Bruce Reed’s career has a certain circularity to it. Thirty-two years ago, he took over his family’s carhop restaurant near Pittsburgh after being expelled from the eleventh grade. “I got kicked out for being the class clown,” he explains. “I never went back. I never had much interest in school.” After a stint spent flipping burgers
(or, at least, overseeing their flipping), Reed turned his
attentions to the ice cream business, spending the next 15
years building Bruster’s Real Ice Cream into the 200-unit
company it is today. Then he did something few ever do—returned
to his roots. In Reed’s case that meant burgers and
carhops and his family business, Jerry’s Curb Service.
Today his Jerry’s Curb Service
stands poised to march from one unit with two more under construction,
as of press time, to as many as eight new restaurants over
the next 12 months.
“We’re going from Maryland
to Georgia, kind of the central East Coast over to Tennessee,”
promises Reed. But “ultimately,” he says, “it
will be a nationwide concept. We’re going to go slow
and do it right.”
And doing it right means employing
what Reed believes is his ace in hole. To make his 1950s-styled
concept attractive to would-be franchisees, Reed is employing
a decidedly twenty-first century tool—a Palm Pilot.
“We started with the handheld technology a year ago,”
he explains, “and now the carhops take an order, zap
it to the kitchen, then go on to the next car.”
As a result, Jerry’s Curb Service
is sending out fresh-cooked meals in six minutes where it
once took 15. “It’s the handheld technology,”
he asserts, “that really makes us franchisable.”
Franchising was not something Reed’s
father, the Jerry of Jerry’s Curb Service, ever considered
when he returned to Oklahoma after a stint in the Air Force
and started Jerry’s Curb Service in 1947. “There
were quite a few drive-ins back then,” Reed says, “and
when he got out of the Air Force, he decided to open one in
his home town.”
The restaurant held its own almost
from the beginning, helped in part, according to Reed, by
Jerry’s 1967 invention of the steak salad.
“Dad used to sell steak sandwiches,”
Reed recalls, “and one day a friend who was trying to
lose weight asked him to chop up a steak and serve it with
no bun. He also ordered a salad. Dad, as a joke, just chopped
up the steak and put it on top of the salad. People liked
it and started ordering it, and it went big time.”
Even today, according to Reed, in
addition to the usual fare of hamburgers, fresh-cut French
fries, milk shakes, and vanilla cokes, about 37 percent of
the drive-in’s sales come from salads. “I don’t
know why,” Reed says, “people just like ’em.”
Reed took over Jerry’s in the
early ’70s after a disagreement between father and son
over business strategies ended with Jerry bowing out. “We
were two different types of business people,” Reed explains.
“Dad was a really great guy, and he gave everything
away. If you wore a uniform, for instance, you ate for free.
I didn’t think it was run like a business, so I told
him it was either him or me. He said to go ahead and take
it over.”
For a time,
the younger Reed stayed the course his father had charted.
Then, in 1989, he opened an ice cream parlor called Bruster’s
next door, and a strange phenomenon occurred. Sales at Jerry’s
jumped 21 percent the first year, and another 17 percent the
second. The third year, Reed tore the old 600-square-foot
Jerry’s down, rebuilt it to 1,400-square-feet, and sales
more than doubled.
“I think Bruster’s increased
traffic,” he says. “You’re standing there
with an ice cream cone smelling fresh French fries from next
door, or vice versa: I think they played off each other really
well.”
After turning the day-to-day operation
of Jerry’s over to an associate, he spent the next several
years building Bruster’s into a 200-store chain. “That’s
how I learned franchising,” Reed says. With 65 Bruster’s
under construction and another 165 in the planning stages,
Reed is ready to turn his attention to remaking the drive-in
of his youth. Two new stores are already under construction
in Spartanburg, South Carolina and Glen Burney, Maryland.
Each is expected to open in early 2005. After that, according
to Reed, the sky is the limit.
“Our model is Sonic,”
he says, “and they have 2,800 units.” All that
without even Palm Pilots. |
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The real Soup Nazi is alive and well in New York City. He hangs out Monday through Friday at the Soup Kitchen International on 55th Street and 8th Avenue making customers follow the posted rules, which include, but are not limited to: no returns, keep the line moving, have your money ready, and move to the extreme left after ordering. He also serves what arguably may be the best soup in America. And soon, Al Yeganeh says, you’ll probably be able to get some of it right near where you live. “We have over 1,200 franchise
applications to date without any advertising,” says
Yeganeh, whose menu includes crab bisque, spicy Mexican chili,
gazpacho, cucumber, and Vichyssoise at prices of up to $30
a quart. Finally succumbing to years of pressure from fans,
the famous soup chef—in partnership with William Ciaramello
of International Gourmet Soups—says he expects to open
1,000 franchise units in the next 5–7 years under the
moniker of the Original SoupMan. He also intends to sell them
in Grab-n-Go refrigerated packages in the gourmet daily sections
of quality grocery stores and supermarkets.
“We will concentrate on the
major cities, regional shopping malls, airports and tourist
attractions,” Yeganeh says. “The qualities of
my soups are the key to my concept.”
Those qualities were attracting long
lines to his New York City soup kitchen even before it—and
he—were made famous by the November 10, 1994 episode
of Seinfeld. In that episode, the Soup Nazi makes the best
soup in New York despite his sour demeanor and stern reprimands
of customers who don’t follow his rules. If the Soup
Nazi didn’t like the way a would-be consumer presented
himself at the soup counter, he would yell “No soup
for you. Next!” In the end, a triumphant Elaine—who’d
been banned from the store—drives the Soup Nazi into
exile in Argentina by threatening to publish a hand-written
list of secret recipes she’d discovered in a piece of
furniture he’d once owned.
The episode not only became an instant
classic and one of the most popular Seinfeld episodes ever
aired, it also inspired a whole cult of comedy sharing the
punch line of “No soup for you!”
One observer who was decidedly not
amused, however, was Yeganeh, who took great offense and threatened
to sue. When Seinfeld himself later came to the kitchen to
apologize, the soup maestro reportedly cussed him out. And
upon hearing that the show was ending in 1998, he agreed to
appear on David Letterman “to celebrate,” he said,
“this clown going off the air…” Earlier,
Yeganeh had told People Weekly that Seinfeld’s disappearance
from the air waves “was the best gift America and the
human race got this Christmas. The show really destroyed my
personal life and my emotional and physical well-being. Because
of this show, customers think I’m going to kill them,
and they panic.”
In a subsequent interview with QSR,
Yeganeh added some detail regarding the type of person he
seeks. “I need franchisees that are passionate, educated,
and dedicated to being number one, too,” he said of
the investors who will each pay $30,000 plus 5 percent of
their annual gross sales for the privilege of selling his
soup. “They must be serious about owning a business
and not cutting corners.”
Oh, and just one other caveat.
“We must do it right,”
he insists, “and follow the rules.” |