All Signs Point to Memphis
Whether it’s the pleasant climate, mouth-watering barbecue or hospitable residents, there’s something about Memphis that businesses just can’t get enough of.
The Memphis Daily News reported that just months after Figaro’s Pizza announced an ambitious expansion plan for the area, Columbia, Maryland-based Signs By Tomorrow is targeting the Memphis market as well: company executives revealed they would like to open at least five locations there within the next few years.
"Right now, we are looking at Memphis as a target," said Joe McGuinness, president, CEO and co-founder of Signs By Tomorrow. "We do national general advertising on the Internet, in USA Today and we’ll do shows. What we’re looking at for Memphis is to take a look at what kind of advertising we need to build, how we can better target Memphis on the Internet or what type of shows may be coming to town. Typically, what will happen when we don’t have a presence is we need to get one or two stores in a town and then from there we can add the additional ones because of interest."
McGuinness said what sets the chain apart from other sign shops is its use of computer technology. Historically, businesses in the sign industry were built around an artist, he said, meaning artists did all work by hand that now can be completed using computers.
"Today we can build it around a business person and it’s a strong business model," McGuinness said. "The computer enabled us to build the business around the business person." As the name implies, Signs By Tomorrow orders usually can be delivered in one day. Orders placed by noon usually are ready no later than 4 p.m. the next day. With all the services it offers, the business has come to be "a quasi advertising agency as well as sign company," McGuinness said. In addition to the countless services they provide their customers, McGuinness said Signs By Tomorrow’s franchisees also receive a high level of support from the corporate headquarters.
"We help them with their business plan, site selection, store design, store opening," he said. "And (prior to opening), the franchisee will be with us for three full weeks of training. We will be out on site for two full weeks of training. And then we’ve got 30 people here at headquarters supporting them through all aspects of their business."
Currently, 182 of the company’s franchises are spread throughout the U.S. and, unlike many businesses that sell franchises, Signs By Tomorrow franchisees typically own only one store apiece.
"Unlike other companies, especially in the food business, our typical model is a store per franchisee," McGuinness said, adding that Signs By Tomorrow will sell multiple locations to one franchisee. "This is a wonderful business for families. Our largest stores are all family stores, many times husbands, wives and adult children."
A Big Fat Deal
Summer vacation season is at its peak and, unfortunately, so are gas prices. Instead of cutting your time at the beach short, stop into Fatburger for a reprieve at the pump.
The Chandler Times reported the California-based burger chain will offer a gas rebate program at all six Arizona locations through Labor Day. The program, while simple, is proving to be a great win-win promotion for the establishment and its many loyal burger-eating clients. Customers bring in their most recent gas receipt and receive a 15-cent discount for each gallon of gas purchased.
"Any customer that brings in their gas station receipt will get a 15 cent-per-gallon rebate they can use to buy food at Fatburger,” says Mark Walberg, the owner of the participating Fatburgers. “What we were hearing from our customers was this: They’ve only got so much cash in their pockets for lunches, gas and those types of expenses per week. When gas prices start creeping up near three bucks a gallon, people in turn start to trade down, get smaller burgers, or they come in less often.”
The popular rebate program does have its rules. In order to qualify, the total purchase price must be at least ten dollars. The program is just one way Fatburger is touching new customers across the state: according to Walberg, there are ten new stores planned to open in Arizona over the next few years.
Customers seem to have taken to Walberg’s promotion, enjoying the rebates and recognizing its marketing ingenuity. “This rebate program seems like a great way to get customers in the door,” says Michael Clark, in town from the East Coast to check out potential Phoenix real estate for relocation. “This seems like a town that requires a lot of driving and commuting – a great way to save for the penny pinchers out there,” he said.
Pocket Bucks
Fact: one good bite deserves another (and another and another). David Litchman can attest to that. For years, loyal customers, potential investors and restaurant operators have hounded the founder of Chicago-based Pockets to franchise and let them in on his success. And for years he has said no. It wasn’t for not wanting to share the wealth, he said, it was about quality of life. With young children at home, the last thing Litchman wanted to do was to be a road warrior. Thankfully, time (and tech) was on his side.
“Technology has changed the way a franchise can grow,” Litchman told QSR magazine. After all those years of saying no, Litchman’s latest answer is a resounding Y-E-S: he hopes to see his first franchise open by the end of the year.
Pockets opened in 1989 with Litchman as a recent college graduate with a little bit of money and a big idea — stuffing fresh salad ingredients into the signature Pockets bread, similar to Indian chapati bread.
“I had seen it somewhere else used in a similar fashion,” Litchman says. “I saw a great opportunity to expand upon that at a time when people were starting to look for healthier food and well before the Paneras of the world.” The still-popular Original pocket is stuffed with lettuce, tomatoes, mushrooms, shredded carrots, green pepper, and mozzarella. Litchman has expanded the toppings and dressings over the years and also offers salads, baked potatoes, soups, and calzones. Most customers, however, prefer to customize their order. “When we started we didn’t have a build-your-own option, but now that’s what most people want. So we’re constantly adding new salad ingredients to give greater choice.
While the list of toppings and dressings grows, preparation remains the same, ensuring easy operation and expansion. “The biggest change in my business has been in the technology we use,” Litchman says. “I decided to franchise because I’m now managing orders and operations electronically.” Half of Pockets orders have been generated online in recent months (they started the online ordering three years ago). Pockets encourages Web-based ordering by offering a 10-percent discount on the first online order and aggressively advertising that deal on menus and store signage and when customers phone in orders. Litchman tries to exceed customer service expectations, especially for electronic orders, to encourage repeat business. “If they communicated a problem online, we respond with an e-coupon.” The effort has paid off, increasing the average unit volume from 320 to 430 and growing the online customer count to 30,000.
To further increase efficiency, Litchman converted to an online point-of-sale system to manage every order. Litchman communicates with his employees through corporate e-mail, and employees use it when they need to fill a shift.
“I have all 10 stores on Web cams. I can see what’s happening in every store, route phone calls from store to store during busy times, and see each order as it’s placed and filled in real time,” Litchman says. “It’s a very different way to manage, but it allows me to have a great quality of life. And I want to create a similar experience for my franchisees.”
Litchman is talking with potential franchisees who will start with one store, but plan to open more. He wants to grow the concept in the Greater Chicago area first, then regionally and beyond, hoping to open between three and 10 franchises in the next year and 50 to 100 locations in five to 10 years.
“I don’t hold myself to timetables. I’m focused on quality not quantity,” said Litchman. “I want to continue as an individual company without investors so I don’t have pressure to open more locations than I want to. My only partners are my wife and family.”