The Benefits of Multi-Concept Locations

DAN KURASH From researching locations, to overseeing sales, to investing to keep the business thriving, the franchise industry can be a volatile experience filled with ups and downs. One tactic business owners are utilizing to curb some of the fluctuations is turning real estate into a multi-concept operation capable of reaching a larger customer base while diversifying product offering for the same monthly lease payment. If you are paying for the space, why not max it out? Since 1987, Ed Forman has been a manager of franchising concepts conducted as a family-run business. He was first involved in the motel and hospitality industry, then for Verizon Wireless, then a car wash concept and most recently, the frozen yogurt (“froyo”) industry, which particularly peaked his interest given its growing trend capability and health benefits. Ed, in tandem with his wife Amy and daughter Jessica, opened the TCBY & Mrs. Fields of Lawrence, Kansas location in November 2012. The location is the first in parent company, Famous Brands International’s network to feature all three offerings under one roof, specifically the soft-serve TCBY yogurt, Mrs. Fields cookies and Mrs. Fields specialty coffee concept. “In August of 2011, when we found the property, we decided to introduce Mrs. Fields and the coffee program to the fold because the property had the square footage for it,” Forman said. “At this location, our staffing is incredible and the Lawrence community is great, but we've had to learn all of the aspects of marketing this store because it is a first. For example, we've have to bring the red [color] in Mrs. Fields and the turquoise in TCBY together as one. We’re the pioneers and like any pioneer, you have to be willing to figure things out.” The idea has also taken root in the growing kiosk and mobile food industry. Ron Constanza, a 30-year construction veteran, along with his sister Christine and brother-in-law Candler, moved to Melbourne, Florida with the aim of opening the only fresh baked pretzel stand in a 100 mile radius. Looking to bring his Northeast palate to the Sunshine State, he sought a salty, fresh baked counterpart in Philly Pretzel Factory to his Purple Cow Frozen Yogurt kiosk. Constanza and his team are set to open the co-kiosks, which will offer beachgoers of Cocoa Beach in April and Melbourne in May, two classic beach treats in one stop. “I’m originally from New Jersey, so I’ve known about the brand for a long time. They were a staple food when I went down to Philly for baseball games and concerts,” Constanza said. “We wanted something that would complement the frozen yogurt shop and add a little salty flavor to the sweet froyo. We also wanted something that would be fresh and baked on-site.” This idea has also been established for convenience stores. When Mark Whitmoyer, who sits on the Rocky Mountain Franchise Owners Association Board of Directors which represents over 140 franchise locations in the state, decided to expand his connection to Colorado Springs, Colorado, he did so with a specific concept in mind. In 2006, Whitmoyer got involved with 7-Eleven and after six years of operation, and pairing it with a Pita Pit, he decided to take the idea further.  In December 2012, Whitmoyer opened a multi-location convenience store called The Snack Shack where he paired his Pita Pit location with a liquor store, a general convenience store and a gas station to maximize the location’s effectiveness. “We pitched the convenience store idea to Pita Pit and they liked it as much as we did,” Whitmoyer said. “It really appealed to us to work with a brand open to new ideas. We [opened] in a great location with incredible visibility.” While no business is ever guaranteed success, especially in a marketplace looking to rebound in consistent fashion, business owners are still able to grow their organizations to the next level of operation by maximizing their efficiency.