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QSR Interview | By Fred Minnick

Staying FOCUSed

The response from our international partners has been overwhelmingly positive. We’ve had people visit us in Austin from Japan, Saudi Arabia, Costa Rica, and Panama, all of whom are interested in potentially taking the Schlotzsky’s brand international. We really didn’t expect that to start happening till next year.

I’m having more fun with Schlotzsky’s than I’ve had in a long time. It’s been a blast.”

Another big thing, that’s been a huge, huge positive for us is the people at Schlotzsky’s. If you were at our leadership meeting in April, just five months after we closed when we brought everybody together for the first time, you would not have been able to tell a Schlotzsky’s person from a FOCUS person. It was clear that in just five months time it was the FOCUS family. We’ve got some incredibly talented people now.

What’s been the marketing strategy there with Schlotzsky’s? What are you pushing or what do you plan to push? We’re undertaking some exhaustive brand research right now with the help of Technomic, and we’ll be able to understand whether our consumers are assigning a great deal of value to the positioning statements that have been used historically, which are fresh-from-scratch breads and our funny name series.

Our summer promotion is designed to get people to join our e-mail loyalty club. We’re doing a game card program where you can win $25,000 a year for life. We’ll give you 3-D glasses that you’ll hold up to your computer, and win. We’ll get you to sign up for our loyalty club.

Any new products you’re excited about? We’re going to do a meatball sandwich, and, as an Italian guy from New York, I can tell you it is the best meatball sandwich that has ever been produced on this planet. It is unbelievable. Another item will be a pizza, which will be a made to order. You’ll be able to select your own toppings.

You already have pizza, though. We do, but now we only have three or four gourmet-style pizzas, and the consumer has no ability to customize that offering. This will allow the consumer to customize it to his or her liking, which is something we get requests for but have never been able to execute.

Our purchasing department has found ways to get the ingredients we need at sufficient volume, so we could offer a good number of toppings. There will be a third item which could possibly be chopped salad and possibly a wrap.

Let’s talk design. The Schlotzsky’s exterior is boxy and a lot of your stores have drive-thrus. Does the consumer think of you as quick-service or fast-casual? Well, it’s an interesting concept that you’re raising. When we did our due diligence, we called a number of franchisees and without identifying ourselves, asked them a series of questions to get an understanding of the system and one of the questions we asked is: “Are you fast-casual or are you quick-serve?” Within our franchise community, it’s 48 percent to 52 percent. So they don’t know what we are. And we don’t know.

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