Franchise Pundit franchise opinion and research

Dallas-based Romano’s Macaroni Grill (a Brinker Intl restaurant) is buying four locations from a bankrupt franchisee. The locations are in San Francisco Bay (3) and Seattle (1). The parent company now owns all but five of its 200+ Romano’s Macaroni Grill restaurants. There has been a movement of public companies selling corporate owned units to franchisees, but now I’m seeing more ... Read More »

Imagine you have the perfect location for your franchise near a stadium with lots of pedestrian traffic. You spend $450,000 to get your first franchise built and ready. Opening week was wonderful with sales of $12,000 and subsequents weeks continue on with profits. Then, a major light rail construction project starts out front and blocks your sidewalk. After a few ... Read More »

Most franchisors with 20+ units assign dedicated business coaches to franchisees to ensure operating compliance, help solve problems and bolster sales. For example, here is what Jimmy Johns claims to do: 1 coach per 26 stores and they visit for a full day at least once every 30 days. If there are any issues or suggestions they are discussed with ... Read More »

GAME, the European and Australian retail gaming giant with over 1,200 outlets similar to USA’s GameStop and Play n Trade, filed for Bankruptcy. GAME has 600 hundred stores in the UK with a £15 million rent bill per quarter and a £10 million wage bill per month. Would their reach be more effective with only a few marquee retail stores and the ... Read More »

Unique Pizza and Subs, a 7-unit pizza-sports bar chain traded on OTC Pink Current tier, has agreed to acquire the well branded Pizza Fusion, an 11-unit organic pizza chain. I think there is more to this story, as Pizza Fusion seems to be a much strong player than Unique Pizza & Subs. It could be seen as more of reverse ... Read More »

http://www.cbc.ca/news/business/story/2012/02/28/tim-hortons-class-action.html Justice George Strathy of the Ontario Superior Court recently issued a summary judgment in favour of Tim Hortons, dismissing an attempt by some franchisees to argue that the chain was wrongly profiting from a switch in how the company makes its baked goods. Under what’s known as the “Always Fresh Conversion” several years ago, the company stopped making baked ... Read More »

Jimmy Johns sales were almost twice Subway. Read More »

http://www.usatoday.com/money/industries/food/story/2012-01-12/burger-king-delivery/52604104/1 At first I thought Burger King delivery was a dumb idea.  But, after thinking about it a while, it may prove to be a smart move – in the right locations and for the right premium. Burger King is using custom packaging for the fries that won’t trap steam to make them soggy, but it will trap the emitted ... Read More »

Taco John’s, a “West-Mex” fusion fast food restaurant, held voluntary workshops in most of its territories for franchisees to learn ways to reduce their food and labor costs with a goal of 1% reduction. They were in the form of interactive round tables and discussion about how to streamline operations, and there was lots of networking between unit manager.  Also discussed ... Read More »

Here is a partial list of franchisors that have filed bankruptcy, or are reported near filing bankruptcy recently. Perkins Marie Callender’s Old Country Buffet Real Mex Restaurants Giordano’s Cork and Olive Dial-a-Mattress Bally Total Fitness Friendly’s Souper Salad Sbarro Dippin’ Dots The Little Gym Fatburger (A little controversial -Fatburger parent company not part of bankruptcy, but the two subsidiaries accounted for 72% its total ... Read More »

  What a sad story. Giordano’s is a leader and well-known institution in Chicago’s stuffed crust pizza game. It owns 10 corporate  stores and manages 35 franchised locations in Illinois and Florida.  Somehow this chain, where people (often tourists) stand in long line for an overrated $20 deep dish pizza, owed $45 million to a lender and had to file ... Read More »

Cheese Average block cheese prices continued to drop last week on the Chicago Mercantile Exchange, averaging $1.77 from $1.81 the previous week. Cheese reached its 3-month high of $2 on Nov. 15, but continues to drop on slowing demand. Wheat Wheat prices fell again last week on the Minneapolis Grain Exchange, averaging $8.43 from $8.54 the previous week. Two weeks ... Read More »

I didn’t see this one coming. Planet Smoothie is solid brand with a loyal customer base. I hope Planet Smoothie received a significant premium in this acquisition by Tasti D-Lite, and the existing franchisees have some protections. Tasti D-Lite was acquired by a private equity firm in 2007 majority owned by Jim Amos, who promptly appointed himself CEO after the ... Read More »

The trend has been for franchisors, especially for publicly traded ones, to sell more and more of their corporate owned stores. Why? The financial argument has been that earnings are stabilized by managing a franchise operation (simple income streams) rather than managing the nuances of local operating businesses. And, for the most part that makes sense both financial and practically. ... Read More »

I apologize for the forum being down for so long. I will install a backup and get it functioning again. There is a lot of great content in there. On a similar note, I had a new son born a few months ago which has absorbed most of my spare time. I will resume regular posting in mid-August. Thank you ... Read More »

When a franchisee fails, you don’t often see the franchisor swoop in and take over the lease and operate failed location, but Graeter’s is doing just that in Kentucky. Graeter’s corporate is acquiring several stores like it did for another franchisee back in late 2010. Sales were reported in a broker’s sheet to be in excess of $3 million for ... Read More »