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One to Watch

 

For the Love of Al�s
By Erica Stephens

Why it bears watching

If the mere description of an Al�s Italian Beef gets your mouth watering, imagine what a taste could do. Al�s promises a unique product with the potential to rise above the quick-service cacophony. And now that it�s found a way to cook large volumes of its proprietary beef and keep its traditional flavor, the young chain has taken crucial first steps towards successful franchising.


Have you ever driven far out of the way to get a chili dog from your favorite hot dog joint? Or maybe you�ve passed by several delicatessens on the way to the place that has the awesome potato salad? Have you ever liked a product so much that you bought the company?

Dave Howey, Jr. did.

During his college years at Loyola University in the 1970s, Howey used to take the train into Chicago�s �Little Italy� just to have an Al�s Chicago #1 Italian Beef sandwich. The restaurant bears the name of its founder, Al Ferreri, who with his sister, Frances, and brother-in-law, Chris Pacelli, Sr., started selling sandwiches from a small curbside stand in 1938. In 1962, they moved into their first location, still in operation in Chicago�s �Little Italy� neighborhood. A second location was later added.

�It�s a landmark product here in Chicago,� says Howey, president of Chicago Franchise Systems, Inc. �A lot of people don�t even know what it is outside of Chicago.�

With Chicago Franchise Systems� purchase of the franchise rights to Al�s, Howey became the de facto Al�s Italian Beef ambassador to the world�starting with Illinois and Indiana.

�I�ve been a fan and customer since at least �74. It�s just such a memorable product,� says Howey. �The entire experience of having an Al�s Beef is very unique. That�s what keeps this little beef stand that�s sitting at Taylor Street so incredibly busy.�

Chicago Franchise Systems also owns and franchises Nancy�s Pizzerias, of which there are thirty-five locations in the Chicagoland area.

Howey initially approached Al�s owners to find out about selling Al�s products in Nancy�s Pizzerias. After three years of searching for a meat manufacturer to mass-produce Al�s Italian Beef according to the family�s recipe, Howey decided to buy the franchise rights to Al�s. The family still owns a small partnership in the business and has been active in the development of processes that enable the large-scale replication of Al�s Italian Beef. The beef will be cooked on premises in slow-cook ovens. Spice packs were created using the exact seasoning proportions used by the family for decades.

�That�s the key that makes Italian Beef so different. It�s a specific blend of spices that give it a very pungent, aromatic flavor,� says Howey. �And Italian Beef is sliced extremely thin so the beef absorbs the flavors from the gravy. It gives you an incredible sandwich.�

Despite the fact that Al�s Italian Beef is a distinctly Chicago product, Howey is sure that its appeal isn�t only regional. �It just hasn�t broken out of this region yet,� he says. �I think the product is going to be very well received outside of the Midwest.�

Howey plans to grow the brand nationwide starting with expansion in the Chicago area. The company will open its first Al�s in August in the Tinley Park community. Ten more units will follow by December 2001, and one hundred more locations are planned for the next three years in Illinois and Indiana. �We have displaced Chicagoans calling us from Arizona, Florida, Atlanta,� says Howey.

Expansion into areas outside of the Midwest is likely a few years away, unless, says Howey, an experienced area developer comes along.