Growth Articles

Wholesale food costs will ease significantly for restaurants this year, but operators will still feel a pinch on margins because of customers’ resistance to pass-along increases in menu prices, according to the National Restaurant Association.

Franchisee of the Month: Chris Partyka

Chris Partyka bought into the Pizza Patron franchise system seven years ago with three units in San Antonio, intent on developing that market for the Latin-inspired, Dallas-based chain. Since then, he’s opened five more stores in San Antonio and another three in Austin. But he’s done a lot more for the brand than simply expand its presence. He helped the chain develop its new QSP (quick-service pizza) prototype, a carry-out only variation of its stores specializing in LISTA-NOW READY products as well as in custom-made pizzas baked in just over three minutes.

Secrets to a happy franchise marriage

Relations between franchisee and franchisor have always been a make-or-break dynamic for restaurant chains. But the prescription for a mutually lucrative partnership has been scrambled a bit by the Great Recession. Ditto for the list of taboos that can spur either party to speed-dial their attorney. We asked franchising vets from both the franchisor and the franchisee side to share their tips for maintaining a happy and satisfying marriage. Here’s their turn at playing Dr. Phil:

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

When Myron Allen wanted to open a Toppers Pizza franchise in Rochester, Minnesota, he turned to an old friend: his local banker. His banker passed him to another bank, which left him hanging for a month. It was then that he gave computer dating a try. He listed himself with Boefly.com, a year-old online exchange that introduces lenders to borrowers who meet their criteria. Within a week, he had eight interested parties. Four weeks later, he was approved for a Small Business Administration loan.

Franchisee of the Month: Glenn Mueller

Next time you order a pizza for delivery, note the insulated bag that keeps your pie piping hot all the way to your door. While you’re tipping the driver, take a glance at the car. Chances are you’ll spot one of those illuminated portable car-top signs. Now tip your hat to Glenn Mueller and the gang at RPM Pizza, Domino’s largest franchisee, because both the bag and the car-top sign are RPM innovations that have become ubiquitous in the food delivery business.

Kickstart your funding

Sunhui Chang is building one of the smallest restaurants in Oakland, Calif. When it opens in early 2012, FuseBOX will have a focus on Korean fare with a casual atmosphere. Chang, owner and chef, was planning on using city business development money for the project. “As the politics changed and economy got worse, the development money disappeared,” says Chang. That’s when he turned to Kickstarter, a crowdfunding site that harnesses the power of many small donations from lots of different people.

What the new breed of franchisees looks like

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

The Year of the Franchisee

The Great Recession left clear winners and losers in the chain restaurant game. Fast-food places? Burger King wasn’t the only one that could wear a crown. The fast-casual sector fared even better. But old-line family or casual concepts? Stick a fork in ’em. Strangely, the players most deserving of a superhero’s cape pulled a Clark Kent on the business, dodging recognition despite a show of considerable might. Regardless of the segment, franchisees now stand even taller and firmer after the wobble of the economic downturn.

What they're saying about BK's new fries

Burger King will likely be slammed tomorrow with customers looking for a free sample of the chain’s new thicker-cut, lower-sodium French fry. The one-time Free Fries Friday is an introduction of sorts, but the revised side has actually been available in many markets for more than a month. Here’s what citizen-reviewers have said on their blogs about the new fry. The overall assessment: Better than the old fry, but still not a four-star version. See for yourself. All excerpts are verbatim.

Happier hour

During these difficult economic times more restaurants and bars are turning to the tried-and-true happy hour to get customers in the door. But to cater not just to the value minded, but also to the customer who wants something different, or memorable, today’s happy hour has to be innovative. Here’s a sampling of happy hour strategies that go beyond the usual.

Investigations of wage violations become more aggressive

There’s never a good time to cheat your workers out of their hard-earned pay. Having said that, now’s an even worse time to do it. Cities, states and the feds are getting more aggressive—and are working more closely—in nailing companies that play fast and loose with employee wages. And restaurants are one of their prime targets.

Labor unions set their sights on restaurants

Think labor unions are someone else’s problem? Think again. While unions and other workers’ rights groups haven’t fed well at the restaurant trough to date, that scenario is poised to change. In fact, the American labor movement has set its sights on the service sector and may soon be headed, bullhorn in hand, to a restaurant near you. Consider:

Growth Articles

Classifieds

Quick Links