8 minute read
Food Franchise vs. Independent Restaurant by Phyllis Pieri
Food Franchise VS Independent Restaurant
by Phyllis Pieri, Consultant, The Franchise Consulting Company
I had met Robin Gagnon, the co-founder of We Sell Restaurants, during the International Franchise Association Convention. My conversation with Robin shed some light on I hope you will enjoy learning why people are attracted to food franchises and why being part of a franchise system makes a difference.
Q: Why did you start We Sell Restaurants?
ROBIN: My husband and I both came out of large organizations, and like so many others we both decided to take a different path and start our own business. We decided that we wanted a niche vertical in the business brokerage industry.
So 20 years ago we founded our company, We Sell Restaurants, out of the basement of our home. For the first two years I kept my corporate job and did our business’ marketing and advertising at night and on the weekends. As you can imagine, this was a very hectic time in our life.
Q. How did you come up with your business’ name?
ROBIN: It’s a fun story because with my marketing background I kept asking Eric, my husband and partner, lots of questions. At the end we got the essence of what he wanted to do. He said, “I will sell restaurants.” I said, “You are getting closer, but that doesn’t sound big enough. I think we need to be, We Sell Restaurants.” From there we ended up building the largest restaurant brokerage franchise brand in the country.
“Isn’t it funny,” I said to Robin, “how what we are used to doing kicks in automatically. For example, your marketing skills helped Eric come up with just the right name, using a process you had used for years. I always tell my clients that everything you have been doing up to this point prepares you for what is next.”
Q. How big is We Sell Restaurants today?
ROBIN: We are in 45 states and have about $150 million in listing inventory. We help buyers and sellers realize the American dream of owning a restaurant.
We estimate one in five restaurants are for sale at any given time. So we are in the perfect place to help people realize that dream in or out of the business.
Q. When did you start franchising?
ROBIN: We began franchising our company about seven years ago. We have strategically moved slowly in growing the franchise. One reason for that is simply because we do so many franchise resales with people that come into the game and aren’t clear on what the expectations are going to be. Those “problem children” come to us to help them leave the system, and these units usually have the same issues: 1. The franchise owner discovers he doesn’t like the business and is unengaged. 2. The franchise owner isn’t committed to being active in the community. 3. The franchise owner is not following the system and because of this he isn’t successful.
When we first started, we were 90% independent, and about 10% franchise. As we’ve matured as a franchise brand over the last seven years that shifted to about 70% franchise 30% independence.
Q. What other factors are driving your business?
ROBIN: Today society is really forcing a lot of people to come into our sphere of influence. First, you have grandparents who built their first unit and were the first ones to invest in the restaurants. Then they passed it to their children who expanded upon the business. The next generation are the millennials. Interesting point, now the millennials have benefited from an incredible education afforded them by their family. They’re doctors and lawyers, and they don’t want to be in the food business. So those units that have been in the family for years are now turning over at a more rapid rate, which creates opportunity for others.
Another thing that has really driven the growth of our brand is the cooking shows such as the Food Network, and the idea that everyone can be a star!
Q. Are you a member of the (IFA) International Franchise Association?
ROBIN: Yes, We've been members of the IFA, since the beginning of our brand.
Q. How has that served you?
ROBIN: The IFA is a remarkable training ground. When I first started franchising, my franchise consultant said to me, “Robin, you will not understand or believe how generous the franchise
community is in sharing information.” This has been so true over the years. We were a tiny brand and we could sit across the table from a mega operator and have a continuous dialogue about mentorship, growth and opportunity.
Q. How did franchise units do compared to the independent restaurants during the pandemic?
ROBIN: COVID-19 hit the independent restaurant so much harder than the franchise world. This crisis
really proved how valuable the restaurant franchise model is.
During the crisis, independent restaurant owners were coming to us looking for help. We made the decision to put our own franchise sales on pause for a number of months to help our independent owners with training, support, help and advice. Fortunately, the IFA helped us tremendously with learning about the PPP grants and loans.
Meanwhile, we saw that the franchise brands gave their owners a great deal of assistance. For example, they helped the franchisees look at how to: • Take a fresh view of their menu • Create a miniature menu that works for them • Analyze how dishes hold temperature • Start looking at their most profitable food items • Switch to a delivery model • Scale for takeout and delivery • Ensure they’re on all the apps • And more
But for an independent to get up to speed on all of that it was too steep a learning curve.
I am so proud of the brands that I work with. Not only did they survive, they are posting UVs in their FDD’s in 2021 that are $50-$60,000 above the prior year. Not only that but they were not laying off staff, they were hiring staff!
What this crisis showed me is that it’s very tough to be in business by yourself. When they say franchising is “being in business for yourself, but not by yourself,” that statement really proved to be true during the pandemic.
This crisis proves that model to a tee because so many people benefited from the structure and the underpinning of a franchise organization during the crisis.
ABOUT THE AUTHOR
Phyllis Pieri uses her passion for people and her 35+ years in the franchise industry to guide fledgling entrepreneurs through the franchise selection process. In her franchise career, Phyllis has done it all, including working for franchisors, consulting with franchisees, and owning franchises herself. This depth of experience makes her ideal for helping people find the “perfect match” franchise at no cost to you that fulfill your personal and business goals. Contact Phyllis at 425-922-4126 or at phyllis@ thefranchiseconsultingcompany.com.
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