Garlic Jim’s
Garlic Jim’s Famous Gourmet Pizza might not be famous yet, but early
success indicates it soon will live up to its name. The founders, a team
of partners with extensive experience in national branding, franchising,
and pizza, saw an opening in the $33 billion-a-year U.S. pizza industry and
moved in to fill it with their own quality brand.
“We knew that the demand and availability of quick-delivery pizza
was huge, but quality, freshness, and gourmet ingredients were non-existent,” says Dwayne Northrop,
president and CEO of Garlic Jim’s. “We’ll be competing
with Domino’s and Papa John’s on getting to your door quickly,
but we’ll be competing with your favorite mom-and-pop
pizza place on quality.”
A variable Garlic Jim’s won’t compete on is price.
“We’ve positioned ourselves telling people this is a higher quality
product,”
Northrop says. “There’s buttermilk and parmesan cheese in the
dough; it’s worth eating. There are four fresh sauce choices, four
cheese choices, and gourmet toppings.
You’re going to get what you pay for, and our customers are showing
us they’re willing to pay a few dollars
more.”
A large specialty pizza runs $17 or $18, and the
average ticket is $20. Even so, the stores are handling 650 to 700 orders
per week, and every location has opened above $10,000 in the first week.
Ten had more than $15,000 in first-week sales, and three brought in more
than $20,000 in the first week.
The chain opened its first store in the Seattle suburb
of Bellevue, Washington, in March 2004. Eighteen stores are currently open
and 45 franchises have been sold in three states: Washington, Oregon, and
Arizona.
The secret to the “Garlic Guys’” success
is a meticulously planned franchise machine. The process begins with demographic
research to indentify with prime markets, those with a high concentration
of educated, upwardly mobile families with children. Franchisees choose their
markets at sales seminars.
The company real estate team assists with finding
locations—most are in strip shopping centers—and negotiating
leases. The company architect designs each 1,200-square-foot store.
All kitchens have the same dimensions for efficiency.
“The lobby is the nicest takeout pizza lobby
you’ve ever seen,” Northrop says. It features wood and
copper trim work, solid-surface counters, barstools, and video monitors
playing kids’ movies.
Franchisees choose a builder from an approved
list of contractors with experience building Garlic Jim’s or similar
stores and who have committed to a five-week delivery schedule. Store costs,
including the franchise fee, lease deposit, and construction, are averaging
$250,000. Franchisees must attend four weeks of onsite training before construction
begins.
“Once construction
starts,” Northrop says, “you’re nine weeks from opening.
We have a timeline that kicks in that tells you what to do each day.” When
construction is complete, four weeks are set aside for training employees.
Regional commissaries ensure the same high-quality
pizzas are served systemwide. Fresh-made dough, sauces, toppings, and paper
goods are delivered to franchisees several times a week. “We keep it
simple for the franchisee,” Northrop says. “The only thing they
have to do is open up the products and put them on the prep table.”
The top-selling pizza is the Garlic Jim’s
Ultimate, a combination of meats and vegetables. A close second is the
Gourmet Garlic, made with pesto sauce, marinated artichoke hearts, roasted
garlic, sun-dried tomatoes, and feta cheese. An unusual concoction, and
Garlic Jim’s trademark, is the Nutty Chipotle, which includes
Chipotle pesto and cashews.
Garlic Jim’s
CEO: Dwayne Northrop
HQ: Everett, Washington
Year Started: 2004
Annual Sales: $676,000 per unit
Total Units: 18
Franchise Units: 2
After successful opening weeks, the stores are
maintaining high sales, averaging $13,000 a week. The advertising budget
has been virtually nil—just
word-of-mouth and fliers in a few places, along with a grassroots marketing
plan that includes neighborhood sampling events. “We’ve really been flying
under the radar,” Northrop says. “We’re just having our
coming-out right now.”
Why it bears watching: With a recipe they think
ensures success, the founding partners of Garlic Jim’s are expanding
at a rapid pace and are on target to have 60 franchises sold by the end of
this year. By the way, there is no Jim. The name, a product of team brainstorming,
was intended to conjure thoughts of pizza but not sound Italian.
The Garlic Guys are clustering franchises—there
are only two company-owned stores—in metropolitan areas. They began
with Seattle, then moved to Portland, Oregon, and Phoenix. They plan to open
stores in San Diego, Las Vegas, and elsewhere in 2006.
The business is 80–90 percent delivery, mainly
at dinnertime, and stores are open for lunch only Friday through Sunday.
For those who want to come in and carry out, the
Starbucks-like lobby furthers the brand’s
refined, hip, and upscale feel, Northrop says.
It’s everything today’s highly targeted, upwardly mobile
consumers have been wanting and finding at coffee shops and delis, only
repackaged into a quick-delivery pizza shop.
“We designed this to be a duplicable, national
brand,” Northrop says. “It’s a natural because the
learning curve on national franchising is in the past for us.”
After six years of selling what many consider
the finest Italian coffee in America to other restaurants, the partners behind
Amante Coffee decided they could make more money if they opened their own
restaurant. The company still sells to more than 100 fine restaurants and
cafés in Boulder,
Denver, Aspen, and San Francisco, but its focus has turned to replicating
an Italian experience to go along with the great coffee.
Founder and operator Greg Buchheister was 26 and
working in an Italian restaurant in Colorado when he discovered the coffee
that would become his lifeblood. The restaurant imported wine from the
Ghigo family in Northern Italy, equally famous in their homeland for great
coffee. When the wine shipments were accompanied by coffee samples, the
restaurant held blind tastings and found customers repeatedly preferred
the Ghigo coffee. Buchheister saw potential in importing the brand and
launched a distributorship to do so. Amante means “lover” or “mistress” in
Italian and seemed appropriate, given the seductive qualities of good coffee.
Buchheister partnered with James M. Temple, now
the CEO, in mid-2004, after Temple suggested turning Amante into a retail
brand. The two share a background in ski racing, which Buchheister says is
evidence of their risk-taking personalities. And Temple has proven talent
for growing a small business into a multimillion-dollar firm: He founded
Case Logic, the electronics storage accessory producer, in 1984 at the
age of 28. That company’s sales hit $17 million in five years.
Amante opened its first two retail stores in March and
May in Boulder. A Steamboat Springs store opened in October. A fourth
location will open in the Erie/Lafayette area, and 10 more are planned over
the next three years in Aspen, Vail, and Denver, before the company looks
beyond Colorado.
The menu mirrors that of an Italian café,
where patrons sit down for a cup of coffee, a snack, or an afternoon. The
stores, which range in size from 800 to almost 1,800 square-feet, offer roughly
10 espresso drinks, all for $1. They sell cappuccinos, lattes, drinks made
with gelato and coffee liqueurs, and simple Italian roast and French press
coffee. Fine wines and beers are available in the evenings, along with cheese
platters and snacks. Other fare includes Italian croissants, muffins, rolls,
and baguettes. Panini sandwiches are made daily with classic Italian ingredients,
and desserts include tiramisu, cheesecakes, and gelati.
As important as the menu is the atmosphere. “We
are trying to offer a different, more traditional coffee experience,”
Buchheister says. “Sixty percent of our coffee is served in-house in
porcelain cups. That’s what we want—for people to take a little
Italian vacation every time they come in.” The environment is a mix
of old and new, with walnut millwork, vibrant colors, plasma televisions,
and free WiFi—all surrounding a classic old coffee machine.
Amante Coffee
CEO: James M. Temple
HQ: Boulder, Colorado
Year Started: March 2005
Annual Sales: $800,000–$1 million
Total Units: 3
Franchise Units: 0
Beyond the coffee—a round, robust, rich flavor,
free of bitterness—Amante excels in service. “We must compete
with Starbucks and the other guys on speed of service,” Buchheister
says. “We offer that speed but with very high quality.”
Amante’s baristas train for several months behind a machine and must
be able to create at least one latte art design with the froth. “I
stress the importance of latte art,” Buchheister says, “it
gives customers a great experience before they even taste the
coffee.”
Why it bears watching: Amante’s first store hit its
sales target on the third day and has maintained its high volume. “We’re 60 percent above where we thought we would be at this
point,” Buchheister says.
The company goal is to serve 1,000 patrons a day at
each location. Less than a year into operation, daily traffic averages
between 600 and 700, and annual sales per store in the first year are
projected between $800,000 and $1 million.
Buchheister and Temple are excited about the early
success but plan to grow the company slowly over the next few years to
maintain quality and improve systems before becoming a national brand. They
have no plans to franchise.
“It’s not that our concept is so much
better than the rest,” Buchheister says. “It’s our
quality that is much better. You’d be hard-pressed to find a better
cappuccino in another coffee shop.”
Buchheister credits the competition for creating
an entry point for his brand. “Starbucks has done an amazing job of
bringing awareness to the market,” he says, “but Starbucks is
the superhighway of coffee. When people get tired of being in traffic, they
get off on the frontage road to see more interesting things. That’s
where we come in. Starbucks is educating the market, and we’re going
to be picking off customers one by one.”
This column originally appeared in the December 2005 issue of
QSR. Subscribe and
get
QSR delivered to your door twelve times per year.