What the new breed of franchisees looks like

Other Articles You May Like

8 questions every franchisee should be asking

Secrets to a happy franchise marriage

Funding franchisees: How small Z's are finding big money

The Super Zees
Characteristics: Well-financed; multiple brands; sophisticated infrastructure; often specialize in nontraditional locations; likely to develop proprietary brands in addition to being major franchisees; often have franchise interests beyond restaurants.

Poster Child: HMSHost, Bethesda, Maryland

Thanks to HMSHost, killing time at the airport has gotten more enjoyable and decidedly more delicious. A subsidiary of Milan, Italy-based Autogrill S.p.A, the company, headquartered in Bethesda, Maryland, is a leader in travel restaurants and retail with $2.5 billion in 2010 sales. It was the first to introduce brands into airport and travel plaza environments some 30 years ago. The company’s approach combines development of proprietary branded concepts, including Cheers, FOX Sports Sky Box, Jose Cuervo Tequileria, Casa Bacardi and Dewar’s Clubhouse, with licensing and franchising of popular international, national and, increasingly, local brands.

HMSHost works with nearly 400 licensed and franchised food and beverage brands in about 1,150 locations and opens an average of 50 new restaurants at airports across the country per year. Franchised brands include Chili’s, California Pizza Kitchen, Tim Horton’s and On the Border. Licensed brands, which make up 80 percent of the portfolio, include national names like Pei Wei Asian Diner, Shula’s and Pinkberry, as well as local brands like 42nd St. Oyster Bar in Raleigh-Durham, Esquire Grill and Burgers & Brew in Sacramento, and Anthony’s Seafood in Seattle.

To manage it all, the company employs a team of six in its restaurant portfolio group who work to build and maintain relationships with restaurants across North America. In addition, its design and construction team works with brand partners to create restaurant designs that meet the brands’ requirements while managing often-challenging space constraints and airport design standards. “We’ve been working with some restaurant partners for 25 years; other relationships are brand new, such as the group we’re working with at Sky Harbor Airport in Phoenix. There, we’re adding 20 local restaurant names into the dining options that will open in mid-2012,” says Bill Casey, vice president of the restaurant portfolio group. “We also travel the country to keep our fingers on the pulse of the latest trends in flavors, food and dining. This enables us to stay on-trend in our offerings.”

Among the biggest challenges and keys to “super zee” success is maintaining brand integrity and consistency, particularly in nontraditional settings, Casey notes. “We work very closely with our partners to ensure that they’re satisfied with how their restaurant is represented in the airport setting. These elements include maintaining customer service, the look and feel of the restaurant, the matching—as closely as possible—of the menu items being offered. We focus on operations and execution and on keeping the brands’ essence pure from street side to air side. We want the customer’s experience to be a seamless one.”

Other Super Zees
▶  Boddie-Noell Enterprises, Rocky Mount, NC  (Hardee’s, Moe’s Southwest Grill, Texas Steakhouse & Saloon, Café Carolina & Bakery, The Highway Diner, Rose Hill Conference Center, BNE Land and Development)
▶  Carrolls Restaurant Group, Syracuse, New York (Burger King, Pollo Tropical, Taco Cabana)
▶  Briad Restaurant Group LLC, Livingston, New Jersey (T.G.I. Friday’s, Wendy’s Old Fashioned Hamburgers, Corner Bakery Café, Zinburger, Cups Frozen Yogurt, Marriott, Hilton)
▶  Pacific Convenience & Fuels LLC/Buon Hospitality, Pleasanton, California (Corner Bakery Café, Wendy’s, Subway, Baja Fresh, Circle K, Chevron, 76/Conoco, ProWash Car Wash, Radiance Car Wash)