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June 2007 |
Volume 9, Issue 5, Part
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 June: Summertime
Video
Clip
In case you didnt see it -- Click Here for Hillary's take on the
Soprano's last episode.
In this issue...
Street
Smarts: The Multi-unit Movement benefits franchisors and
franchisees . Industry
Focus: Meal Assembly- The next big thing in food
franchises. Guest
Column: Attraction In Action.
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The Multi-unit
Movement benefits Franchisors and Franchisees
Right now, more than one out of ten franchisees
operate more than one unit. Many of them operate more than one concept. There is
growing evidence of a trend toward multi-unit and multi-brand ownership. The
advantages to both franchisors and franchisees are clearly compelling, and
dramatic growth in multi-unit and multi-concept franchising is expected over the
coming years.
The primary benefit for franchise companies is the
opportunity for fast, efficient growth. Area developers who can develop an
entire geographical area are ideal because they have strong organizations of
their own, which the franchisor can leverage. It takes a much smaller investment
in time and money to develop a region or even an entire state when you're
dealing with one individual instead of 50. Franchisors who don't have to spend
time on the nitty gritty business of opening stores can focus on extending brand
awareness - which again, can grow much more rapidly.
The benefits are there for franchisees, too. It's
becoming increasingly difficult to make a living from a single unit or even a
couple of units. Owners with multiple units and/or brands have the added
advantage of being able to spread the risk. Times may be slow for one, but
rarely for all - at least not at the same time. Multi-unit operators also report
that attaining success gets easier as the number of units grows. Costs per store
unit drops, which means more money is available for better managers and better
marketing.
Meal Assembly - The Next
Big Thing in Food Franchises
We Americans are a busy bunch. On average, we can only manage to
find time for a home cooked meal two or three times a week. Fifty years ago, the
solution was frozen dinners. Then fast food franchises took over. Today, there
is a new alternative for time-starved people who crave wholesome meals at home.
It's the hot new concept known as meal assembly.
The first meal assembly franchise was the brainchild of
Stephanie Allen, founder and CEO of Dream Dinners. "Customers come into our
stores once a month and make their own dinners," Allen explains. "They choose 12
recipes, make a reservation for a time they'd like to come in, and we have all
their ingredients ready and prepped for them. As they assemble their meals, we
seal and label them with cooking instructions. In less than two hours they make
12 full size family dinners that they can take home, freeze, and cook whenever
they want. These are dinners they've made themselves so they feel good about
serving them. The meals are healthy and they know what's in them."
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 Company:
Dream Dinners Units: 220 open, 60 in
Development Startup costs: $250k to
$370k Franchise fee: $35K Address/phone:
P.O Box 889, Snohomish, WA 98291-0899 Phone:
(425)293-9871 Website: www.dreamdinners.com In
business: 2002 Franchising since:
2003
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The Dream Dinners concept saves customers both time and money,
according to Allen. "Compared to going to the grocery store for ingredients, it
is cheaper by $200-$300. And that's if you're going to cook. But our research
shows that the 3 nights a week people are using Dream Dinners, they were
typically eating out - which is a lot more expensive. As for time savings, there
is no cleanup at home and no prepping, shopping, deciding, or thinking. We've
calculated that making your monthly dinners in 2 hours this way, you save about
18 hours. That's like giving somebody a whole extra weekend!"
The Dream Dinners concept evolved out of personal experience.
"I'd been making my dinners this way for 7 years before creating the business. I
had a girlfriend who was a teacher with 3 kids and no time to cook. I had a
successful catering business yet I couldn't get dinner on the table either. One
day I invited her to come to my house to put some dinners together and freeze
them. It worked so great, we just kept doing it - once a month for 7 years. Over
those 7 years our reputation in our little town grew. People kept saying, 'I
want to do that, I want to cook the way you do.' Finally, I sent an email off to
my friends saying, 'you've been asking me for years, so come on over. I'll open
up my catering kitchen one night a month'. That's how it all began. Six years
later, we've created a whole new industry."
Attraction In
Action By: David Handler
Part 2
(Continued from last newsletter)
Buddha is quoted as saying, “With our thoughts, we make our
world.” Similar examples from each of the major religions connect clear
intention with anticipated results: Mark 11:24 in Christianity; The Mahavakyas
in Hindu; The Kabbalah in Judaism. Each suggests a higher power – God, deities,
the Universe – delivers what we desire into our lives. This is the spiritual
side of The Law Of Attraction (LOA).
So how do you benefit from knowing this secret?
As a franchisor, gather your leadership team and define your
perfect franchisee. LOA suggests that once you become crystal clear on who this
is, you will naturally focus on attracting these people to your brand.
Everything – from your strategic plan, to your marketing, to your Discovery Day
– will be in alignment with your desire. Do this, and see if your next five
franchisees are closer to your intention than the last five.
As a franchisee – or potential franchisee – have you clarified
the one thing you seek from your business? Most people quickly describe what
they don’t want…answering to a boss, dealing with corporate frustrations,
working for the man, etc…however, few people are able to clearly state their
intention. Take time over the next two weeks to see how focused you can become
on the one thing you desire. You’ll struggle to narrow it down to a single
sentence; yet, once you truly identify it, you’ll discover many things begin
appearing to bring it closer to reality.
OK. So you read both these
articles, and you’re as skeptical about LOA as I was a year-and-a-half ago.
That’s understandable, and here’s your chance to test it…to prove me wrong.
Spend 45 minutes this weekend looking at some magazines.
Whenever a picture resonates with you, cut it out. After you’ve collected a
dozen or so, pick five that represent the life you desire. Mount them in a
visible place in your office, and each morning just look at them for one minute.
See what happens over the next 90 days. If LOA is a hoax, all you’ll waste is a
couple of hours of your time. On the other hand, if LOA is, indeed, the world’s
greatest secret, your life will change forever. Are you willing to take the
risk?
“What power this is I cannot say. All that I know is that it exists.”
– Alexander Graham Bell
David Handler is the founder of Success Handler, LLC, and
previously served as a senior executive at ICED. He leads franchisors and
franchisees to explore their professional and personal dreams. To unleash
attraction in your life, send an e-mail to coach@successhandler.com or visit
www.successhandler.com
Sweet Summer Drink
Sales
With summer heating up, quick-service restaurants
including Dunkin' Donuts, Jamba Juice and Atlanta Bread, are enhancing their
sweet beverage and shake offerings to capture thirsty customers. Several brands
have recently announced limited time offers. Executives hope these offerings
will increase drink sales anywhere from 5 percent to 15 percent.
Sonic Drive-In launched an Oreo and Hot Fudge Shake in April and
followed that up with the roll out of the Full Throttle Slush which is loaded
with ginseng, B-Vitamin complexes and taurine. At the same time, Arby's brought
back its popular Orange Cream Shake through July 7. Wendy's recently introduced
the Frosty Float, available in chocolate or vanilla. Additionally, many brands
are jumping into the popular smoothie market. In 2006, smoothie makers earned
more than $2 billion from made-to-order and packaged smoothies, up more than 80
percent in the last five years. (qsrmagazine.com, 5/21/07)
Chili's Grill & Bar to
expand in Midwest
Brinker International, Inc., announced a new franchise and
development agreement with franchisee ERJ Dining of Louisville, KY. Under terms
of the new agreement, ERJ Dining will acquire 76 existing Chili's Grill &
Bar restaurants and develop 49 new locations in the Midwest. Including the ERJ
Dining agreement, during the current fiscal year, Brinker domestic and
international franchisees have signed agreements to purchase 182 company-owned
restaurants and develop 165 -189 new locations over the next 10 years.
Upon completion of these transactions, franchise ownership of
Brinker brands will surpass the company's initial goal to increase franchise
ownership to 30 percent by the end of the calendar year 2007. As recently
announced, Brinker anticipates franchise ownership will further grow to 35
percent by end of fiscal year 2008. ERJ Dining currently operates 25 Chili's
restaurants in Kentucky, Indiana, Illinois, Wisconsin and Missouri with four
additional restaurants in development. Once terms of the expanded agreement are
met, ERJ Dining will become one of the largest Chili's franchisees in the
country. (qsrmagazine.com, 6/1/07)
 Lodging giant Marriott International Inc.,
one of the hotel industry's most conservative companies, has struck a deal to
develop a boutique chain designed by Ian Schrager, the entrepreneur known for
his style-driven hotels. The agreement is intended to give Marriott a presence
in the boutique segment of the hotel industry which it has been unable to crack
even as rivals like Starwood Hotels & Resorts Worldwide Inc., have found
success with brands such as W.
For Mr. Schrager, the hotelier who was behind hip properties
like Morgans Hotel in Manhattan, the deal provides a new platform for his hotel
design. In the new partnership, Mr. Schrager will focus on designing, marketing
and branding the hotels. Marriott will operate them under long-term management
contracts. As is now standard in the industry, the hotels will be owned by third
parties who will pay fees to both Mr. Schrager and Marriott. The new brand,
which hasn't yet been named, will be added to a group that includes Marriott's
flagship hotels, its luxury Ritz-Carlton brand, and the mid-scale Renaissance
Inn and Courtyard by Marriott brands. (Wall Street Journal, 6/14/07)
Donut Chains
Find Success in Asia
Some of the world's top donut chains have come rolling
into China, Taiwan, South Korea and Japan and elsewhere in the region as Asians
embrace the Western fast food fad. Chains like Krispy Kreme, Dunkin' Donuts and
Mister Donut are setting up shop in a region not known for its sweet tooth,
reflecting a growing openness to foreign foods and rising living standards,
according to the chains and consumers. In a twist on the common snack in the
West, the chains say they are filling a growing demand for high-end treats that
can double as gifts as well as snacks.
In their Asia expansions, the donut makers admit to tweaking
their recipes, much the way fast food chains like McDonald's and Yum Brands' KFC
and Pizza Hut have added new products and emphasized foods to suit local tastes.
Dunkin' Donuts Taiwan menu includes such foreign flavors as green tea and
honeydew melon donuts, while Mister Donut also offers green tea and flavors like
strawberry and sesame. One of the biggest differences is in sweetness, with many
donut makers toning down their sugar content in a nod to Asians' generally lower
preference for sweet foods. (nytimes.com, 6/14/07)
7-Eleven Inc. is planning to convert its
company-operated stores in the Washington area to franchises as part of a
national strategy to become a fully franchised business. The Dallas-based
convenience-store chain has 951 stores in D.C., Maryland and Virginia with 413
of them currently franchises. Over the next five years, 7-Eleven expects to
convert the remaining 528 company-operated stores to franchises. About 3,650 of
the company's 5,600 stores in the United States are franchises. 7-Eleven, a
privately held company founded in 1927, has more than 31,600 stores worldwide.
(Washington Business Journal, 5/29/07)
Hilton Hotels Corp. confirmed this month that it had
reached agreements to develop about 55 hotel properties in Russia, Britain and
Central America with a group of partners. The company has agreements in place to
form alliances for development in those three markets which is expected to
result in around 55 hotels total. The move is part of an effort to extend
Hilton's international presence through management contracts and franchises with
established real estate development firms, allowing Hilton to remain "asset
light." Hilton intends to develop 1,000 new hotels outside the U.S. in the next
10 years. In 2006, Hilton paid $5.7 billion to buy Hilton Group in Britain and
forged alliances to build 100 properties in India and China. The latest
alliances are another step in their fast-paced international growth plan.
(latimes.com, 6/4/2007)
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