1851

By STEVE COOMES

&nbsp;

Giant companies often dominate their respective industries because they benefit from unbeatable buying power, sheer numbers, market saturation and operational depth of knowledge.

By contrast, the smallest players are envied because of their ability to adjust quickly to market demands. Smaller operations aren’t bogged down by corporate policy and bureaucracy.

So where does that leave mid-size companies? In an advantageous position, say franchisors of companies ranging from 100 to 500 units. Their brands are large enough to have an extensive knowledge base and well-proven systems. Plus they’re not so large that if market conditions warrant, system-wide changes can be made with relative speed and agility.

We talked to three mid-size franchise concepts to ask what they thought were their competitive advantages in the marketplace, and we’re shared their insights.

 

Better Real Estate Selection

Kent Taylor, Founder and Chairman

<a href="http://www.texasroadhouse.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-advantage-of-being-in-the-middle-195" target="_blank" rel="nofollow">Texas Roadhouse</a> 

A restaurant can serve the best food and drink the world, but if a location stinks, it’ll be out of business quickly, said Kent Taylor. Ever since he founded the steakhouse chain, he’s become an expert in site selection, a man whose boots are on the ground at every neighborhood the steakhouse chain examines for expansion.

“I get great data from our research team, but I like to go see it myself and talk to the people in the neighborhood,” he said. Within a midsize system, he has the chance to gain firsthand knowledge—insider info that has led to correct choices on 99 percent of the 400-unit chain’s site choices since it opened in 1994.

“I made some mistakes when I first started, and I hated having to close those restaurants,” Taylor said. He’s lost only three so far. “I made sure I learned quickly how to choose sites, because I didn’t want to let that happen again.”

Having a large enough company that can cash flow well-located bargains when Taylor green-lights them gives him the confidence to choose shrewdly. An easy talker, Taylor visits nearby businesses and starts up conversations with strangers to learn about possible locations and their competition.

“It doesn’t take long before I know what I’m getting into. Sometimes that research is the best you’ll get,” he said. Without big chain paperwork and multiple approvals in his way, “the process is quicker because I get to have the final say.”

While that “see it before I believe it” approach hasn’t led to explosive growth at Texas Roadhouse, it’s kept the company from bad site choices and lost revenue. Such surefootedness in the market, Taylor said, keeps the company healthy and shareholders happy.

“I like the fact that if something goes wrong in a real estate decision, I only have myself to blame,” he said. “That forces me to make sure my choice is the right one. And so far, I’m doing pretty good.”

&nbsp;

Localized Marketing Programs:

Jim Jacobs, Director of Franchising

<a href="http://www.tuffy.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-advantage-of-being-in-the-middle-195" target="_blank" rel="nofollow">Tuffy Auto Service Centers</a>

In a world of auto service giants such as Midas, Meineke and Goodyear, one might think it difficult for 375-unit Tuffy Auto Service Centers to compete. But according to Jim Jacobs, a major brand presence isn’t everything in an industry that boils down to taking care of customers cars well.

Where Tuffy has an advantage, he said, is in its highly tailored local store marketing campaigns.

“One of the key differences with us versus a Midas or Meineke is that you send in a big percentage of your sales to (the franchisor) for ads,” Jacobs said. “Those companies determine how those dollars are spent, and a lot of times it’s to buy national TV ads. We don’t do that.” He said Tuffy actually was started by two ex-Midas franchisees who hated spending dollars on national campaigns. They thought their bucks were better spent speaking to local communities and potential customers in their trade areas.

“It’s a lot more work for our marketing folks to have to focus on individual markets instead of blanket ads for national campaigns,” Jacobs began. “But we know there’s a lot bigger bang for your advertising dollar when it’s focused on the 3- to 5-mile area around your dealership.”

Not only does that lower marketing costs—which means better franchisee profitability—he said it ensures dealers have a say in the marketing they think will be best.

“We say, ‘Here are our thoughts. What are yours?’” Jacobs said. “If they want to do a brake special, we have the ability to tell them what worked well in other markets and then let our marketing department put together a program for that.”

&nbsp;

The Ability to Innovate: 

Brian Ognian, Senior Vice President, Franchise Development

<a href="http://hungryhowies.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-advantage-of-being-in-the-middle-195" target="_blank" rel="nofollow">Hungry Howie’s Flavored Crust Pizza</a>

With about 550 units to its credit, Hungry Howie’s is one of the U.S. pizza industry’s largest players. Yet compared to Pizza Hut’s 6,500 stores, Domino’s 5,000 stores, and Papa John’s 4,000 stores, it’s still a small player.

But that size difference is not a disadvantage, said Brian Ognian, because Hungry Howie’s is large enough to have the capital to keep pace technologically with segment giants, while staying well ahead of smaller competitors that can’t cash flow innovative system upgrades.

During the recent recession, when many chains lost stores, Hungry Howie’s made the best of the soft sales environment improving its brand image, upgrading store designs, investing in better computerized POS systems and further developing its online ordering platform.

Those changes, Ognian said, can roll out quickly in a midsized company with a united franchisee base.

“While we weathered that storm, we were working diligently to prepare our brand for future growth during that slow time,” Ognian said. “I don’t think a lot of companies invested in the things we did, like training and systems. And we’re happy to say our sales continue to move up.”

Anticipating legislation will eventually be passed that will force pizza chains with 20 or more units to provide nutritional information to customers, the company bit the bullet, spent the time in the tedious effort of tabulating all that data, and put it on the web for any customer to see.

“We’re still concerned that the proposals we’re looking at now will force us to post that information on menu boards in the store—which is nearly impossible to do with all the pizza combinations that are possible,” Ognian said. “But we’re fortunate that we’re large enough to have already gotten that done. That might be a real problem for smaller chains.”

1851 Franchise

By STEVE COOMES

&nbsp;

Giant companies often dominate their respective industries because they benefit from unbeatable buying power, sheer numbers, market saturation and operational depth of knowledge.

By contrast, the smallest players are envied because of their ability to adjust quickly t.....

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

The Advantage of Being in the Middle

the-advantage-of-being-in-the-middle

Lindora

Celebrating the Nurse Behind the Mission: How Melinda Endricks Is Powering Lindora’s Growth and Impact Nationwide

celebrating-the-nurse-behind-the-mission-how-melinda-endricks-is-powering-lindoras-growth-and-impact-nationwide

Sola Salons

Sola Salons Targets Chicago for Strategic Franchise Growth

sola-salons-targets-chicago-for-strategic-franchise-growth

Melting Pot

Photo of Melting Pot white chocolate fondue

How Melting Pot Franchisees Drive Year-Round Success Through Strategic Promotions and Local Marketing

melting-pot-franchise-year-round-success

Crust Pizza Co.

Crust Pizza Co. - Technology Piece - CTO Nick Fontenot - May 2025 - 1851 Franchise

Crust Pizza Co. Builds the Future of Franchising With Tech-First Strategy

crust-pizza-co-technology-nick-fontenot-cto

Paris Baguette

Paris Baguette’s Recipe for Expansion: Leadership, Community and A Vision for 1,000 Cafés by 2030

paris-baguettes-recipe-for-expansion-leadership-community-and-a-vision-for-1000-cafes-by-2030

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

Franchisee Spotlight with Armando Cordova and Jorge Molina with Crust Pizza Co. Logo

Texas-Sized Ambition: How a Shared Dream Turned Into Three Crust Pizza Co. Locations

crust-pizza-co-armando-cordova-jorge-molina-georgetown-launch

Health Care Professional in the Non-Profit Space Brings TruBlue to North Pittsburgh

health-care-professional-in-the-non-profit-space-brings-trublue-to-north-pittsburgh

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

The Ultimate Guide to Selling Franchises: Building Your Brand’s Growth Machine

ultimate-guide-to-selling-franchises

The Advantage of Being in the Middle

MORE STORIES LIKE THIS