FRANCHISE GROWTH SOLUTIONS & ADP TO HOST EXCLUSIVE NEW YORK FRANCHISOR FORUM – NOVEMBER 1, 2024

Posted on October 17, 2024October 25, 2024 by Contributing Writer

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Franchise Growth Solutions and ADP are hosting the New York Franchisor Forum on November 1, 2024, at ADP’s NYC office. This event is for franchisors and those interested in franchising, offering key strategies and expert advice to grow their franchise brands. Registration is open until October 25, but space is limited, so reserve your spot now!

FRANCHISE GROWTH SOLUTIONS & ADP TO HOST EXCLUSIVE NEW YORK FRANCHISOR FORUM – NOVEMBER 1, 2024

Franchise Growth Solutions is excited to announce the New York Franchisor Forum, an exclusive one-day event for franchisors and anyone considering franchising their business, on Friday, November 1, 2024, at ADP’s NYC office. This highly anticipated Event is designed to equip franchisors with the essential strategies, insights, and connections needed to expand and scale their franchise brands effectively.

Event Details:
Date: Friday, November 1, 2024
Time: 9:00 AM – 4:00 PM
Location: ADP NYC Office
One Penn Plaza, 23^rd Floor
New York, NY

CHECK THE AGENDA BELOW

Meet the Speakers & Panelists:

The New York Franchisor Forum will feature some of the most accomplished leaders in the franchising and business sectors. Here’s a closer look at the panelists who will be sharing their expertise:

Gary Occhiogrosso

Gary Occhiogrosso is the Founder of Franchise Growth Solutions, a co-operative based franchise development and sales firm. His proprietary “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital.

Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program. He is the former President of TRUFOODS, LLC a 100+ unit multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille.

Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine as well as begin named Top 100 Franchise Influencers in 2021, 2022, & 2023 by SEO Samba and 1851 Magazine.

In addition, Gary was an adjunct associate professor at New York University on the topics of Restaurant Concept Development, Entrepreneurship and Franchising. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He is also the author of the E-Guide: Is Your Business “Franchiseable”?

He was the host of the NYC’s “Small Business & Franchise Radio Show” and currently the host of the podcast “MasterMind Minutes.” Gary is also the publisher of the online magazine FranchiseMoneyMaker.com as well as a contributing writer for Forbes.com

OPTIMIZING LEAD GENERATION

Rafael Viaud

Rafael Viaud, VP of Business Development at Executel, is a charismatic leader with over 15 years of experience in driving business growth through strategic networking and lead generation. His expertise in market expansion and operational excellence has led to significant sales achievements across the Finance, Technology, and BPO sectors. He brings a wealth of knowledge in client acquisition, team building, and data-driven decision-making.

Sean McKay

Sean McKay is a seasoned expert in web design and digital marketing, currently leading business development at Site Hub. With over a decade of experience, Sean has successfully cultivated a strong client base in Government, B2B, and niche sectors, specializing in branding, web design, and advertising.

Matt Jonas

As the President and Co-Founder of TopFire Media, Matt Jonas has more than two decades of experience in digital media and franchise marketing. Under his leadership, TopFire Media has become one of North America’s premier marketing agencies, focusing on lead generation and strategic branding. Matt’s insights will bring valuable marketing strategies to the forum.

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MANAGING ROGUE FRANCHISEE AND ENFORCING FRANCHISE COMPLIANCE

Harold Kestenbaum

With over four decades of experience, Harold Kestenbaum is a franchise law expert who has served as general counsel to major franchisors, including Sbarro, Inc. His deep knowledge of franchise law, combined with his practical experience as a franchisor, makes him a leading authority on franchise compliance and management.

Lisa Oak

A franchise development and business growth strategist, Lisa Oak has held leadership roles within the SUBWAY® organization and has advised emerging brands. With expertise in executive coaching, negotiations, and strategic planning, Lisa has helped shape the growth of several franchise companies.

Paul Gucciardo

As Brand President at Sobol, Paul Gucciardo is a skilled negotiator with extensive experience in franchise system development, team building, and account management. His expertise will offer attendees practical advice on managing operations within franchise networks.

Victor Turcanu

Victor Turcanu is an attorney with Spadea Law specializing in franchise law. His legal expertise ensures that franchise operations remain compliant and protected from legal challenges.

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PRIVATE EQUITY IN FRANCHISING

Alicia Miller

Alicia Miller is the Founder and Managing Director of Emergent Growth Advisors, a strategic advisory firm that focuses on franchising and private equity. She advises franchise management teams on growth challenges and helps private equity firms with strategy and value creation. As a former multi-unit franchisee, Alicia brings a unique operator’s perspective and has written over 80 articles on franchising. She is also an advisor for the International Franchise Association’s CFE program.

Michael Ledecky

Michael Ledecky is the Founder and Managing Partner of Clay Path Partners, an entrepreneur-led search fund that helps business owners transition their companies while preserving the founder’s legacy. His private equity insights will shed light on the critical role of investment in franchise growth.

Robert Tobias

Robert Tobias, founder of Elite Franchise Capital, has spent two decades specializing in strategic investments within emerging franchise brands. His extensive experience in franchise management and expansion will provide attendees with actionable strategies for growth.

Sean Whitehead

Sean Whitehead, an investor with NewSpring Capital, brings expertise in private equity, with a focus on fostering franchise growth through strategic investments. His insights will guide franchisors on how to attract and leverage private equity.

Scott Romanoff

Scott Romanoff brings nearly three decades of experience from Goldman Sachs, where he served as a Partner for 12 years. During his tenure, he worked in both New York and London within the Investment Banking Division and the Executive Office. Scott led Corporate Development and co-headed the Financial Institutions Financing Group, advising on debt and equity financing as well as risk management. He also held key leadership roles, including Co-Chair of the Significant Acquisitions Oversight Group and served on the GS Bank Management and Firm-wide Finance Committees.

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Strategies and Tactics for Effective Franchise Sales

Daniel Claps

Daniel Claps, CEO of Voda Cleaning & Restoration, is a serial entrepreneur with a background in franchise lead generation and business development. Known for his innovative approach, Daniel has co-founded several successful ventures in the franchise sector.

Ben Woodruff

Ben Woodruff, CEO of Whoops, is a seasoned franchise leader with over 20 years of experience. His focus on performance metrics and strategic planning has made him a successful operator and leader within the franchise industry.

Aimee Kirvan

Aimee Kirvan is the co-founder of Kirvan Consulting, a franchise development and sales organization. With over 20 years of experience in the restaurant and service sectors, Aimee specializes in franchise sales for start-up and emerging brands.

Free Registatration:
https://events.adp.com/profile/form/index.cfm?PKformID=0x80694abcd&source=FranchiseGrowthSolutions

For more information contact Camila Mojica at [email protected] (201) 534-5610

6 KEYS TO CRAFTING A STRONG BRAND POSITIONING STRATEGY

Posted on July 14, 2024 by Contributing Writer

A strong brand positioning strategy is essential for standing out in a crowded market. By understanding your current positioning, analyzing competitors, defining a unique value proposition, crafting a compelling positioning statement, testing and refining your approach, and reinforcing your brand’s distinguishing qualities, you can create a powerful positioning strategy that resonates with your target audience and sets your brand apart.

6 Keys to Crafting a Strong Brand Positioning Strategy

By Gary Occhiogrosso, Founder and Managing Partner, FranGrow

A strong brand positioning strategy is essential for standing out in today’s competitive market. A well-defined brand positioning helps differentiate your brand, build customer loyalty, and enhance overall market presence. Here’s a comprehensive guide on developing a robust brand positioning strategy that will make your brand shine.

1. Understand Your Current Positioning

Before crafting a new strategy, assessing your current brand positioning is crucial. Analyze customer perceptions, conduct surveys, gather feedback, and study market trends to understand where your brand stands. This initial step provides a foundation for your new positioning strategy by highlighting your strengths and identifying areas for improvement.

2. Identify Your Competitors

Understanding your competitors is vital to creating a unique positioning. Conduct a comprehensive analysis of your main competitors, focusing on their strengths, weaknesses, and positioning strategies. This helps you identify market gaps and opportunities to differentiate your brand effectively. Look beyond superficial assessments and delve into their core strengths to develop a compelling brand message.

3. Define Your Unique Value Proposition (UVP)

Your UVP is the foundation of your brand and your positioning strategy. It defines what makes your brand unique and why customers should choose you over competitors. Your UVP should connect your brand promise with your customers’ needs, addressing their friction points and demonstrating your brand’s unique benefits. Ensure it is clear, compelling, and memorable.

4. Craft a Compelling Positioning Statement

A positioning statement succinctly communicates your brand’s identity, target audience, and the benefits you offer. It should be a powerful message that captures why your brand matters and what differentiates it from others. This statement will guide all your marketing and branding efforts, ensuring consistency and clarity across all channels.

5. Test and Refine Your Positioning

Before fully implementing your new positioning strategy, test it with your target audience. Use focus groups, surveys, user reviews, and interviews to gather feedback and gauge reactions. This allows you to refine your positioning to ensure it resonates well with your audience and aligns with their perceptions of your brand.

6. Reinforce Your Brand’s Distinguishing Qualities

Consistency is critical to reinforcing your brand positioning. Consistent messaging across all marketing channels, including social media, email, and content marketing, helps build brand recognition and loyalty. Delivering on your brand promise consistently strengthens your positioning in the minds of your customers.

Key Positioning Strategies

Several positioning strategies can help differentiate your brand in the market:

Customer Service Positioning: Highlight exceptional customer service to attract and retain customers, especially in industries known for poor support.
Convenience-Based Positioning: Emphasize the convenience of your product or service, such as ease of use, accessibility, and multi-platform support.
Quality-Based Positioning: Focus on your product’s high quality and premium features to justify higher price points.
Social Media Positioning: Build a strong presence on social media to engage with your audience and develop a brand image that resonates with their values and interests.
Innovation-Based Positioning: Highlight cutting-edge technology and creativity to position your brand as a leader in innovation.

Conclusion

By following these steps, your brand can achieve a distinctive identity, attract loyal customers, and gain a competitive edge in the market. For further insights and detailed guidance, you can explore resources from Adobe, HubSpot, and other industry experts (Adobe) (HubSpot Blog) ( Huble | HubSpot Elite Agency Partner).

LEARN MORE ABOUT BRANDING AND EXPANDING YOUR RESTAURANT WITH A FRANCHISE MODEL

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This post was researched and edited with the support of AI.

HARNESSING SOCIAL MEDIA FOR SMALL BUSINESS GROWTH: TACTICS, TARGETING, AND COST-EFFECTIVE CAMPAIGNS

Posted on July 11, 2023July 11, 2023 by Franchise Strategist

Photo by Tracy Le Blanc

Social media platforms are indispensable tools for small businesses looking to expand their reach, attract new customers, and build relationships with existing ones. By understanding and employing demographic and geographical audience targeting, managing costs effectively, and choosing the right strategy for your needs, you can leverage these platforms for remarkable business growth.

Harnessing Social Media for Small Business Growth: Tactics, Targeting, and Cost-Effective Campaigns

Introduction
Small businesses continue to leverage social media platforms as cost-effective means to engage their audiences, drive growth, and foster brand loyalty. With over 3.6 billion users worldwide, platforms like Facebook, Instagram, Twitter, LinkedIn, and Pinterest present unprecedented opportunities to reach local and global markets. However, The key to success lies in effectively targeting demographic and geographical audiences, creating engaging content, and tailoring your social media strategy to align with business objectives.

Demographic and Geographical Audience Targeting
The first step to effective social media marketing is understanding your target audience. Social media platforms have intricate systems for demographic targeting, allowing businesses to reach specific age groups, genders, occupations, and interests. For example, a local women’s boutique may target women aged 18-34 interested in fashion within a 30-mile radius. Similarly, a car dealership may focus on men and women aged 24-54 in the local city and its suburbs.

Geographical targeting is particularly beneficial for small businesses seeking to make an impact within their community. You can narrow down your audience to your city or state, ensuring that your ads reach potential customers in your locality. For instance, a farm-to-table restaurant in Seattle might use geographical targeting to reach food enthusiasts in the Pacific Northwest, thus optimizing their advertising spend and increasing the potential for in-person visits.

Cost and Potential Return
Social media advertising offers a flexible and scalable solution for small businesses. The cost can be as little as $1 per day on platforms like Facebook and Instagram. These platforms employ a bidding system for ad placement so that costs can vary based on factors like ad quality, relevance, and the competitiveness of your target audience.

The potential return on investment (ROI) for social media advertising can be significant. In 2022, businesses made an average of $5.20 for every dollar spent on Facebook ads. Moreover, 75% of customers said they use social media as part of their buying process. When designed and executed correctly, campaigns can drive traffic, generate leads, and convert followers into loyal customers.

DIY Posting vs. Hiring a Digital Marketing Firm
Small business owners can manage their social media presence or hire a digital marketing firm to run their campaigns. Doing it yourself can be cost-effective and allows you to connect personally with your audience. However, it requires time, effort, and an understanding of each platform’s algorithm.

Alternatively, hiring a digital marketing firm can offer expert guidance, a professionally crafted strategy, and detailed analytics. Firms can also save you time, allowing you to focus more on running your business. These services can range from $1,000 to $20,000 per month, depending on the size and scope of your campaigns.

15 Must-Use Hashtags
Including popular, relevant hashtags in your posts can significantly boost their visibility. Here are 15 top hashtags for small businesses:
#SmallBusiness
#SupportLocal
#ShopLocal
#SmallBiz
#Entrepreneur
#BusinessGrowth
#DigitalMarketing
#BusinessOwner
#Success
#MarketingTips
#StartupLife
#BusinessGoals
#CustomerLove
#BrandAwareness
#CommunityOverCompetition

Conclusion
Social media platforms are indispensable tools for small businesses looking to expand their reach, attract new customers, and build relationships with existing ones. By understanding and employing demographic and geographical audience targeting, managing costs effectively, and choosing the right strategy for your needs, you can leverage these platforms for remarkable business growth. Remember to measure your results and adjust your strategy to maximize your ROI.
While the prospect of advertising on social media may initially seem daunting, the potential rewards are substantial. Whether via DIY posting or enlisting the help of a digital marketing firm, a well-executed social media strategy can elevate your business to new heights.

Keywords: Small Business, Social Media Marketing, Demographic Targeting, Geographical Audience Targeting, Cost-Effective, Advertising, ROI, Digital Marketing Firm, Hashtags, Business Growth, Local Community, Customer Retention, Brand Loyalty, Facebook, Instagram, Twitter, LinkedIn, Pinterest.

KEY TIPS FOR LAUNCHING A SUCCESSFUL RESTAURANT

Posted on December 1, 2021December 3, 2021 by Franchise Strategist

Key Tips For Launching A Successful Restaurant.
BY Gary Occhiogrosso Contributor

For many people, opening a restaurant is a dream. One of the many things I find so interesting about the restaurant business is the blend of creative artistry and the detailed and challenging business aspects necessary to be successful. As an Adjunct Instructor at NYU’s School of Professional Studies, I teach restaurant concept development and business planning. On several occasions, I have been asked by my students to summarize the top issues that one must consider when planning to open a restaurant. Generally, regardless of the type of restaurant, the planning and considerations are the same. I’ll cover a few of the top line elements here.

At the beginning of the process, you should write a simple business plan. It would help if you thought about the many pieces of the puzzle connected to a successful outcome. Many novice restaurateurs, very often chefs, only consider the food component, but there is so much more. A well thought out business plan will include creating a unique concept, a competitive analysis, site selection, financial projections, equipment needs, staffing, and of course, the menu.

Let’s start with a concept

It’s essential that your restaurant offers a unique experience. It could be a Wine Bar with small plates, or a BBQ theme or a Create Your Plate concept. Whatever you decide, it is critical that the environment and “vibe” within the restaurant places the guest firmly inside the experience you’re attempting to create. Don’t confuse the guest with a concept that’s disconnected. As I often remind my clients, “everything touches everything else.” For instance, you wouldn’t use elegant tableware in a fried chicken restaurant or disposable plates in an upscale steakhouse. As obvious as this may seem on the broader elements, it’s essential to take that idea to every detail of the restaurant concept, no matter how small. Everything from the paint color to the music to the tabletops to the wall hanging must work together. The decor elements, the menu, and the service level need to provide the guests with a seamless experience that, when done well, goes almost unnoticed because it’s natural and authentic.

If You Build It, Will They Come?

Building a clientele is never as easy as hanging a sign over the door. It takes smart planning, execution of marketing, and living up to the promise in your mission and brand position statement. You should never assume, “if you build it, they will come.” Questions to ask yourself are; how will my restaurant connect with people? Why does my restaurant exist? What type of people am I looking to attract? What do they read or watch? How do they spend their spare time? What is the best way to reach them? Your concept should appeal to a particular, selected audience. There is no such thing as “everyone is my customer.” Knowing why and for whom your restaurant exists is crucial to success. Your marketing plan should offer compelling reasons why that guest base should frequent your establishment regularly. Is the concept created for health-conscious people? Is it aimed at Millennials or Baby Boomers? It is a full menu or dessert brand or a convenient, fast food, value-based concept. Your social media, print ads, and community outreach should focus on one single audience with one single message. Once you’ve built a loyal base of customers and repeat business, then you should consider expanding your base by marketing to others in the area with a proposition that appeals to them.

Your People Plan is Key

A great team will help you win everyday. Hiring great people is the first step in delivering service excellence and a consistent product to your guests. Your mission statement “the why” along with a corporate culture that emphasizes respect for employees, commitment to your guests, service to the community, and concern for the environment will guide you when selecting your staff. It’s not enough to hire people with restaurant experience; they should also understand and be excited about the mission of the restaurant. If not, they will go through the motions with an inauthentic approach and often fail at exceeding guest expectations. Examine your corporate core values and hire people that match it. Next, supply your staff with comprehensive, ongoing training and the proper tools so can they carry out the day to day tasks flawlessly. Hire for qualities, train for skills.

The Market and Competition

Understanding the market area where you’d like to open your restaurant is a crucial element to the plan. Carefully research the demographics to ensure there are enough people in the area that match whom you believe will embrace your concept. When looking for your location, work with an experienced commercial broker that can supply you with data to help you choose the area and the site correctly.

A full competitive analysis is also essential. For example, check the pricing of your competition. Be sure you’re not over or underpriced for the market. Check other services they offer, such as delivery and online ordering. Spend time in the market area, dine several times at as many competitors as possible, and position your restaurant to address the missing needs in the market. Having a unique value and selling proposition will keep you ahead of the game. Remember, everyone is vying for the same consumer dollars, so you need to create points of differentiation that will help your establishment stand out from the competition.

Consistently Great Food

Your menu must not only be relevant to the concept and the market but should be prepared and served perfectly every time. Restaurant guests expect dishes they grown to love to have the same flavor and high quality each time they visit. Inconsistent products can lead to disappointed guests, bad reviews, and slumping business. Your menu should be not only delicious but also simple to execute. The more straightforward the menu, the less chance of mistakes in preparation. Consistency increases guest satisfaction. Some chefs and “foodies” create menu items that are too complicated and require a highly skilled professional in the kitchen. This approach is fine if you intend to open a high-end restaurant staffed with high price personnel, but not in a fast-casual or family restaurant setting. A winning menu is simple, fresh, relevant, and great tasting. A competent chef can assist in developing dishes that are unique and great tasting that are also simple to produce with less skilled labor. If you have aspirations of owning more than one location, then simple execution, and consistent products are a must to achieve the goal of operating multiple restaurants.

Cash Is King

There are many reasons why restaurants fold. It could be the wrong concept, poor choice of location, not correctly researching the competition, poor service, an uninspiring menu, or bad food, to name a few. That said, the negative impact of undercapitalization may be the most frequent cause of restaurant failures. Knowing how much money you need to launch the restaurant is only the tip of the iceberg. You must assess ongoing cash needs while the restaurant is newly opened and gaining momentum. It may take many months for a restaurant to break even and then eventually become profitable. Being able to support the financial needs during this phase is often the “make or break” challenge that many new restaurateurs cannot overcome. A well thought out projection model that you create with the help of a professional financial advisor can save you from the frustration, negative financial impact and heartbreak of a failed restaurant. Considering capital needs for the first twelve to fifteen months is not only prudent but essential to the success of any new restaurant. You must be prepared to cover the operational costs and expenses as the restaurant “ramps up.” Carefully consider your cash needs and how much working capital you must have on hand, ready to deploy.

Have A Plan And Follow Your Dream

Owning a restaurant can be personally rewarding and profitable. Many people have built great restaurant companies following these simple guidelines. Desire and passion will only get you so far. Create your business plan as a road map. Your plan will help you stay on track when dealing with the many moving parts of launching and successfully operating a new restaurant.
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About the author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with its founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City and the founder of FranchiseMoneyMaker.com

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LEARN MORE ABOUT STARTING YOUR RESTAURANT: www.frangrow.com www.frangrow.com

8 Key Costs To Consider When Opening A Restaurant

Posted on September 1, 2021September 3, 2021 by Franchise Strategist

8 Key Costs To Consider When Opening A Restaurant
By Gary Occhiogrosso – Managing Partner – Franchise Growth Solutions

Two of the most frequent questions I’m asked at a seminar, workshop, or when teaching a restaurant development course at New York University are; “how much money do I need to open a restaurant, and how do I get the money?” This is the first installment of a two part article answering those questions.

Before we can address how to fund your restaurant, we need first to understand what we’re building and its cost. The type of restaurant you’re opening will determine the amount of money you need. In addition, the kind of restaurant will affect the type of funding and who may have an interest in investing or supplying a loan. Additionally, you’ll need to evaluate how much of your own money you need to provide. That’s because part of the process necessary to convince an investor, banker, or private lender is that you’re genuinely committed to the project. You know the expression, “put your money where your mouth is”

For the sake of this discussion, let’s say you’re opening a fast-casual restaurant. Not a franchise but an independent concept that you have developed on your own. This type of project may require a conventional business loan or an SBA loan. In many cases, investors other than family and friends may not be interested in investing in a brand new concept with no track record of success. It becomes further complicated if this is your first foray into the restaurant industry.

Fast-casual restaurants typically cost between $250,000 and $400,000 to “turn the key” and open the doors for business. The various costs associated with opening a restaurant will range depending on factors such as location, size and condition of the space, everything from security deposits to the reserve capital you’ll need to carry possible shortfalls the first few months you’re open.

Investment Costs to Consider

* Professional fees: This is usually necessary to set up your business entity, whether a corporation or LLC. Also, you’ll want to have a lawyer review any lease you may sign to rent a space where you will construct your new restaurant.
* Security deposits: This may be one to three months of rent paid to your landlord. In addition, many utility companies require deposits to set up electric, water, and Internet connections.
* Equipment: The cost for all of your kitchen equipment. Items include hoods, grills, ovens, stoves, stainless steel prep tables, shelving, hot tables, cold tables, a Point of Sale (POS) system, and a walk-in refrigerator. In addition, small wares, things like scoops, ladles, fry baskets, flatware, dishes, glasses, and other small items you need to prepare your menu and serve your guests. Now let’s move to the front of the house. Additionally, you’ll be looking at furniture and fixtures, countertops, workstations, tables, chairs, decorative shelving, and other items. These are the items you use in the front of the house to create the environment that will best suit the concept you’ve created.
* Leasehold improvements: In most cases, this will be your most significant expense. Leasehold improvements are generally construction costs for electrical installations, hood venting, plumbing, heating, and air-conditioning. These items are referred to as “the mechanicals.” And let’s not forget building one and, in many cases, two ADA-compliant bathrooms. Also, installing the proper ceiling, flooring, millwork, painting walls, and other elements that we typically think of as construction. On a side note, you can take advantage of opportunities due to the abundance of restaurants that have closed during the pandemic. These empty restaurant spaces are referred to as “second-generation restaurant spaces.” You can save thousands of dollars if you find and secure a space that was formerly a restaurant. In many cases, you will find the mechanicals have remained in the building. These second-generation restaurant spaces help to reduces your cost if you don’t need to install a hood, venting, plumbing, electrical, and restrooms.
* Signage: Properly identifying your restaurant will mean you will need to sign for your storefront. Also, consider that you may need lighted signs in the windows and other signage throughout the restaurant.
* Start-up inventory: This is probably the most extensive inventory order you’ll ever place. This initial order is for food, paper, beverages, and other supplies you’ll need in your restaurant daily. You’ll replace these inventory items as you use them, but when you first start, you’ll need to stock your restaurant from scratch with every single thing for the first time.
* Grand Opening Advertising: This is an item that most restaurateurs neglect. You’ll want to launch your restaurant by making a big splash in the neighborhood. To do this, you need the proper budget for social media, print, and other forms of advertising & marketing so you can get the word out.
* Reserve Capital: As I mentioned earlier, you will need to reserve cash in the bank. This reserve cash is required to meet shortfalls that may occur when you first open your new restaurant. You may not break even for months. Therefore, it would be wise to be prepared to cover payroll, inventory, utilities, and other costs incurred as you operate.

Understanding the actual cost of opening your restaurant is vital. An investor or bank will want to see that you’ve applied critical thinking to the project by taking time to evaluate the start-up cost honestly. In addition, you will need to prepare a business plan and projections to secure bank financing or satisfy an investor. Properly evaluating the required investment will lead to accurate budgeting these key startup costs.

So now that you have an understanding of cost, you should be prepared for a banker or investor to inquire how much of your own money you’re willing and able to invest into your business. In many cases, the SBA, private lenders, or conventional loans through a bank will require that you supply somewhere between 15% and 25% of the total amount necessary. As an example, if you project a cost of $400,000 to open your new restaurant, you will need between $80,000 and $120,000 in cash. Your cash investment demonstrates to the bank or investor that you have “skin in the game. “I have never seen a bank or investor finance a new restaurant 100%.
Now that we’ve covered the investment information necessary to open a new restaurant, we’ll tackle the second question in our next article. We’ll dig into funding methods such as a conventional business loan with a bank, an SBA loan, a private investor, and of course, family and friends.

About the Author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City and the founder of FranchiseMoneyMaker.com
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FRANCHISE YOUR BUSINESS TODAY: www.franchisegrowthsolutions.com

Press Release: Magic Cup Cafe Opens its First Franchise Location with Six Additional Cafes Planned in the DFW market

Posted on June 11, 2021July 8, 2021 by Franchise Strategist

Magic Cup co-founder and COO My Lynn Nguyen expressed her immense excitement at the McKinney expansion. “We’re thrilled to be a part of McKinney’s diverse community, and we so look forward to bringing a wide variety of high-quality ingredients and one-of-a-kind recipes to Stacy Rd.

FOR IMMEDIATE RELEASE
Contact:
Franchise Growth Solutions
[email protected]

Magic Cup Cafe Joins McKinney’s Diverse Lineup of Flavorful Hot Spots, Brings Fresh Taste to the DFW Area

McKinney TX (June 10, 2021). After months of extensive preparation, Magic Cup Cafe––a community-oriented, multicultural brand known for its hand-crafted boba tea, coffee, and smoothie beverages––is finally opening a brand-new franchise in McKinney, TX.

Located at 7701 Stacy Rd., Suite 100, the McKinney cafe will welcome customers starting this June, bringing Magic Cup’s trademark selection of naturally flavored, internationally inspired novelty drinks to the Dallas-Fort Worth (DFW) area for the very first time. The location will also feature a drive-through (and will be the only boba shop in the region to do so), allowing for safe and easy pickup as Texas continues to navigate the ongoing pandemic.

Upon making the announcement, Magic Cup co-founder and COO My Lynn Nguyen expressed her immense excitement at the McKinney expansion. “We’re thrilled to be a part of McKinney’s diverse community, and we so look forward to bringing a wide variety of high-quality ingredients and one-of-a-kind recipes to Stacy Rd. We believe our friendly, knowledgeable staff, our warm, inviting atmosphere, and our fresh, made-to-order drinks will be a fabulous McKinney fit.”

McKinney franchise owner Chi Tran echoed Nguyen’s sentiments, saying she and partner Tam T Trinh were drawn to the city thanks to its multicultural vibe and abundant food scene. “McKinney won us over because of the diversity of the crowd,” Tran noted, adding, “The city doesn’t have many boba shops, so we really wanted to introduce Magic Cup Cafe to the area. We feel our eclectic menu and fun, family-friendly environment will make us an ideal spot for McKinney residents to sit, sip, and pass some enjoyable time.”

Magic Cup McKinney will be celebrating its Grand Opening on June 12 and will operate Monday through Sunday from 10am to 11pm.

Anyone interested in their own MCC franchise can discover more at magiccupfranchise.com

About Magic Cup Franchise

Founded in Richardson Texas, Magic Cup specializes in hands-on leadership training for entrepreneurs at all levels, Magic Cup is devoted to helping business owners create a legacy all their own. The company’s proprietary franchise system leverages original products, international appeal, streamlined operations, and year-round marketing to support franchisees as they develop a lasting foothold in the competitive beverage market. Accepted applicants can expect to gain expertise in bubble tea and coffee drinks and will be given all the tools necessary to help their business grow over time.

THE RESTAURANT INDUSTRY AT THE PANDEMIC’S ONE YEAR ANNIVERSARY – WHAT NOW?

Posted on March 9, 2021March 9, 2021 by Franchise Strategist

We thought that the last twelve months of performance for individual restaurant stocks might give us a hint as to where to focus going forward. Since some of the obviously large stock gains have taken place among those with the heaviest short position, we have focused on the “short interest ratio”, the number of shares sold short divided by the average daily trading volume.

THE RESTAURANT INDUSTRY AT THE PANDEMIC’S ONE YEAR ANNIVERSARY – WHAT NOW?

By Roger Lipton with permission

The last twelve months have been unprecedented, not only from a business/health standpoint, but from a fiscal/monetary standpoint. There has been more governmental stimulus as well as monetary accommodation than ever before, which has floated all kinds of boats. The Dow Industrial Average hit an all time high just this morning, and, though the NASDAQ index has retreated the last month or so, stocks from Apple to Tesla to Gamestop have written a new book in terms of valuation.

Based upon the new $1.9 trillion Covid bill, the likelihood of a new multi-trillion dollar infrastructure bill, as well as the Federal Reserve’s ongoing willingness to buy at least $120B of Treasury securities every month, there is every indication that the above trends will continue.

From a broad brush, it is shocking to see how large the moves have been from March 8, 2020 until now. It is interesting that several of the best performing “pandemic plays”, namely Domino’s, Wingstop and Papa John’s, which made very big moves over six to nine months, have retraced and are up more modestly now (zero, 56% and 47%, espectively).

This industry, by no stretch of anybody’s imagination is generally in a place that makes these companies “worth” from 50% to 90% more today than they were before the pandemic. There is somewhat less independent competition, and some companies may have learned how to serve off-premise diners better than before, but there are also a great many uncertainties. These include (1) the cost of labor with a new mix of in-store vs. off-premise (2) commodity inflation (3) other expenses to meet health requirements (4) unpredictable consumer spending (5) still substantial competition (6) ongoing high occupancy expenses, especially for new sites. There is also, in many cases, new debt to service.

Fundamentals aside: the stocks have done the following, ranked by today’s short interest ratio.

What do we see? The average gain among the fourteen stocks with the highest short interest ratio is 90%. The bottom fourteen stocks went up by 57%. Without our focus on individual company fundamentals, readers can scan the list and conclude for themselves which stock performance is most removed from the fundamental outlook.

Where do we go from here?

Before considering the above noted $1.9 trillion Covid bill and trillions more for infrastructure, the Treasury is sitting on $1.44 trillion (to be reduced to $500B by June 30th) that was returned from the Fed last year and the Fed is currently creating $120 billion per month. This means that almost $1.5 trillion of accommodation will be provided to the economy and the markets by June 30th, before the effect of the new $1.9 trillion. This also means that equities, including restaurant stocks, may well go a lot higher in the short term. There is just too much liquidity in the capital markets.

THE BOTTOM LINE

For investors: Other things equal, we would focus on the top portion of the table above. 90% is better than 57%

For companies: In almost all cases, we would sell company stock. Pay down debt and/or build your cash balance. It may be a long time before you see these valuations again.

For management: Lighten up. You can always grant yourselves some more stock options.

Roger Lipton

Click here to visit Roger’s website: https://www.liptonfinancialservices.com/2021/03/the-restaurant-industry-at-the-pandemics-one-year-anniversary-what-now/

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About Roger Lipton
Roger is an investment professional with over 4 decades of experience specializing in chain restaurants and retailers, as well as macro-economic and monetary developments. After earning a BSME from R.P.I. and MBA from Harvard, and working as an auditor with Price, Waterhouse, he began following the restaurant industry as well as the gold mining industry. While he originally followed companies such as Church’s Fried Chicken, Morrison’s Cafeterias and others, over the years he invested in companies such as Panera Bread and shorted companies such as Boston Chicken (as described in Chain Leader Magazine to the left) .

He also invested in gold mining stocks and studied the work of Harry Browne, the world famous author and economist, who predicted the 2000% move in the price of gold in the 1970s. In this regard, Roger has republished the world famous first book of Harry Browne, and offers it free with each subscription to this website.

Restaurant Marketing for the Upcoming 2021 Recovery

Posted on November 21, 2020December 9, 2020 by Franchise Strategist

Restaurant owners are infamous for being callous with their marketing decisions, this is partly because the research process in the restaurant industry itself can be quite tricky. Gathering insightful data within a small or slightly larger community will be tricky as it is. This is precisely where digital surveys, restaurant management software, etc play a huge role.

MARKETING YOUR RESTAURANT THROUGH 2020-’21
Business Articles | November 19, 2020
BY KEVIN JOSEPH

Although it may seem rather glamorous at first glance, starting a restaurant is no easy feat. In fact, the restaurant & food business, in general, is one that is extremely time-consuming, high overheads, razor-thin margins & a manager’s nightmare.

But, it is also one that is central to our society and the eating-out culture in every country is the cornerstone of its culinary heritage. This is precisely why, especially during the light of the lockdowns, restaurants, in particular, are facing a very uncertain & grim future which, if left unchecked, can turn into a disaster for the industry.

There are a few things that we as consumers can do in order to help the restaurant industry and the entire hospitality industry in general, but more than anything else, this post is aimed at a few marketing strategies that restaurants can easily adopt.

1. Understanding Their Audience

But more than anything that a machine can do, understanding what the consumers themselves experience while at the restaurant is something priceless in itself. For this, employees & busboys must be trained to ask the right questions and keep an eye out for understanding the consumer experience.

This practice is so conspicuous in its absence that several suppliers & marketing companies for restaurants have taken birth for a study that would probably best be done by the restaurant owner himself. For Instance: folks over at FurnitureRoots, a Jodhpur based manufacturer of restaurant furniture, on several occasions has recommended styling themes depending on the clientele. For a clientele that largely comprises of the youth, industrial style furniture happens to be the best option.

You may visit FurnitureRoots at Plot No 58/2, Jodhpur-Pali Highway, Sangariya, Basni Baghelao, Jodhpur, Rajasthan. 342013

Rustic style furniture is another great option for restaurants that see customers visit with their families.

2. Adapt With The Changing Times

Most non-western countries have more or less been out of the eating out trend in the past. However, many countries have seen a drastic change in this trend. Countries like India are at the forefront of these shifts in trends.

Several cafes in India have seen a rise in environmentally friendly themes. Cognizant of this fact, Prithvi Cafe in Bombay began manifesting an eco-friendly establishment replete with cups and saucers made with disposable leaves, 4 different cans for recycling different types of materials & of course, greenery all around the place.

Naturally, Prithvi Cafe did understand its market’s shifting needs and adapted to it accordingly.

3. Spatial Strategies

These happen to be the strategies that are short term in nature (hoping the pandemic won’t be around for long).

Spatial strategies during these times are to ensure that the image of the restaurant reflects trustworthiness and safety. Although this does involve a bit of mental, time & a minor cost investment, it will forever instill a sense of trust among the local & regular customers.

Spatial strategies are the ones that aim to maximize the seating area while ensuring the social distancing norms for restaurants are maintained and are intact as well. This can also include moving to temporary outdoor seating as has been advocated by several governments across the world to curb the spread of the virus.

4. Go Digital

I bet most of you must be tired of hearing this every now and then but the fact remains that the digital landscape is no longer some sort of a novel initiative that one must undertake. It has become the staple of a business and several businesses are almost exclusively reliant on their digital strategies.

For restaurants, however, this does not mean simply enlisting themselves on food aggregating platforms. Several restaurants suffer from a lack of long term thinking, they fail to realize that the aggregating platforms own the customers and not the restaurants themselves.

Making an app or a website nowadays has become a complete breeze & it is also a sound business practice. Small wonder that Dominos, Burger KindHealth Fitness Articles, Mcdonalds have all invested heavily on their own platform to ensure loyal customers don’t have to purchase from them via a third party.

This is no less true for any other restaurant.

We hope all businesses in hospitality a speedy recovery after this dreaded misfortune of a virus.

Stay Safe!

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR

Kevin is the Marketing & Content Lead at FurnitureRoots.com, a hospitality furniture manufacturer, supplier & wholesaler

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Franchise Your Business Here: www.franchisegrowthsolutions.com

INVESTING IN PUBLICLY HELD RESTAURANT COMPANIES – WHAT DID THE PANDEMIC TEACH US?

Posted on November 10, 2020December 10, 2020 by Franchise Strategist

These days, investors are more typically ETFs which have to own broad swaths of particular industries, as well as institutions that are fighting for day to day performance. The result is that all stocks within an industry have a strong tendency to move together, and it takes a long time for fundamentals to prevail.

INVESTING IN PUBLICLY HELD RESTAURANT COMPANIES – WHAT DID THE PANDEMIC TEACH US?
By Roger Lipton

The dust is beginning to settle, especially with a vaccine now in view. The stocks within the restaurant industry made a huge move on Monday, going a long way to recovering from the severe decline that started at the end of February. We are comparing prices from before the pandemic to the current prices. We published a chart on October 22nd that attempted to compare the current valuations (relative to reasonable expectations) to those before the pandemic began. That exercise revealed some interesting “inefficiencies” in terms of valuations. Shake Shack screamed “overvaluation” so we wrote first about that Company. Of course, it stands to reason that the apparently most overvalued situation would make one of the largest upward moves in today’s news about a possible vaccine. Thank goodness we are not short this volatile situation, which our experience has taught us is a nerve wracking exericise in a Federal Reserve supported easy money environment.

Before we get into a broader discussion of the last seven or eight months, there’s a lesson to be learned by a conversation we had with one of our money managing friends. Back on April 30th, he asked for our suggestion as to a “paired trade” in the restaurant industry. You know… one name that was well positioned and would outperform on the upside, paired with the short sale of a weaker company that would not do as well. The theory, which fifty years ago spawned today’s multi-trillion dollar hedge fund industry, is that equal amounts invested in well chosen offsetting positions would be market neutral yet hopefully outperform the general market over time. It stands to reason, of course, that the stock price will follow the fundamental performance over time, and the good companies will fundamentally do better than the weaker participants. Ideally the long position will go up and the short position will go down, profiting on both sides in a neutral market. That was often the case decades ago, when stock ownership was more broadly spread among individuals and institutions who were picking Individual stocks. These days, investors are more typically ETFs which have to own broad swaths of particular industries, as well as institutions that are fighting for day to day performance. The result is that all stocks within an industry have a strong tendency to move together, and it takes a long time for fundamentals to prevail. Adding to this “inefficiency” is that multi-billion dollar hedge funds maintain large short positions, managed with a hair trigger to limit losses if even short term news is announced. That’s why on a day like Monday when the general stock market makes a really big move, the stocks with the largest short positions go up the most, whether the specific fundamentals justify that price action or not. We could go on….but suffice to say that short term trading has become very difficult in recent years.

As an illustration: relative to the request for a couple of paired trades back in April, after we suggested that this approach has become pretty difficult, we provided a couple of apparently compelling suggestions. We paired the highly respected Darden (DRI) on the long side with the enormously challenged Dave & Buster’s (PLAY) as a compensating short. Surely DRI would outperform PLAY, especially with the predictable health concerns of the public, even after the worst of the pandemic. The chart below shows in retrospect that by 4/30 PLAY, which had declined by 68% between 2/14 and 4/30, was already “oversold”. The profit in Darden (62%) from 4/30 to 11/9 (today) was almost exactly equal to the loss (60%) on the PLAY short. So that trade hasn’t worked yet. It is worth noting that PLAY would have worked well from 2/14 (before the pandemic) to 11/9 (45% profit), against a 2% loss in DRI, but it was already too late by 4/30.

The second presumably intelligent paired trade I suggested on 4/30 was to go long Starbucks (SBUX) along with a short sale of Shake Shack (SHAK). Who could argue with a worldwide brand selling an addictive product (with major growth ahead in China), offset by the short sale of a ridiculously valued hamburger chain whose business model couldn’t be designed more poorly to cope with a pandemic. SHAK had no drive-thrus, high rents, resort locations, city locations inhibited, etc.etc. You can foresee the result. Between 4/30 and 11/9, an investor would have made 26% on his long SBUX position, and lost 51% on the SHAK short. Even from pre-pandemic 2/14 until 11/9, right through the pandemic, SBUX gained 9%, but the SHAK short lost 14%. Every time we write about SHAK, we emphasize our respect for their management, but they are not magicians, and the store level culture cannot force customers to come to the mall or bring NYC stores back to the $7M level of a few years ago.

So…be careful “trading” out there.

On a broader level, we tabulated, as shown below, the price changes among the “darlings” of the institutional investing set, the asset light, free cash flow pursuing pure franchising companies. Without the operating “risk” of running restaurants, they can leverage up their balance sheets to 5-6x trailing EBITDA in a historically low interest rate environment, often with the intent of declaring special dividends to shareholders.

The chart below shows that the ten fairly pure franchising restaurant companies declined by a relatively modest 12% from 2/14 to 4/30. The average was helped quite a bit by Domino’s, Papa John’s and Wingstop which had the twin benefit of delivery and pure franchising. Even eliminating those three names, the seven remaining companies were down 24%, a lot less than the 37% decline shown by the company operated restaurant chains shown below. The franchising companies rebounded 23% between 4/30 and 11/9, more than recouping the worst of the pandemic, and showing a 6% gain through the cycle.

The chains that are primarily operating company stores, with all the operating challenges, have fared worse, also shown below. The stocks were down as a group by 37% by 4/30, recovered 48% by 11/9 and were down 8% through the cycle.

CONCLUSION:

Avoid “paired trades” on a short term basis. It’s just too tough.

For longer term investing, we too, in this environment would favor the pure franchisors, in general, even at their high multiples of earnings and cash flow, and historically high debt/EBITDA levels. We don’t see anything on the economic horizon that will reduce the availability of low interest rate financing. The operating challenges for those companies with company stores are not going away. It’s of course true that franchisors cannot prosper unless their franchisees are doing well, and franchisors will likely have to do more than in the past to support their franchisees but they can borrow at low rates and could even pass through part of that low cost capital to their franchisees.

About Roger Lipton:
Roger is an investment professional with over 4 decades of experience specializing in chain restaurants and retailers, as well as macro-economic and monetary developments. After earning a BSME from R.P.I. and MBA from Harvard, and working as an auditor with Price, Waterhouse, he began following the restaurant industry as well as the gold mining industry. While he originally followed companies such as Church’s Fried Chicken, Morrison’s Cafeterias and others, over the years he invested in companies such as Panera Bread and shorted companies such as Boston Chicken (as described in Chain Leader Magazine to the left) .

A New Magic Cup Franchise Is Coming To McKinney, Texas

Posted on August 29, 2020December 10, 2020 by Franchise Strategist

Experienced investors with degrees in finance and biology respectively, Chi and Tam already had an impressive portfolio in the beauty industry (and two luxury spa locations to their credit) before they decided to investigate their next business venture. Self-confessed boba, tea, and coffee addicts, Chi and Tam were always drawn to the beverage industry but knew they’d need a franchisor with both the patience and the resources to steer them toward success.

A NEW MAGIC CUP FRANCHISE IS COMING TO MCKINNEY, TEXAS
By re:verb Marketers

Big news for Texas tea lovers: After a solid 5 years of hard work and dedication, Magic Cup Cafe is excited to announce that our business is expanding to a new location!

Our new cafe will soon be opening in McKinney, TX, allowing even more tea and coffee drinkers to enjoy Magic Cup’s unique and delicious beverages in-store or on the go. Our Vietnamese-American-owned company’s innovative east-meets-west menu and its friendly community atmosphere have made us a local favorite for residents of both Richardson and Houston, and soon the citizens of McKinney will have a chance to experience our refreshing take on boba, tea, and coffee firsthand.

The move from beloved mom-and-pop cafe to the full-on franchise was a labor of love for our co-founder My Lynn Nguyen, whose expertise in both boba and coffee helped build Magic Cup into a top contender in a highly competitive industry. Beyond 5 years of work, it took 14 months to put together our franchise program. My Lynn notes: “The new Magic Cup franchise opening has been, and will continue to be, a massive collaborative effort, involving lots of careful preparation and consultation with experienced franchise programmers as well as an enthusiastic commitment from Tam T Trinh and Chi Tran, Magic Cup’s newly-obtained franchisees.”

#bubbletea #franchises #Texas #Dallas #dallastexas #houstontexas #franchisedevelopment #franchise #franchising #frachisee #restaurantnetwork #Houston #sanantonio #entrepreneurlife #profit #coffee #smallbusinessowners #restaurantmastermind #smoothies #juice #investors #sales #innovation #restauantmanagement, #profitfirst #therestaurantprofits, #howtofranchise, #franchisemybusiness #career, #motivation #money #IFA #IFPG #franchiseinfo #FranchiseOwner #franchisegrowthsolutionss, #innovation #Subway, #Houston #investment #AHOA #Vietnam #salon #Nails, #jobs #business #franchisemybusiness #boba — Magic Cup Franchisees

Once they met with My Lynn and our Magic Cup franchise consultants, Chi and Tam knew their search for the perfect franchisor was over. “We instantly felt the strong passion they have for the brand,” Tam says, adding that Magic Cup’s vision, core values, and comprehensive training program were precisely the right fit for her and Chi.

When Chi, Tam, and their new Magic Cup family were scouting for locations, they saw massive potential in McKinney, which has seen a remarkable development in recent years. The team is currently working with real estate developers in the area to finalize the location as soon as possible.

When doors open at Chi and Tam’s Magic Cup Cafe location, they hope visitors will experience the same welcoming feeling and thirst-quenching satisfaction they’ve come to expect from our Magic Cup brand. Whatever the future brings, Chi and Tam know that My Lynn will offer them ongoing support every step of the way.
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