Operations | by Karon Warren
Today as the operator of an Austin, Texas, location, Soliz appreciates the support he receives from Tropical Smoothie Café’s corporate office and fellow franchisees and sees franchising as an ideal fit for other Hispanics.
“Hispanics are very family-oriented,” he says. “This is a great opportunity for them because franchising does provide backing and help and support. It’s like a big family, and it’s very comforting.”
One way franchisors are creating a close-knit culture is through Intranet sites. Soliz says any time he has a question he can log on to the Tropical Smoothie Café Intranet site and post a query. Other franchisees post their responses, providing guidance, insight, and a community feel. Likewise, Soliz says he can call the corporate office with a question and have it answered immediately. “They’ve done nothing but help me succeed,” he says.
In fact, the success of Hispanic franchisees within the quick-service industry is gaining national attention. In June 2008, the National Restaurant Association honored Henry Garcia, McDonald’s first Hispanic owner/operator in Los Angeles, with its Faces of Diversity Award in the American Dream category during the association’s 2008 Restaurant, Hotel-Motel Show.
Furthermore, Ernst & Young selected Guillermo Perales of Sun Holdings LLC in Dallas as one of its Entrepreneur of the Year 2008 regional winners. A Mexican immigrant, Perales is the president and owner of one of the largest Hispanic franchisee companies in the U.S., operating more than 140 restaurant brands including Bennigan’s, Burger King, Denny’s, Golden Corral, and Popeyes.
These efforts by the industry are not going unnoticed among Hispanic business groups. The June/July 2008 issue of Hispanic Enterprise magazine named several quick-serve restaurant brands to its Top 25 list of franchises for Hispanics, including Burger King, Church’s Chicken, Domino’s Pizza, Kentucky Fried Chicken, and Papa John’s.
Many third-party organizations also have implemented programs to support Hispanic franchisees and encourage others to enter the franchising arena.
For example, in 2000, the National Minority Franchising Initiative was created to assist franchisors in increasing minority representation within their systems. On its Web site, visitors will find a directory of more than 500 franchisors as well as links to additional resources. In 2006, the IFA launched MinorityFran as a tool for minority candidates to learn about and review franchise offerings by companies looking to recruit specific franchisees. Online visitors can download a complete list of member companies and their contact information plus see what incentives, if any, they offer to minority candidates.
While Hispanics are finding great success in the franchise industry, not every Hispanic sees franchising as the right solution for his business. When Mike and Mary Vasquez entered the restaurant industry in 1973 in Corona, California, they opted to do so as independents. They felt their product offerings–authentic Mexican cuisine–were better suited to an independent enterprise; thus, Miguel’s Restaurant was born.
The company has grown into three full-service and seven quick-serve restaurants with more on the way. However, that success has suffered some growing pains that many franchises are able to avoid.
“We don’t have the services to adequately research locations,” Miguel’s CEO, Javier Vasquez, says. Instead, he says they piggyback on other brands that have a similar customer base.
Also, unlike franchise systems that have proven advertising and marketing campaigns in place for a variety of locations and demographics, Vasquez says Miguel’s is addressing this challenge as it enters new communities. The company had used proven campaigns from the past but quickly found out that what worked for one location doesn’t work for all locations.
“We’re having to re-evaluate how we introduce ourselves and how to penetrate the market,” he says.
In addition, most established franchise systems have a large support base at the corporate level, Vasquez says his company is still working to establish that framework. For now, when he needs some insight or guidance, he turns to the California Restaurant Association for advice or examines other successful businesses to see how they operate.
Although choosing between independent and franchise business ownership is a personal decision, Mendoza says he fully expects the trend of more Hispanic franchisees to continue. “I think it’s going to keep growing because in many countries like Mexico owning franchises is very popular,” he says.
As the economy continues to struggle, Mendoza says Hispanics are looking for safer investment opportunities. “More challenges with the economy lead to more opportunities in franchises for Hispanic investors.”



