Let’s face it, plenty of potential customers add items to their online shopping carts and never check out. While these “abandoned carts” seem challenging, they’re an opportunity.
How Small Businesses Can Boost Sales
By BrandPoint
(BPT) – With over 30 million small businesses in the U.S., it’s tough to stand out from the crowd. Successful small businesses turn first-time customers into repeat business, building momentum and growing sales.
How can you achieve this? Marketing. Finding effective, easy-to-execute marketing strategies can boost your business by helping you engage your customers while attracting new ones. Here are some proven ideas to help your business thrive:
Engage first-time customers
Show new shoppers that they matter. Send welcome emails and recommend products to complement what they bought. Offer special deals to keep them coming back.
Utilize positive customer reviews
Did you know over 60% of consumers read reviews before buying? Reviews can include ratings, testimonials, photos, videos and more.
Treat reviews as marketing gold, sharing them with customers and prospects to build trust and increase sales. You can generate and integrate them into your website, on social media and other marketing efforts.
Turn shopping carts into opportunities
Let’s face it, plenty of potential customers add items to their online shopping carts and never check out. While these “abandoned carts” seem challenging, they’re an opportunity.
An effective way to convert abandoned carts into sales is by drawing on the power of customer reviews. Adii Pienaar, vice president of commerce product strategy for the email marketing platform CM Commerce, says small businesses can change their fortunes with this approach.
“Our most successful small business customers don’t just send a reminder email to shoppers about items left in their carts,” said Pienaar. “They take it a step further and include positive reviews and ratings about that product with the follow-up, knowing how much importance buyers place on others’ experiences. By featuring personalized product reviews for abandoned cart items, there can be a recovery rate of 5-10%.”
Spark interest with specialoffers
Entice new and returning business by offering discounts, encouraging shoppers to give your business a try.
Also, if you don’t have one already, create a loyalty program for frequent shoppers, or a referral special for those inviting friends to your website or social media.
Personalization matters
Shoppers don’t want mass emails treating them like just another number. Small businesses that tailor emails based on each customer’s shopping experiences and interests are far more successful in driving sales.
Creating customized content may sound complex, but it all comes down to how you organize your customer list. For example, segment your customers by which products they’ve purchased, then use this information to inform them how to best use their products or remind them when it’s time to re-order.
Personalization really pays off when you incorporate dynamic content — information that changes based on a person’s interests — in promotional emails. Use a customer’s previous purchases and shopping interests to generate ideas on products to complement items they already bought. For example, recommend a similar flavor of cupcakes to ones they ordered before.
Get started
These proven marketing approaches can springboard your business to success. But, how do you get started?
Marketing has greatly evolved, with many new, easy-to-use tools. You don’t need to be a marketing expert, technical whiz or creative designer to use them.
For example, CM Commerce is an email marketing platform designed for small ecommerce businesses. It can easily create professional email campaigns to enhance and grow your business.
To help small business owners, CM Commerce features pre-built email marketing recipes for everything from welcome emails and newsletters to abandoned cart reminders and more. Business owners can follow these guidelines and put their email marketing plans in place with a single click.
“I always recommend small business owners invest in email marketing,” said Pienaar. “It’s a cost-effective way to establish your brand and regularly reach your customers and prospects. Most importantly, email marketing has the potential for huge returns and can truly make your business stand out.”
Workplace talent drives success. It is not products, not marketing, not demand that ultimately make a company competitive. Don’t fall victim to fear and culture failures during these times. It will inhibit the future health and growth of your company.
Beyond The Covid19 Shutdown, Returning Workers will be Judging “Workplace Culture”
By Gary Occhiogrosso Photo by Austin Distel on Unsplash
As companies continue to evaluate their business in these challenging times, one of the areas many small business operators, and CEO’s of large companies, are investigating is workplace culture. As we ramp back up, many companies will be seeking employees. Many workers will be very focused on how companies treated their employees, vendors, and customers during the pandemic shutdown. Returning employees will also want to know that they, their work, and their ideas, make a difference. Make no mistake; the job market will be so robust that workers have the opportunity to pick and choose for whom they will work. Companies should take this time to revisit, and if necessary, reinvent their workplace culture if they intend to compete for the most qualified employees. Workplace talent drives success. It is not products, not marketing, not demand that ultimately make a company competitive. Don’t fall victim to fear and culture failures during these times. It will inhibit the future health and growth of your company.
Please review this article in the Harvard Business Review. It clearly and expertly advances the concept of workplace culture and how to improve your approach and practices to best advance your company in the upcoming turnaround.
Excerpt:
Today’s workforce wants to know that they’re making a difference within their companies. While work cultures are unique to every organization, the foundation of what enables a culture to thrive is the extent to which employees are empowered to be engaged, feel valued, and be heard. This is where leadership comes in.
From traditional hard and soft ice cream to fat-free treats, and more recently expanding into plant-based ice cream products with the same promise of high quality for which the brand is known.
PRESS RELEASE
Beloved Connecticut based Ice Cream Company plans to expand in the Northeast
Stamford, Connecticut. Gofer Franchise Systems LLC. Today Gofer Ice Cream announced it has launched a program to offer Gofer Ice Cream Franchises throughout Connecticut immediately. The company is set to expand beyond the State in 2020.
Jay Ragusa, Gofer Ice Cream’s Founder, said: “We’ve been preparing for this day since we launched the brand in 2003. It has always been the plan to prove and perfect the concept and then replicate it through the franchise model. We’ve learned a lot over the years, and we feel we’re in a great position to help others own, operate, and prosper in their own business. Prospective franchisee partners can be confident in the Gofer Ice Cream Brand and system that we offer. The fact is that many concepts have come and gone, but we are here thriving and growing.”
The successful “Gofer” brand has been serving the Fairfield County Connecticut area for over seventeen seasons, through its current five locations, and it has become a local favorite for many. The concept of Gofer Ice Cream, which was founded by Jay Ragusa and his family, is to be the “home team” of ice cream places. In every town or city, the goal is for Gofer Ice Cream to become the center of the community, where family and friends can enjoy a high-quality frozen treat in a welcoming environment. The shops are simple, easy, and fun to operate. Also, Gofer Ice Cream Shops are built for a relatively low cost. Franchise Partners are already scooping smiles daily, and the goal is to bring this experience to more and more communities. Gofer Ice Cream offers a variety of frozen treats for the entire family. From traditional hard and soft ice cream to fat-free treats, and more recently expanding into plant-based ice cream products with the same promise of high quality for which the brand is known. In 2019 a new company, “Gofer Franchise Systems LLC,” was formed to focus on expanding via franchising the concept beyond Fairfield County.
It’s always a good day to…GOFER Ice Cream
For the past several months, in preparation for the franchise opportunity launch, the team has been working with Franchise Industry Veteran Gary Occhiogrosso of Franchise Growth Solutions. “Gary brings his experience in not only the Franchise Industry but specifically in the frozen dessert business. He has the deep knowledge and connections specifically needed at this point in our growth. With the addition of Franchise Growth Solutions to the team, we are working with the best in the business to make sure we do franchising right. An investment made by a Franchisee is, in many cases, a once and a lifetime decision, and we don’t take that responsibility lightly.” commented Jay Ragusa.
Mr. Occhiogrosso has 30+ years of experience in franchise development and sales and was integral to the success of nationally recognized brands, including Ranch*1, Desert Moon Fresh Mexican Grille, and brands found under the multi-brand franchisor, TRUFOODS, LLC.
Occhiogrosso stated: “It’s a compelling franchise opportunity, the frozen dessert business continues to grow. People love ice cream. But more than merely the best cream, Gofer creates memories by delivering a family and community experience. With frozen treats to meet virtually every customer trend, whether Plant-Based, or Fat-Free or Soft Serve or our Premium Ice Cream, Gofer Ice Cream gives our Franchise Partners a unique competitive advantage in the Ice Cream business.”
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ABOUT GOFER ICE CREAM
Gofer Ice Cream provides premium hand-dipped and soft-serve ice cream, plant-based ice cream, fat-free Gofer Lite, Italian ice, smoothies, and Razzles, as well as ice cream products and novelties through five retail locations in Southern Fairfield County, Conn. Gofer opened its first store in Greenwich in 2003 and has since grown with both company and franchisee-owned shops also now open in Cos Cob, Stamford, Wilton, and Darien. The company is a multi-year award winner of “The Best of the Gold Coast,” a people’s choice award conducted through Moffly Media. Gofer Franchise Systems LLC awards franchises to operate under the Gofer Ice Cream brand.
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ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise GrowthSolutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, and advertising, marketing, and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only.
For more information, please contact Gary Occhiogrosso at 917.991.2465 or via email at [email protected].
Go! Go! Curry!® is a fast-casual food company that specializes in franchising opportunities and Japanese comfort food namely, Kanazawa-style Japanese curry originating from Kanazawa-city, Ishikawa prefecture.
PRESS RELEASE Go! Go! Curry!® Opens 7th NYC Location in Hell’s Kitchen
First Location to Feature New Restaurant Design by Super Paprika
Japanese, Curry, franchise, Comfort Food, Katsu
Go! Go! Curry!® Signature Menu Item – Chicken Katsu Curry
NEW YORK (PRWEB) NOVEMBER 25, 2019
Popular fast-casual Japanese comfort food chain Go! Go! Curry!® will be opening its 7th location in New York City on November 29, 2019. Celebrating 12 years since the first location opened, Go! Go! Curry!® is answering the demands of heavy traffic in its nearby locations in Time Square and East 53rd. The store will be located at 366 W. 52nd St in the bustling neighborhood of Hell’s Kitchen.
“When we came to New York, it was around the time of the recession and the market was uncertain, it certainly has had its challenges and Go! Go! Curry!® has been able to display staying power which I am incredibly proud of. As we celebrate our growth and success, we are focusing on our franchising program and how we can support new franchisees. I believe that among other things, professional and modern design for our new stores is a step in that direction.” said Go! Go! Curry!® CEO, Tomoko Omori
This year , Tomoko Omori decided to work with renowned designer Hiromi Tsuruta, who has worked on projects like Juice Generation and Blue Bottle Coffee. Omori’s decision to work with Mr. Hiro of Super- Paprika is based on the current positioning of the company. With soon to be 8 corporate stores under her belt, Omori is focusing on finding driven individuals who are dedicated to entrepreneurship to expand Go! Go! Curry!® through the company’s franchise program.
Go! Go! Curry!® has teamed up with franchise industry expert Gary Occhiogrosso, founder of Franchise Growth Solutions, LLC, to expand the turnkey Go! Go! Curry!® business model. Franchise Growth Solutions LLC (FGS), is a New York-based strategic marketing, franchise development and sales organization. Mr. Occhiogrosso was instrumental in the successful launches of nationally recognized brands such as Ranch *1, Desert Moon Fresh Mexican Grille and multi-brand franchisor, TRUFOODS, LLC. Franchise Growth Solutions routinely introduces the hottest new franchise opportunities to business-seeking entrepreneurs and multi-unit franchise developers.
Updates on Go! Go! Curry!®’s openings are available online at Gogocurryamerica.com and on Facebook at Go! Go! Curry!® America,” Instagram at @GoGoCurryAmerica and Twitter at @GoGoCurryAmerica.
About Go! Go! Curry!®
Go! Go! Curry!® is a fast-casual food company that specializes in franchising opportunities and Japanese comfort food namely, Kanazawa-style Japanese curry originating from Kanazawa-city, Ishikawa prefecture. Go! Go! Curry!® has opened more than 75 locations in Japan since its launch in 2007 and now 9 stores in the United States The company strives to spread smiles and “Genki”, a Japanese word for happiness, to every customer through the quality and authenticity of its food and service.
DAVE & BUSTER’S INTRODUCES LIGHTLIFE MEATLESS BURGER – WHERE DOES MEATLESS TREND STAND?
BEYOND MEAT, Impossible Burger, LIGHTLIFE BURGER
By Roger Lipton
Beyond Meat and Impossible Foods have gotten most of the attention with their meatless burgers while large companies such as Tyson Foods are no doubt working feverishly to complete their competitive product development. The latest announcement in this area , today, is that Dave & Buster’s has introduced their Lightlife Burger, a plant based product with which we were admittedly not familiar. We wrote an article back on June 4th, provided at the end of this update. At that point, Beyond Meat stock (BYND) had more than quadrupled in the five weeks following its IPO at $25.00 per share. A lot has happened since June 4th. Burger King rolled out The Impossible Burger systemwide, Tim Horton tested it in Canada and has pulled it back, for whatever combination of reasons. McDonald’s announced on 9/27 that they are going to test a Beyond Meat product in Canada. A number of other public chains have introduced meatless beef and chicken products.
Beyond Meat stock (BYND) went from 104 when we wrote on June 4th to a high above $230 by the end of July, retreated steadily to $135 by the end of September, spiked briefly twenty points on the McDonald’s announcement at the end of September, and has slipped steadily to a new low of $118 today. At $118, the enterprise value is still $7.2 billion. According to Bloomberg, sales are projected at $261M in 2019 and $415M in 2020. EPS is projected at a loss of $0.26 of 2019 and a profit of $0.23 in 2020. I’ll make it easy for you. The stock is selling at over FIVE HUNDRED TIMES 2020 projected earnings per share.
Back to the Lightlife Burger: The nutritional content is about the same as the Impossible and Beyond Meat products. The calorie counts, compared to a regular burger are about the same, the fat content is about the same, there is no cholesterol (that’s good), the sodium content , at 540mg is more than five times that of a regular burger (that’s bad) and even more than the 400 mg of Impossible and Beyond. We called Dave & Buster’s (at Palisades Center) and they are charging $16.99 for the Lightlife product (with fries no doubt) versus $13.99 for the normal burger platter. That’s a 21 percent premium, an obviously material detriment. This is in our opinion, far from a game changer (no pun intended) for Dave & Buster’s.
The largest QSR exposure of the Impossible Burger has been at Burger King over the last several months. Prior to the systemwide rollout in August, BK stated that traffic was up 18.5% in a 29 day test in St.Louis. We can assure you that nothing like that is happening since the product has been rolled out systemwide, or management of Restaurant Brands stock would have let us know. Our guess is that BK comp sales are running no more than a couple of points better than prior trends.
In short: we stand by our previous conclusion, hereby restated. Our complete discussion of June 4th is provided below.
CONCLUSION – copied from 6/4/19
The unanswered question is: how large is the demand, at restaurants, for a product that costs more, has the same calorie count and fat content, has a lot more sodium (which creates high blood pressure), but has no cholesterol and contains useful elements such as Thiamin (which helps with nerve, muscle and heart function), B12 (helps with fatigue) and Zinc (for prostate health)?
We do not expect the introduction of meatless products to restaurant menus to improve sales in any meaningful way. The new meatless products taste fine, by all reports, but we haven’t heard anyone say that they taste “better”, and help to justify a higher price. The long term health benefits as described just above are too subtle for most restaurant customers to care much about. Just look at the size, and the nutritional values, of the portions at Cheesecake Factory, Cracker Barrel, and almost everyone else. This, too, in terms of stock market excitement and restaurant industry focus, shall pass.
ENTIRE ARTICLE – AS OF 6/4/19
THE “IMPOSSIBLE BURGER” – HOW WILL IT IMPACT THE RESTAURANT INDUSTRY?
We have all been reading, for weeks now, about the huge potential for meatless food products. Beyond Meats (BYND) came public five weeks ago (5/1/19) at $25.00 per share and has gone up a cool four times in value. The total market value of BYND is about $6 billion, and the company is expected to generate (according to Bloomberg) $205M of sales in 2019 (up from $88M in 2018), then $335M in 2020. Profits are nonexistent, having lost $4.56/share in 2018, still expected to lose $0.40/share in 2019, then lose $0.18 in 2020. Safe to say that BYND common stock is trading several years ahead of the fundamentals. This is not unusual, however, when rapidly growing companies have caught investors’ fancy.
The other prominent supplier of plant based meat products is Impossible Foods, which has introduced a variety of products, including the widely promoted Impossible Burger. Impossible Foods is privately held, so we don’t know what their revenues and profits look like, but they recently raised $300 million and have reportedly raised a total approximating $750 million since the founding in 2011.
There have been couple of noteworthy announcements from public companies relating to meatless products. (1) A small company called Chanticleer Holdings (BURG), which operates several burger based concepts, announced on 5/8 (a week after BYND came public) a partnership with BYND, where Beyond Meat burgers will be offered at Chanticleer various brands. That day, May 8th, BURG stock ran from about $1.48/share to almost $3.00 per share, with almost 15 million shares trading. It closed that day at $1.94 and has drifted lower ever since to an all time low around $1.00 per share. (2) Restaurant Brands (QSR) announced on April 1st that their 59 Burger King restaurants in and around St.Louis were going to start serving the Impossible Burger. After reporting that the St.Louis test generated an 18% traffic gain in April, QSR announced on May 14th that they were introducing the Impossible Burger into three new markets, Miami FL, Columbus GA and Montgomery AL. While noone is suggesting that an 18% gain in traffic is to be expected, BMO analyst Peter Sklar wrote on 5/22 that Burger King’s same store sales could be increased by 450 basis points with a national rollout by yearend. For what it’s worth, QSR stock was trading around $65 on April 1st (with the first announcement), around $67 in mid May when the additional three markets was announced, at about $68 when BMO provided their expectation, and at about $65. today. To be sure, there are a lot of moving parts at QSR, other than Burger King, and apparently Tim Horton’s is not doing as well as expected right now. Again, for whatever its worth, and for whatever combination of reasons, CEO, Jose Cil sold $8.7M of his shares on May 28th, at $68.28 per share, about 17 percent of his holdings. This would probably not imply that the Impossible Burger was going to shake (or shock) the world at Burger King. Click Here to Learn about Franchising Your Business
THE MARKETPLACE VERDICT
Aside from the skyrocketing stock price of Beyond Meats, the marketplace verdict relative to Restaurant Brands and Chanticleer Holdings (an admittedly very small sample) is that the Impossible Burger is not a game changer. One obvious reason is that no single restaurant company will have an exclusive on meatless burgers. In fact: White Castle, TGI Fridays, Del Taco Restaurants, Carl’s Jr. and Red Robin Gourmet Burgers have all introduced Beyond Meat and Impossible Foods products over the past 18 months. We haven’t heard shockingly good sales or traffic numbers from any of these chains. If there is substantial long term demand, everyone will offer it and noone will have a competitive edge.
OUR LONGER TERM VIEW
It is unclear how many new customers will choose one restaurant over another based on a meatless alternative. It is already clear that the cost of goods per unit for the meatless product is higher, so the menu price will be higher as well. It is unclear to us how many consumers are prepared to pay more, especially when (1) the calorie count is the virtually the same and (2) the fat content is approximately the same. We will detail shortly more specifics about nutritional comparisons, but we believe that calorie count and fat content are the two nutritional elements that customers will care about, if they care at all. We have our doubts about how well educated, relative to nutritional considerations, the consuming public is. The average American is twenty five pounds heavier over the last thirty years, and there is a monstrous amount of fried chicken, french fried potatoes, and cheesecake consumed. Also, we are not aware that the addition of calorie counts to menus has changed consumer menu choices. Before we wrap up this discussion, here are more nutritional comparisons of the two products.
A quarter pound beef patty has 260 calories, the Impossible Burger 240. A patty has 22g grams of fat, the IB also 22g. A patty as 94 mg of cholesterol, an IB zero. A patty has 89mg of sodium (4% of the Daily Value), an IB has 370mg (16% DV)(not so good). A patty has no Thiamin, and the IB has 2350% of the DV (that’s good). A patty has no B12 and an IB has 130% of the DV (that’s good). A patty has no Zinc and the IB has 50% of the DV (that’s good).
CONCLUSION
The unanswered question is: how large is the demand, at restaurants, for a product that costs more, has the same calorie count and fat content, has a lot more sodium (which creates high blood pressure), but has no cholesterol and contains useful elements such as Thiamin (which helps with nerve, muscle and heart function), B12 (helps with fatigue) and Zinc (for prostate health)?
We do not expect the introduction of meatless products to restaurant menus to improve sales in any meaningful way. The new meatless products taste fine, by all reports, but we haven’t heard anyone say that they taste “better”, and help to justify a higher price. The long term health benefits as described just above are too subtle for most restaurant customers to care much about. Just look at the size, and the nutritional values, of the portions at Cheesecake Factory, Cracker Barrel, and almost everyone else. This, too, in terms of stock market excitement and restaurant industry focus, shall pass.
Roger Lipton
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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)
Burger Village Is Going International!
24 Sep, 2019
We’ve been waiting for the right time to announce this, but we just simply can’t contain our excitement any longer. Burger Village is OFFICIALLY GOING INTERNATIONAL. That’s right, our new Canadian location will be opening soon, and our northern neighbours seem to be just as excited as we are. Our food is organic, all-natural, and provided by local farmer families that give our customers the quality & great tasting food that they’ve come to expect. There is a lot for Canadians to be happy about. From the Toronto Raptors winning the NBA Championship, having a thriving national infrastructure, to having some of the most beautiful and natural landscapes in the world. Now we are proud to say you can add Burger Village to that list!
Why Is Organic Such A Great Choice To Make?
If not just for yourself, choosing to eat organic foods is also a great way to help protect our environment. Our farmer families treat their animals with love and dignity. Those farmer families then provide those animal products to our locations and give our customers some of the freshest tasting food they’ve ever had. Burger Village is slowly but surely continuing to grow our brand and provide our customers with more of the great food they’ve come to expect from us.
Our customers love our food because they know what they’re eating is REALLY GOOD and made with REAL & CLEAN INGREDIENTS. Everything we make is:
We take pride in the fact that every animal product we use is obtained in a natural & humane way. This ultimately results in our customers enjoying food that is much more delectable, nutritious, and ecological than most other restaurants. This practice also helps to promote & support our farmer families who are ultimately the backbone behind our success.
What Separates Us From The Rest? We Just Care More!
Our newest Burger Village location here in Canada will be an eco-friendly establishment. It will also be constructed using reclaimed wood and biodegradable materials. Did we also mention that our beer selection will come from LOCAL BREWERIES? We also pride ourselves on having gluten-free options and being a peanut-free establishment that is inclusive to all of our customers. Burger Village is a healthier alternative to most similar restaurants because we care more about our customers and the quality of the food that we sell those customers.
Burger Village is rapidly growing and constantly looking to spread the word about organic food and all of the benefits that come along with it. We’re going to spread that message one customer and one burger at a time. Slowly but surely we are hoping to branch out to even more locations near you (including more in Canada after our new location officially opens). Are you as excited as we are? We sure hope so; and if you are excited, let us know on social media! You can follow us on Twitter @burgervillageny or on Facebook @burgervillageny.
Franchising Opportunities Are Still Available!
Burger Village has teamed with franchise industry expert, Gary Occhiogrosso, the founder of Franchise Growth Solutions, LLC, to expand the turnkey Burger Village fast casual QSR (quick service restaurant) business model from eleven (11) in 2019 to twenty-five (25) locations by 2022. Burger Village franchises are currently available in most territories nationwide.
Mr. Occhiogrosso has over 30 years’ experience in franchise development and sales and was integral to the success of nationally recognized brands including Ranch *1, Desert Moon Fresh Mexican Grille, and brands found under the multi-brand franchisor, TRUFOODS, LLC.
For information on owning your own Burger Village franchise, please contact Gary Occhiogrosso at 917.991.2465 or via email at [email protected] or log on to our franchising opportunities website at: http://www.burgervillagefranchise.com
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ABOUT BURGER VILLAGE
Burger Village is an all-natural, hormone-free burger concept that uses fresh and organic ingredients to create nutrition-rich meals for active consumers who want to eat well when dining out. From six locations in New York and five in California, Burger Village has grown into a recognized lifestyle brand that combines the growing trend toward clean and healthy dining with a socially responsible business model.
ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, and advertising, marketing, and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only.
For more information on the Burger Village fast-casual restaurant concept, please visit burgervillage.com.
For information on owning your own Burger Village franchise, please contact Gary Occhiogrosso at 917.991.2465 or via email at [email protected] or log on to our franchising opportunities website at: http://www.burgervillagefranchise.com
McDonald’s is the sales standout, and they are in a class by themselves, providing value and upgraded quality to a population hungry for price/value. Taco Bell is also an exception, for similar reasons. Even Domino’s and Wingstop, who have put up great numbers in recent years, are reporting only modest gains at the moment.
RESTAURANT MAIN STREET – WHAT’S HAPPENING ON THE GROUND?? By Roger Lipton
We have long believed that the restaurant industry provides an excellent leading indicator as to consumer sentiment. It is much easier to adjust dining habits, every day, than to plan and spend for large ticket items.
Quite a few restaurant companies have reported their quarterly results, ending 6/30. The sales and traffic trends, collectively, indicate that not much has changed in terms of consumer optimism. The table below provides the reported results for comp sales, including a breakdown, mostly provided by company operated locations, relative to traffic, pricing and menu mix. Also shown on the table are the outlook, when provided, relative to commodity and labor expense.
No Meaningful Improvement
The company operators show, with just a couple of important exceptions (Chipotle and Starbucks) modest comp gains, more than offset by pricing and menu mix, so traffic is negative almost everywhere. The only other outlier is Diversified Restaurant Holdings, franchised operator of the Buffalo Wild Wings system, going against very easy comparisons. Most importantly, In terms of third quarter to date, virtually no one is guiding toward a meaningful improvement. In our view, Chipotle and Starbucks (with the strongest trends) can be viewed as “special situations”. Chipotle is bouncing back from their multi-year troubles and doing a great job with mobile app/delivery, and Starbucks is the premier worldwide brand selling an addictive product by way of an extraordinary employee culture and great technology.
The franchising companies that have reported are showing a similar trend, modest sales gains in almost all cases. The franchising companies steer away from reporting traffic, but it is safe to assume that pricing and sales mix trends are similar, so traffic is no doubt down. McDonald’s is the sales standout, and they are in a class by themselves, providing value and upgraded quality to a population hungry for price/value. Taco Bell is also an exception, for similar reasons. Even Domino’s and Wingstop, who have put up great numbers in recent years, are reporting only modest gains at the moment.
Delivery On The Rise
It’s important to note that, within the sales mix, delivery, curbside and in-store pickup, are rapidly increasing portions of the revenue mix, so dine-in traffic is down materially more than the comps that are reported. We haven’t heard any restaurant company bemoan, though they could, the fact that their physical plants are only fully utilized a few evenings per week.
In addition to the sales and traffic trends, we are equally interested in the commentary relative to cost expectations, namely commodities and labor. Expectations are mostly higher for commodity costs, dramatically so for chicken wing prices. It is clear that the benefit a year or so ago from lower commodity prices is in the rear view mirror, and higher cost of goods is likely. Labor expense, predictably, is expected to move ever higher.
CONCLUSION:
The beat goes on. With prime costs, as well as other expenses such as insurance, common area charges, utilities, etc. also increasing, it takes more than two or three points of comps to improve margins. A handful of the larger premier operators such as Starbucks, McDonald’s, Darden, Domino’s and Wingstop continue to provide better the best results. However, even among these “best of breed” operators, it’s a battle for market share and an increasing challenge to generate a worthwhile return on incremental investment.
Roger Lipton
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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) .
According to a NY Times interview with Ms. Husler, she said her boss tasked her with specific instructions to find things wrong. “I was kind of his hit man,” she said. Ms. Husler went on to say that Mr. Patel considered his own interests when determining which stores were to be sent into arbitration.
A Bite Of The Sandwich From Both Ends?
By Gary Occhiogrosso – As seen in Forbes.com
Like a “Player/Manager” of a baseball team, there are often conflicts that never seem to settle and resolve. The recent news that Subway, and it’s “Development Agents” are allegedly “pushing out” other smaller Subway operators is not unlike the player/manager deciding to bench a good teammate so he can get more playing time. As a 35-year veteran of the franchised restaurant industry, I know I am not alone in my opinion. You can’t play both sides of the fence then expect not to run up against motives that may sometimes appear to be questionable.
Subway has grown to its behemoth size by employing a program whereby some franchisees are also sales agents and operational support personnel for the parent company. They are titled “Development Agents.” On the surface, it seems like a good idea. It seems to make sense to appoint brethren franchisees to help build out territory by recruiting new owners and then assist them in setting up their shops and growing their business.
Cutting the Sandwich Business Into Pieces
Subway divides its roster of sandwich shops into more than 100 regional territories. These territories are controlled in part by a development agent. The development agents are responsible for recruiting new franchisees and finding & approving buyers for existing shops. As compensation for this sales effort, they receive a portion of the upfront franchise fee for a new shop or transfer fee if it’s the sale of a current location.
Also, for a share of the company’s royalty fee, they are obligated to visit shops and conduct shop audits focused on operational compliance. This inspection task is carried out through the use of inspectors — known as field consultants. The question of conflict comes up when you consider that many of the development agents are also franchisees themselves. As this is the case, it’s hard to separate the idea of running their own shops, and be responsible for inspecting shops which directly compete with them. The question of motive grows more plausible when you add in the fact that these development agent’s shops are self-inspected by their own paid staff members.
Is Rapid Growth Always a Good Thing?
Consider the history of Subway’s voracious appetite for growth and the lack of exclusive territories granted to their franchisees. In my opinion, all franchised units regardless of the brand, should have a protected territory. These protections help prevent the parent company from encroaching on the trade area of an existing operator and hurting their sales. This protection is not the case with many Subway franchises. There is not exclusive territory protection. The location of a new shop is at the discretion of the company. So it should come as no surprise that the brand has overdeveloped in certain territories. These saturated markets are at a point of sales cannibalization. Mr. Deluaca’s dream of 50,000 Subways has now left some franchisees feeling like their local development agents are pushing them out of business to gain market share for themselves.
Case in point, as reported in the NY Times, Subway franchisee Manoj Tripathi felt that someone had a vendetta against him. The 20-year franchisee noted that each time the inspector arrived, she would find more and more minor infractions. Things like fingerprints on the doors or vegetables cut incorrectly or the wrong soap in the restrooms. On one visit, Rebecca Husler, the Subway inspector who worked for Chirayu Patel, a Development Agent in the Northern California region, noticed that a single light fixture needed a new bulb. Mr. Tripathi replaced the bulb before she left; nonetheless, it was a violation. Mr. Tripathi wasn’t overreacting to his feeling of being set up to fail, as it turns out within a year he was terminated, and he lost his shop.
According to a NY Times interview with Ms. Husler, she said her boss tasked her with specific instructions to find things wrong. “I was kind of his hit man,” she said. Ms. Husler went on to say that Mr. Patel considered his own interests when determining which stores were to be sent into arbitration. Mr. Patel made it “very clear that his stores were to pass” and that “the people he wanted out of the system were to fail out of the system.” she said in the interview. The light bulb incident gave her pause to say, “We’re ruining these people.”
Systemic or Isolated?
One of the people on the company side of this debate is Don Fertman. Mr. Fertman is Subway’s chief development officer and a veteran of the company for 38 years. He claims development agents owning restaurants helps give them “a better understanding of all aspects of owning a small business.” He went on to explain that the company reviews the agents’ work and expects them to uphold ethical standards, dealing with violations “on a case-by-case basis.” He continued by saying, “Our business development agents are well-respected members of our business community,” he said. “And when we hear these allegations, I would say that they are false.”
My takeaway is not this stunning revelation of alleged unfair business practices, but instead that it’s taken this many years to consider that Development Agents competing with other franchises might abuse their position when auditing competing shops in their region. As a former franchisor and development consultant, I do see merit for brands to use the development agent system. I believe there needs to be a robust system of oversight by the parent company to prevent abusive business practices by development agents. This is not to say that Subway corporate hasn’t developed a system of checks and balances, but the allegations from its franchise community leave one to wonder how vigorously it is employed.
Given the number of Subway units in the USA, this may only be the beginning from Subway franchisees who feel Subway is taking a bite out their business.
BURGER VILLAGE, A STORY OF PASSION…With over 15 years of experience in food industry and restaurant management, Burger Village is a dream concept and creation of four Long Islander brothers – Sam, Nick, Vick & Ravi. They have also owned QSRs and full service restaurant in the past; and due to their expansive individual experiences each of them has their unique contribution to Burger Village such as operations, cooking skills, recipes, management, marketing and service which overall provides customers with a qualitative dining experience.
By keeping in mind the need to eat healthy with busy lifestyles of today gave us an idea which finally came up as Burger Village where everyone can eat healthy organic meals alongside a great customer service. Burger Village opened its first location in Great Neck, NY in 2013. Customers loved us there and with their immense love and appreciation, Burger Village opened up their second location in Park slope, Brooklyn in 2014. Burger village believes in serving the best of the best so our patrons recognize what Burger Village values are.
Eat Organic, Live Healthy
We strive to serve organic, all natural, antibiotics and hormone free products in form of juicy burgers, fresh hand cut fries, salads, soups, shakes and other beverages along with delicious Desserts. We believe that Organic is sustainable and will always be. It does not only benefit the consumer but it is also helpful for the environment. Our products do not come from a factory, they come from farms and dairies that are mostly family owned and operated. The livestock and produces are nourished and cared for in a natural and humane way. They are pasture raised and cage-free rather than confined spaces. It’s delectable, nutritious and ecological and promotes our farmer families.
Food with style
A patty with cheese in between a bun was the beginning of burger era and it has been through many levels and phases. Here at Burger Village, we garnish each of our burgers with its own recommended signature pair. Pick a signature pair or have it the way you want with a variety of bread, cheese and veggies. Burger village pays great attention to a customer’s wellbeing, and by keeping that in mind we have Gluten free, Peanut free and Vegan choices.
Delectable organic grass-fed Beef, cage free organic chicken and turkey, exotic meats like bison, elk, wild boar & lamb are offered on the menu. Tasteful organic veggie, black bean & mushroom patties are kept especially for our Un-meat lovers.
Our bowls of salad are loaded with fresh produce without the harmful pesticides and herbicides. Think about hot aromatic organic soup with healthful and nutritious ingredients. Yummm… Our fresh cut fries, onion rings, chicken tenders, wings and are made in Rykoff Sexton rice bran oil which is Trans fat and GMO free.
An assortment of handcrafted organic sodas and organic milk shakes made with organic fruits can be a great companion to meals offered. A great variety of beer and wine suited to individual taste. Sweet and delicious delicacies comes in form of desserts.
Burger Village believes in Farm to Fork and that is why we work with our farmer families to provide our customer with best quality food which is grown and produced in actual fields or farms. We are a 100% family owned and operated and treat our clientele as a family. We believe that health is an asset that we can choose for ourselves and pass it on to our future generation.
RIKO’S THIN CRUST PIZZA…Franchise opportunities abound in every business category, but entrepreneurs interested in the fast-casual space, and pizza, in particular, should have Riko’s Pizza on their radar as a brand poised for growth and success with ground floor opportunities for franchisees.
1. Pizza is a $50.7 billion dollar*1 American passion
The pizza industry was designated as the fastest-growing segment of fast-casual restaurants in 2017.*2 A Riko’s franchisee buys into a growth business with high consumer demand and a track record of solid growth year-after-year. The opportunity to bring America’s favorite comfort food to a franchisee’s local market ranks high among Riko’s attributes as a new franchisor in this extremely, profitable business category.
2. A proven business concept
The Riko’s business model has been refined over a 7-year period prior to expanding into franchise offerings. Riko’s founders have continually tried and revised products, systems, and operations as they evolved into a turnkey operation. Those hard-earned systems are passed to franchisees as easy-to-follow, foolproof guidelines for consistent results. The simplicity and ease of operations hold opportunity for owners with or without previous restaurant business experience.
3. Flexibility for Franchisees
Franchisees can choose from a flexible footprint that suits urban or suburban venues. The flexible business model is designed to work and succeed in any space. Riko’s fast-casual operation features take-out, dine in and delivery. Riko’s full-service casual restaurant features a family dining experience with a full bar and table service. Owners can purchase single units or multi-unit options that are commensurate with their experience and finances.
4. Multiple revenue streams
Diverse revenue streams including lunch, dinner, and late-night business with takeout, delivery, and fast casual dine in and full-service restaurant and bar options, gift cards and rewards programs offer multiple growth opportunities within a franchise.
5. Quality, quality, quality
Attention to details has made quality a hallmark of Riko’s brand. High-quality ingredients — nothing artificial — proven recipes, simplified menu, first-rate equipment, comfortable, contemporary venue design, staff training ensure business growth and a consistent brand image. Entrepreneurs are buying into a brand associated with quality at every level.
6. Streamlined, state-of-the-art business operating model
Riko’s has set standards and developed systems that are easy to follow and easy to replicate over and over. Pizza franchisees can produce consistent, great results. Both franchisees and their future customers are assured of the quality food and service that launched Riko ’s original success in three Connecticut locations. Pizza franchisees are armed with the tools and knowledge to produce consistent, great results. Riko’s is a turn-key business model that works across all processes. The goal: keep things simple and do them the best they can be done.
7. Traditional family values that resonate with consumers
Riko’s core philosophy: respecting family, serving great simple food with a family-friendly ambiance, offers an appealing alternative in an ultra-fast food world. The Riko’s guest experience is warm and casual, fast without being harried. It’s a comforting experience that engenders customer loyalty and on-going, multi-generational business.
8. Comprehensive training & support
A good franchise offering includes support and training . That’s why Riko’s consulted and hired industry experts to develop a first-class training program. A five to six-week long training program — with modules at the company modern training center and owner’s location — takes franchise owners through all phases of the business; covering all the components necessary to effectively and efficiently manage a Riko’s Franchise business. A full suite of manuals provides on-going reference and instruction for owners.
9. Owners with passion
As a franchisor with a passion for growth and quality, Riko’s future is guided by passionate, involved owners with a hands-on approach to day-to-day business as well as an eye on long-term growth strategies. The active 360º business outlook ensures Riko’s is prepared to adapt, adjust, and seize new opportunities as they arise. The formula is set, but it’s constantly fine-tuned for success.
10. Community-centric focus
The success of the Riko’s original locations is grounded in community involvement. Riko’s mission in all franchise venues is to be part of local family life. Franchisees are trained to be local in their location and engage in sponsoring local youth sports teams, supporting school events, donating pizza to community events and more as a means to building relationships and thanking customers for their loyalty.
