Modern Market Eatery Franchise information

The long-time franchising executive spoke with 1851 to outline the lessons he’s learned throughout his career, what drew him to Modern Market and his vision for the future.

1851 Franchise: Tell us about your franchising background. 

Christopher Cheek, CDO of Modern Market Eatery: My franchising career started 20 years ago after I transitioned from software engineering to restaurant franchising. I started as a consultant for a startup brand, which eventually led to a role at Bruegger's Bagels, followed by various other roles with fast-casual and quick-serve concepts. Throughout my career, I've experienced all levels of growth, from helping emerging brands to managing multi-unit, multi-brand franchisors. 

1851 Franchise: What originally excited you about Modern Market Eatery?

Cheek: At Modern Market, introduced to me in 2019, I value how the brand combines great food with solid unit economics — critical for franchising success. Unlike my early career assumption that great food and ambiance alone could ensure growth, I've learned the importance of operational efficiency and unit economics. Modern Market excels in delivering scratch-made, sustainably sourced food within a fast-casual setting, balancing food costs and labor effectively to maintain unit level economics. Our approach includes a carefully engineered menu and an optimized square footage model to ensure profitability and growth. This combination of quality food and economic viability underpins Modern Market's success, making it akin to a cross between Panera Bread and Whole Foods, but in a more compact, efficient format. This unique positioning is what makes Modern Market stand out in the franchise industry.

1851 Franchise: At what point in your career did you realize that the unit level economics, on both cost to operate and how much you can make, has to be sound in order to award franchises?

Cheek: Reflecting on my early franchising experiences, I recognize the significance of franchisees' investment and the importance of strategic unit planning. Much earlier in my career we expanded unit sizes to 4,000 or more square feet, aiming to emulate the success of larger establishments like Panera. However, this approach overlooked the unique challenges of scaling an early-stage brand across diverse markets. 

A key lesson was the importance of adaptability and nurtured expansion. Specifically, expanding beyond our core market without accounting for variable average unit volumes led to operational and financial challenges. This experience highlighted the necessity of incorporating a "factor of safety" for new locations, especially in distant markets where brand recognition and distribution efficiencies could significantly impact performance. These insights have been crucial in refining our approach to growth and support for franchisees, ensuring we consider the full spectrum of factors influencing a new unit's success.

1851 Franchise: Why do you think some bad franchise businesses get lifted in today's market when so much information is available for franchisee candidates?

Cheek: Drawing from my software sales experience, I've noticed the influence of FOMO and the desire to follow trends, which also applies to franchising. Americans, in particular, often succumb to peer pressure and the fear of missing out, leading to quick decisions without thorough analysis. This contrasts with the more cautious approach seen in European and Asian markets. In franchising, it's crucial for franchisors to ensure franchise candidates understand the realities of opening and operating a restaurant, especially those without a restaurant background. The initial excitement can lead to a harsh reality check when financial projections don't immediately pan out, posing a risk to both the franchisee and franchisor.

It's our responsibility to prepare them for the challenges ahead, emphasizing that profitability might not be immediate and that there will be tough times. This approach, based on building trust and credibility, is essential for long-term success. It's about setting realistic expectations and providing support, rather than just making sales. This methodology is not only ethical, but necessary to avoid the pitfalls of rapid but unsustainable growth. Ultimately, ensuring franchisees are fully aware and prepared for the journey ahead helps build a stronger, more resilient brand.

1851 Franchise: As someone with an established and reputable name in franchising, you don't just take roles for the sake of taking roles. Do you think your willingness to put your name on the Modern Market brand carries weight, especially in this early stage of the brand’s journey?

Cheek: Credibility is key, not just for me but for anyone in a professional setting. While personal reputation can open doors, ultimately, it's the brand's strength, its economic viability, and the support system that drive franchise growth. Building strong industry relationships can attract potential franchisees, but the deciding factor is the brand's ability to deliver a return on investment. Modern Market showcases this through our commitment to being actively involved in our operations, which not only builds trust but also provides a practical demonstration of our business model's effectiveness. 

For instance, our decision to open the brand's first drive-thru unit as a company-owned store allowed us to experiment and refine the model, ensuring we offer proven solutions to our franchisees. This hands-on approach and willingness to share risks and rewards underline our philosophy of treating franchisees as partners, a practice that's becoming increasingly important. Ultimately, the success of a franchise relies on more than just the individuals behind it; it's about the collective strength and credibility of the entire brand.

1851: What's the vision plan for 2024?

Cheek: Heading into 2024, our goal is to expand from 29 units to roughly 37 units. Our ambitious five-year target is to quadruple our store count, incorporating a mix of traditional and non-traditional units, including two new locations in an Atlanta airport and a Northeastern major university. These additions complement our existing non-traditional sites, like the one at the University of Notre Dame and two at the Denver airport.

Focusing on Colorado, we also aim to bolster our company-owned stores, capitalizing on the untapped potential within this core market. Additionally, we plan to transition our Dallas stores to a seasoned multi-unit operator committed to further expansion, mirroring our successful partnership in Austin with Thrive Restaurant Group. 

This strategy underscores the importance of selecting the right franchisees, especially as we enter new markets without the immediate brand recognition larger chains might have. It's crucial to partner with operators who excel, not just in managing well-known brands, but also in cultivating new ones in diverse markets. This approach ensures that Modern Market's growth is both strategic and sustainable, leveraging our strengths and navigating the challenges of introducing our brand to new audiences.

For more information, visit: https://modernmarket.com/franchise