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A ST. LOUIS
TRADITION
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Ted Drewes has been
selling frozen custard and Christmas trees for decades, with an attention to
quality that has made his trees and custard the finest in St. Louis.
It all started when Ted Sr. opened his first ice cream store in Florida
in 1929, followed the next year by an other store on Natural Bridge in St.
Louis and the South Grand store in 1931. In 1941 the family opened a second
south side stand which is the current Chippewa location, old route 66. By
1958, the south side stands were all that remained.
According to Ted Jr., the success of the operation has brought it
nationwide attention in the form of offers to franchise the stands. He said
such offers pour in quite frequently. However he has never agreed to
franchise and he says that he never will.
"It is a matter of quality. Franchising could lead to mediocrity," Ted
notes with a shake of his head. |
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Ted credits much of
his success to his father. Ted Sr. was a St. Louis attraction, winning the
tennis Muny championships each year from 1926 to 1935. He also won the
National Public Parks title four straight years in the middle 1920's.
"I remember just before dad died, that was nearly 31 years ago, I asked
him then if he was ever mad that I didn't become a tennis star like him,"
Ted said. "He said, how could you? You were always working."
And it is work that brings Ted to Nova Scotia each fall, where he
personally selects the best Canadian balsam Fir Christmas trees to bring
home to St. Louis.
Like Ted's Frozen Custard, a Ted Drewes Christmas tree has become a St.
Louis tradition for many, and he's happy about that.
"We have people buy their trees from us year after year, and they don't
even know we sell ice cream!" Ted exclaims.
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Ted
Drewes
Ted Drewes Frozen Custard in Saint Louis, Missouri, Route 66
location
Ted Drewes is a
frozen custard shop well-known in
St. Louis, Missouri,
USA. The original
was established in 1930 on Natural Bridge Road, with a second location
following the next year on South Grand. A decade later, a third location
opened on historic
Route 66
(on the segment also known as Chippewa). The Natural Bridge location closed in
1958. Unlike some later
frozen custard stands, Ted Drewes only makes their custard in one flavor
and adds other flavorings and toppings when an order is placed.
The shop may be best known for a specialty called a "concrete", which is
custard blended with any of dozens of ingredients, and served in a large
yellow cup with a spoon and straw. Concretes are blended so thick that they
and their spoon do not fall out when their cup is turned upside-down; servers
often demonstrate this before handing customers their order. The Concrete is
the inspiration for
Dairy
Queen's later Blizzard shake (which is made with
soft
serve in comparison to the thicker
frozen custard of Ted Drewes).
[1] Some ingredients, such as apple and
pumpkin pie, appear for a short period every year in seasonal varieties.
According to Ted Drewes, Jr. as quoted on the official website, he has
fielded numerous requests to turn the small chain into a nationwide franchise
but has refused.
Though in past years the stands have closed for regular business in the
fall, recently the Chippewa (Route 66) store has stayed open later in the
year, closing down for the winter in January. The South Grand location is
closed for a much longer time period opening only for summer business
approximately after May 13th (Mothers
day). In the weeks leading up to
Christmas,
Ted Drewes also sells live
Christmas trees from the parking lot. Ted Drewes frozen custard is also
available in St. Louis area grocery stores, but this was not always the case.
In 2006, the Route 66 location was featured on the
Food
Network show
Feasting on Asphalt, hosted by
Alton
Brown.
In a poll of St.Louis citizens, 96% would go to Ted Drewes for frozen
custard over any other establishment.
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3 From
http://www.shipleydonuts.ws/
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Yesterday, Today, and Tomorrow
It was 1936, the end of the Great Depression, when
Lawrence Shipley, Sr. created a gourmet recipe for donuts. So delicious
were the donuts that they have withstood the test of time. Cut by hand and
served hot throughout the day, the donuts were 5 cents a dozen and were only
sold wholesale. The product was so successful that it started to sell on the
retail market in the mid 1940s. With Lawrence Sr. away on donut routes, his
wife Lillie would stay behind and make the culinary delights with Lawrence
Jr. at her knee.
People would come from miles around to sample the nectar of the sumptuous
hot glazed donuts. Serving them hot was a goal of the elder Shipley.
Lawrence Shipley, Sr. once said, "When they bite into that hot donut, it
will bring them back every time."
It is that very concept that continues to bring generations of donut lovers
back to Shipley's as loyal customers.
"One of the best memories I have of my father is walking to Shipley's Donuts
on Saturday morning for that hot plain glazed," said Kathy Froleigh. "It
was the one time of the week, when Daddy was all mine, giving me his full
attention. I have tried to create that same kind of memory for my own
children who I take to Shipley's every Saturday morning. They each get to
pick out their favorite donuts while we sit and talk, laugh and enjoy our
favorite varieties. "They never knew my father. He died before they were
born. But they know him through the stories I have told of our special time
together every Saturday morning when we talked about what happened during
the week as we ate our donuts." "I don't know what I would do if we didn't
have our Shipley's donuts," said Froleigh. "It would be like taking away
part of my history and my future."
Lawrence Jr. worked in the business all of his life, continuing his fathers
vision and making Shipley Do-Nuts the successful business it is today. He
expanded the company to more than 190 stores around the nation in Alabama,
Arkansas, Louisiana, Mississippi, Tennessee, and Texas, 86 of which are in
the Houston area.
President of the company, Lawrence W. Shipley, III,
continues the tradition with strong growth and high expectations for the
future. Lawrence III carries on the tradition of great donuts and kolaches
and strives to find better ways of making your mornings start off right.
He continues to expand the company, careful however to grow slowly, while
never compromising the quality of the product and excellent customer
service.
The donuts continue to delight customers of all ages.
The 63 varieties remain as consistent as the freshness of the products, and
although the plain glazed is by far the best seller, everyone seems to have
their favorites.
Shipley Do-Nuts continues the pride and tradition on delivering the finest
donuts and kolaches in the business. Shipley Do-Nuts is a gourmet product
made fresh daily. The company offers excellent customer service, clean
stores and friendly employees who love our donuts as much as our customers
do.
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Blue Box 1
Scan Below
By 1958, the south-side stands
were all that remained open, and the South Grand site is open only during
summer months. In the winter, many St. Louisans buy their Christmas trees
at the Chippewa lot. Drewes has resisted offers to franchise his famous
custard stands because of his fear that the quality would not be the same.
Pamela Pierce said, "It's a unique St. Louis place and where I spent my
summer vacation. And who in South St. Louis hasn't experienced the joy of
a chocolate chip concrete?" And Richard Berger of Ballwin had several
well-thought and serious nominations for "wonders." But he ended his list
with Ted Drewes and concluded: "OK, everybody has their weaknesses."
Ted Drewes
Frozen Custard
The Best of
St. Louis
When the weather turns warm one of the first things
St. Louisans think of is Ted Drewe's frozen custard. Forget about the diet
and the calories. Pack up the kids and take a ride down Historic Route 66
for one of the most sinfully delicious treats you will ever taste. If you
think a trip to the local ice cream stand will suffice, think again!
Ted Drewes Frozen Custard has been a tradition in
St. Louis since 1929. Ted's most famous location is on the St. Louis'
stretch of Old Route 66. There is also a second location at 4224 South Grand
in South St. Louis. This unique to St. Louis frozen custard treat is sold
in cones, in sundaes and as "concretes," which is the name given to shakes
so thick you can turn them upside down and they don't fall out of the cup.
The unique formula for frozen custard was developed
by Ted's father, also named Ted, back in 1929. This recipe is still used
today and although the custard is always vanilla, the topping choices and
flavors for concretes are endless. Some of Ted's specialties include:
- The Southern Delight - a concrete or sundae with
praline pecans and butterscotch
- The All Shook Up - which has a
strange familiarity to the peanut butter and banana sandwiches that Elvis
used to eat.
- The Sin Sundae - a concrete or sundae with tart
cherries and hot fudge
- The Fox Treat - a concrete or sundae with hot
fudge, raspberries, and macadamia nuts.
- The Crater Copernicus - Devil's Food Cake topped
with frozen custard, hot fudge, and freshly whipped cream.
- The Dottie - a concrete or sundae mint,
chocolate, and macadamia nuts. This treat just happens to be named after
Ted's wife.
- The Terramizou - a concrete or sundae with Ted's
special blend of chocolate and pistachio nuts.
- The Dutchman - named for the team of a nearby
high school, this luscious concoction contains fresh roasted pecans, hot
fudge and butterscotch.
This is just a small sampling of some of the
fantastic treats awaiting you and your family at Ted Drewes. In addition to
the standard ice cream cones and sundaes, Ted is always coming up with
special concoctions and seasonal offerings. When you see him on television,
you might think he is a little corny when he says his frozen custard really
is good, but he really is right!
Ted Drewes main location on Chippewa (Historic
Route 66) is open from February through December. The store on South Grand
is only open during the summer months. Both stores open at 11:00 AM and
close as late as midnight during the summer. It is always best to call
first. Make sure and visit their new website. Ted Drewes carries a wide
assortment of logo items, including mugs, t-shirts, caps and keychains as
well as items with the Route 66 logo. In the near future you will be able
to order Ted Drewes directly from the website!
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Feb. 10,
2006, 12:06PM
RETAIL
Krispy Kreme
exit leaves hole in chain
Settlement of dispute with franchisee means no Houston locations
By
DAVID KAPLAN and PURVA PATEL
Copyright 2006 Houston Chronicle
IT might seem easy selling
Krispy Kremes. They're hot, delicious doughnuts that lots of people crave.
Owning a Krispy Kreme
franchise, however, is apparently harder than it looks.Krispy Kreme
Doughnuts is exiting the Houston market after reaching an agreement with
its Houston franchisee, Lone Star Doughnuts.
The five Houston-area stores
will cease operations on March 8, as will the location in Beaumont.Lone
Star Doughnuts said Thursday that it will launch its own brand of
doughnuts as soon as Krispy Kreme closes. And Krispy Kreme said it plans
to reopen stores in Houston, but didn't say when.
Lone Star's new brand,
Jumbles Dough Factory & Coffee Bar, will be in the same six locations,
selling doughnuts, kolaches and coffee beverages in a softer setting, said
Dan Brinton, Lone Star's chief operating officer.
Krispy Kreme's exit comes as
part of a legal settlement between the doughnut chain and Lone Star.Lone
Star had sued the North Carolina company, claiming it pressured Lone Star
to open new stores and threatened to declare a default if it refused,
according to court documents. It also claimed Krispy Kreme forced Lone
Star to buy unnecessary equipment and marked up cost of goods and
supplies, the documents show. Krispy Kreme, for its part, argued Lone Star
owed it about $1 million.
Laura Smith, a spokeswoman
for Krispy Kreme, declined to discuss the settlement details."It's
dismissed," she said. "It's history. So we have no comment on it."
Krispy Kreme doughnuts will
no longer be sold in local Kroger, Rice Epicurean and Gerland's grocery
stores.Lone Star Doughnuts will eventually provide those grocers with
Jumbles doughnuts, Brinton said.
Once the darling of Wall
Street, Krispy Kreme, the second-largest U.S. doughnut chain behind
Dunkin' Donuts, has been facing financial difficulties.Recently, the
company's franchisees for Colorado, Minnesota and Wisconsin filed for
bankruptcy, as did franchisees in Canada and Philadelphia last year.
Some industry analysts
believe the company put too much pressure on franchisees by pushing them
to expand and charging them relatively high prices for supplies."Krispy
Kreme almost became more focused on profits from its financial
arrangements with its franchisees than from doughnut sales," said Steven
Clark, assistant professor of finance at Belk College of Business at the
University of North Carolina at Charlotte.
Mary Tomzack, president of
FranchiseHelp.com, an online company serving the franchise market, said
Krispy Kreme still has "an excellent product — there's still an aura about
it. But I think the product got totally cannibalized. You can see it in
grocery stores and delis. That's a problem for the franchisee."
Unlike many franchises,
Krispy Kreme is publicly traded, which adds pressure from shareholders to
grow each quarter, she said.Krispy Kreme started as a family business in
1937 after founder Vernon Rudolph obtained a recipe for a yeast-raised
doughnut from a French chef in New Orleans.
He launched his business in
Winstom-Salem, N.C., and it gradually spread throughout the Southeast.The
company went public in 2000. Krispy Kreme was soaring in February 2004
when its nearly 400 locations reported $665.6 million in sales for the
fiscal year. But in May of that year it reported its first quarterly loss,
and the company began to struggle.
The following year,
securities regulators made a formal inquiry into the company's accounting
practices.Currently, the company has about 320 stores. At its peak, Lone
Star had eight Krispy Kreme locations in the Houston and Beaumont
areas.Tracy Upton, 21, will have to find a new place to pick up treats for
her co- workers.
"I love Krispy Kreme," she
said, noting that as editor of the Houston Baptist University biweekly
newspaper, she takes doughnuts every time the paper's on deadline. "My
favorite was the cream-filled one with chocolate on top."Now, she said,
she'll go to Shipley's Donuts — a Houston-based donut chain that has
dozens of stores in Texas.Lone Star Doughnuts has 120 employees that will
remain on staff at Jumbles, Brinton said. Jumbles doughnuts will be
somewhat less sweet than Krispy Kreme's, he said, and will feature
doughnut lollipops for kids.
"Krispy Kreme doughnuts are
wonderful," Brinton said. "I think ours are going to rival them."Tomzack
is surprised that Lone Star is able to open its own doughnut operation
because in most instances franchisees sign non-compete agreements.
Kenneth Held, a Vinson &
Elkins attorney representing Lone Star Doughnuts, would not comment other
than to say that the two sides resolved all differences amicably.
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Corporate History
White Castle
System, Inc. was formed in Wichita, Kansas, in 1921, by a partnership
between Walter Anderson, a professional cook, and Edgar Waldo "Billy"
Ingram, a local real estate and insurance agent. In 1916, Anderson
developed a different method of preparing a hamburger sandwich by
flattening a ball of ground meat and cooking it with onions on a hot
griddle for a short period of time. Prior to Anderson's method of
preparation, the hamburger sandwich consisted of a thick ball of ground
meat cooked slowly on a griddle for an indefinite period of time. His
hamburger sandwich proved popular enough for Anderson to open three
hamburger stands in Wichita between 1916 and 1920. In March 1921, Ingram
joined Anderson as a partner in the operation of a fourth location under
the name White Castle. The company incorporated in 1924 as the White
Castle System of Eating Houses.
Anderson and
Ingram opened another hamburger stand in Kansas City, in 1924, and over
the next six years they rapidly expanded their company's operations to
include locations in twelve major cities in the eastern half of the United
States. This expansion created the need for a more centrally located
corporate headquarters, so in 1934 the company moved its business
operations to its present location in Columbus, Ohio. By this time White
Castle was wholly owned by Billy Ingram, who bought out Anderson's share
in the company in 1933.
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White Castle
System, Inc. Records, 1921-1991
The company's
rapid expansion was due in part to its development of the methods required
to operate the first chain restaurant in the country. A written set of
standards for restaurant operations, food preparation, and employee
appearance enabled the company to maintain a high degree of uniformity at
each of its locations. With the help of suggestions from employees, the
company also developed much of the equipment used at its restaurants. One
of the company's patented developments, a paper hat for restaurant
employees, resulted in the formation of a corporate subsidiary, the
Paperlynen Company.
A noted feature
of the company's first decades was the building housing the White Castle
restaurants. During this time period White Castle leased most of the space
for its restaurants on a short-term basis due to the small amount of land
required for its standard five-stool hamburger stand. To protect the
company's investment in the building, a White Castle employee, Loyd Ray,
designed a movable, all-steel frame structure enclosed with interior and
exterior porcelain enamel panels -- the first use of such materials in a
building design. The buildings were modeled after Chicago's Old Water
Tower and provided White Castle with a distinctive and practical solution
to its building needs. Fifty-five of these hamburger stands were
manufactured from 1928 to 1956. All those constructed after 1934 were made
by another corporate subsidiary, the Porcelain Steel Building Company.
White Castle
also was innovative in the company's marketing of its products. In the
1920s the average American had a negative perception about the hamburger
sandwich. In an effort to change this attitude and to expand its carry-out
business White Castle pioneered the newspaper coupon. First used in St.
Louis on June 3, 1932, a White Castle coupon was good for a carry-out
order of five hamburgers for the cost of ten cents. The coupon offer
proved an overwhelming success and helped the company introduce its
hamburger to a wide audience. Other company innovations in marketing
included the use of free hand-outs such as score pads for bridge, golf,
and bowling, all containing advertisements for White Castle products and a
listing of its restaurant locations.
Also in 1932,
the company started a program to introduce the nation's housewives to its
products and the convenience of its carry-out services. The program was
headed by a company employee, given the name Julia Joyce, who traveled to
the various White Castle locations giving restaurant tours to local
housewives and samples of company products to women's clubs. The program
also published menu books containing suggestions of foods to serve along
with White Castle hamburgers.
The rationing of
such food staples as meat, sugar, and coffee during the Second World War
halted the company's expansion and limited the service available at
existing White Castle restaurants. The war also created a shortage of male
labor, which required White Castle to hire its first female employees.
White Castle was slow to recover from the effects of the war, but did
resume expansion during the 1950s on a more modest scale. During the
decades of the 1950s through the 1970s White Castle participated in the
growth of the fast food market in America by offering curb service, since
replaced by drive-thru service, and an expanded menu. The company also
replaced its five stool hamburger stands with larger buildings and built
new restaurants in more suburban locations.
In the past
fifteen years, White Castle experimented with expansion into foreign
locations in both Japan and Malaysia, as well as new locations within the
United States. The company also developed another subsidiary, White Castle
Distributing, Inc., to market its line of frozen, microwave hamburgers
after a series of highly publicized "carry-out" orders of thousands of
White Castle hamburgers to the Marines in Beirut, Lebanon, in 1982, and to
various cities in Arizona and California during the 1980s. White Castle
remains a privately held company owned by the Ingram family and operates
close to three hundred restaurants and a number of subsidiary businesses.
Sources:
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Krispy Kreme Set to Open in Waco
Jan. 22, 2004
By Lauren Slusher, reporter
Krispy Kreme Doughnuts will switch on its 'hot
light' for the first time on Feb. 3 at its new Waco location at 621 N.
Valley Mills Dr. Krispy Kreme named two Waco Crestview Elementary school
students ambassadors to the new store. The two third- and fourth-graders who
celebrate birthdays on the opening day will cut the official doughnut
ribbon, initiating the store's launch.
'I'm kind of nervous,' Malisa Plump, the
10-year-old ambassador, said. 'But [being an ambassador] has been really fun
so far. The best part was getting to make my own doughnut.' The two girls
received Krispy Kreme prize packs with a complete set of Krispy Kreme
apparel and a ticket for free doughnuts.
'When I came back, everyone would say, 'Look! There
goes the Krispy Kreme Doughnut girl!'' Colby Smith, 9-year-old ambassador,
said. Krispy Kreme offers the opportunity to become an ambassador to any
enthusiast, with the online submission of a Krispy Kreme testimonial.
'One manager saw a little girl that just seemed
really sad,' Bo Harvel, Krispy Kreme's Waco general manager, said. 'He let
her go in the back, look around and even pump doughnuts. We later got a
letter from her parents saying that she'd just been diagnosed with cancer,
had been having a really tough time and then came in and was treated like a
queen.'
Past openings have proven the intense enthusiasm of
Krispy Kreme fans throughout the country, as both children and adults have
spent the night outside store doors just to have that first fresh doughnut.
'In Corpus Christi, five kids camped out for the 48 hours before the store
opening,' Harvel said. 'At another opening, we had a drive-thru window line
that was over a mile long. We loved that, and we're hoping that being in a
college town, we'll get some similar reactions.'
However, Krispy Kreme may not be Waco's exclusive
doughnut vender. The long-standing Jack N' Jill Donuts continues its
business just across the street from the new location, and Shipley's
Doughnuts at the Bill Daniel Student Center building is frequently
patronized. 'Hopefully [the opening] won't affect our business too much,'
Yessie Garcia, a Shipley's Doughnuts employee at Baylor, said. 'But it's a
new thing, so people will be tempted to try it.'
However, Harvel believes this opening of one of
Krispy Kreme's 300-plus locations could actually boost sales for other
doughnut vendors. 'We're all for friendly competition,' Harvel said. 'More
doughnut stores will just bring more doughnut awareness in the community.
It's hard to see it this way, but it's actually a positive - in Austin, we
opened up a store beside a Dunkin' Donuts, and they ended up having the best
numbers they'd seen in five years.'
Baylor students also seem confident the new opening
will bring prosperity to all Waco doughnut stores. 'The Shipley's on campus
is convenient,' Brad Rolf, Austin junior, said. 'People can stop in for
breakfast or after class. But since it's only open during school hours
anyway, I don't think it'll bring down their business.'
Harvel suggests that one of the most appealing
parts of the Krispy Kreme company is the experience. 'I really like to watch
how they make the doughnuts,' Rolf said. Customers are able to watch every
step of this doughnut-making process through the window called the doughnut
theater.
'We get a lot of big eyes, and some 'oohs' and 'aahs,''
Harvel said. 'People are always inquisitive as to why and how something is
made, and it's always interesting to see the process, as opposed to just the
end product.' On Feb. 7, Krispy Kreme will hold a kids day featuring face
painting and doughnut decorating.
Krispy Kreme is hosting several college days,
giving all university students the chance to visit the new location, with an
offer of buying one dozen doughnuts and getting the second dozen for $.99.
'All the recent public activities have been a nice way to be welcomed to the
neighborhood,' Harvel said. 'Waco people are really pumped.' |
Donut Fun Facts
1. The weight of the average kitchen rolling pin is .48 pounds.
The weight of the Shipley Donut rolling pin is 3.6 pounds.
2. It is thought that in remote areas of Brazos County there
are certain individuals that secretly worship pagan donut gods.
3. The approximate size of the donut hole is 16/20 ".
4. Scientific studies show that people who eat Shipley donuts
have a much higher I.Q. than those who eat those other nameless
yucky brands.
5. The Bryan and College Station Shipley Donuts produce more than
3 million donuts every year.
6. Donuts promote world peace.
7. The average donut lover in the Brazos Valley consumes about 56
donuts per year.
8. Bear claws are loved most by bears.
9. National Doughnut Day is June 23rd. Elveras Nelson's B Day.
10. The shape of the wedding band symbolizes eternal love and
happiness. The shape of the donut also symbolizes eternal love
and happiness. It is therefore very appropriate to give your
sweetie donuts on Valentines Day as well as for anniversaries.
Shipley Donuts Franchise
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European Franchise Consultants - Franchiseadviesbureau dat zich
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Includes company history, menu and franchise details.
Business Brokerages - Comprehensive listing of business
brokers, certified business appraisers, and franchise developers across
the nation.
The Buyer's Agent - Nationwide franchise program of brokers offering
exclusive representation to buyers. Site includes FAQ, tips for buyers,
and directory of member agents
around the country.
Denise Yardy - Sunbelt
Business Brokers. - Information about the sale and purchase of a
turnkey business and or franchise.
Alpine Business Sales Specialists - Utah based business brokers
featuring online listing of businesses for sale and franchise
opportunities.
Commerce Business Consulting - Certified business brokers with
businesses for sale, loans, valuations, and franchise opportunity and
other services.
VR Business Brokers - National franchise offers listings of businesses
and franchises for sale, office directory, and member services.
BusinessShack.com.au - Businesses for sale by owners and brokers,
browse by location, industry,
price, franchise and date.
Franchise Assist - Franchise brokers.
Cooper Norman Business Brokers & Advisors - Listins and
franchise opportunities in Idaho, Nevada, Oregon and Montana.
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Before Getting A Franchise
Buying into a franchise is a great way to be part
of a recognized brand with the benefit of lower advertising outlay. With
many franchises to choose, here are some tips before you get involved with
franchise: Get The Support of Your Family: The success of your franchise is
also the acceptance of your immediate family in supporting your effort. It
is this simple. Take for instance, if you buy a franchise which is part of a
book-store chain and your family does not even visit it once. Will you have
the determination to see it through? If you need to take a short vacation,
will your family member help to run the franchise in your place? Know Your
Strengths & Expertise: A franchise should not just be a means for you to
start your first business. It is preferable that you have a recognized skill
or interest in the franchise before parting with the franchise initial
capital. Maybe take a personality test to determine if you have the tenacity
to follow through with the franchise. Unique Proposition Of The Franchise:
The franchise should be protected by a patent or intellectual property law.
This will create a significant barriers to entry. Market Research: A
franchise can be a huge success in a particular geographical region but has
less acceptance in another country. Thus it is crucial that you inspect the
relevance of the market research that has been conducted by the franchise
company especially in the area of when the market research was conducted and
the demographics of the sample set. Franchise Competition: Do not get a
franchise that does not seem to have a recognized competitor or an industry
that can be classified – unless you are interested in being a master
franchiser or have a first-mover advantage. The market may be slow to accept
your franchise and you may find it hard to re-coup your initial investment
within the agreed contractual period. Legal Assistance: It definitely pays
to get a leg...
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The Donut Franchise:
Historically A Sweet Deal
|
 |
John F. Kennedy made a famous speech at
the Berlin Wall, when he said, "Ich bin ein Berliner." Literally, this
translates to "I am a jelly donut" because a "Berliner" is a type of jelly
donut. To be correct, he should have said "Ich bin Berliner."
So now a famous phrase echoes around the world, with millions of people
declaring that they want to be a jelly donut. But several million of those
would probably rephrase it, "Ich bin ein Krispy Kreme"-fanatical followings
are not unusual for that brand.
With a history that goes back to the '30s, and now producing 7.5 million
donuts a day in more than 365 stores, Krispy Kreme has the name and the
following to weather the low-carb craze. Krispy Kreme also holds to the
original spelling of "doughnut"-derived from the early Americans'
combination of words for Dutch fried cakes with nuts in the center.
The other big name in the field is Dunkin' Donuts, now a part of giant
Allied Domecq PLC. Tracing its history back to 1950, when it was founded by
Bill Rosenberg, one of the legendary figures in franchising. Dunkin' Donuts
also touts its coffee-chosen by NBC in January as the best coffee in the
country. And with more than 5,800 stores, Dunkin' Donuts still has plenty of
room for growth.
In fact, the field has attracted a slew of competitors new and old, domestic
and abroad: Donut Connection, Honey Dew Donuts, LaMar's Donuts, Paradise
Donuts, Crescent City Beignets, Donut King in Australia, Tim Hortons and
Robin's Donuts in Canada, Winchell's Donuts, and Shipley Donuts among
others.
|
A Canadian donut invasion? Tim
Hortons, based in Ontario but owned by Ohio-based Wendy's International
since 1995, is continuing its aggressive push into the U.S. Tim Hortons had
more than 250 franchises located in 10 states in the Northeast and Midwest
in March 2005, and plans to reach 500 by 2007. In 2004, same-store sales
grew 10 percent in the U.S., with the same predicted for 2005.
Despite headlines about low-carb diets and Krispy Kreme's recent financial
stumbles, it looks as if there's steady growth and a solid future ahead for
donut franchises.
In June 2005, food research and consulting firm Technomic released its Top
500 Chain Restaurant Annual Report. According to Technomic, donuts as a
category continued to be a growth leader in 2004, with sales increasing 9.2
percent over the prior year-exceeding the restaurant industry average of 7.2
percent growth in 2004. (Although this was down more than 50 percent from
2003, where the donut category led all segments with 20 percent growth.)
In tracking individual growth leaders, Technomic reported Dunkin' Donuts
grew 13 percent in 2004 compared with 2003, an increase from its 11 percent
year-over-year growth in 2003. And despite its recent hard times, Krispy
Kreme could still ride out its 25 percent growth rate notched in 2003 as it
works to recover its momentum in 2005.
The related Bakery Café segment grew at 22 percent in 2004, providing more
evidence that Americans still like their carbs. Industry observers agree
that donuts continue to represent fun, a treat, and a personal indulgence
that will continue to outweigh concerns about health and expanding
waistlines for many years to come. |
|
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Blue Box
2
Brian Nelson