DailyFranchiseNews.com

Connecticut Gets Fresh

It’s never easy being the new kid on the block but Lou Kathrakis is making this often undesirable situation work to his advantage: he and his father, George, have opened New England's first Panchero's Mexican Grill in Shelton, Connecticut.

"It's been packed, at lunch hour especially but we've been able to move the lines along,” Kathrakis told The Hour of his Shelton location. “It's new, something people haven't seen here, but it's a great product. If you're not from the South or Midwest, you probably haven't heard of it. But that's about to change."

Panchero's, based in Coralville, Iowa, is a quick-service, fresh Mexican franchise concept. The menu includes made-to-order burritos, quesadillas, tacos, burrito bowls and salads, along with homemade salsas, guacamole and queso. It currently has more than 45 locations in 14 states, and 25 new units are expected to open in 2008, including expansion into Georgia, Virginia, Missouri, Nevada and New Jersey. Kathrakis said he and his father are eager to bring the concept to Norwalk next.

"We'll be a good fit with the redevelopment going on in Norwalk and South Norwalk," Kathrakis said. "We're also looking into Wallingford and Stamford, but Norwalk is number one on our list. I think the demand is there. It's a tough market to get into, though." Their long-range vision is even more aggressive, with plans to open 15 locations in the state over the next few years.

Five Guys vs. Manhattan

Can five guys make their mark in the Big Apple? We’ll see this Friday.

Nation’s Restaurant News reported Lorton, Virginia-based Five Guys Famous Burgers and Fries, has inked a deal with Five Points Partners to open 30 units across Manhattan over the next eight years. The first location is expected to open in midtown on November 2nd, said Sal Rincione, executive vice president of operations and partner with Five Points. The second location is slated to debut in mid-January lower Manhattan, and the third unit will open next February, also in lower Manhattan.

In addition to its investment in Five Guys Burgers and Fries, Five Points Partners also owns the exclusive development rights for the Dunkin' Donuts and Baskin-Robbins brands in the central business district of Washington, D.C., Northwest Washington, D.C., and a part of Prince George's and Anne Arundel counties, as well as a network of Dunkin' Donuts shops in Suffolk County, New York. The company is also a Subway sandwich shop franchisee in central New York state.

Upping the Comfort Quotient

If you’re a member of the “sandwich generation,” the least important decision you have to make is between turkey and roast beef; it’s how to take care of yourself, your children and your parents at the same time.

The Baxter Bulletin reported that homecare companies such as Comfort Keepers are aiming to give the family members of aging relatives a reprieve. When a relative cannot be there in person, they can take comfort in knowing that a caregiver will be able to lend a helping hand and watchful eye.

"We're a mobile society," said Randy Costa, owner of Comfort Keepers in Mountain Home, Arkansas, adding that more and more seniors have children living in other towns.

Many non-medical caregiving companies see a spike in calls after the holidays, when adult children come home and see their mom or dad is not doing as well as previously thought, Costa said. Such non-medical services typically offer personal care, companionship, transportation and light housekeeping from a few hours a week to 24-hour care. Other area services include adult daycare, support groups, educational workshops and hands-on training.

Fun and Franchising do MIX: Franchise Update and IFE in LA

Two conferences recently held: Franchise Update Development Conference in Atlanta Oct. 3-5 and IFA’s Development Super Session in LA Oct 17-18 touched on the always important topics of lead generation, closing the sale and helping new franchisees get up and running. Awards abounded at the Franchise Update Conference in Atlanta where two companies from the same industry, Comfort Keepers and Synergy HomeCare, received top honors for overall performance in quick response and service when “mystery shopped.” PostNet, the perpetual gold standard of the franchise community, also received the top awards for service and website design. Photo above: from left to right are Lindsey Burke of Sanderson & Associates, Kevin Drudge of Valpak and Rhonda Sanderson of Sanderson & Associates taking a break at the Franchise Update Conference in Atlanta. 

On to the Expo that followed the LA Development conference at the convention center nearby. Boy there was some skin showing as a proliferation of TANNING SALON franchises showed off their (uh hum) “wares.”  Young ladies clad in next to nothing were seen at the exhibits until MFV (producers of the show) stepped in and enforced the dress code, classing it all back up a bit! Seems some exhibitors don’t get it yet but many of the people shopping the show are wives, mothers with their children, and those who find such a look totally inappropriate for public consumption. LA only? Maybe.

Putting the Squeeze on Aspen

One may think that winter would be the worst time to open up a smoothie shop. When that smoothie shop is in Aspen, however, it’s quite a different story.

The Aspen Daily News reported that Irvine, California-based Juice It Up! has been eyeing real estate in the area with the hopes of opening expanding into the local market. While several local coffee, bagel and sandwich shops around town already offer a variety of smoothie and juice options, Juice It Up! would mark the first stand-alone smoothie and juice bar in the upper valley.

"Right now we're just looking for sites around Aspen," said Juice It Up! founder Larry Sidoti. "The demographics meet our criteria, and we really like that winter, which is our slowest time of the year, is really busy there. We make California-style smoothies, which means we use real fruit and juice and not a lot of powders and mixes — we stay away from that stuff. And across the country, the single, independent stores have basically gone away. It's just about all chains now."

Though there will be some competition in the market from establishments like Ink!, Big Wrap, Zélé Café, Clark's Market and Bagel Bites, Sidoti said that’s not as important to him as the cold, hard facts. "We try to find a place based on demographics and size and go from there," he said. "We look at the competition, but ultimately it doesn't inform our decision. In Aspen, we're looking for a location in the touristy areas near the ski slopes."

With over 130 franchises already operating throughout the country, Sidoti wants to continue Juice It Up!’s reputation of being "one of the most aggressively expanding foodservice chains" by setting a goal of opening its 500th store by 2010. "We've been averaging 50 a year so far, and we'll be close to 200 in the next seven to eight months," Sidoti says. "If we can do 50 a year, we can easily do 100. The inertia is there; the biggest challenge is finding good locations, and I think Aspen is one of them."

Submarina Resurfaces

If you’ve been told your business needs a stronger brand identity, you’ve just been alerted – in the nicest of ways – that the business you’ve worked so hard to create is pretty snooze-inducing. Sure, it’s a blow to the ego, but there’s still time to right the wrong.

CNNMoney.com reported the aforementioned case plagued San Marcos, California-based chain Submarina: when company president Jeff Warfield approached potential investors for funding, each one rejected his proposal due to a weak brand identity – in this case, bland décor and a confusing menu.

"I thought branding meant changing the logo, but was I wrong," recalls Warfield, 40. After interviewing two other design firms, he hired Tesser, a San Francisco branding shop, to highlight Submarina's use of fresh California produce and its earnest, friendly staff, reminiscent of a small-town diner where everyone knows your name. Submarina also needed a tag line. Tesser suggested the familiar "deli-style" but Warfield liked "California-style" because of Submarina's emphasis on local ingredients such as sprouts and avocado. Warfield prevailed, and the tag line became "California Subs."

Since July 2005, Warfield has rolled out the redesign in 12 new stores and retrofitted 12 others. At press time, local developers had committed to opening 519 new Submarina franchises in Texas, Arizona, and Florida (each store costs $200,000 to $300,000 to launch). Fifty-one franchises are up and running, with the remainder scheduled to open over the next ten years.

Spicy Pickle Heats Up Two New Markets

Unappetizing name aside, people are devouring the Spicy Pickle concept.

CNNMoney.com reported the Denver-based fast casual chain has announced its entry into two new states – Hattiesburg, Mississippi and Fishers, Indiana – and has raised its total number of restaurants to 30. The Hattiesburg franchisee has committed to a total of three restaurants in the area.

"We are excited to open these restaurants in new geographic regions,” said Marc Geman, CEO of Spicy Pickle Franchising, Inc. “We look forward to offering Spicy Pickle cuisine to new customers who have never had the opportunity to enjoy our food, and hope to expand rapidly in these new regions."

By the end of 2007, Spicy Pickle anticipates opening approximately between eight and 10 more units, bringing its network to approximately 40 restaurants in 13 states. Over 50 additional franchise development agreements have also been signed.

All Work and No Play? Not at Kiddie Academy

Talk about a supermom.

The Miami Herald reported when Angie Monreal couldn't find a suitable day-care center for her two young children – one which both stimulated their brains and kept them safe – she took matters into her own hands: the 30-year-old’s dissatisfaction with the status quo led her to become the owner of the first Kiddie Academy in South Florida.

“My background was in finance,” Monreal said.”I worked for many companies but never thought I would have my own business.” Monreal discovered Kiddie Academy while looking for different centers on the Internet but was disappointed to see the closest center to her home was in Tampa. The Maryland-based chain, founded in 1981, currently has 88 centers across the country – 82 of which are franchised. Monreal’s location may be the first in the area, but it is certainly not the last.

“There are about 10-12 new centers opening up around the country, an average of one per month,” said William Endres, chief of operations for Kiddie Academy. Five of these are set to open in Florida, he added, and local residents have already responded.

Doris Viera attended the grand opening with her 4-year-old son, Raymond Gonzalez. Viera had enrolled him at another day-care center, but heard about the Kiddie Academy opening and transferred him immediately.

PostNet Packs a Punch

Whether it’s packing and shipping or design and printing, PostNet has its clients’ needs well covered. In San Diego, however, its services will soon be much more accessible.

The San Diego Business Journal reported that the Denver-based company plans to open four new business centers in the area in 2008 with the help of franchisee and area developer Noel Martin. These new locations will join the existing six stores located in Encinitas, Oceanside, Carlsbad, El Cajon and two in Chula Vista. After suffering a significant loss during the dot-com crash, Martin decided to try his hand in the franchise world.

“I learned the value of running your own business the hard way, and I began researching franchises at that point. I looked at Milford, Conn.-based Subway and Memphis, Tenn.-based Merry Maids closely, but PostNet stood out,” said Martin, who opened his first store in 2003 in Sacramento. Of PostNet’s 850 locations, 125 are in California — all franchises. Martin plans to open his own store in Chula Vista next year to serve as a training center, and another in Spring Valley.

“Ours is a multi-carrier approach, which allows customers to decide which carrier is most convenient for them. Annex Brands Inc. (formerly Postal Annex+ Inc.) does offer these services, but they do not have both UPS and FedEx at each store; it’s usually either/or,” Martin said.

Just Around the Corner

Need food fast but shudder at the thought of fast food? Corner Bakery Cafe has heard your prayers.

The Press-Enterprise reported that operators of the Dallas-based chain say the Inland region of California figures prominently in its plans to triple its size by 2011. P.J. Evans, Corner Bakery’s vice president of franchising, said Corner Bakery plans to open five to seven new company-owned restaurants in Southern California in 2008. It currently has 28 Southland locations; its sole Inland restaurant is in Rancho Cucamonga. In Riverside and San Bernardino counties, Evans said, the long-range goal is to have one restaurant serving every 150,000 people. Based on the region's population of about 4 million, that would translate to 20 to 30 new Inland sites.

No specific locations or timetables have been announced. Unlike other regions such as Colorado and Utah, where the company recently announced plans to expand through regional franchise agreements, Evans said the company intends that most of its Southern California locations will be company-owned. Corner Bakery now has 100 stores nationwide. By 2011, it aims to have 300, half of them franchised and half company-owned. Ten of the existing outlets are franchised, Evans said.