While researching food and beverage franchises, Vinay notes he became aware of a massive potential within the boba tea franchise segment. Inspired by Magic Cup’s refreshing selection of multicultural fare…
Magic Cup Travels West: New Location in Southlake Arriving Soon!
By: SHAHRIAR KABIR – with permission from the Magic Cup Blog site
Coffee and boba tea aficionados in the greater Dallas area can look forward to a brand-new cafe in the near future. This month, our Vietnamese American-owned Magic Cup Cafe franchise announces its westward expansion to Southlake, TX, which is expected to provide trendy tea drinkers throughout the Dallas suburb with their very own novelty boba hotspot.
Our innovative beverage franchise––fresh off a recent opening in McKinney -––is proud to name nationwide entrepreneur Vinay Calyampoondi as the owner and operator of the new Southlake location. “We’re excited and honored to welcome Vinay to the Magic Cup family,” our COO, My Lynn Nguyen, says, adding: “Vinay has a proven record in business success, and, with his unique outlook and personal passion for the Magic Cup brand, we know he’ll be an excellent collaborative partner going forward. Our team can’t wait to grow with him.”
Vinay shares in My Lynn’s excitement, revealing he’s delighted to launch a Magic Cup location in the bustling community of Southlake. Originally trained in technology (he has a master’s degree in computer science), Vinay describes himself as a foodie at heart. Outside of an extensive real estate portfolio in New Jersey and a thriving MY SALON Suite franchise in Philadelphia, Vinay’s love of food recently led him to open a Cold Stone Creamery franchise in Southlake in October 2020 (with plans for one in Colleyville this fall).
While researching food and beverage franchises, Vinay notes he became aware of a massive potential within the boba tea franchise segment. Inspired by Magic Cup’s refreshing selection of multicultural fare and its inclusive atmosphere, Vinay decided a Magic Cup franchise would be the perfect way to continue his journey in the F&B industry. “I was looking for something with a ‘place to hang out’ vibe as well as something that would provide an ‘Aha!’ moment for customers of all ages,” Vinay says. “When I discovered Magic Cup, it all clicked. The cafe had everything I envisioned––from its menu to its décor––and I wanted to share that feeling of joyful discovery with my customers.”
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.
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.
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.
For the foreseeable future, customers will be minimizing the number of times they are leaving home or exposing themselves to external factors.
HOW MAGIC CUP IS STAYING RESILIENT DURING COVID-19
During this time of crisis, Magic Cup is fortunate to be considered an essential business. But even as an essential business operating under local and government safety recommendations, we are continuing to adapt to the global pandemic while leaning on our previous efforts to thrive within the new normal.
COMMUNICATION WITH CUSTOMERS
Before introducing any new changes, we made sure to continually update the community we’ve built over the past five years: This includes a list of over 24,000 subscribers on our rewards program, whom we can directly text and over 18,000 followers across social media channels.
As soon as the restaurant dine-in ban was mandated, we were able to alert our communities that we would remain open for takeout and delivery. We have been continually updating them since. Updates include safety practices, new product introductions, and community work to make customers feel more connected to what we are doing to serve them at this time.
We have also begun reaching out to new audiences with local digital ads and are seeing an upward trend in new customer sign-ups to our rewards program week by week since the beginning of the dine-in ban.
2. GALLON AND HALF GALLON SIZES
For the foreseeable future, customers will be minimizing the number of times they are leaving home or exposing themselves to external factors. That’s why we introduced gallon and half-gallon sizes of milk teas and fusion teas. With our beverage gallons, an entire household can treat themselves to milk and fusion teas for half a week from just one visit.
We have seen tremendous success with the gallons, having sold 291 gallons in just one month.
High-Quality Bubble Tea Concept – Magic Cup Cafe to Franchise Five New Locations
PRESS RELEASE – MAGIC CUP FRANCHISING
Dallas Magic Cup Cafe, a bubble tea, smoothie, and coffee cafe concept will be franchising five cafes to select franchise partners in Houston and Dallas within the next few years.
The Magic Cup team, led by owner My Lynn Nguyen, is working with industry expert Gary Occhiogrosso, founder of Franchise Growth Solutions, to expand the turnkey Magic Cup Cafe business model. Mr. Occhiogrosso was instrumental in the successful launches of nationally recognized brands such as Ranch *1, Desert Moon Fresh Mexican Grille, and brands found under the multi-brand franchisor, TRUFOODS, LLC.
A Complete Franchise Program
Ms. Nguyen stated, “We are excited to be offering the Magic Cup opportunity to passionate entrepreneurs in the Dallas and Houston Markets. We spent the last several years perfecting our menu, systems, and marketing. We truly feel confident that we are ready to put our franchise partners in the best position to achieve success.”
As part of the program developed with Occhiogrosso and operational consultants, franchise partners will receive a total of four weeks of one-on-one training both at Magic Cup headquarters and at the partner’s cafe. Then, they will receive continual corporate support inclusive of streamlined business development, ongoing product development, and multimedia marketing as their location grows.
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.