Gyroville Will Forego Royalty Payments From Franchisees
The popular build-your-own concept will halt royalty payments from all its franchisees ?until operations return to normal
March 19, 2020 // Franchising.com // Fort Lauderdale, FL. - Gyroville Franchising Company LLC, parent company of the fast-casual Mediterranean brand Gyroville, has decided to forego all royalty payments from its franchisees for the time being. The decision was made as the company witnessed the struggle to maintain sales while its franchisees were being forced to manage their operations under new rules set forth by local governments. Many stores were forced to open under a takeout and delivery option only, thus eliminating all in store dining sales.
“With the rapid increase in Covid-19 cases around the country, and especially in our largest market, South Florida, we quickly noticed that our franchisees were having difficulty maintaining sales,” said Lambros Kokkinelis, Founder and Chief Executive Officer of Gyroville. He continued to say, “The time for us to act is now. Our corporate office decided to implement a royalty break effective March 16, 2020. As each store returns to full dine in operations, we will resume collecting royalty payments from our franchisees.” The Gyroville corporate office hopes that this action will take some of the pressure off its franchisees until they return to full operations.
As it appears likely that our country is headed into another recession, Gyroville takes comfort in noting that the brand itself was born out of the last recession. During 2008-2009, Mr. Kokkinelis began thinking outside of the full-service restaurant box to figure out where the industry was headed. He said, “my Greek heritage coupled with working in my father’s Diner for many years made me realize that there was an opportunity to open a hybrid restaurant that allowed guests to build their own, while having the food prepared fresh in front of them using quality ingredients.” He continues, “This time around we will be forced to adapt once again. Our experience as a brand will help us get through whatever challenge is placed before us.”
Mr Kokkinelis also compared the current feeling to his personal experiences while working in Manhattan during 9/11. He was busy at work serving coffee and paninis to his guests at one of his kiosks outside of Police Plaza in Lower Manhattan when the first plane struck the towers. He said, “from that day forward I knew nothing would ever be the same with regard to the safety of our country.” He states, “I have now worked through a safety crisis and financial turmoil, both of which have made me a smarter entrepreneur. We will get through this current epidemic and the Gyroville brand will be even stronger.” The Gyroville corporate office will remain open throughout the entire Covid-19 epidemic. They will continue to offer any support possible for current and future franchisees. As soon as the all clear is given by local government, Gyroville will be back to serving favorites like the Traditional Gyro & Pita Melt.
Founded in 2010 and franchising since 2016, Gyroville was created from the need to fulfill the lack of Mediterranean cuisine in the fast casual market. The Greek-inspired concept allows customers to select from their choice of protein off the grill or carved from a vertical spit and an array of fresh vegetables and homemade sauces served in a pita, over rice or as a salad. Today, there are 10 locations open and operating in the Unites States.
Food Masters Marketing Group
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