Franchise Update Magzine, 2012 Quarter 1
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Lead! Doubling the marketing fee at Firehouse Subs pays off Market! Auntie Anne’s Heather Franchise Neary on franchisee partnerships 2012 Grow! | The connection between franchisee satisfaction Q1 and unit sales updateBUSINESS INTELLIGENCE FOR GROWING FRANCHISORS H W SATISFIED ARE Y UR FRANCHISEES? Drive More Business to Your Franchise Find out how with your free Online Marketing Analysis See page 26 for details. Front-Cover-Ad.indd 1 1/11/12 6:06 PM TAKE ADVANTAGE OF OUR LOWEST RATES! OR CALL 1-800-289-4232 ext. 216 SPEAKERS JIM COLLINS, AUTHOR & BUSINESS EXPERT GREAT BY CHOICE: UNCERTAINTY, CHAOS, AND LUCK – WHY SOME THRIVE DESPITE THEM ALL. Jim Collins is a student and teacher of enduring great companies — how they grow, how they attain superior performance, and how good companies can become great companies. Having invested nearly a quarter of a century of research into the topic, Jim has authored or co-authored six books that have sold in total more than ten million copies worldwide. KEYNOTE Don Shula, Winningest Coach in NFL Nigel Travis, Chief Executive Officer, Dunkin’ History, Owner of Shula’s Steak House Brands and President, Dunkin’ Donuts & Restaurant BUILDING BRAND VALUE THROUGH FRANCHISEE Dave Shula, Former NFL Player and Coach, COLLABORATION President of Shula’s Steak House YOU CAN INSPIRE ANYONE TO BE A WINNER THANK YOU * Costa Vida Twin Restaurant Franchise SPONSORS Dairy Queen UAS Del Taco The Wall Street Journal Deliver Media Which Wich Franchise Denny’s, Inc. Wireless Zone PLATINUM Directed Equity Yodle SPONSORS Donatos Pizza Yogurtland East Coast Wings & Grill Zaxby’s Einstein Noah Restaurant Group Fazoli’s Firehouse Subs Multi-Unit First Watch Restaurants Franchisee FOCUS Brands Luncheon Sponsor Franchise Payments Network Franchising Concepts: Rising Roll Gourmet Burger 21 / Front Burner Brands and Zucca Pizza Tavern FRANdata Opening Golden Corral Buffet & Grill Cocktail Gyu-Kaku Reception Hungry Howie’s Pizza Fish Consulting Hurricane Grill & Wings Interstate Batteries Franchisee Opening GOLD Jack in the Box, Inc. Jersey Mike’s Subs Cocktail Reception SPONSORS Jiffy Lube International CiCi’s Pizza Jimmy John’s Gourmet Sandwiches Franchise Payments Network JobApp Network Taco Bell Kolache Factory La Madeleine Lanyard Lapels Dry Cleaning Sponsor LearningZen FisherZucker LLC Local Splash MassageLuXe Conference McAlister’s Deli Guidebook Miller United Insurance Sponsor MOOYAH Burgers, Fries, Shakes Mr. Goodcents Subs & Pastas Koko FitClub No+Vello USA Noodles & Company Hospitality The Original SoupMan Sponsors Ostler Group Bach to Rock Panchero’s Mexican Grill BeneTrends Inc. Papa Murphy’s Take ‘N’ Bake Pizza Fuddruckers Penn Station East Coast Subs Godfather’s Pizza Silver Sponsors People To My Site Indevia Accounting 5 and Diner Restaurants Pet Supplies “Plus” PrintingForLess.com Aaron’s, Inc. Pita Pit USA Roetzel & Andress Another Broken Egg Qdoba Mexican Grill Sizzler USA Arby’s Restaurant Group, Inc. Quaker Steak and Lube Synergy Brand Management Aviatech Quiznos Restaurants Belgian Beer Cafe The Rawls Group Advisory Board Big Boy Restaurants LLC Reflective Energy Solutions Meeting Sponsors Bojangles’ Famous Chicken ‘n Biscuits Scooter’s Coffee and Yogurt Accord Management Systems Brixx: Wood Fired Pizza Sears Auto Centers Burger 21 / Front Burner Brands Sears Retail Franchises Franchise Payments Network Business Financial Services Shula’s Steak House Capriotti’s Sandwich Shop Sonic Drive In Golf Tournament Checkers Drive In Spectrum Interactive Media Sponsors Steak ‘n Shake Cheng Cohen LLC Constant Contact Swiss Farms Choice Hotels International, Inc. Franchise Payments Network T.G.I. Friday’s Church’s Chicken, Inc. Popeyes Louisiana Kitchen CiCi’s Pizza Teriyaki Experience CKE Restaurants Tide Dry Cleaners *At press time Constant Contact Tiger Natural Gas JUNE 15 -17, 2012 THE JAVITS CEnTEr, nEw YOrK CITY New York City is the largest market in the USA, a true economic powerhouse hosting more international visitors than any other city. New York City is the financial and media capital of the world and now the new home of the International Franchise Expo. Showcase your brand to NYC and the world. For information on exhibiting contact MaryJane 201.881.1666 [email protected] IFEinfo.com Sponsored by: Franchise |Q1 updateBUSINESS INTELLIGENCE FOR GROWING FRANCHISORS 4 FRoM THe EDITor’s DeSk Franchisee satisfaction sparks growth 7. Lead 8 CEO PRoFILe: KeVIN CUSHING AlphaGraphics transforms itself 12 CEO PRoFILe: STeVe KUHNAU Smoothie King shoots for 10,000 14 FeATURe: TRADING PLAceS Franchisee experience guides these franchisors 18 FeATURe: FRANcHISe STARTUp EarthFruits Yogurt sets sail for success 22 LeADeRSHIp GURU: Firehouse Subs CEO Don Fox leads by example 24 HUMAN ReSoURceS Train your talent for greatness 22 27.Market 28 FeATURe: IS ALL MARkeTING LocAL? Boosting unit-level sales 32 CMO Q&A: Auntie Anne’s Heather Neary on franchisee partnerships 34 CMO RoUNDTABLe “What role does franchisee satisfaction play in your overall marketing strategy?” 36 LeGAL Dot-complicated! New domain names up for grabs 38 CoNSUMeR DATA Retail sales, gift cards show late-year uptick 39 CoNNecTING WITH CUSToMeRS “Moneyball” teaches customer loyalty lessons 28 41. Grow 42 CHALLeNGe THe PRoS “How does franchisee satisfaction affect your referral program and relate to your overall development planning and process?” 44 AFDR STATS Developing intelligence: Highlights from the new 2012 report 46 SALeS SMARTS Lessons from real-world mystery shopping responses 47 MARkeT TReNDS Don’t let the FTC Rule get you down! 48 It’s CloSING TIMe Take the test: What are you saying to candidates? Franchiseupdate ISSUE I, 2012 3 42 From the editor’s Franchise desk update|Q1 CHAIRMAN Gary Gardner CEO BY KERRY PIPES Therese Thilgen PRESIDENT Steve Olson VICE PRESIDENT OPERATIONS Sue Logan VICE PRESIDENT MARKETING Satisfaction Guaranteed Kimberlie Guerrieri VICE PRESIDENT BUSINESS DEVELOPMENT ick Jagger of the Rolling programs and how that relates to their Barbara Yelmene BUSINESS DEVELOPMENT Stones famously sang, overall development planning and pro- EXECUTIVES “I can’t get no satisfac- cess. All three said franchisee satisfac- Jeff Katis Lorena Leggett tion.” How frustrating tion was a cornerstone of their referral Judy Reichman M EXECUTIVE EDITOR that must have seemed for the bud- and development strategies. Themes Kerry Pipes ding rock star in 1965. Somehow I like “listening and responding,” “open MANAGING EDITOR doubt he really had trouble with this dialogue,” and “franchisee recognition” Eddy Goldberg ART DIRECTOR particular topic. were just a few of the sentiments opined FRANCHISE UPDATE MEDIA GROUP Satisfaction can be frustrating for by these execs. Samantha Calden a franchise brand ignoring the needs Elsewhere in the issue, we asked DESIGN & PRODUCTION FRANCHISE UPDATE MAGAZINE and desires of its franchisees. On the some CMOs how significant franchisee www.petertucker.com other hand, brands that are working to satisfaction is to their brand’s overall INTERNET CONTENT MANAGER create a culture of satisfied franchisees marketing strategy. Not surprisingly, Benjamin Foley SaLES AND SUBSCRIPTION are reaping the benefits. And it’s to this it’s huge. When you consider that your DeparTMENT, OFFICE MANAGER topic—franchisee satisfaction—that we franchisees are the front-line “face” of Sharon Wilkinson have devoted this first issue ofFranchise your brand—the people your custom- SENIOR PROJECT MANAGER, MEDIA AND BUSINESS Update for 2012. ers interact with daily—why would you DEVELOPMENT Clearly, franchisee satisfaction is a not want to be doing everything you Lyola Shybanova CONTRIBUTING EDITORS big subject whose significance cannot can as a brand to keep these franchise Tom Epstein Don Fox be overlooked or ignored. After all, sat- “partners” satisfied? Keith Gerson Darrell Johnson Marc Kiekenapp Steven S. Little isfied franchisees are generally happier We also spoke with Auntie Anne’s Jack Mackey Steve Olson and most likely more successful. Fran- CMO Heather Neary about franchi- CONTRIBUTING WRITERS John Carroll Debbie Selinsky chisee success means a stronger brand see satisfaction. Perhaps she summed Tracy Staton Helen Bond with stronger validation and more refer- it up best when she said, “In order for ADVERTISING AND EDITORIAL OFFICES rals. And we haven’t even touched on our franchisee partners to be satisfied, Franchise Update Media Group 6489 Camden Avenue, Suite 108 how all of this creates happy customers we need to go above and beyond on San Jose, CA 95120 who continue to visit the brand time every facet of our business operations. Telephone: 408-997-7795 Fax: 408-997-9377 SEND MANUSCRIPTS after time. That signifies dollar signs. When our franchise partners are satis- AND QUERIES ABOUT STORY ASSIGNMENTS TO: Perhaps your leadership is focused fied, they are able to focus on their day- [email protected] on franchisee satisfaction and actively to-day operations in their store(s) and franchiseupdatemedia.com franchiseupdate.com pursues solutions toward that end. That’s can better serve our customers, which franchising.com great. But if you could use a refresher means greater success and profitability mufranchisee.com course, I think you may find a few good for all parties.” Franchise UPDATE magazine is published four times annually. ideas in this issue. Mick Jagger aside, satisfaction can Annual subscription rate is $39.95 (U.S.) For subscriptions email For example in our Challenge the be found. Just add it up—satisfied fran- [email protected]