DailyFranchiseNews.com

In With the New

In the restaurant industry, innovation is key in differentiating a concept from the competition and withstanding the test of time…and First Watch is a master of both.

Chain Leader reported Bradenton, Fla.-based First Watch has been committed to offering new and fresh culinary offerings since its inception over 25 years and is continuing that legacy by adding four new menu items: the Health Nut Salad, the Green Hamlet Wrap, the Heard of Buffalo? Chicken Wrap and the No. 5 Salad. These entrees became available system wide on June 29th and according to Chris Tomasso, First Watch’s chief marketing officer, fit perfectly with the breakfast-and-lunch chain’s existing menu offerings and introduce new flavors customers are craving.

"We're constantly looking to stay ahead of trends in terms of our culinary research and development and have always encouraged our managers to run daily specials in their restaurants to determine the offerings their customers like best. These four new menu items represent a successful marriage of these two methods that we feel will bring some fantastic new flavors to the already much-loved First Watch menu," said Tomasso.

Photo: First Watch's Chris Tomasso.

McAlister’s Deli Coming to Central Ohio

It’s hard when your favorite restaurant is miles upon miles away but in central Ohio, one concept is about to debut much closer to home.

The Columbus Dispatch reported McAlister’s Deli plans to build at least 10 new restaurants in central Ohio by 2012. The Southern-style chain known for its Sweet Tea already has five locations in the Buckeye State – all in the Cincinnati area – but is looking to expand into Columbus because of its central location and growing population, said Bill McClintock, senior vice president of development. Exact locations haven't been announced yet, but McClintock said the first of its local restaurants will open next year. Those Columbus locations will be developed based on its new, smaller prototype of 3,400 square feet, rather than its normal 4,000, with seating for 100. The new units will also feature a pick-up window to handle call-ahead ordering, the company said. McClintock, a veteran of the Buffalo Wild Wings chain, said the time is right to expand, despite the ongoing recession.

"There's lots of good spaces available and landlords are more willing to negotiate leases," McClintock said. "There's a lot you can do during the downturn to get ready for when things get back to normal. Columbus is a place where we think the brand will do well."

The recession has been a boon to fast-casual chains such as McAlister's, as worried consumers who still want to eat out have traded down from fine- and casual-dining restaurants, said Blair Chancey, an editor with QSR Magazine, an industry publication. "A chain like McAlister's is attractive because it has more mature menu options and doesn't feel like a fast-food chain. It feels more like a sit-down restaurant," she said. The deli chain also has distinguished itself among families with its menu offerings. It was named a top-10 fast-casual restaurant by Parents magazine in July and was chosen as a good place to feed a family based on having at least three healthful children’s meals and a family-friendly atmosphere.

A Splash of Color (and Success!) in Cedar Rapids

Could a stint in corporate America be just what it takes to turn an entrepreneurial dream into reality? You bet!

The Gazette reported Greg Reininga experienced that scenario firsthand: After owning a motorcycle parts and accessories shop, Reininga returned to the corporate world for three years as a manufacturing coordinator for Rockwell Collins but found out very quickly he’d much rather work for himself than anyone else. He was interested in starting a business that could provide a true service to his community so he consulted his college roommate, who had opened a CertaPro Painters franchise in San Diego. Would it the concept also be a fit halfway across the country in Cedar Rapids, Iowa? “As a lifelong Cedar Rapids resident, he thought this would be a great location. Lo and behold, 3,200 houses later, I’m still in business,” Reininga said. “This is a professional business, not just a painter out there trying to paint houses and businesses. We’re a full-service painting company. We do wallpaper removal, drywall texture and painting. If a customer needs a fascia board replaced, we can take care of it.”

Reininga launched CertaPro Painters of Hiawatha in January 2000 and today employs 23 full-time painters who handle projects in a territory stretching north to Manchester and south to Hills. Since last year, Reininga has seen an 18 percent increase in estimates and booked jobs and has seen the trend of homeowners staying in their homes instead of selling them. “People are repainting more now than they were a year ago,” he said. “Instead of buying a new house, they’re updating and they don’t have to get used to new neighbors.”

In addition to these renovation projects, Reininga said CertaPro also handles its share of do-it-yourself homeowners who found they were in over their head. The first step for any project, he said, involves collaboration with the homeowner. “We may discover mold that must be removed or wallpaper that really needs to come down before we can start painting,” Reininga said. “It’s really important for us to understand their wants, needs and desires to ultimately give them what they want.”

Photo: Chad Pirtle (right) and Kevin Mullarkey, painters with Reininga's CertaPro Painters, on the job in Cedar Rapids.

The White House Addresses Affordable Health Care

As the demand for affordable health care increases, representatives from top franchise concepts are being asked to weigh in on the subject on the national level.

Last Friday, the Middle Class Task Force hosted a roundtable discussion led by Vice President Joe Biden and Secretary Kathleen Sebelius on the rising costs of health care for small business owners and employees and heard first-hand accounts of the tolls that high costs are taking on middle-class families across America. Small businesses are facing higher costs, fewer options, and decreasing coverage and as a result, employers are forced to make tough choices between offering health insurance to their employees or staying competitive in a 21st-century economy by cutting back on health insurance for their workers or even getting rid of it altogether. Take Maryanne Murray: The White House Blog reported Maryanne owns GRISWOLD SPECIAL CARE in Newark, Del., a home care company that serves hundreds of senior citizens with home health care services. She is currently able to cover her full-time employees but worries how rising health care costs will affect her workers and company’s competitiveness.

As health care reform moves forward, President Obama, Vice President Biden, and other task-force members will work to ensure that small business owners and employees aren’t bogged down by the burden of high health care costs. President Obama and Vice President Biden believe that no employers should have to choose between staying competitive and providing health care for their employees, and that’s why this administration is working to make sure that small-business owners like Maryanne don’t have to make that choice. 

Photo: GRISWOLD SPECIAL CARE owner Maryanne Murray, Vice President Joe Biden and Secretary of Health and Human Services Kathleen Sebelius and small business owner Perry Gaskins during a health care roundtable on July 10, 2009. 

A Winning Strategy

Think the frozen treat wars are cooling off? Think again, but one brand is continuing to set itself apart with a new image and strategic growth plan. To its competition: Prepare to be iced.

Nation’s Restaurant News reported the brand making headlines is Franklin, Tenn.-based Tasti D-Lite, a dairy-based frozen dessert chain. Unlike Pinkberry and other competitors that have embraced the trend for tart flavors, Tasti D-Lite focuses on a traditional, family-friendly flavor that is sweet and creamy. Tasti D-Lite has more than 100 flavors, all of which are made by adjusting a vanilla or chocolate base with a variety of flavored syrups. Because every flavor is based on either vanilla or chocolate, the stores can offer any of the flavors on request. “What makes us unique is that we offer a sweet and creamy profile. So it’s got an all-family mainstream appeal,” said chief marketing officer Bill Zinke. “It’s not something that’s just going to appeal to someone who likes a particular flavor. It’s going to appeal to anyone who likes things that are sweet and creamy, which is the bulk of the country.”

Tasti D-Lite converted to a franchising model in February 2008, Zinke said, and the concept’s existing licensed wholesalers were invited to become franchisees. There are currently about five licensed wholesalers left in the Tasti D-Lite system and as their contracts expire they will not be renewed. Licensing “doesn’t have the same structure support and branding of a franchise company,” said Nikki Sells Sells, Tasti D-Lite’s vice president of franchise development. “When you walk into a franchised business, you see a common store design, you see a common seating. Franchise operations have that consistency. We’re now providing an entire business format to go with that and setting it up as a franchise system.”

On May 5 the chain inked a deal with franchisee MM Ventures LLC to open 35 new stores over the next 10 years in New York, New Jersey and Connecticut. “Our vision is to grow to a 500-unit network,” Zinke said. “We have 50 now. And with the existing franchisees, area developers and international developers, we have commitments to build 240 locations. It will obviously take time to build all those, but they’re all committed, and we have international and domestic prospects as well.”

Age is Just a Number

For many young entrepreneurs, the greatest challenge is not securing financing or finding the right concept but overcoming the stereotypes associated with their age group. It may take some time but it can be done: Check out this great column by Jerry Heath, a Hungry Howie’s franchisee with 11 locations throughout the Greater Grand Rapids, Mich. area. Be prepared to be inspired!

Photo: Jerry Heath (left) with Hungry Howie's president Steve Jackson.

A Vast Improvement

Though it’s been nearly four years since Hurricane Katrina, New Orleans is still in recovery mode. The good news is that local residents and businesses alike are helping to restore the city to its former glory.

The Times-Picayune reported Value Place is just one of those businesses lending a hand in terms of redevelopment with plans to build a four-story, 124-room economy extended stay hotel at the intersection of Gen. de Gaulle Drive and Sandra Drive. Demolition of the existing derelict buildings will commence within the coming weeks and the hotel is expected to be open for business by May 2010, said developer John Cattano of CC Development in Columbia, S.C. A restaurant and office space will also be developed. 

"I think it's going to look really nice, and everybody was very complimentary of the design," Cattano said Thursday. "It's going to be an improvement over those two buildings that are there now." The developers have gotten zoning approvals, changing the site from business to commercial, and demolition would begin after Mayor Ray Nagin signs off on the ordinances and a demolition permit is obtained, said Wiley McCormick of Park Square LLC, a New Orleans partnership that purchased the site after Hurricane Katrina. "As soon the mayor signs it, I'm sure we'll be moving" toward closing on the sale, said McCormick, who owns property nearby for a development he declined to reveal. "We're excited about this project, because it also improves this whole corridor."

Cattano operates seven Value Place franchises in South Carolina and Georgia, and his partner, Phil Cox, has another three. He expects the rates at this property to be $279 per week and plans to employ five people full time. "We certainly hope to break ground in September," Cattano said. He is also in talks with restaurant groups as a potential tenant, but none has been selected. The restaurant and office space will be a $1 million investment, he said. 

Minimize Loss to Maximize Profits

Every business owner is looking for ways to save money and for those in the hospitality industry, one way is probably behind the bar.

The Edmond Sun reported that while businesses serving alcoholic beverages make a profit in their alcohol sales, Robert Wiedemann says many are not maximizing those profits. How would he know? His business, BEVINCO, aims to increase revenue and decrease shrinkage by weighing and comparing how much alcohol is used compared with how much is sold, he said. The top five causes of shrinkage include missing inventory, spoilage and other wastes, free drinks, missing revenue and over pouring.

First BEVINCO does an initial liquor, wine and beer inventory of a business and weighs all the opened bottles to see how many ounces of liquid each contains, he said. Then, on a weekly basis, he weighs every bottle and keg on a scientific scale connected to a laptop running state-of-the-art, proprietary BEVINCO software. This weekly inventory then is tallied against the weekly sales, pinpointing any discrepancies between amount sold and amount used. Wiedemann said he can calculate exactly how many ounces of each liquor bartenders should be using in each mixed drink according to the owner’s specifications of how much is sold at what cost. He also revealed that businesses with liquor licenseses experience an average shrinkage of 20 percent to 25 percent on lost alcoholic product and BEVINCO can increase bar sales revenue by 10 percent on average. “It’s a beverage management system. Businesses are in a crunch and they’re looking for ways to impact the business,” said Wiedemann. “Our job is not to accuse. It’s to help. You’re in a position where it is easy to be lucrative. We’re here to keep people honest. All we’re asking of for (bartenders) to account for what they are using.”

Travis Franz, general manager of Old Chicago, said BEVINCO comes in twice a month. “They do a great job with inventory,” he said. “They’ve done a phenomenal job helping us maximize our profit and minimize our waste. It helps with waste. It helps with theft. It helps with over pour. It’s a great tool and asset!”

Photo: BEVINCO owner Robert Wiedemann.

Need for Flexibility Leads to New Career

We’ve all met at least one person who has “that” job. You know, the one that sounds so fantastic that most people would kill to call their own. Well, Anne Woods gave up the dream career three years ago…but her new role is just as – if not more - satisfying.

The Pasadena Star-News reported Woods was a certified public accountant and divisional vice president at Nestle, a position that meant ample travel as a controller for the North American sales organization – at one point, she even moved her family to Switzerland while working at the company's world headquarters – but as great at that job was, Woods was looking for a change. Three years ago, she made her move and became the owner of an Express Employment Professionals office in Covina, Calif., the fourth largest staffing service in the world.

"I felt I needed a different kind of flexibility. I still work as many hours as I did at Nestle - 50 to 60 hours a week - but now I'm in the same community as my children,” said Woods. “One of reasons I chose this business is that virtually every company that has employees uses a staffing service at some point. It could be a large banking call center or a small machine shop. It really doesn't matter ... it's not limited to any specific industry. Someone is always growing and needing extra help." Woods' strategy has paid off: Her office has doubled its business every year – a feat she attributes to the backing of the entire Express organization. She also said Express’s services are in demand even during these challenging economic times. For example, her client Marman Industries landed a big contract and needed people with a very specific skill set right away and Express was able to deliver several candidates immediately to launch the project on time.

"We're very aggressive in staying involved with the local community," she said. "You have to continue to talk to people through all of the business cycles. Even when they downsize and budgets are being cut, we can help."

Photo: Express Employment Professionals owner Anne Woods.

Are You a Veteran? You Could Win a Franchise!

The best things in life are free is a saying that holds true now more than ever, especially for those that have bravely served our country.

The Franchise King Blog reported Maid Brigade recently launched the Maid Brigade Veterans Franchise Giveaway, a program that will award more than $1.5 million in business ownership opportunities to 100+ veterans and create more than 1,000 jobs nationwide. The contest comes at a time when America's economy is down, but patriotism is high. Maid Brigade is acting on both fronts by offering new careers to veterans — a group it considers worthy, qualified, and proven as franchise owners. Currently, 10 percent of Maid Brigade owners are veterans; others in the network come from a range of careers.

To enter, veterans should complete the form and submit a short essay at www.maidbrigadegiveaway.com by September 30th on how their military responsibilities would translate to successful Maid Brigade franchise ownership. Maid Brigade will waive its $14,500 Select Market Franchise fee for as many as 100 qualified veteran applicants and one grand prize winner will receive a new Maid Brigade franchise operation at zero cost — a total value of $45,000 which includes waived franchise fees, working capital, training, and equipment. Second and third place winners will receive similar packages valued at $27,500 and $17,500, respectively. A Maid Brigade Select Market Franchise is designed for smaller geographical regions.

We salute all entrants…good luck!