Franchising's Weekly Rewind

Photo Credit: NRD Holdings

The franchise world is often an interesting place, dominated by interesting people that always seem to have something going on. This week was no different. Here are your headlines from the week ending June 20, 2014: Caldeira says franchising growth ahead of expectations In a story published Friday at Fox Business, International Franchise Association (IFA) President and Chief Operating Officer Steve Caldeira said that he expects franchising to trend ahead of forecast with regard to growth in the coming year. In a story written by Gabrielle Karol, Caldeira said that, “The IFA expects that franchise establishments will increase by 1.7 percent in 2014, .3 percent faster than the pace of growth in 2013. Franchise employment is also predicted to grow by 2.6 percent, while the output of franchises in nominal dollars is expected to increase by 4.8 percent in 2014.” Caldeira predicted that most of that growth would come in the restaurant, services and care industry. (Fox Business) Government’s making of ‘big’ into ‘small’ probably a good thing this time The Small Business Administration (SBA) is amending and updating its criteria for small businesses, which means as many as an additional 8,500 could become eligible for SBA-backed lending and contracting programs. The changes are the first of many meaningful scopes since 2008. Like anything else administered by the government, the changes are nuanced and this could be good news for franchisees and multi-unit operators. Read closely, my friend. (Washington Post) ACIS says “smaller” restaurants resonating in big way with fans A recent survey of about 4,600 consumers yielded some data that shows increased dissatisfaction with some of the most recognizable restaurant brands in franchising. Olive Garden, Outback Steakhouse, Red Lobster, Applebee’s and Chili’s each say consumer satisfaction declined from customers who were asked to, “evaluate their recent purchase and consumption experiences.” That surveyed showed that, overall, the smaller fast-casual brands – including as Panera and Chipotle – saw improved scores. (Media Post) Culvers going inline, bringing Butter Burgers to Chicago In news that was of great interest to the 1851franchise.com’s North Siders, the Wisconsin-based burger purveyor Culver’s announced this week that it was planning a new location in Wrigleyville – it’s first in a strip mall. A second inline store is planned for Evanston. (Chicago Tribune) Brighton out at Red Robin Nation’s Restaurant News reported this week that Chief Development Officer Todd Brighton was leaving Red Robin Gourmet Burgers & Brews. Brighton will remain with the organization for as many as six months during a transitional plan. He had been with the brand since 2001 or, in terms of the franchising industry, eons. (NRN) Louisiana fast for zesty $43 million Deliciousness has a price. In the case of some of Popeyes’ best-loved recipes, the price was $43 million. The chain announced that the recipes behind some of its fans favorites became property of the brand this week in a huge deal with Diversified Foods and Seasonings Inc., which previously held rights to the recipes. (Business Week) On Leadership: The lessons of Ray Kroc For those seeking some leadership thinking to close out their workweek, take a look at Smart Brief Senior Editor James daSilva’s essay on Ray Kroc. Good stuff in an easy read. We tend to think about Kroc’s work in the full scope of his success. But how did he really make it happen, and why? You’ll enjoy daSilva’s thoughts on the subject. (Smart Blog)