Best Return
Arby’s Back in NYC
If you’re going to be a true national player, you have to
take your place on the nation’s biggest stage—New York City.
And if you’re going to take a second bite at the Big Apple after
finding the first not so filling, the
right partner is key. Credit Arby’s
for understanding that. In June 2006,
New York City’s second Arby’s
opened in the Manhattan Mall at 1275
Broadway in Midtown Manhattan. The first,
the one that opened on Sixth Avenue in 1998, which closed in 2002 after
a drop in traffic that Arby’s
attributes to the aftermath of 9/11.
The new store is owned and operated by David Chen of United Global Management
Group, Inc. Chen also operates Ground Round and Samurai Sam’s units
and was awarded Minority Retailer Enterprise of the Year by the United
States Department of Commerce in 2005. John Todd, senior vice president
of development for Arby’s,
says Arby’s
delayed return to New York City was due
largely to overhead costs for support
services and a lack of commitment on the part of both corporate and franchisees.
In fact, Todd characterizes the whole Northeast market as
“fairly under-penetrated.” But that might soon change. United
Global Management is seeking additional
sites in Manhattan and other New York
boroughs.
Best Push Abroad
Sbarro Goes to India
Someone has to feed Indian’s growing white-collar
workforce. Taking a page from competitor and Indian favorite, Pizza Hut,
Sbarro aims to do just that through a joint venture announced in September
2006 that represents the company’s largest international expansion
push to date. Melville, New York-based Sbarro partnered with RTC Sbarro
Restaurants (India) Limited, which has committed to open 100 restaurants
in India. The first restaurant is slated to open in 2007 followed by 10
new units opening over the next 10 years. Most will follow Sbarro’s
American model and open inside shopping malls located in major metropolitan
areas such as New Delhi and Mumbai. According to Sbarro, its stores will
be the first in India to offer pizza by the slice and a full Italian menu—modified
for the ethnic and religious tastes. Beef and meat-based pasta sauces
will be excluded, and new vegetarian dishes will be added.
Best Positioning for Profit
Garlic Jim’s on Microsoft Campus
For a small, regional chain with visions of fantastic
growth, exposure to pop culture creators and tastemakers is ideal. Believe
it or not, the 4,000 employees who work at Microsoft Corporation’s
Redmond, Washington, campus fall into that latter category. So when Garlic
Jim’s Famous Gourmet Pizza was offered an opportunity to open shop
in Microsoft’s corporate cafeteria, the decision to go for it was
a no-brainer. Garlic Jim’s Microsoft location opened on June 20
alongside four other local vendors in the campus cafeteria. In the month
that followed, area Garlic Jim’s stores began reporting an increase
of Microsoft employees during the evenings and weekends. Garlic Jim’s
expects the increase to not only yield better same-store sales but also
an increase in national exposure for the brand. After all, he who controls
the keyboards controls the culture.
Best Move on the Mainland
L&L Takes on the Continent
We’ve been telling you for years about ethnic
and exotic flavors making their way onto menus everywhere. Add one more
up-and-coming taste to the mix: Hawaiian barbecue. By mid-2006, its 30th
anniversary year, L&L Hawaiian Barbecue operated 92 stores in the
continental United States and 50 stores in Hawaii. The chain opened 17
mainland units in the first half of the year, added another 14 over the
next quarter, and expects to open another dozen or so by yearend. L&L
is aiming for 200 stores systemwide in early 2007. No surprise that California
has been the focus of L&L’s expansion push with efforts focused
on Sacramento, San Francisco, San Jose, and Los Angeles. But the chain
is also opening stores in Washington, Nevada, Arizona, Colorado, Utah,
and New York. “People want to try something that they have not tried
before,” says President and CEO Eddie Flores, Jr. “L&L
Hawaiian Barbecue gives you just that and more.”
Best Bang for the Buck
Domino’s Triple Play
The opening of Domino’s 8,000th unit was a dual
celebration. The 5,000th U.S. store, owned by franchisee Lane Helvie,
opened in Huntley, Illinois; the 3,000th international unit, owned by
Mexico-based Grupe BGM, opened in Panama City, Panama. Both openings were
celebrated in grand style—and both stores were symbolicly designated
as Domino’s 8,000th unit. Chairman and CEO David Brandon attended
the Huntley opening and marked the occasion with a donation of $8,000
to the Huntley Police Officers Benevolent Association. Panama’s
First Lady, Vivian Fernandez de Torrijos, kicked off a three-week event
in support of the Panama store’s opening. That celebration included
the donation of 8,000 pizzas to local charities, hospitals, schools, police,
fire departments, and other community groups.
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