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February MSCA Newsletter 2007

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February MSCA Newsletter 2007 2007 CORPORATE SPONSORS TO DATE: Adolfson & Peterson Construction American Engineering Testing, Inc. The Avalon Group Barna, Guzy & Steffen, Ltd. Bremer Bank, N.A. Brookfield Properties Corporation CB Richard Ellis VOLUME 21, NUMBER 2 CSM Corporation FEBRUARY 2007 Cambridge Commercial Realty Colliers The Collyard Group L.L.C. DISTINCTIVE FRANCHISE CONCEPTS Commercial Partners Title, LLC eature Cuningham Group Architecture, P.A. Dalbec Roofing by Andy McDermott, Shea, Inc. F Dougherty Funding LLC Exeter Realty Company n last month’s MSCA newsletter, Eric scenarios, we are seeing a new trend of unique Faegre & Benson LLP Beazley wrote a column for our new Hot pairings that are designed to take advantage of General Growth Properties, Inc. ISpots/Cold Snaps section where he pointed customers’ increasingly limited time. Gray Plant Mooty out that franchising has become an incredibly Subway - In Dallas, Subway and Starbucks are Great Clips, Inc. hot trend as a successful business growth Griffin Companies testing a store that combines the two strategy. In 2006, several distinctive concepts Grubb & Ellis/ ubiquitous chains. The site is at the corner of Northco Real Estate Services emerged as the ones to watch for 2007 and what some say is the city’s busiest intersection H.J. Development, Inc. beyond. This article looks at some of these Heitman Financial Services LLC and both chains are looking to cash in on the concepts, including unique co-branded concepts Hempel Properties traffic. At the 1,200 sf location, Subway’s that are exploring unconventional pairings in Inland Real Estate Corporation business gets a boost during morning coffee JE Dunn Construction order to stay a step ahead, and a number of rushes when people can grab a quick lunch J.L. Sullivan Construction, Inc. international players that are really trying to for later in their day. In the evening, Starbucks Jones Lang LaSalle/Rosedale Center push the envelope to compete here in the U.S. KKE Architects, Inc. beverages become signature accompaniments Kraus-Anderson Companies to the meals of evening diners at Subway. LandAmerica Commercial Services Uncommon Pairing Landform By now, we are all familiar with co-branding, Subway actually shares space with many Larkin Hoffman Daly & Lindgren Ltd. entities. Of their 19,000 locations, 6,000 are LaSalle Bank where two concepts share customers and retail space. Beyond the common Pizza Hut/Taco Bell M & I Bank Franchise Concepts on page 2 Madison Marquette McGough Development Messerli & Kramer P.A. Midwest Maintenance & Mechanical, Inc. THE CORNERSTONE Minneapolis/St. Paul Business Journal napshot NorthMarq Capital, Inc. Northstar Partners S Olsson Associates Location: Southwest corner of County Road Oppidan, Inc. 19 and State Highway 241 in St. Michael Opus Northwest LLC Park Midwest Commercial Real Estate Month/Year Opened: August 2006 Paster Enterprises RJ Marco Construction Inc. Owner: Loretto Bay One, LLC RLK Incorporated RSM McGladrey, Inc. Managing Agent/Center Manager: RSP Architects Shingobee Real Estate Services Reliance Development Company, LLP Robert Muir Company Leasing Agent: Michelle LaGue, Northstar Ryan Companies US, Inc. Partners, (952) 465-3326, Schoell Madson [email protected] Shingobee Builders, Inc. Additional Facts/Narrative: The Cornerstone Solomon Real Estate Group Inc. Architect: RSP Architects is a mixed-use redevelopment including a Stewart Title Guaranty Company – 15,000 sf two-story multi-tenant retail and National Title Services Construction Contractor: Shingobee office building and a 11,000 sf Thrifty White TCF Bank Builders, Inc. Target Corporation Drug retail pharmacy building. The Towle Financial Services GLA: 15,000 sf Retail/Office, 11,000 sf Cornerstone is prominently located at the U.S. Bank Pharmacy corner of “Main & Main” in downtown St. United Properties Michael adjacent to professional buildings, Venture Mortgage Corporation Anchor Tenants: Thrifty White Drug restaurants, schools and established businesses. Weis Builders, Inc. Wells Fargo Bank, N.A. Market Area Served: Northwest Metro – Retail and office suites with flexible sf and Welsh Companies, LLC Rogers, St. Michael, Albertville competitive lease rates are currently available. Westwood Professional Services, Inc. FRANCHISE CONCEPTS continued Coming to America or white chocolate. This Brazilian fruit and chocolate fondue concept currently has According to Marcel Portmann, vice co-branded with arrangements that include more than 100 international locations in president of international development at shopping malls. In the U.S., Texas has two Wal-Mart stores, hospitals, churches and the International Franchise Association, even a Harley-Davidson dealership. locations with eight more in development. about 80 foreign franchises exist in the Showcolate president of operations Batter Up – This children’s cooking U.S. and another 50 have plans to come Ricardo Marques has plans to open 34 school has had one location in Austin, this way. The challenge for foreign additional U.S. sites this year. Texas for fifteen years and the demand for concepts is that they really need a good more from this fine-tuned organization hook in order to be successful here. This Buzz Worthy? helped to launch their franchising division point of difference is actually helping some In my research, I came across some one- in 2006. The school offers cooking and companies to pioneer new markets in the of-a-kind and offbeat franchise concepts nutrition classes and arranges parties and U.S. and it is helping these rising that are apparently creating a buzz in some field trips for children ages two through international concepts stand out stateside: parts of the country. You decide if this 15. In addition to the school, this concept Vapiano – German-based Vapiano is market is ready for any of the following: incorporates retail, taking advantage of the cashing in on the healthy fast-food niche. captive audience—the parents of the Remote Control Hobbies: A retailer and It began in Hamburg in 2002 as a fast- event organizer serving remote-control students—thrusting them into a world of casual Italian food restaurant. Customers products and gifts including a “Batter Up vehicle racing fans. They also hold racing use an electronic chip card at their table to events and organize clubs. Kids” line of children’s culinary products order drinks from the bar and customized and cookbooks. dishes from the individual pizza, pasta or Freedom Boat Club: Membership allows The Grape - With more than 25 locations salad stations. After ordering, customers you to use any of its large variety of boats nationwide, The Grape contains two can interact with their own ‘personal chef’ on a reservation basis and they take care of separate but complementary businesses at one of the stations. Once they are ready all the prep-work, cleanup and running side-by-side: a Wine Bar and a to leave, guests present their card to the maintenance of the hobby. Retail Seller. The wines in the shop are host who scans it into the register, Caring Transitions: This company helps organized according to a color-coded (and revealing their total. Units are 5,000 to clear homes of their contents in certain copyrighted) 10-part classification system 8,000 sf, seat 150 guests and have a check cases like loss of loved ones or divorce. that helps both experts and novices choose average of about $13.50 per guest. Clients include families, attorneys, realtors the perfect wine based on descriptions for Beard Papa – Beard Papa opened their and funeral directors and this business entire sections such as “light body white first bakery carrying the “World’s Best helps sell items, ship them to family wines with a just-picked fruity flavor.” The Cream Puffs” in Osaka, Japan in 1999. members or donate to charity. non-intimidating and pleasurable Their cream puffs are fresh-baked pastry Ovenu Oven Detailing Service: This atmosphere extends to the bar, where they puffs filled with whipped cream custard at practice their motto, “Your taste is all that company will come to your house and the time of order and topped off with a clean your oven and other kitchen counts.” The store’s 120-150 varieties are sprinkle of powdered sugar. The concept available at the bar by the bottle, glass or appliances. Their motto: “We’ll finish what has grown throughout Asia and Australia your ‘self-clean’ doesn’t.” flight and a full menu of small-plate with over 250 cafes. The sweet treats are gourmet fare designed to complement the catching on quickly here in the U.S. In Positive Changes Hypnosis Centers: This wine list is available. 2006, they went from 16 to 22 U.S. units, drop-in center offers hypnosis programs KnowFat! - A front-runner in the new mostly on the coasts, with Seattle and for those looking to lose weight, quit ‘healthy fast-casual’ category, KnowFat! Chicago stores to be added soon. smoking, reduce stress, improve athletic offers healthier versions of fast foods by abilities and more. Aussie Pet Mobile – This Australian based offering better-for-you menu items like company is a mobile pet grooming Sources: Entrepreneur.com, Franchise chicken meatball wraps, honey mustard operation that offers a 15-step grooming Times, Nov/Dec 2006, Franchise Times, turkey tips, lean cheeseburgers with low- treatment including shampoo and blow dry, Jan 2007, Retail Traffic, December 2006, fat cheese and “AirFries™” where the fries massage and a specialized FURminatorTM and Web sites of each concept. are baked to a golden brown and then “de-shedding” process for your dog or cat. FEBRUARY IS NATIONAL blasted with hot air in a German oven. In The climate-controlled, custom designed addition to this, KnowFat! has a Mercedes Sprinter van travels to the home SPECIALTY COFFEE MONTH convenience-style retail store that carries of the customer offering convenience for Coffee consumed away from home is health-oriented nutrition products like the pet owner and comfortable, familiar unequivocally dominating consumers’ vitamins and supplements.
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