Saturday, December 15, 2007

Growing Up

How did you arrive at the goal of 500 units by 2010?

Morocco: The first time we met Shane, he said he had to have 500 stores by 2010.

Really?

Morocco: No, I’m kidding. We do set some lofty goals like the goal of 500 units. We’ll obviously have that many sold and under development, but the question is, Will we secure enough real estate and get the proper permitting to get new stores open? What we have found is that the whole permitting and developing process has taken a lot longer.

So, is real estate the main challenge to overcome when trying to achieve that number?

LaMastra: We think our immediate challenges with Shane’s are similar to those that we find in our other concepts. That is: finding the right franchisees, buying the right real estate, and making sure we execute on our concept everyday. But there is nothing unique about Shane’s from a challenge standpoint in terms of growth. In other words, great food and a great consumer experience is universal and will be accepted all over the U.S. We’re fully confident in that, but I think the challenges that we’re going to see are the common ones in our industry.

A number of franchised concepts have experienced strained relationships between franchiser and franchisee. How will you avoid this?

LaMastra: If there’s a good flow of information there and a good flow of dialogue there, that’s the foundation for everything. Layered on top of that we have regular weekly and monthly communications in the form of e-mails and communications from the brand leader. In addition, we also have a periodic newsletter. And at the top level we at Raving Brands have periodic communication about the enterprise and overall business. It’s pretty multi-layered, but what we’d rather have is our franchisees say, “We’ve heard enough. You’re over-communicating with us.”

Thompson: We even have meetings with our brand leader and go store by store about once a month, looking at any challenges they may have. We’re big on helping them financially. We stay on top of it. If we have someone who’s having problems with food costs, we send someone in there without any hesitation.

Have you ever been to a franchised unit where your concept wasn’t executed to your standards?

Thompson: I’m not going to lie. I have had an experience or two where I was displeased. But any experience I’ve had that hasn’t been up to my level, we’ve gone back and changed dramatically.

What do you say to critics who say you sold out when you teamed with Raving Brands?

Thompson: I heard a little bit of that initially from my own fan base, but I think we’ve proven ourselves because we smoke all of our products on site, our meat comes in fresh, we hand chop to order. All we’ve done is really taken a small mom and pop and made it into not only a barbecue that can go national but it’s a clean restaurant with controls in place.

You might have liked the old pit master, but he didn’t always cook it to the right temperature, or when he’s out sick, who is going to be the one cooking? Even though it is a corporate structure there are things we’re doing at each individual site. It’s not boil-in-a-bag pork or anything. It’s all cooked on site and I think that’s what sets us apart.

"

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source: qsrmagazine.com

Sagittarius Selects geoVue for Location Optimization for Del Taco, Captain D’s

WOBURN, Mass.--(BUSINESS WIRE)--geoVue, a leading provider of dynamic location optimization software, and Sagittarius Brands today announced that Sagittarius Brands has licensed and will employ geoVue’s software solutions to assist in market planning and determining locations for its Del Taco and Captain D’s Seafood Kitchen chains.

Sagittarius Brands is the Nashville-based parent company for Captain's D's Seafood Kitchen, a pioneer in quick service casual seafood dining, and Del Taco, the country's second largest Mexican quick serve chain.

geoVue’s dynamic location optimization software provides modeling and optimization solutions based on predictive, multi-factor trade areas. geoVue’s unique approach to data and model maintenance will provide Captain D’s and Del Taco with a localized, real-time geospatial decision-making framework for each brand’s site selection strategy.

“geoVue gives us the kind of sophisticated market planning capabilities that we need to plan real estate penetration in both new and maturing markets. With geoVue we can determine the most promising trade areas to locate our restaurants taking into account demographics, psychographics, traffic, employment, competition and all the other key factors at play in determining market potential,” said Ron Petty, president of development at Sagittarius.

“We are excited to assist Sagittarius in optimizing its markets,” said Rudy Nadilo, CEO of geoVue. “Sagittarius’ two brands, Captain D’s and Del Taco, offer a formidable opportunity for franchise growth and geoVue is pleased to support that franchise ROI.”

geoVue goes beyond simple site selection. It optimizes locations. Using its innovative solutions and domain expertise, geoVue develops predictive store trade areas that allow clients to decide which markets to enter, expand or exit; how they should optimize store networks within each market; and how to localize marketing and merchandising.

About Sagittarius Brands

Founded in 1969, Captain D's offers customers a menu of seafood featuring its signature dish of hand cut and hand battered fried fish along with baked or broiled fish, shrimp, chicken and home-style side dishes. There are nearly 600 Captain D's restaurants in 26 of the United States and the Caribbean, plus military bases around the world. Additional information is available at www.captainds.com.

Founded in 1964, Del Taco has more than 490 restaurants in 14 states and offers a full menu of made-to-order Mexican food items such as tacos, burritos, quesadillas, and an American menu of burgers, fries and shakes. Additional information is available at www.deltaco.com.

About geoVue (www.geovue.com)

geoVue is the leading provider of dynamic location optimization software for retailers, restaurants and other real-estate based consumer channels seeking a higher return on capital investment. geoVue’s state-of-the-art modeling and optimization solutions help its clients holistically plan store networks and prioritize capital investments based on predictive, multi-factor trade areas. Clients prioritize markets to enter, expand or exit; optimize store networks; and localize marketing and merchandising. geoVue’s unique approach to data and model maintenance provides each client with a localized, real-time geospatial decision-making framework configured for its particular customer-centric strategy. geoVue clients “don’t leave square footage on the table.”

Founded in 1994 and based in Woburn, Mass., the company has more than 150 clients, including Big Lots, Dunkin’ Brands, Meineke, Papa Murphy’s, Pet Supermarket , REI and The Limited.

All companies and products listed herein are trademarks or registered trademarks of their respective holders.

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source: qsrmagazine.com

Across America Funds Lonestar Steakhouse and Saloon and Champps Americana Restaurant

DENVER--(BUSINESS WIRE)--Across America Real Estate Corp. (OTCBB:AARD) announced it has closed on funding for a Lonestar Steakhouse and Saloon for Charmar Property Acquisitions, Inc and a Champps Americana Restaurant for Restaurant Group Management. Total investment for both projects will be approximately $7.5 million.

Lone Star Steakhouse & Saloon is a casual dining restaurant chain with more than 250 locations nationwide. Champps Entertainment, Inc. owns and operates 48 restaurants and franchises 13 restaurants in 21 states.

Across America provides 100% financing for developers of small box retail projects across the US. Across America has previously provided financing for several Charmar Property projects. The Champps Americana project will be the first project with Restaurant Group Management.

“We are delighted to be working with two top flight organizations like Charmar and Restaurant Group Management, “said Across America President and CEO, Ann L. Schmitt. “ These projects are a testament to the appeal of our hassle-free financing process. We are continuing to gain new customers while at the same time expanding the number of projects that we have with our existing ones.”

“Across America has truly become a partner in our growth strategy,” said Charmar Property Acquisition, Inc. President, Dennis Smith. “They have been able to provide us with the financing to be able to quickly take advantage of the opportunities we’ve had to continue to grow the business.”

“The Across America financing process was as simple and easy as advertised,” said Restaurant Group Management Manager, Ken Shipp. “They were able to get us the financing to quickly and effectively capitalize of this opportunity. We look forward to continuing to work with them in the future.”

About Across America Real Estate Corp.

Based in Denver, Colorado, Across America Real Estate Corp. (OTC BB:AARD.OB) partners with national retailers and their developers to provide 100% financing for rapid retail expansion. The Company operates in the niche that is the small pad retail and restaurant market in the commercial real estate industry. Across America provides guidance and creates financing solutions for increasing retail productivity and profit. Please visit us at our website www.acrossamerica.com

This press release may contain certain information about Across America's business prospects and financial projections. These are only prospects and projections based upon good faith current expectations by the management of Across America. This information is based on assumptions as to future events that are inherently uncertain and subjective. Across America makes no representation or warranty as to the attainability of such assumptions or as to whether future results will occur as projected. You are expected to conduct your own investigation with regard to Across America and its prospects. Across America assumes no obligation to update the information in this press release.

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source: qsrmagazine.com

Will Calorie Counts Share Real Estate on Fast-Food Menus?

California Center for Public Health Advocacy:

WHAT: Do Californians really need calorie counts on fast-food menu
boards? Proponents of Senate Bill 120, California's
nutritional labeling law are staging a fast-food quiz show
at the State Capitol to answer that question. Leading
advocates, physicians and politicians will dramatically make
their case as the Governor decides the fate of this simple
obesity prevention legislation.

SB 120 would require all large restaurant chains with 15 or
more locations to post nutritional information on their
menus and menu boards. If signed, California would become
the first state in the nation to require such information.

WHERE: California State Capitol
Governor's Press Room, Room 1190
Sacramento, California

WHEN: Wednesday, October 3, 2007, 10 a.m.

WHY: Health experts across the country have identified
nutritional menu labeling as a primary strategy to address
the obesity crisis affecting 60 percent of California
adults. SB 120, an important obesity prevention strategy,
would reduce health care costs and is supported by
84 percent of Californians.

WHO: Speakers:
-- Mark DeSaulnier - California State Assembly Member,
11th District
-- Dr. Glenna Trochet - Sacramento County Health Officer and
President of the California Conference of Local Health
Officers
-- Lupe Alonzo-Diaz - Latino Coalition for a Healthy
California (Spanish Speaking)

PHOTO OPPORTUNITIES:
-- McDonald's and Denny's entrees are put to the test as the
public does its best to choose the low-calorie option
-- What's the future going to look like? Watch as the
fast-food menu board of tomorrow, complete with calorie
counts, is unveiled
-- Interview ops with leading health proponents

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source: qsrmagazine.com

Maximize Your Restaurant’s Lease

For 15 years, C.J. Engelsher has dreamed of opening Meltz, a fast casual that will offer premium sandwiches.

Right now, Meltz only exists on paper. Engelsher, a Le Cordon Bleu chef and former Carlson’s Restaurants Worldwide general manager, has been searching for the right location. He wants a 2,000-square-foot end cap smack in the middle of an Orlando, Florida, business district or shopping center.

When he found the perfect spot, he was ready to start making sandwiches. However, Engelsher and his partner made no hasty business decisions.

“A lot of people will just find the location, be happy with it, and sign the lease,” Engelsher says. “You can’t do that. There are so many hidden things to your detriment that you need a lawyer to look the lease over.”

After his lawyers read the Meltz lease, Engelsher learned the common area maintenance and tenant improvement allowances were too steep for the proposed rent—mid $20s per square foot. But the deal breaker was the open date. The landlord wanted December, Engelsher requested May.

“Anytime you settle on a site and it falls through, you feel…a little disappointed,” Engelsher says.

Although disappointed, Engelsher at least investigated the contract. Only 50 percent of independent operators invest in brokers or real estate attorneys, says Marty Kotis, president of the Council of International Restaurant Real Estate Brokers. With 52.7 percent of limited-service operators leasing land and building (NRA 2004), Kotis says there’s plenty of help available for franchisees.

Most franchisors offer real estate and lease support, he says. “The only ones who don’t are the franchisors who don’t care about the building or the franchisee’s lease…They just want to sell franchise agreements.”

Even independent operators have free consultation available, Kotis says, through commissioned brokers. But Engelsher says some brokers don’t have the operator’s interests at heart.

“We worked with a broker who obviously only cared about his commission check,” Engelsher says. “When we challenged some fees, the broker said, ‘the key is to get in there before somebody else gets it. Don’t worry about this other stuff.’ It was obvious where his loyalties were.”

Nonetheless, Kotis warns operators not to tackle lease negotiations themselves or to hire general commercial real estate consultants.

Non-restaurant brokers and real estate attorneys “tend to over-butcher a lease,” Kotis says, and “cut out critical points.”
Letters and exit strategies

There’s more to a lease than rent fees, says Marc Frankel, managing director of Newmark Knight Frank Retail. As an expert lease negotiator, Frankel has represented Chipotle Mexican Grill, McDonald’s, and California Pizza Kitchen, as well as Rite Aid, Marriot Corporation, and several landlord companies. Whether his clients are developers or tenants, they sign a letter of intent before pursuing negotiations.

“A letter of intent is not a binding document, but it gives you something to work with,” Frankel says. Typically included in this letter are base rent (industry average is 8 percent of total sales, he says), maintenance, rent commencement, utilities, and renewal options. These points serve as the process’ foundation. “Negotiating a letter of intent will save a lot of pitfalls and might save $30,000 in attorney fees during actual lease negotiations.”

"

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source: qsrmagazine.com