Welcome to Multi-Unit Restaurant Franchisee--Paths to Success

Welcome to the inaugural edition of Multi-Unit Restaurant Franchisee—Paths to Success. Each issue will feature a single question, with responses from different multi-unit franchisees speaking directly from their experience. It will be emailed to subscribers every 2nd & 4th Monday.

A short second section, “Franchisee Bytes,” will feature responses from a different group of multi-unit operators to a more personal question (favorite book, who they'd like to have lunch with, what do people not know about them, last vacation, exercise/workout, etc.).

The collected responses will cover a wide range of multi-unit operator perspectives on the food, franchising, and business landscape in 2024, offering subscribers solutions to shared challenges and a glimpse into the lives of successful multi-unit restaurant franchisees.

DAVID BARR

Company: PMTD Restaurants
Brands: KFC (36) & Taco Bell (3), Capriotti’s Sandwich Shops (6), Spice & Tea Exchange (3)
Years in franchising: 25

Before becoming a franchisee, I worked for two franchisors, the last as CEO of Great American Cookies. After selling Great American Cookies on behalf of its shareholders, I decided to become a franchisee of KFC and in 1998 acquired two KFC units. We now have 48 units among our four brands, with 41 coming from acquisition and 7 built as new units. We constantly invest profits back into the business in order to acquire more units.

SAIT PEREZ

Company: EFP Brands
Brand: Penn Station East Coast Subs (3)
Years in franchising: 1

My franchise journey started as a dream at the age of 16. While working at my foster father's restaurant, I knew I wanted to be an independent restaurant owner. After graduating from Johnson & Wales University with a degree in hospitality, I joined a QSR brand to build my knowledge of restaurant operations. I spent 14 years running multiple QSR units, but felt my dream of being a business owner had disappeared.

A recruiter connected me with Eric Fairbanks. We hit it off right away as we bonded over our similar career paths and shared the same long-term goals. Shortly after this meeting, I joined Eric as a partner and managing owner for EFP Subs in April 2023. We currently have four Penn Station locations, with three more to open by the end of 2024.

Our goal is to be a multimillion-dollar company. Penn Station has proven to be a company that continues to grow, and we are confident that we will be able to expand and open more locations throughout the Carolinas.

ERIC HEFNER

Company: Zaxby’s of Middle Georgia
Brands: Zaxby’s (24)
Years in franchising: 28

Opening my first store was an eye-opener! I had no previous restaurant ownership experience, but had a burning desire to succeed. I did a lot of research before choosing Zaxby's in 1996. Within a year of opening my first store, we were already working on #2 and further expansion plans. I tried to create an infrastructure of like-minded people, who would advance the brand. Within 3 years, we had opened 5 stores. From there we continued to reinvest and expand our territory. Today we have two dozen stores between two states, Georgia and Alabama.

Along the way, I brought in trusted relatives and friends who wanted not only to invest, but to partner with me, taking ownership in the stores and running them as well. This has been key to our growth. We jumped out to 20 stores in short order, trying to grow at a quick, but measured, pace. Our business is not for the faint of heart. You have to be ready to roll your sleeves up, all the while trying to balance your personal life. I have been blessed with a wife of 30 years and 4 children who have defined my life, more so than my work.

The restaurant business can be a grind, but it epitomizes the American Dream to me. Work hard, take nothing for granted, and you can be rewarded, especially with a great opportunity like Zaxby's.

MITCH COHEN

Brands: Jersey Mike’s, Sola Salon Studios
Years in franchising: 41

My journey started back in 1983. I was working for a group that owned five Baskin-Robbins shops in the New York market. They were looking to expand and I was looking for a career in management.

When I was presented with the opportunity to attend franchisee training, I jumped at the chance. Once I returned from training, I was so energized to help this group grow. The group wanted to open a Baskin-Robbins in a mall in Queens, New York, but was having a hard time making a deal. I was in the right place at the right time—a friend of mine had a confectionery business in that mall for sale. I approached my soon-to-be partners with the idea of purchasing that store to get our foot in the door. They agreed.

Now all I needed to do was find my share of the money. I would not suggest anyone do what I did: I took cash advances on a number of credit cards and a loan from my family. That was the beginning of my love for franchising. Shortly after that, I approached the mall's management to add a Baskin-Robbins and they agreed. We went from 6 locations to 15 locations in three states. Fast forward to 2001, when we became the first Baskin-Robbins franchisees to purchase a multi-unit Dunkin'/Baskin network. My partners and I built and purchased 15 combo stores with both brands, and in one unit we added a Nathan's Famous. Things were good and our business was growing. We even thought about expanding into Puerto Rico.

In 2016, someone made us an offer we couldn't refuse and we sold it to a private equity group. We thought we would retire, but found ourselves missing the interaction and challenge of owning our own business.

In 2017, we joined Jersey Mike's Subs. They had the same values and philanthropic philosophy that we'd had all those years. We signed up for 5 units. We now have 8 open and are still growing.

My journey in franchising has provided me with the opportunity to not only be in business, but to give back to the community.

I joined the IFA 14 years ago and have been exposed to many great brands and people in this industry. In 2018, we signed on with one of those brands, Sola Salon Studios. We have 2 units open, 2 in development, and 5 more to build.

I'm currently managing two brands and 10 locations with my partners of 43 years. We have a great relationship and each of us has our role in the company. We have always said we are in the people business, and I think when our employees see how we have been together for so long it gives them a sense of family.

DAVID OSTROWE

Company: O&M Restaurant Group
Brands: Personalized Management Associates, O&A Consulting, 180 Business Solutions, Career Lead, Captain D’s Seafood, Burger King, Taco Bueno, Taco Bell, Blaze Pizza
Years in franchising: 34 (24 on the franchisee side, 10 on the franchisor side)

I'm David Ostrowe, founder and CEO of O&M Restaurant Group, a testament to the power of strategic growth and operational expertise in the franchising realm.

My journey started on the franchisor side. When I told my boss that I wanted to be a franchisee, he said, “Why? It's so much cleaner on our side.” I had to remind him that all the millionaires I knew were on the franchisee side. He rebutted by saying, “Only if they make it to the other side!”

I started with a small staffing franchise. It was a company I used when I was VP of operations for a large QSR brand. I transitioned to distressed restaurant operations and found my niche. I capitalized on opportunities where operational refinement and strategic capital injection could turn struggling units around. This wasn't just about running restaurants; it was about rejuvenating and rebranding them into profitable ventures. 

A significant aspect of my journey involved negotiating with banks and financial institutions, convincing them of the viability and potential of my business model. My mantra was, “I'm not just a restaurant, I'm a brand,” emphasizing the importance of brand identity and management in the franchising industry.

The process involved substantial investments in construction, landscaping, and lighting— reinvesting every earned penny back into the business. This reinvestment strategy wasn't just about aesthetic enhancement, but about creating a welcoming and brand-consistent environment for our customers.

Critical to this success was rigorous daily management of all business indicators. From customer-service metrics to financial performance, every aspect was meticulously monitored and optimized. This disciplined approach was instrumental in ensuring the sustained growth and success of the franchises.

Tax planning played a pivotal role, enabling the seamless transition and expansion from one venture to another. It was a strategic exercise in financial management, ensuring the most efficient use of resources for expansion and growth.

Today, my journey, which started in a modest 150-square-foot executive suite, has led to an expansive enterprise encompassing more than 100 restaurants across 4 states and employing more than 1,000 individuals. It's a journey marked by strategic growth, operational excellence, and a relentless pursuit of success in the dynamic world of franchising.