Franchisee Report Contents
Total Page：16
File Type：pdf, Size：1020Kb
FRANCHISEE REPORT CONTENTS 3 WHAT IS MIAMI GRILL®? 4 HOW IS MIAMI GRILL® DIFFERENT FROM ITS COMPETITORS? 5 THE MIAMI GRILL® BRAND HISTORY 8 WHAT ARE MY START-UP COSTS? 12 HOW DO I FINANCE MY MIAMI GRILL®? 15 A DAY IN THE LIFE OF A MIAMI GRILL® FRANCHISEE 19 HOW MUCH CAN I MAKE? HOW PROFITABLE IS THIS? 22 HOW BIG IS THE FAST CASUAL INDUSTRY? 23 DO I NEED RESTAURANT EXPERIENCE? 24 WHAT ATTRIBUTES MAKE A GOOD MIAMI GRILL® FRANCHISEE? 26 WHAT ARE OUR OWNERS SAYING ABOUT US? 27 WHAT OPPORTUNITIES ARE AVAILABLE? 28 HOW ABOUT REAL ESTATE- WHAT’S AN IDEAL LOCATION? 29 MEET THE MIAMI GRILL® LEADERSHIP 31 WHAT’S NEXT? WHAT IS MIAMI GRILL 3 THE FRANCHISE It’s all about the experience…top quality food, a South Beach/Miami vibe OPPORTUNITY THAT’S and unparalleled service! AS HOT AS MIAMI You get a mini vacation in a restaurant that radiates with excitement. Pitbull, Mr. Worldwide, can be seen looping on the screen. He also sits on our Board of Directors as an equity partner. You enjoy your meal in an upscale setting. It’s your personal get-away from your everyday routine. Tired of arguing about where to go because everyone wants something different to eat? Fight no more! With our menu, Everything Goes! We have something to whet everyone’s appetite, served made to order with authentic products brimming with freshness. If it’s on your mind, it’s on our menu. What makes Miami Grill® so special is that everything on our menu is authentic and the best in category. We source our cheesesteak from the heart of Philadelphia. The gyro meat, pita bread and tzatziki sauce come from a Greek supplier in Chicago. Our fresh Angus burger has never been frozen, is hormone, antibiotic and steroid free. Every item on our menu is made fresh to order just for you. All day the restaurant is filled with the irresistible aroma of fresh baked bread, brioche and multi-grain rolls made with our special dough to make each meal stand out. Nothing beats fresh like our mouthwatering Fresh Angus Burger and All White Meat Char-Grilled Chicken Breast cooked to order sandwiches. DIFFERENTIATION 4 HOW IS MIAMI GRILL® Most Fast Casual concepts focus on a vertical product (one type). Five Guys® is ® ® ® DIFFERENT FROM OTHER burgers, Chipotle is Mexican, Panera is sandwiches, Firehouse Subs is subs, Marco’s Pizza® is pizza etc. However, with Miami Grill® it’s all about the FAST CASUAL CONCEPTS? horizontal (wide choices). We bring in the BEST of categories. Everything Goes! The BEST cheesesteak, the BEST gyros, the BEST wings, the BEST burgers, the BEST house-made salads and more. Everything Goes! For the first time ever, according to the chart above, consumer spending on dining out has taken over grocery store purchases. Today, Americans eat out 4.5 times per week. Couples disagree about what to eat 1.7 times per week. They want a place to go where everyone is happy. Our brand offers choices for all, so go to a Miami Grill® and the entire family is happy. BRAND HISTORY 5 CELEBRATING NEARLY 30 2000s Nathan’s acquires 2010 2012 YEARS OF GREAT FOOD 1980s the franchise brand; New management Pitbull equity 2013-2016 AND SERVICE Mr. Submarine, growth for the brand team takes over, partnership announced Expansion plans include an upscale slows and brand bringing over 62 years Hawaii, Texas, the sandwich shop, marketing efforts of proven experience Rollout of new Fresh Middle East, Malaysia, opened in Key were significantly to the iconic franchise Angus Steak Burgers and Myanmar, Panama and West, Florida. reduced brand healthy dining options South Florida 1990s Worldwide franchising 2007 2011 efforts, national and Miami Subs® grew Miami Subs® Positive sales trend, viral media outreach to 190+ locations Capital Partners new advertising supporting Miami Grill® and expands it’s acquires the agency, new TV investment franchise menu to include franchise brand spots released opportunity grilled items such as burgers, chicken and our now famous Philly cheesesteaks. THE BEGINNINGS Miami Subs® opened under the name Mr. Submarine in 1988 and soon changed its name to Miami Subs® which grew to become Florida’s largest regional sub and grill chain. It was started by Konstantinos “Gus” Boulis of Greek decent. Boulis started off as a fisherman before taking a job as a dishwasher at a Mr. Submarine sandwich shop. The original owners of Mr. Submarine, now known as Mr. Sub, were Jack Levinson and Earl Linzon who opened their first shop in Toronto Canada in 1968. It was Gus Boulis who showed Levinson and Linzon how to franchise. He soon was offered control of one of the stores, and shares in the corporation. In his five years with the company Boulis developed a chain of over 200 stores. The sale of the Boulis’s shares in the company in the mid-1970s made Boulis a multimillionaire at 25. In 1979, Boulis moved to Florida with the intent to retire, however he soon began building the popular Miami Subs® (Grill). He continued his success in the food business, expanding the Miami Subs® chain throughout Florida and beyond. Miami Subs® built the concept and expanded rapidly in the 90’s, starting in Florida and spreading quickly nationwide. Many were “A” locations, free standing buildings with drive-thru, as well as stores in non- traditional locations such as; schools, highway rest areas (particularly along Florida’s Turnpike) and airports. The restaurants featured distinctive exterior designs with Miami-inspired pastels trimmed with pink and blue, neon lights and interiors decorated in a tropical motif. However, in 1994 Boulis started “SunCruz” Casinos and took his eyes off Miami Subs®. He decided to sell the company in 1999 to Nathan’s Famous®. BRAND HISTORY 6 THE NATHAN’S Nathan’s Famous® purchased the chain bringing Nathan’s, Miami Subs®, ACQUISITION and Arthur Treacher’s brands under a common corporate umbrella. The chain had approximately 175 outlets at acquisition. This was more of a real estate transaction for Nathan’s as real estate values increased exponentially from 2000-2006. Miami Subs® owned very valuable hard corner proper- ties which Nathan’s sold off piece by piece to drug store chains and banks. Post-acquisition the chain struggled, due in part to instability in the manage- ment ranks and the sales of prime locations. In 2007, Nathan’s Famous announced the sale of Miami Subs® to a private investment group under the name of Miami Subs® Capital Partner 1 Inc. At the time of the sale, the chain had 59 locations. Management still struggled and finally a fresh vision was announced by bringing in a new CEO. In 2010 Richard Chwatt took over and began to revitalize the Miami Subs® brand. He wanted the excitement back in this aging brand that everyone had spoken about. His motto was to renovate, relocate or terminate to start the turn-around. The excitement came back and the vision and reality of Miami Grill® emerged. BRAND HISTORY 7 PITBULL JOINS In 2012, Armando Christian Perez, a.k.a. Pitbull joined the team as an AS EQUITY PARTNER equity partner bringing his star power to help our brand flourish. “I’m no longer just an artist. I’m a business partner. Daleeeeee!" – PITBULL The true legend and staying power of the brand is our food. It’s all about fresh food and choices. We feature, Philly cheesesteaks, wings, gyros, grilled seafood, handmade fresh Angus steak burgers, pitas, platters, garden fresh salads, hot and cold subs, chicken, breakfast and more. We also carry a great selection of craft beers, wines and legendary Dom Pérignon champagne. Dom Pérignon you ask? We sell Dom Pérignon because the founder “Gus” of Miami Subs® felt the best name in champagne was Dom Pérignon, and the best quality food was at Miami Subs®. So he put together a combination for $109.99—a bottle of Dom Pérignon and a dozen wings. A famous story has it that Madonna used to come after all of her shows. She would order the combo, and our drive-thru staff would hand it to her through the top of her limo. She’d be drinking “Dom” and enjoying her wings after her performances! It’s a fast casual concept that has a modern, fresh approach with a South Florida tropical flare. A look that is inspired by the Miami lifestyle. Every meal is prepared fresh before your eyes. It has something on the menu for everyone. As mentioned, research shows that couples argue 1.7 times per week where to eat. Our menu makes families happy! It is a strong Miami iconic brand that has been serving great food over its 25 years’ history. YOUR FRANCHISE 8 WHAT DOES IT COST TO OUR MINIMUM CRITERIA FOR A NEW FRANCHISEE FOR A SINGLE UNIT: OPEN A MIAMI GRILL®? 1. $150,000 in liquid assets. This includes anything besides home equity that can be converted to cash within 30 days 2. Net worth of $350,000 3. Strong credit history ESTIMATED INITIAL INVESTMENT: PLEASE REVIEW THESE CHARTS TOGETHER WITH THE NOTES THAT FOLLOW. TO WHOM TYPE OF AMOUNT METHOD OF WHEN DUE PAYMENT IS EXPENDITURE PAYMENT MADE Initial Franchise Fee $30,000 Lump Sum Upon Signing Us (Note 2) Real Estate (Note 3) $8,000 to $15,000 Lump Sum Prior to Lease Landlord Leasehold Improvements and $100,000 to Architect, As Incurred As Incurred Construction $195,000 Contractor (Note 4) Furnishings, Fixtures $75,000 to and Equipment As Incurred As Ordered Suppliers $128,000 (Note 5) Signage $5,000 to $15,000 As Incurred As Ordered Suppliers Training During Airlines, Hotels Expenses $3,000 to $5,000 As Incurred Training and Restaurants (Note 6) Initial Inventory Before and Supplies $10,000 As Incurred Suppliers Opening (Note 7) Misc.