Last week, on the suggestion of good friend and business associate, Rob Falls of Falls Communications, I drove to Cleveland to meet with a couple interested in expanding their franchise business. So I did some homework on the company, put together a basic introductory deck on our capabilities and point of view on branding, hopped in the car and headed for Cleveland not knowing really what to expect.
On arrival at the first store of this small but growing franchise, the founder and his wife shared their story and their treated me to a sampling of their product (which was great). We then did a brief reconnaissance of several other franchise locations and settled in to talk about their situation.
They are at a critical point in their development where they have a solid, differentiated concept, they have successful stores open and people interested in buying their franchises. Now they are considering what is truly required for exponential growth. Does it require additional people? Capital? If they seek outside investment does it mean loss of control?
It was pretty clear they could use some help. But not help developing marketing materials or even marketing strategy. They needed help determining what their options were and what they personally wanted to do. My advice to them was to join the International Franchise Association or at least attend the IFA conference in February. I offered to introduce them to successful people in their category and my friends at Focus Brands, Dwyer Group, Service Brands and Service Master who have built successful multi-franchise systems. They understood immediately that it would be a good thing to talk to others who have been where they are and have done what they are trying to do, and were grateful for the advice.
Driving home I felt really good about the trip. I was profoundly grateful that 30+ years of serving franchise companies and 25 years of IFA membership have created this incredible network of franchise professionals I can reach out to and help others connect with. No, the day will probably not directly result in any immediate revenue for re:group, but I hopefully made two new friends in the industry and look forward to helping them determining how best to grow their business. As my friend Scott puts it, it was a deposit in the Karma bank that ultimately will be repaid in kind.
Posted in
branding,
franchising,
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jan's corner Tags:
Dwyer Group,
Falls Communications,
Focus Brands,
franchise,
IFA,
International Franchise Association,
re:group,
Robert Falls & Associates,
Service Brands,
Service Master
During our 20 or so years of working with Domino’s Pizza we frequently brought up the fact that their product consistently was rated lower than their competitor’s pizza by customers. Interestingly, in blind taste tests it did quite well. Over the years they tinkered with various aspects of the product, the cheese blend, the dough, the ovens that it was baked in. Regardless, it was difficult to change the perception that the pizza itself was not as good as that of their competitors. And at that time, it was difficult to convince the Domino’s Pizza leadership that they needed to seriously address the problem.
The new Domino’s Pizza campaign finally addresses the issue head on. It’s open and transparent strategy resonates well with today’s internet savvy consumers. Tim McIntyre, VP Communication, spoke at the Detroit PRSA Convention yesterday and shared insights into the current campaign along with their successful management of their recent social media crisis. While he could not comment specifically on sales, he did suggest that their recent stock price climb reflected the overall success they were enjoying.
It is interesting to note that a market segment that would appear to be totally saturated and commoditized can still add new competitors who can find ways to differentiate themselves. Marco’s Pizza based in Toledo is experiencing considerable franchise growth. Several of our former Domino’s Pizza clients are helping drive that effort and they are positioning the brand as a superior pizza product. We were recently approached by another young, but rapidly growing franchise whose product is totally organic and very upscale. Like our Ben & Jerry’s client, they have the opportunity to become a “passion brand,” building their position and attracting customers on the basis of their core values as well as the quality of their product.
Our current favorite pizza is right next door, Pizza Pino. They have a distinct advantage in that it takes us about two minutes to pick it up. It doesn’t take years of experience in the category to know that the best pizza is piping hot from the oven. (The premise behind 30 minute delivery.) Pizza Pino actually has a really good pizza product, with probably the best crust I have had in a long time. So for now, until we have another pizza client that commands our loyalty, they are our first choice. I guess that proves that there is indeed room for another great pizza purveyor in the marketplace.

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Ben & Jerry's,
Domino's Pizza,
franchise,
Marco's Pizza,
passion brand,
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PRSA,
social media,
Tim McIntyre
Al Nalli’s building butts up against our parking lot. Every night the blue lights shine and the blues blast from the windows facing our building. It drives some of our people (who work late for the peace and quiet) nuts. I love it. Particularly when it’s got a good blues beat. Although I must admit, the guy perfecting his single snare drum hit for hours on end did get a little tiring, probably for him too.
Al and his family have been in the music business for years. He has reportedly managed and produced for a number of notable acts big and small including Lynyrd Skynyrd, Styx and Kid Rock. His father’s Ann Arbor music store was once a competitor with Tom’s Strings and Things, in Birmingham.
I think Al has at least temporarily given up on his plan to sell his property to an out of town developer, probably as a result of increased vacancy and decreased demand for commercial real estate. He has finally fixed the falling concrete and re-rented the space. The building has kept its music roots with a Rock Band School and recording studio in the basement. It kind of goes with the tattoo parlor on the first floor.
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Strings and Things
My purple cup and I cross the street every day to get our fill of iced tea at “the bar.” We all call it that. No need to use its name as we all know where we are going. We know Chris and Steve and Amy and all the staff. Walking into the bar is like walking into the westside Ann Arbor version of Cheers. Casual, comfortable, warm and welcoming, if you get a booth (a window is the best) you can put your feet up and relax.
A fair amount of business gets done at the bar. We hold our operations meeting there on Wednesdays and often have to compete with the architects, lawyers and web geeks for a space. Of course the big round table is always reserved for the Hooper Hathaway attorneys. Being daily customers is rewarded with a table complete with roasted peanuts and pitchers of iced tea waiting in the corner by the window.
Steve is worried about the new Michigan no smoking law for bars and restaurants going into effect in 80 days. He asked if we could use our research tools to determine what percentage of drinkers are also smokers. He is afraid the drinking and smoking crowd will just stay home at night. His brother Chris on the other hand can’t wait. He thinks the opposite will happen, that their dinner business will increase once the smoke clears. I probably agree with Chris, the smoke has kept me away on more than one occasion. (Research data seems to supports that too.) I did suggest that if they were worried, they might develop a customer database with all those cards they collect in the fishbowl and talk to their customers about it.
There is a lot to be said for a good, family run, neighborhood bar. People have been meeting at The Old Town, for food and drink for over 100 years. I suspect if Steve and Chris keep at it they will do just fine in the future too, smoking or no smoking.
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ann arbor,
Hooper Hathaway,
Michigan Smoking Ban,
Old Town
I watch Mark Hodesh in the morning from the treadmill upstairs across the street. (He doesn’t know I am watching.) He goes about his early morning routine of opening his store, Downtown Home and Garden, putting out the plant displays, unrolling the awnings, washing down (or shoveling) the sidewalks, getting ready for the customers who stop in for bulbs, birdseed and Zingerman’s.

Mark is the consummate retailer. He has taken what was good about the old Hertler Brothers feed and seed store and grown it into a multi-million dollar business. While other businesses in town were moaning about slow sales, Mark enjoyed a sales increase in 2009. Authentic, quality merchandise, reasonable prices and good old fashioned service were probably responsible.
Mark’s windows match the season, or perhaps the season we are looking forward to. His rain barrels and seed sale are harbingers of spring yet to arrive in Michigan. Today’s display of metal art from Haiti reminds us of his (and Margaret’s) connection to the humanity of the world and the world of art. His values are as much on display as his merchandise. Whether intentional or intuitive, he applies all the core principles of building a great brand.
Posted in
jan's corner Tags:
ann arbor,
branding,
Downtown Home & Garden,
Hertler Brothers,
Retail,
Zingerman's
Welcome to Jan’s Corner. Figuratively, Jan’s Corner is my take on issues and events that cross my path. Literally, it is about people, places and events that take place in the world that is defined by the intersection of Ashley and Liberty in Ann Arbor, Michigan. OK, I may stray a bit farther than that, perhaps up to Main Street or down to 2nd or maybe even outside of Ann Arbor all together, but for starters, I thought I would focus on our corner of world.

It’s funny how you define your world. It can be the universe, or just a small place with a universe of experiences happening within it. The intersection of Ashley and Liberty is such a place. For me, it is work and work-out, breakfast, lunch and dinner, drinks and entertainment, friends and strangers. It is past, present and future. It is young and old, radical and conservative, the homeless and the very wealthy. It is effectively a cross-section of Ann Arbor at the intersection of two streets and four blocks.

The Fleetwood Diner anchors the southwest corner. It has been an Ann Arbor fixture at least as long as I have. Mark Hodesh, who now runs Downtown Home and Garden was the original owner. Open 24 hours a day, it has great greasy breakfast and the best Greek chicken salad in town. And coffee strong enough to stand a spoon in accompanied by the constant banter of Aviva and the regulars. (I always make sure to tip her well to keep on her good side.) Sometimes I wonder if the pierced and dyed crowd can recognize an old hippie in business attire.
Posted in
jan's corner Tags:
ann arbor,
Fleetwood,
Liberty,
re:group