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Raving Brands Jumps the Pond
Bold Moves for Big Goals

Since its founding in 2000, Raving Brands has opened more than 600 restaurants in 38 states. This year, it plans to open more than 200. And the holding company hopes to operate more than 1,000 by 2009.

With strong concepts like Chipotle and Qdoba competing for the same U.S. real estate, going overseas was a good move, says Darren Tristano, vice president for Technomic Information Services.

“Since saturation is becoming a greater issue in the United States, it is important to establish broader growth plans,” Tristano says. “Global brand recognition will be essential to becoming a super-brand.”

Tristano believes international development is no different than in the United States.

“Given the acceptance of U.S. brands abroad and the higher rate of return on currency translation, most restaurant chains are evaluating/planning international expansion,” he says. Not to mention, if the foreign citizens “become familiar with Moe’s internationally, they will be more inclined to eat at Moe’s when they travel to the States.”

That’s what many U.S. Moe’s operators are hoping.

Harry Schindler, a one-store operator in Ohio, believes these deals will indirectly impact northern U.S. profits.

“A lot of people don’t know about us in this area,” Schindler says. “Hopefully, in the long run, the international expansion will benefit everybody in the business, both the small guys and the big guys.”

But many operators could care less what Raving Brands does, says Rob Atkisson, a two-unit operator in Florida. They’ve got stores to run.

“We’re all separate independent business owners,” says Atkisson, who added Raving Brands provides adequate marketing and operational support. “I’m a happy franchisee.”

Not all within the Raving Brands community share Atkisson’s sentiments. In November, Mama Fu’s franchisees filed a class-action lawsuit, alleging misrepresentation and fraud among other things. Several other franchisee lawsuits are expected to be filed later this year.

LaMastra would not comment on pending or potential litigation, but says Raving Brands has never been more equipped to help franchisees.

“We can’t control how our franchisees view our activity, but what I can tell you is our Moe’s team is literally larger, deeper, and more talented than it’s ever been,” LaMastra says. “We support our franchisees at a level that our company’s never seen.”

Tristano believes franchisees often have different goals than their franchisor. Case in point: Raving Brands international expansion.

“Franchisees believe their parent should be completely focused on helping the franchise operators increase profits,” he says. “Anything that falls outside of that would tend to be seen as limiting their focus on the task at hand. I’m not sure a franchisee would see international expansion as helping their brand in the United States.”

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Fred Minnick is a professional writer based in Louisville, Kentucky.