Jimmy John’s Gourmet Sandwiches today received the Franchise Times Deal of the Year award, for attracting Roark Capital as a majority investor and cashing out Weston Presidio, its original private equity partner, for a handsome return in a more than $2-billion transaction.
In an agenda dominated by food brands, Russ Reynolds, CEO of Batteries +Bulbs, shed some light on why his retail brand is a good financing fit for the lenders attending the Franchise Finance & Growth Conference at the Encore in Las Vegas, March 13-15, 2017.
Historically, QSR has gotten the bulk of off-premise dollars via the drive-thru. But fast casual is catching up with new technology.
Times are tough in the casual dining segment, as evidenced by slumping same-store sales by many restaurants, changing consumer habits and a massive onslaught of fast-casual competitors. The latest player in this category to struggle is Ruby Tuesday, which announced it is “exploring strategic alternatives in order to maximize shareholder value,” including a potential sale or merger.
Speaking Monday, March 13, during the first day of the Franchise Times Finance and Growth Conference in Las Vegas, President Bryon Stephens noted Marco’s Pizza has more than doubled its store count since 2012, to 815 locations in dozens of states. And more growth is in sight.
Dunkin Brands has significant capital needs in 2017: $2.5 million for Baskin Robbins remodels; $6 million for Baskin Robbins new builds; $99 million for Dunkin’ Donuts remodels; and $263 million for Dunkin’ Donuts new builds. As told by Dunkin’s Jason Maceda, vice president of finance, it was the most obvious reason explaining lender interest at the Franchise Times Finance & Growth Conference that opened yesterday in Las Vegas.
“Rather than the ‘when,’ it’s far more important to focus on ‘who’ you are partnering with and how the deal is structured,” says NRD Capital Managing Partner Aziz Hashim, about getting funding for franchise expansion. He was speaking to Living Large columnist Poornima Apte, who details in an upcoming print edition how and when three emerging franchise brands should seek capital to foster growth,
The Greene Turtle has opened its first casino-based restaurant at the Hollywood Casino in Perryville, Maryland, along with a new, 24-hour fast-casual eatery called Greene Turtle Express. Tom Finn believes the firsts for the company hold promise for more such expansion.
Bermuda is an odd choice for a franchise writer to be visiting, since there is more public art than franchises. The government prohibits foreign franchises, with the exception of franchised hotels, our cab driver gleefully told us.
The latest franchisor to jump on the train is Boston Market, which will serve antibiotic-free rotisserie chickens by the end of Q1 2018. According to the Colorado-based chicken chain, its goal is serving 100 percent antibiotic-free rotisserie chicken as soon as possible—with currently more than 75 percent of its chickens being raised without the use of antibiotics.
Last year Arby’s made headlines when it began testing venison sandwiches in select locations around the country. States like Wisconsin, Pennsylvania, Michigan and Minnesota were able to get in on the deer meat craze for a limited time, and the sandwiches sold out almost immediately.
McDonald’s included a pack of surprisingly bold McNuggets with its Investor Day in downtown Chicago earlier this week as the fast-food giant unveiled plans for meal delivery, app-based mobile ordering, curbside pickup and a “more modern, more exciting restaurant environment” as part of its new Experience of the Future restaurant concept that’s already delivering sales gains in markets outside of the United States.
Four Foods Group has scooped up another company, The Soda Shop, from founders Chase Wardrop and Dylan Roeder, who will both retain equity in the company and serve as division presidents.
A new accounting rule will change when franchisors can recognize revenue from initial franchise fees—stretching it out for the life of a development agreement rather than when the first location opens—and could mean a big hit to income statements. So warns Kevin Hein, a franchise attorney at Alexius in Denver.
As reported in its Q4 2016 financial results, Domino’s Pizza grew domestic same-store sales 12.2% during the quarter, while international sales shot up 4.3%. It also opened a record 1,281 stores during the year, which includes 171 net new domestic locations.
Would you take advice from the man who wrote the book, “The 4-Hour Workweek”? If so, then Tim Ferriss’ keynote talk at the International Franchise Association annual convention was for you. (The conference was Jan. 31-Feb. 2, and if I hadn’t cut my work week to four hours since then, I might have posted this blog earlier.*)
“When we find an opportunity, we sort of jump all over it, and it demonstrates to folks how serious we are to grow.” So says Barry Dubin, chief development officer at KBP Foods, one of the Franchise Times Dealmakers award winners I’ve been interviewing over the last week. Here are a few more:
It’s somewhat crazy that 'Fixer Upper,' 'Flip or Flop' and 'Property Brothers' are so popular their stars’ lives have become tabloid fodder. For Trend Transformations, an international flooring and home hard surface restoration franchise tied up with Tarek and Christina El Moussa, the drama surrounding their divorce has been outweighed by the visibility gains for their company.
With as many as 150 new food halls predicted to open in the next few years, these modern day food courts with higher-end food offerings are the bright spots offsetting tough times in the retail scene as many big-name brands are facing what may be their darkest year in business.
The Small Business Administration temporarily tweaked its new procedures governing lending to franchisees, to the relief of many franchisors and bankers who maintained the new rules would chill franchise lending.