Moving Toward the Second 50

The franchise industry has long promoted their model which provides an easily duplicated business blueprint for success. However, when it comes to achieving lasting success in the franchise industry, there is no simple path for the thousands of franchisors vying for prospects in the U.S.

In speaking with the Wall Street Journal, Case Western Reserve Professor Scott Shane noted, “Of the more than 200 new franchise systems established in the United States each year, 25% don't even make it to their first anniversary."

So, if fifty concepts fail each year, a franchisor reaching fifty units overall is an impressive feat. But the road from the first fifty to the second fifty – and that highly sought-after triple digit number of units – can sometimes be a frustrating climb for franchisors.

How does the head of a franchise company maintain the same excitement and positivity when marching from fifty to one hundred units?

Toppers Pizza is nearly half way to their second fifty. Ever since Toppers Pizza founder and president Scott Gittrich launched the brand in the 90’s with the goal of doing pizza better than the corporate guys, the Toppers team has put a bull's-eye on crossing the 100 mark – and then continuing to grow beyond.

As the brand moves to nearly 75 units open, Gittrich says the key to growth at this stage for his brand is staying true to what got them to where they are, because as he says, that’s what works.

“What got us here is a commitment to our Core Values and our distinct place in the massive pizza industry. From the beginning, we have been the ‘better pizza’ delivery brand, competing with the behemoth fast food pizza companies that don’t respect the heritage of made from scratch pizza," said Gittrich.

"The driver of growing from 50 to 100 restaurants is our existing franchisees being very happy that they are franchisees. Financial success for our franchisees assures that prospective franchisees will find us. We have a concept that kicks ass and makes money. As long as we focus on every store and every franchisee being successful, our growth is practically assured. Almost every single one of our franchisees is growing, and almost every single store in our system is comping strong. It’s a great time to be looking at Toppers Pizza if you’re looking for a great franchise.”

Similarly, MOOYAH Burgers, Fries & Shakes has established their first fifty and expects to reach 100 units in the first quarter of 2016. The brand has committed to a smart growth plan under the guidance of COO Michael Mabry, who has preached strong operations and a commitment to only moving forward with the right franchisees since taking the helm in 2014.

“Personally, the biggest task is to ensure that I keep looking forward,” said Mabry. “Any conceptual decisions are being made for the future. You need to balance what you have on the plate right now, with what is going to come in the future. You can’t make decisions solely based on where the brand is today. I have to make decisions based on where I want the brand to be down the road.”

Additionally, Mabry said that with any company ramping up growth, some form of turnover needs to be anticipated and prepared for – both on the corporate team and from franchisees. It’s just the nature of growth.

“There’s nothing wrong with the changeover,” said Mabry. “You need some of that in a brand for it to grow. The key is to make sure it’s being managed and handled appropriately. So, no one should be caught by surprise if a member of the corporate team leaves or if a legacy franchisee decides to sell. It’s all about communication and making sure there everyone is in the loop as much as possible.”

It’s been more than three decades since the first Buffalo Wings & Rings opened in Cincinnati. However, after struggling to find an identity for the first two decades, a new ownership group took over and set forth elevating the brand, from the menu to the in-restaurant experience. The retooled Buffalo Wings & Rings is now experiencing growth unmatched in its first three decades and are set to cross the 50 domestic unit mark this year, on top of an established presence internationally. The brand is driving that momentum and has its sights set on reach 100 in the U.S. in the next two years.

Philip Schram is both part-owner and head of the brand’s development department. As he approaches all things in life, Schram maintains a smile and a positive outlook as the brand nears the century mark of units. He notes the old adage that every time you triple the size of any business, you’re really a new business. This is a fact that he and his team keep in mind as they grow toward 100 and understand the changing needs of the franchise system.

“When you're a young company, you are more likely to attract start up franchisees who are excited and making their first investment. We find ourselves in what we call the ‘junior multi-unit’ stage,” said Schram. “These can be those who started with the brand and are now opening a second, third, and fourth location, or these are folks who have been in franchising for a while and are looking for the brand they can really grow with. It's like graduating from high school to college - it's very important for the company's leadership to keep the team motivated. The new batch of franchisees may have already grown with another brand and they're looking for the next brand to grow.”

As with all businesses, growth seemingly can never happen fast enough. But for those brands making the leap from 50 to 100 units, focusing on constantly improving while expanding their footprint is the key to making the next 50, and every 50 after that, as successful as possible. To learn more about Buffalo Wings & Rings, visit buffalowingsandrings.1851franchise.com. To read more about MOOYAH Burgers, Fries & Shakes, visit mooyah.1851franchise.com.

Moving Toward the Second 50

Don’t Miss the Next Big Franchise Story

Brian Jaeger

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