Monday, August 11, 2008

McDonald's

MCD has Strong JulyFriday August 8, 2:24 pm ET By Jim Giaquinto
Consumers may be pulling back on their eating-out habits during this tough economy, but many have made an exception for McDonald's (NYSE: MCD - News). The fast-food staple announced that same-store sales in July advanced by 8%, which has helped shares to gain approximately 6% on Friday.
System wide sales for worldwide restaurants advanced 15.9% in the month, or 9.5% in constant currencies. U.S. same-store sales increased 6.7% as MCD focused on breakfast, chicken, beverages and advertising for the Big Mac.
MCD is a Zacks #2 Rank company with earnings estimates for this year that are up 3.9% in two months. Its sales momentum in July suggests that analysts' earnings expectations could continue to advance.

Francorp Client - Dirty Dog Hauling

Dog days
Friends are in business for the long haul
By Elizabeth MillardAs published in: Franchise Times - August 2008
Two lifelong friends team up to create Dirty Dog Hauling, an African-American owned company going head-to-head (and truck-to-truck) with larger competitors.Some entrepreneurs team up because they've been pals for a few years, while others develop a friendship after months of working together. But for Leland Nelson and Gary Fallings, their partnership was forged decades ago, when the two were teenagers walking to school together.
Although they competed against each other on the football field as well as wrestling mat, they maintained their friendship in college despite being at schools that were hours apart. During one visit, they were both surprised to learn they'd even joined the same fraternity, Omega Psi Phi.
After graduation - Fallings earned a degree in education and Nelson 's was in accounting - they were again living in the same city, Harrisburg, Pennsylvania, and working odd jobs since work was proving tough to find. Fallings had a small landscaping business, and when the pair spotted a 1976 Chevy one-ton dump truck for sale, the friends invested $2,400 to buy it. They thought they could be "weekend warriors," Nelson says, and bring in some extra money.
The Dirty Dog trio: Gary Fallings, vice president; Shanika Brown, vice president of marketing and franchise relations; and Leland Nelson, president and co-founder."I had no idea I'd lose my job a week after we bought the truck," Nelson says. "Suddenly, it wasn't about having fun on the weekends making some extra money, it was a primary source of income."
Because their fraternity mascot is a dog, the duo named the enterprise Dirty Dog Hauling, and decided to focus not just on removing landscaping detritus, but also on commercial and residential junk.
"The name stuck, because it's kind of negative, but in a funny way," says Nelson. "People remember it, they call us that on the street, 'Hey, dirty dog!' - and customers love it."
When they opened their (truck) doors in 2005, it was at the height of the housing boom, so demand was great as people starting moving from rental properties to homeownership. And when the bubble burst just a few years later, demand was even higher with the need to clean out foreclosed properties.
At a glance
Franchise Fee: $25,000
Royalty: 8%
Co-op Marketing: 2%
Initial Investment: $70,500 - $93,000Beyond riding the housing wave, Nelson and Fallings have discovered that many people just want to get rid of their junk. Those with two-car garages yearn to park two cars there, rather than squeezing one car amid the discarded air conditioners, old boxes, bags of clothes, and other gear that seems to accumulate in life.
With a call center and courteous drivers, Dirty Dog stands out, Nelson believes: "Many people think that when they call a junk hauler, they'll get a couple of scraggly guys that will take their stuff and dump it illegally somewhere. We're changing that image."
Franchise opportunity
Nelson and Fallings were building their business through advertising and word-of-mouth, when they decided to attend the IFE in 2006 to scope out their competition. They were looking for 1-800-GOT-JUNK, Nelson says, and when they discovered that company representatives weren't there, they felt there was a bigger opportunity to be had.
"They had franchises that were sold out, areas where they couldn't expand, and we thought, this is a great chance to become the second biggest junk removal service," Nelson says.
During one forum, Nelson heard that "if you have no competition, you have no market," and he realized that Dirty Dog could be the Burger King - rather than the McDonald's - of the junk hauling industry.
The company decided to investigate franchising, and just a year later, signed up their first franchisee, based in Lancaster, Pennsylvania. Currently, there are "a lot of tire kickers" that call, Nelson says, but he hopes interest will turn into more franchises in the near future.
"You can have the best process and systems in the world for creating a franchise, but until someone buys, it's not validated," Nelson says. "We now have that validation, so we're ready to go to the next level."
Focusing on East Coast expansion first, the company has been trying to raise private equity to grow the concept, he adds.
Going Strong
Dirty Dog has had its challenges in the past few years, Nelson notes, but none of them were tied to the fact that it's a minority-owned business, even though there are few of those types of franchises that exist, he says.
"We just happen to be minority-owned, but we feel like the financing and opportunities are open to everybody," Nelson adds. "I do think that everyone faces the same challenges with putting together the right systems, and avoiding being undercapitalized. But if we can do it, anyone can do it."
The company got kicked off by startup money from family and friends, as well as money from both Nelson's and Fallings' 401(k) plans. "We put our skin in the game," Nelson says.
One differentiator, Nelson says, is a "franchise dashboard" they've developed that uses technology like Blackberry devices to keep haulers connected with customers. In keeping with the dog theme, the system is called Paw Tracker.
And they haven't forgotten their connection to the local community, which fostered them as teenagers and keeps them busy now. Every September, the company hosts "Woofstock," a dog parade that focuses on litter prevention and junk awareness.
The company has also worked on a dozen community service projects, in a program called (what else?) FETCH, which stands for Faith, Enthusiasm, Tenacity, Community, and Harmony. "You can't take without giving back," Nelson says.

www.francorpconnect.com

Marriott Being Social

Being Social
Meet the new facebook of Marriott
By Nancy WeingartnerAs published in: Franchise Times - August 2008
Kathleen Matthews is viewing the news from a different angle. Instead of reporting the news from behind the anchor desk, she's now making the news for Marriott using new media techniques.
Cover photo by Steven E. PurcellWhen Kathleen Matthews created her Facebook page as part of her new-media campaign at Marriott International, two of the first people she invited to be her "friend" turned her down flat. But they were her children, after all - one of whom called her to complain; the other simply ignored her. Matthews' oldest child, Michael, perhaps in a pity move, did accept her offer of cyber friendship, she says, laughing.
Matthews, a former award-winning news anchor in the Washington, D.C., market and wife of "Hardball" host Chris Matthews, is settling comfortably into a life of making news, as opposed to reporting it, for the somewhat staid Marriott brand.
Her charge as executive vice president, global communications & public affairs, is multifold, which is what appealed to her when offered the job 18 months ago. In addition to handling public relations, her role was expanded to encompass politics; social responsibility, such as Marriott's green initiatives; and new media. New media, by the way, is using nontraditional channels to get a company's story out, such as the social networking site, Facebook, plus blogs and online videos viewed on sites such as You Tube.
"She's a dynamo; no one can keep up with her," says Jay Hamilton, Marriott's senior director of public relations. "By the time she walks by your door she's mentioned five things you need to write down (and do)." And she repeats this process all the way down the row of offices, her co-workers say.
Walking and talking, both at a fast clip, to have her photo shot in front of the world flags that signify Marriott's international scope, Matthews does indeed appear to be a dynamo. Still looking the part of a news anchor, Matthews was dressed in her favorite color, red. It's a hue that dominates her office décor from the chairs to the espresso maker. Red also "pops" on television and now she has one more reason to wear red, it's the signature color of her new charge, Marriott.
Matthews exudes confidence - friendly, but not chummy. A runner, she's in constant forward motion. Her desk at the time of this interview was covered in stacks of paperwork, and she joked that her boss wouldn't want her picture taken there. Her department has an abundance of flat-screen TVs turned to the news - especially MSNBC, the station that runs Chris Matthews' show. "If we want to put Marriott in the news, we have to know what the news is," she states.
A familiar spot for someone used to being pitched stories.
"She's always looking for the next big idea, how you can maximize news," says Gordon Lambourne, senior vice president of global PR. "She's intuitive of what the media's interested in."
Perhaps that's why Matthews is a nine-time Emmy winner for her news coverage in the Beltway. Reporting the local news was ideal while her children were younger. "I didn't travel, and I had a predictable schedule," she says. "(Plus) I brought home stories that made me a better mother." While other mothers may have struggled talking to their children about HIV or drunken driving, Matthews says she was able to bring up one of the stories she had just reported on to launch the subject with her teens.
For the most part, her children kept the fact that they had high-profile parents a secret from their friends and teachers. "People were surprised to find out Chris and I are married because most women (in TV) keep their (maiden) names," she says.
Being half of a celebrity couple makes it a little harder to balance work and home. Like most working women, Matthews says she was always "time-starved." "I try to let the worlds bleed into each other," she says. When her children were younger, they would come to the studio with her when need be, and "Chris took them to New Hampshire every four years to cover the presidential primary."
Ironically, the contacts she spent years amassing as a news anchor have helped her more in her position with Marriott than when she was sitting behind the anchor desk. It's also given her a different perspective on the news to offer her husband. "It's exciting to bring a new skill set home," she says.
And Marriott has benefited from having Chris Matthews, who usually commands a hefty speaking fee, talk at Marriott functions, she says.
Moving up Marriott
There's a method to introducing new-media channels to an established brand. For instance, her Facebook page is the equivalent to the old-fashioned suggestion box. Her circle of "friends,"
or contacts, can send her messages, or she can alert a group to new innovations at Marriott in real time. Gen Y associates like her Facebook page, she says, and baby boomers, "who are always trying to be relevant, love it because they always want new ideas."
One of her first coups at the hotel chain was to convince Bill Marriott, the 80-something chairman, to blog. His first reaction after learning the definition of a blog was that it would be impossible for him to do because he doesn't type, nor does he use a computer. Matthews says she convinced him to record his message on a small, digital tape recorder for someone on staff to type. A hard copy is then printed out for his edits.
Bill Marriott is one of the few top executives to have a blog, and most likely the oldest. His subject matter varies from his revelation that he does Pilates regularly, which led to the creation of an exercise studio for employees at Marriott headquarters, to praise for franchisees and their staffs who helped during the Midwest flooding earlier this summer. His blog on lessons learned as a Boy Scout had 5,000 hits, Matthews says.
The purpose of the blog is two-fold. It drives traffic to the site - a link to booking a room at a hotel property, generated $1 million in room revenue, Matthews says - but it also is a way for the personable CEO to visit all 3,000 properties without leaving town.
When he does visit his hotels, Matthews says staff will gather in the lobby and actually applaud. "He's so warmly received everywhere he goes," she adds. Which isn't hard to understand, given that Marriott likes to visit with the housekeeping staff and tour the kitchens, not just meet with management.
"Traveling with Bill is like traveling with the secretary of state - no make that the president and Bono combined," she says, laughing. It's also a full day's worth of work, since Marriott visits between 10 and 15 hotels a day on the road.
Marriott's interviews, as well as any company news, such as the grand opening of its 3,000th hotel, are posted on the Marriott page on You Tube. Footage of the grand opening of that hotel, which just happened to be in China, was fed back to headquarters within hours of the ceremony, where 3,000 trees were planted as part of Marriott's green initiative. Footage of the event was immediately edited and posted on the Web, says Lambourne. "We were able to combine new media and traditional media to get the story out," he says.
In addition to using new media for external communications, Marriott also takes advantage of ways to keep employees and franchisees in the loop. And Matthews has a chart detailing the many ways headquarters reaches out to its constituencies.
Nick Powills of No Limit Media Consulting marvels that more franchisors aren't blogging.While Marriott International may be ahead of the curve by embracing new media in so many facets, it's something all franchisors should be doing, according to PR professional Nick Powills of No Limit Media Consulting who blogs about new media.
Marriott's use of social networking is right on target, Powills says. Every time it posts a blog or adds something to its social Web pages, the company's name moves up on search engines. "You want your franchisees to find as much positive information on your brand as possible," he says. "It drives content and you can control the message." For instance, a negative posting to a blog or Web page can be deleted.
Social networking sites give consumers a way to comment on their stay at the Marriott brands - which include Ritz Carlton, Fairfield Inn, Renaissance and Residence Inn - or give their opinions on the company's green initiatives or a hotel's amenities. And in a world where we can't trust whether the TV character is drinking a Coke because the script calls for it, or because Coke paid for a product endorsement, having "real" people's input on brands is seen as invaluable.
These sites are also a way for the company to offer a special room rate, announce a new opening or alert consumers that Marriott International is getting greener by offering recycled pens.
The company actually does offer recycled pens. "We buy 47 million Bic pens as a company a year," she says. "We worked with (Bic) to develop recyclable pens." The company also has gone to toilet paper with no cardboard rolls.
"Bill (Marriott) is a great evangelist for these initiatives," Matthews states. "Social responsibility is so important for companies." Remaining competitive and able to attract a "world-class workforce," means being green. In addition, she adds, climate changes greatly influence their hotels, so it's in the company's best interest to reduce its carbon footprint and to encourage vendors to do the same.
And with the buying power of 3,000 hotels, the brand has considerable clout.
The purpose of all her creative energy is to guide Marriott so that it stays cutting edge and relative to both its employees and guests.
New media has proven a popular way to connect with customers. For instance, guests of the Courtyard brand were asked what kind of hotel they wanted, and their candid responses were captured on film and uploaded to http://www.gocourtyard.com/. "We continue to get comments" from guests, Matthews says.
On the other hand, Bill Marriott's blog gives a behemoth brand a human face. His musings are supplemented with video clips, like a recent one starring the young pop-and-lock dancer whose silhouette is featured on the Apple iTune commercials.
And while more than 100 million people have blogs - Time magazine named bloggers its person of the year in 2006 - Powills says he's surprised more franchisors aren't doing it. Or that they don't have Facebook pages, since Powill's research reveals the site had 123.9 million unique visitors in May of this year alone and is the Internet's No. 6 most visited site.
Stay tuned, because as soon as this article comes out Matthews probably will have added another dozen sites to Marriott's new media campaign, or found some other innovative way to get the brand into the news.
"She's just what we needed," says her assistant Marilyn Cole. "I don't know how she does everything. But we're having fun."

www.francorpconnect.com

Thursday, August 7, 2008

Pizza Delivery In China

Pizza Delivery Gets Big Push In China

Restaurant giant Yum Brands Inc. is betting that, as China's expanding middle class continues to demand more of the typical Western middle-class lifestyle, consumers will develop a taste for one of America's favorite convenience foods -- pizza, delivered.

Pizza delivery, ubiquitous in the U.S., is a new concept in China, where dining out has long been seen as a form of conspicuous consumption. As a result, until recently Yum had focused on positioning its Pizza Hut locations as a "five-star experience, (with a) three-star price" that would attract Chinese consumers looking for a night on the town. But as China's wealth swells -- along with its legions of harried office workers who have less and less time to cook at home -- pizza delivery is beginning to look like a faster way to expand the Pizza Hut brand, and consumers have begun to respond.

During the past year, Yum has been ramping up delivery operations in the country -- building call centers, securing a nationwide telephone number and building out new locations at an expeditious rate.

"We think we could build thousands of these," said Yum Chief Financial Officer Rick Carucci. The company has 61 delivery-only locations, up 49% from a year ago, and plans to continue at that rate for the next year.

The reason for their appeal to Yum is simple economics: Delivery-only locations, unlike fine-dining establishments, don't have to occupy prime (read expensive) real estate and can still pull in 60% to 70% of the revenue of fine-dining locations, and they are already making money. Yum's China division aw its operating profit jump 38% in the second quarter, and Pizza Hut was the division's fastest-growing brand.

To be sure, Yum faces risks in its expansion. Domino's Pizza, the dominant delivery-only brand in the U.S., has been slow to move into the Chinese market, noting the lack of a convenience culture that would demand food delivery. But that is changing: Domino's has built central delivery commissaries in Shanghai and Beijing -- a sign they will build out in the near future.

"I think for a couple of years they were skeptical that there was going to be a delivery business there," Bank of America analyst Joseph Buckley said. "Now they think there is; it could be because of what Pizza Hut is doing."

Yum, whose China group's slogan is "Rooted in China, Part of China," says it is just following the market.

When lawyer Zhan Zhao moved to Beijing in 2002, after spending his teenage years and getting his education in the U.S., he was shocked to find no food-delivery service was available.

"I was a lawyer working long hours and new to China, so a service of convenience was something that I really needed to help adjust to the other realities of modern-day China," said Mr. Zhao, 32 years old, an associate at Skadden, Arps, Slate, Meagher & Flom LLP. To fill the gap, he started a delivery service, Beijing Goodies, to deliver food, at an additional price, from Beijing restaurants. After a rocky start in May 2002, the business has taken off in recent years. Today, the company has 7,000 registered users in Beijing -- and Mr. Zhao, who now lives in Shanghai, sees food delivery as a growth market.

"Food delivery will only become more and more popular, especially for the local white collars, as the Chinese consuming public continues to work longer and longer hours," Mr. Zhao said.

Yum's recent television advertising campaign in China makes a similar case. One ad, for example, shows a young mother rushing from work to the market, cooking dinner and doing dishes, contrasted with a serene woman stretching and enjoying her afternoon. The serene woman has already ordered pizza, and a moped-mounted delivery man is on the way with it.

Papa John's, which recently opened its 100th restaurant in China, has been noticing a pickup in delivery orders, too, according to David Flanery, the company's chief financial officer and head of its international operations.

"The delivery percentage has probably doubled over the past two to three years," Mr. Flanery said. "You go through those cities and see apartment building after apartment building and you go, 'you know, those people have to eat, and more of them have enough money to go to a restaurant and have something delivered.'"

Mr. Flanery said Papa John's is more than happy to follow Yum's lead in the country, where Yum already has a massive head start. Yum was the first Western fast-food company to gain entrance to China in the 1980s, and its KFC chain is one of the most recognized Western brands in the country, with 2,264 locations as of June 30.

Mr. Carucci said he expects Yum to ramp up the building of Pizza Hut delivery locations during the next year or so, moving into more second-tier cities, with the eventual goal of China being a bigger market than the U.S.

"We're off to the races on delivery," Mr. Carucci said.

Source: Dow Jones Newswire

www.francorpconnect.com

Wednesday, August 6, 2008

Caribou names New CEO

Caribou Coffee Co. Inc. has named Michael Tattersfield as its new president and CEO, the company announced Monday.
Tatterfield has 20 years of finance, operations and general management experience in the restaurant and specialty retail industries, both domestically and internationally. He most recently served as chief operating officer and executive vice president of Lululemon Athletica Inc., a yoga-inspired athletic-apparel company based in Vancouver, British Columbia. He also previous worked for Limited Brands and Yum! Brands.
“Michael Tattersfield’s industry experience in shaping and executing brand strategies will be an added benefit to Caribou Coffee in addition to his financial and operational expertise,” Brooklyn Center-based Caribou (NYSE: CBOU) Chairman Gary Graves said in a statement. “Caribou Coffee is focused on strategic growth, domestically and internationally, and Mike will guide Caribou Coffee through continued growth and expansion opportunities.”
Tattersfield replaces Roz Mallet, who has served as interim CEO since former chief executive Michael Coles left the company in November 2007.
jvomhof@bizjournals.com (612) 288-2101

Tuesday, August 5, 2008

The PR Store - Francorp Client

A Little Bit of Background
Historically, small business owners have had very little recourse when it came to realizing their marketing needs. Without the big marketing budgets required by ad agencies, most small business owners were forced to fend for themselves – taking on the burden of trying to market their business while still overseeing its day-to-day activities. Needless to say, this scenario left a good many small business owners frustrated and looking for an easier way.
In 2001, the first PRstore opened its doors in Charlotte, NC, offering small business owners an accessible, affordable and effective marketing resource that kept them in control of their marketing without having to do all of the legwork. At long last, small business owners finally had the resource they had been waiting for.
Today, PRstore is serving small business in over 40 locations around the country including Chicago, Los Angeles, New York, Dallas and Honolulu. While our national network has clearly grown, our mantra still remains the same: we satisfy the marketing needs of America’s small businesses. It’s a simple formula, but when it comes to marketing, simple clearly works.
DesignCentral
No matter how much we simplify your marketing process, if the work we create doesn’t resonate with you or your target audience, you won’t come back. And we know it. That’s why we’ve created DesignCentral, PRstore’s centralized creative department that serves every one of our locations nationwide.
Whether you’re in Dallas, Chicago or Charlotte, you’ll have our entire DesignCentral staff of experienced copywriters, designers, web developers and promotions experts at your disposal, ready to satisfy the unique needs of your particular project. You’ll work closely with your DesignCentral team throughout the entire process, reviewing and approving work as you go, until you have exactly the finished products you were expecting.

Sunday, August 3, 2008

Francorp works with the Louisiana Restaurant Association

Francorp Partners up with Louisiana Restaurant Association to work with members on expanding their restaurant operations. Francorp has a number of partners like the Louisiana Restaurant Association, more can be found at www.francorp.com.

“The mission of the Louisiana Restaurant Association is to enhance and ensure the growth and development of the foodservice industry in Louisiana by working together as an industry to improve the political, economic, and social environment in which the industry conducts business. The LRA will develop and administer programs and services in order to continue its role as the indispensable resource for the members of the Association.”
The Louisiana Restaurant Association was established in 1946 to promote, protect and serve the interests of the state’s foodservice and hospitality industry. Under the leadership of its original officers and directors, the association set forth several founding principles that continue to guide the association to this day. Since its inception, the LRA has become one of the most outstanding state restaurant associations in the nation and is heralded as a leader among all trade associations.
In 1982, the association formed its Self Insurer's Fund for workers’ compensation – one of the most successful programs of its kind in the country. In 1995, the LRA moved its operations to its current 23,000-square foot headquarter building in Metairie, Louisiana. The association’s Education Foundation was established in 1996 and boasts one of the nation’s premier School-to-Career programs with 46 schools and more than 900 students participating statewide. The annual Louisiana Foodservice EXPO, hosted by the LRA, is recognized as the region’s top tradeshow for the foodservice industry.
The LRA is governed by a Board of Directors that represents all segments of the foodservice and hospitality industry in Louisiana. The LRA, LRA/SIF and LRA Education Foundation have a staff of 65 professionals with the executive vice president serving as chief executive officer. Today, the LRA’s nine statewide chapters are composed of 7,000 restaurant operations and related businesses, including hotels, caterers, institutional feeders and suppliers of goods and services to the restaurant industry.