An Applebee's in Ridgecrest, California?

Apple1Ridgecrest, 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

170hardees1960s_embedded_prod_affiliate_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."

Union Jack Boosts Papa John’s Past $1 Billion

Nigel_travisgi03Nigel Travis (pictured) replaced John Schnatter as the CEO of Papa John’s in April 2005. Travis, formerly the president and COO of Blockbuster, has taken the pizza delivery chain over the $1 billion mark in revenue, boasting same-store sales results that have trumped rivals Pizza Hut and Domino’s over the past two years.

Matthew Boyle of Fortune magazine sat down with Travis to discuss Papa John’s revamped online ordering system, franchisee relations, growth plans, and his relationship with the man he replaced.

Papa John’s began online ordering in 2001, but Travis has ramped up the service significantly. Online sales have doubled in the two years he’s been at the helm with the addition of new features such as plan-ahead ordering (placing an order up to 21 days in advance for a special event) and "same again" orders (repeats the last order you placed). Online ordering has inflated order size and frequency as well, because the customer can take the time to consider all the options.

“We learned that they order more frequently, and they buy more - there is at least a 10 percent increase in the average order size online. The reason they buy more is simple, yet oxymoronic. The Internet speeds up everything but this is an example where it slows things down. When you call in an order over the phone, you are rushed and the store is rushed. But when you are online, you look at the whole range of the menu - like side orders of buffalo wings - and you see all the special offers,” said Travis.

Papa John’s plans to begin storing credit card numbers and customizing emails within the coming weeks, though Travis said they have a long way to go before all of the improvements are implemented.

Travis would like to see Papa John’s increase their international sales from 10 percent to at least 20 percent over the next five or six years. There are currently 360 international stores but he would like to reach 600 by the end of 2008. Papa John’s just opened a location in Egypt and plans to expand further into China and Russia. As for franchisees, Travis encourages them to voice their opinions, even if it’s something negative. With roughly 80 percent of the system franchised, he stresses the need for a positive relationship with his franchisees to build a better company. “I ask their opinion, and I don't think that doing so is weak management - that's strong management,” said Travis.

As for the Papa himself, Schnatter still serves as the company’s chairman. He and Travis share a good relationship, but that’s not to say that it’s been all rainbows and butterflies.

“From time to time, there are differences. We're both passionate, and we have very strong personalities. So we both argue when we have to, pretty furiously, but there's nothing wrong with that. My wife is passionate and I argue with her from time to time, too,” said Travis.

Chocolate junkies, rejoice!

SchakoladSchakolad , the Florida-based handmade chocolate company, is growing. The Ann Arbor Business Review  reported that Scott Huckestein, the owner of the store on East Washington Street in Ann Arbor, recently became the company’s first franchise developer. Over the next five years, Huckestein will expand Schakolad’s 35 stores to 55 in Michigan, Indiana, Ohio, Pennsylvania and Canada. The company began franchising in 1999. Huckestein’s sales totals and strong work ethic prompted the company to expand his role.

"I generated corporate business at a quick rate," Huckestein said. Since opening in 2003, Huckestein has often worked 18- and 20-hour days. These hours, though long, are typical of all Schakolad owners, but the commitment has paid off: no stores have gone out of business and there is very little turnover. Huckestein said that after becoming a Schakolad owner-operator, they are expected to be on-site and identifiable with the business. "They will be known as the chocolate person in the area," Huckestein said.

A “chocolate person” opens locations of roughly 1,350 square feet in high-traffic areas. Each store makes its own European-style chocolate, and they have four income streams: retail, corporate logos, catering support and chocolate fountains. This way, even if weather is bad or retail traffic is slow, the business still makes money. Huckestein's local success includes generating more than 250 corporate logos that can be reproduced in chocolate, some of which have been shared through other Schakolad outlets.

Huckestein said the company is likely to open several new stores in Michigan to join the Northville and Rochester Hills stores and his Ann Arbor location. New operators have been scouting sites in Birmingham, Grand Rapids, East Lansing and Detroit.

7-Eleven Offers More Than Just Slurpees in Texas

200507_7eleven 7-Eleven patrons in Texas can now go in for a Big Gulp and come out with a franchise. The Dallas Business Journal reported the convenience store chain will offer franchises to Texans for the first time in the company’s 80-year history. In addition to the new franchising opportunities, the Dallas-based company also announced its plans to convert 188 of its stores to franchised operations. Franchise sales manager Tim Lankford expects that all stores set for conversion will be franchised locations within the next five years.

Store managers were the first to be offered a franchise application and 7-Eleven is assuming that a number of store managers will take advantage of the opportunity to own their own business. One of the first managers-turned-franchisees is Motuil Bhuiyan Bhuiyan began his career with 7-Eleven 17 years ago and he now owns a store in North Dallas.

7-Eleven franchises or licenses more than 7,200 stores in North America, with an average initial investment for a franchise operation hovering around $151,000. This year, Entrepreneur magazine named 7-Eleven fourth on its Top 500 Franchise Opportunities list.

Fads and Franchising Do Not Mix

AleighMuch like the fashion industry had Hammer pants and slap bracelets, franchising also has its fads. New franchisees should be wary when investing because that so-called “hot” company, like a coffee house or niche gym, could likely be considered old hat in a matter of months.

FranNet consultant Adrienne Leigh told the Houston Chronicle that the best advice she can give a potential franchisee is to stick with what’s tried-and-true.

“People are always asking me, ‘What's the hottest franchise?’ but I don't think looking for a ‘hot’ franchise is a good approach, because what's hot today by definition won't be tomorrow,” said Leigh. “Some of my favorite franchises are those that consumers will want till the end of time — the ones that provide basic services like haircutting, residential cleaning and dry cleaning.”

FranNet is a network of franchise consultants with offices in more than 55 cities that is itself a franchise. It is the consultant’s responsibility to find the best fit for each person's skills, interests and values, and then coach them through the research process. Leigh finds each potential franchisee’s strengths and weaknesses, steering them towards franchises that match their strongest assets and away from overly risky ventures.

“I tell them to talk to the top performers in that specific franchise and see what they have to say and then ask yourself, ‘Are you like the top performers?’ You want to find out if you can do what they are doing, and if you would be happy with what they're earning. You also want to talk to people who aren't doing well and find out why not. That's a starting point before you sign an agreement,” said Leigh. “I tell them that investing more money into a franchise does not make it safer, and investing more doesn't mean you'll make more. Nothing in the world is risk-free, but there are ways to make it a reasonable risk.”

Home Sweet Home

Dsc_2564_6Houston’s housing market is booming. With this increase in new homeowners, the presence of home improvement businesses in the area is skyrocketing as well. The Houston Chronicle reported that three national franchises will be moving into town and beautifying its residences within the next year.

Floor Coverings International president Tom Wood said that the upper-end flooring company will open three stores in the Houston area by September. With two-thirds of the nation’s housing being at least 25 years old, about 40 percent of new homeowners get their floors replaced within 8 months, and 80 percent do within four years. Many owners will also replace their floors before putting their home on the market.

Not to be outdone, CertaPro Painters expects to open seven new locations. Ed Waller, vice president of marketing and customer relations, said that the company, which specializes in exterior residential repainting, will benefit from the longer painting season that Houston’s climate allows.

The final company working its way into Houston’s home improvement market is Designs Of The Interior, a franchised network of design stores selling home furnishing and design services. DOTI’s first Houston-area store will open this spring in Katy.

Watch out, Home Depot.

Creating A Niche, AIA-Style

You’ve started your own business. Congratulations! Now, get ready to work. In order for a business to succeed, a successful marketing strategy must be employed. BusinessWeek asked several successful companies just what it takes to make a business soar.

Adventures in Advertising, a network of franchised and affiliated promotional product distributorships throughout the United States, develops strategic marketing and promotional solutions for businesses of all sizes using top-quality products and creative techniques tailored to their clients’ unique needs.  Maria Perez, president of AIA/New Dimensions in Elmhurst, New York, uses direct mail to get a potential client’s attention and, hopefully, their business. In January 2007, Perez and her team designed a three-piece direct mail campaign to 70 financial firms in and around metro New York, to be sent over the course of one week to generate interest in her business. The first of her three-piece mailing consisted of a small bamboo tree in a vase with a card that read, “Money doesn’t grow on trees, but…” Two days later, each company received mint tins with the message, “Adventures in Advertising can help you mint it.” Perez capped off the week by sending the recipients piggy banks with chocolate coins and a note that read in part, “…Isn’t it time for some change?”

Perez’s unusual and memorable enclosures helped her open two new accounts worth thousands of dollars. She was also immediately added to bid lists at two of the companies and secured eight appointments for presentations. The $1,500 it cost to produce the campaign could potentially give her company millions of dollars in revenue.

Partners in business and at home

Lisa_jason1_2No one will argue there are many benefits to owning a business. But there are a lot of drawbacks as well, a major one being long hours and time spent away from the family. That’s why more husbands and wives are going into business together. Jason and Lisa Hake, founders of Sociale Make & Take Gourmet, decided to start a business together because it meant spending more time with each other.

In an article on CnnMoney.com, Jason and Lisa discuss their experiences in owning a business and how it has affected their personal lives at home. "We are together a lot and it's really natural for us," Lisa said. “We absolutely love raising a family and growing a business together.”

Jason and Lisa started Sociale Make & Take Gourmet in 2003. In 2004, the Hakes opened two more Sociale stores and by 2006 they had turned their Minneapolis-based business idea into a franchise. There are currently 11 locations open or under development with plans for more growth.

In addition to running a successful business, the Hakes are proud Sociale is able to help other busy families. Sociale Make & Take Gourmet offers customers the ability to come in and prepare freezer-ready meals or pick-up pre-prepared dinners. Even the most time crunched family can enjoy a “home cooked” meal without the hassle of prep work or clean up.

Owning a business with a spouse isn’t the best option for everyone, but for Jason and Lisa, it’s been a great experience and they wouldn’t have it any other way.

Caregiver Faces Charges in Death of Client

According to a recent article in the Clovis Independent, “Caretaker faces murder charges in death of woman, 85,” Urelda Pricilla Stovall was found dead after receiving a toxic amount of morphine and methadone from her caregiver, Kelly Renee Jones who worked for the company Visiting Angels.

The nationwide franchisor provides non-medical, home-care services to the elderly. Caretakers clean, cook, run errands and provide hygiene assistance. Dave Plank, Visiting Angels' director of business development, claims that the Fresno-based office is no longer affiliated with the national organization.

Stovall's son called police Monday morning because he suspected that Jones was intoxicated while watching his mother. Police then discovered that Stovall was dead in a bed in the living room. Police estimated Stovall had died a few hours prior to the discovery.

Police drew blood samples of the caretaker and the deceased for drug analysis to determine the cause of death. An autopsy conducted by the Fresno County Coroner's Office later concluded Stovall died from a toxic amount of morphine and methadone. Stovall reportedly had a prescription for morphine. The blood work results also showed that Jones was under the influence of medication prescribed to Stovall, police said.

Police are also looking into the duties Jones was asked to perform as caretaker for Stovall. Jones would allegedly administer medication to the woman even though she wasn't licensed to do so.

Detective Joe Alvarado believes the death was a mercy killing. "Throughout the entire investigation I felt so," he said. "[The suspect] really had nothing to gain financially by killing her ... I think she just got close to her and figured she should be taken out of her misery."

Jones will appear in court for an arraignment after the district attorney files charges upon reviewing the police department's report. She faces 25 years to life if a jury finds her guilty of first-degree murder.