DailyFranchiseNews.com

The Right Decision

Scenario: High fuel costs put a damper on your trucking business…what do you do to avoid going under? If you’re Kevin Grupp and Bob Moll, you diversify.

BuffaloAtHome.com reported that rather than trying to find other opportunities in the trucking business, Grupp and Moll really thought outside of the box, and went back to their roots: As it turns out, both men worked in the restaurant and bar business when they were younger so they began researching restaurant and bar opportunities. After looking at several different food franchise opportunities, they came to one – Salsarita’s Fresh Cantina – they believed would be a winner…and it is a decision that is really paying off: People are showing up in droves.

With locations in both Buffalo and Cheektowaga, New York and a third location soon to open in Clarence, it seems that Grupp and Moll really hit on something. And they did it by thinking outside the box, and trusting themselves. Today, Grupp and Moll split their responsibilities, with Grupp managing the restaurants full time and Moll focusing on the trucking business. As fuel prices settle, the trucking business does well and with ever expanding plans for Salsarita’s restaurants, it looks like they’ll do well on that front as well.

Well done, gents!

An Applebee's in Ridgecrest, California?

Ridgecrest, California city officials recently served up this juicy appetizer: Applebee’s could be coming to town.

The Daily Independent reported that the neighborhood grill and bar chain is one of four restaurants under consideration for a business park adjacent to a new SpringHill Suites hotel.

“The restaurants must be sit-down, full-service businesses to be considered,” said Gary Parsons of the community development department. “Applebee's is among them, but we have no confirmation on any of them at this time.”

Cyrus Commissariat of Golden West Restaurants, the Applebee's franchisee for Kern County, suggests that local residents shouldn’t get excited quite yet. While he believes the restaurant would do well in Ridgecrest, there are no plans in the immediate future.

“Maybe in a year or two we can open a place in the Ridgecrest area. We currently have a restaurant in Bakersfield, and we're definitely looking at expanding to the east,” said Commissariat. “Ridgecrest and Tehachapi have both fallen squarely on our radar as towns that would support an Applebee's restaurant.”

The company is actively looking at the area and working with local real estate agents regarding possible locations. Commissariat said the Indian Wells Valley definitely fits Applebee’s demographics.

Hardee’s Last Hurrah

The order is in: Hardee’s store number one, the burger chain’s first franchised location in Rocky Mount, North Carolina, will be demolished on Monday to make way for a veteran’s memorial and park.

The News & Observer reported that the tiny restaurant, which opened on May 5, 1961, has been vacant for over a decade and has fallen into disrepair, making a museum or other memorial impossible.

"It made no sense economically," said Rocky Mount city manager Steve Raper. "I wish it was in decent condition where we had some other options, but it has to be razed."

Many residents are sad to see Hardee’s go, despite its parent company dealing the region a major economic blow when it moved its headquarters to St. Louis in 2001.

"I remember going there when I was a kid," said Jackie Lynch. "Any time you were referring to anything, it was like a landmark -- 'It's near the Hardee's where you can't sit down.' ... I thought maybe they'd keep it as a memorial. I didn't think they'd ever tear it down." Skip Carney, of the local public relations firm Carney & Co., agreed, saying, "It's been bittersweet. It's a little piece of history we're going to lose, but on the other hand, it's progress."

The new park and memorial to be constructed at the Hardee’s site will cost approximately $400,000, according to Raper. Over half of the money will be raised by Mayo Boddie, chairman of Rocky Mount-based Boddie-Noell Enterprises, which operates 308 Hardee's restaurants in Virginia, Kentucky and the Carolinas. Boddie-Noell was the third Hardee's franchisee in the country. While he is sad to see it go, Boddie chooses functionality over sentimentality.

"Just an old rundown building sitting there doesn't do anything for anybody," Boddie said. "That's just business. You can't live on being sentimental about something."

Dunkin' Donuts Targets China for Expansion

As the saying goes, America Runs on Dunkin'. And soon the company hopes that China will be running on Dunkin' as well.

The Sarasota Herald-Tribune features a story on local Dunkin' Donuts franchisee Marvin Kaplan who plans on opening stores in China in time for the 2008 Beijing Summer Olympics. China requires that franchisors operate two stores of their own for a year before franchising out to others. The recent announcement that Dunkin' Brands Inc. will open its first store in Taiwan this week paves the way for franchisees, like Kaplan, to open additional stores in China.

But unlike the traditional Dunkin' Donuts stores we're so familiar with, Kaplan says the Chinese stores he plans to open will be similar to his new Sarasota prototype, which is one of only three in the country. The new concept is more upscale than regular Dunkin' stores and was developed to compete with Starbucks. Kaplan's store offers a more upscale environment with couches and Wi-Fi and an expanded menu that includes more tea offerings, sandwiches, pizza and more.

Will Dunkin' Donuts have the same success as McDonald's and KFC? I think we'll have a good idea by the 2008 Summer Olympics.

McDonald’s Selling Boston Market?

Making headlines is the news that McDonald’s may be putting its Boston Market restaurant chain up for sale, continuing to focus on burgers. McDonald’s acquired Boston Market seven years ago for $173.5 million in a bankruptcy auction as part of a move to diversify.

According to this Chicago Tribune article, since McDonald's acquired Boston Market it has slimmed the chain down to about 630 restaurants in 28 states.  McDonald's does not break out revenue and earnings for Boston Market but has suggested in the past the restaurant chain was profitable and doing well for the company.

However, in 2004, it paired a McDonald's and a Boston Market at one site to see if that could help boost evening sales at its namesake while helping increase traffic for Boston Market. Last year, it dramatically changed Boston Market's look by dropping its black and white awnings and reducing seating in the belief that only 30 percent of its customers would dine in the restaurant.

Although the company spokesperson said no decisions have been made, the company’s priority continues to be the McDonald’s brand.

Company Gets Back On Track

Imagine having a company with over 40 locations and years later there are only six! You’d think there was no hope. However, Buffalo Wings & Rings is proving us wrong. According to an article in The Cincinnati Enquirer, with two new franchises coming aboard each month, the company projects more than 40 by the end of the year!

Contributing to Buffalo Wings & Rings newfound success is the growing popularity of chicken wings. While you may lick your lips and agree, a survey by the National Restaurant Association backs that up. And so does the success of other wing restaurants like Buffalo Wild Wings, Wing Zone, and Lone Star Wings.

The point of this posting…don’t give up and keep enjoying your chicken like a caveman!

FranchIZZA

The popularity of pizza has doubled during the past 20 years and is now being included in six percent of dinnertime meals, up from three percent, according to industry stats. So it’s no surprise that pizza places such as Figaro’s Italian Pizza, the nation’s largest chain in the “We Bake or You Bake” segment, are expanding to keep up with business.

According to a recent article in the Triangle Business Journal, Brixx Wood Fired Pizza, a concept with nine locations, just announced they’re turning toward franchising to move forward with expansion efforts.

Pizza and Franchising – sounds like a hot industry trend in 2007. Household names will soon include more than Domino’s and Pizza Hut! All this talk is making me hungry – pass the pizza!

CAN CEREAL BECOME THE NEXT HOT THING?

Oh to recall the days when a franchisor just tried to make it with MUFFINS!  One item concepts can be really iffy—but that isn’t stopping Chicago-based Cereality from going for it.  The Chicago Sun-Times said yesterday the company has opened two stands at NY airports (a good place to serve cereal for those early morning flights and BAD airline food-oh I mean WHAT airline food?)  They also plan to open at O’Hare by winter of 2007.

The most fun idea the company has is to add mobile units that will park outside train stations, soccer fields and probably in business districts if they can get permits. 

They currently have a location in Evanston, Illinois that serves college students (Northwestern) and serves as a training facility.  We are watching!

McDonald's To Open Gyms for Kids

From the “it goes hand-in-hand file” The Times Record reports that McDonald’s is opening play gyms in some of their locations. These will be called R-Gyms after Ronald McDonald and they will cater to mostly kids to counteract the childhood obesity issue.  This blogger finds this HILARIOUS!  Taking your kids for the old Big Mac then having them try to burn it off afterwards in the R-gym seems more to me like a babysitting service!  Have lunch at Mickey D’s then stick around for the exercise session to burn it off afterwards!  Now we’ve seen it all. The good news is there are now lots more healthy choices at McDonald’s so one can in theory teach their kids the importance of ordering a salad or fruit plate for lunch then going into the R-gym for a little “burn it off” time.  Let’s hope it works.

Mama Fu's Franchisees Sue Raving Brands

Not good news for Atlanta based Raving Brands, according to FastCasual.com, an online magazine catering to this restaurant segment, which by the way is the best state-of-the-art online mag right now for the restaurant industry.  Raving Brands and Martin Sprock, the founder, are being sued by many Mama Fu’s franchisees for basically not having a proven concept in place when they began selling franchises. There are currently 18 Mama Fu’s open in six states, and the plaintiffs Sugarloaf Noodle House, Wong Fu’s Noodle House, WE 3 Inc., Triad Restaurant Management, Central Florida Land Investments Inc. and H&J Goldt Corp represent half of those franchisees.

This is exactly why franchisors need to be wary of selling an “idea” instead of a proven prototype restaurant that has been successful for at least a year or more.