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Tracing Quick-Serve’s Family Trees

Concepts:

Moes

Cinnabon

Schlotskys

Carvel

Focus Brands

Annual Sales: $361 million

Number of Concepts: 4

Number of Units: 1,989

Atlanta-based FOCUS Brands might have found a true synergy of symbolism. Its logo is a happy face. Its mission, stated in the company’s slogan, is to “FOCUS on making people happy.” And its corporate goal is something called the FOCUS Five—five brands with 5,000 successful units within five years.

With only two years to go until its self-imposed 2010 deadline, the jury on that count is still out. One thing, though, is certain: If spreading human happiness is the goal, a company devoted, in the words of one profiler, to food, coffee, and sweets certainly has its nose in the right direction.

It was sweets, in fact, that got the bun rolling back in 2004. That’s when Roark Capital Group purchased Cinnabon, combining it with Carvel Corporation and segments of Seattle’s Best Coffee to form FOCUS Brands.

Cinnabon is the phenomenally popular cinnamon roll concept developed in 1985 by the father-and-son team of Rich and Greg Komen following several trips to Indonesia in pursuit of the illusive Makara Cinnamon.

Carvel, on the other hand, was the nation’s first retail ice cream franchise, specializing in uniquely shaped ice cream cakes and hand-dipped ice cream products since its founding by Tom Carvel in 1934.

FOCUS purchased Schlotzsky’s in 2006 and, a year later, Moe’s Southwest Grill.

So is it likely to reach its desired fives?

President and CEO Steve Romaniello recently spoke to QSR of his “robust corporate communications department, real estate department, development services and architecture department.” In addition to which, he said, “We have financial systems and financial infrastructure,” all of which should make things work.

Mostly, Romaniello concluded, the company is focused.

Concepts:

Marble Slab

Pretzel Time

Maggie Moo's

Pretzel maker

NexCen Brands

Annual Sales: $156.4 million in food brands

Number of Concepts: 4

Number of Units: 9seven6

NexCen Brands, Inc. is a relatively new player in the quick-service food industry. In fact, it’s a relatively new player in retail at all.

The company, based in New York City, began what it calls its “brand-focused” strategy in June 2006, with the acquisition of UCC Capital Corporation, a premier provider of financing and strategic advisory services. Among other things, the acquisition provided a management team with expertise in brand investment and promotion. It also provided significant contacts in each of several spheres.

Five months later, the company acquired The Athlete’s Foot, a franchised sports footwear and apparel brand. Thereafter, in quick succession, came Bill Blass, a classic American fashion brand; Waverly, a premier home-products brand; and the two brands that ushered NexCen into the world of quick-serves: MaggieMoo’s and Marble Slab Creamery. Both are franchised labels in the premium hand-mixed ice cream segment. Just as the company’s non-edible brands are in the luxury category, spokeswoman Susan Goodell says, so its foods are considered treats.

The company’s most recent acquisitions are Pretzel Time and Pretzelmaker—providers of hand-rolled pretzels, purchased in August 2007 to broaden product offerings and fulfill President and CEO Bob D’Loren’s desire, Goodell says, to balance the ice cream brands.

“NexCen is banking that offering a variety of treats will lead to more efficient franchise operations and more consistent sales,” she says. “In addition to pretzels, Mr. D’Loren has publicly stated his desire to acquire or form licensing relationships with fine chocolatiers, cookie companies, and coffee providers to the benefit of the bottom line.”

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