchise is owned by Carter Rise, who is also owner of Sandpiper LLC — an apartment company with properties in Harrisonburg. “With Fort Lee and all the growth in Colonial Heights, we saw a need for an affordable extended stay alternative,” said Rise, who lives in Richmond.

Rise hopes to draw military contractors who need temporary housing, as well as people moving to the area in need of a place to live while they look for permanent housing. The Colonial Heights location is the second one for Rise, as he opened his first Value Place in Chesapeake at the end of September. That location is doing well, he said, and is attracting a mix of military contractors, business travelers and people in between homes. Rise said the chain is growing in a down economy because of the price point. Rates at his new location will be $229 per week, with a one-week minimum stay. The hotel’s rates are between $159 and $359 nationwide. The average length of stay is 90 days, according to the company. “It is a high-level value at an attractive price point,” said Rise. “And you’ve got a kitchen in the room, so there is further savings in that.”

The business model of Value Place allows it to keep prices low by cutting out amenities. There is no free breakfast, and daily linen service costs extra. It also operates on a lean staff; Rise plans to hire between six and 10 employees to run the 124-room property. Rise plans to open additional locations in the area, most likely in the West End, Midlothian and near the I-95 corridor north of Richmond, but it won’t be until credit loosens up, he said.

Gina McKee, Value Place’s vice president of franchise development, said that in addition to Rise’s four planned locations, McKee said the company is looking for additional franchisees to develop two more locations in the area.