Subway founder focuses on growth, global expansion | Fla. franchises rebound after recession | Motivating employees goes beyond money
February 27, 2013
IFA SmartBrief
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Subway founder focuses on growth, global expansion
Subway launched an online game last month that allows players to simulate the operation of their own virtual Subway franchise in an effort to attract young entrepreneurs to the Subway brand, founder Fred DeLuca said. The game is part of the brand's expansion goal, which includes opening 3,000 units in North America, Asia, Latin America and Europe this year. "The people are in Asia, Latin America, Europe. Those places will constitute a lot of growth. The Middle East will too," DeLuca said. Nation's Restaurant News (free registration) (2/26)
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NFL player spends offseason working at Texas Jimmy John's
St. Louis Rams running back Terrance Ganaway said he needed a way to stay out of trouble and stay fit during the NFL offseason, so he applied for a part-time job at a Jimmy John's in Waco, Texas. Dedicated to the sandwich chain's reputation for delivering sandwiches quickly, Ganaway relates the fast-paced atmosphere to his work on the field. Jimmy John's recruited the NFL rookie using Twitter after Ganaway tweeted that he was looking for a job. St. Louis Post-Dispatch (2/21)
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Fla. franchises rebound after recession
Franchise businesses in southwest Florida are rebounding and expanding in the aftermath of the recession, according to IFA. Owners of multiunit franchises in the region such as Jason's Deli, KFC, Famous Dave's and California Closets now plan to open new locations over the next few years. The Florida business owners attribute their success to asking the right questions, ownership style and the scalability of the franchise business. Fort Myers Florida Weekly (2/20)
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Motivating employees goes beyond money
While money is a good motivator for some employees, many workers find other types of rewards or behaviors inspiring. Leiden Johnson suggests motivating your employees by involving them in decisions, recognizing their efforts, providing appropriate equipment and showing them that you respect them. B2C Marketing Insider (2/25)
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In 2013 the first 30 new Express Employment Professionals franchises of will receive $30k in working capital. With average annual sales per territory reaching $4.5 million within a 115 billion dollar industry, the Express model works. Express has 600 franchised locations and 300 open territories. Explore Express, visit
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Convenience stores attract sandwich chains
Some sandwich franchises are targeting convenience stores for rapid expansion due to product portability and improvements in the foodservice industry, according to Blimpie's vice president of franchise development Jillian Clothier. More than one-third of Blimpie franchise shops are located in convenience stores, and both Subway and Quiznos plan similar expansion efforts this year. "We have fit Blimpie into probably 100 square feet. It's kind of our motto -- if you've got a space and it's a good-traffic location and you're willing to add it, we're going to make it work," said Clothier, who attributes convenience-store expansion to flexibility. Convenience Store News (2/26)
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STR: Americas lodging market saw performance jumps in January
The Americas region experienced strong gains in key lodging metrics in January, STR Global says. Revenue per available room was up 8.3%, while occupancy rose 3.3% and average daily rate went up 4.8%. The Washington market saw the highest growth in rates and revPAR during the period, with ADR up 17%, to $151.75, and revPAR up by 25.8%. The Middle East and Africa region posted strong gains during the same period, while Europe and the Asia-Pacific region saw mixed results. TravelPulse (2/25)
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News from IFASponsored By
IFA president and CEO discusses Obamacare
As full implementation of Obamacare is set to go into effect next year, small businesses and specifically franchise owners are doing everything they can to understand the new law, while still trying to grow and create jobs. IFA President and CEO Steve Caldeira, CFE, spoke with FOX News Radio host Mark Carbonaro to explain how this law will affect franchise owners who are already living in a challenging economic climate. "The health care law is anything but affordable for small employers, but the law is here to stay, so we are trying to work with the White House to educate them before full implementation begins," explains Caldeira. "As an industry that is projected to create 162,000 new jobs and over 10,000 establishments, we need some flexibility with the law."
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IFA's VetFran partners with VA Accelerator to encourage veteran franchisee success
IFA's VetFran initiative has partnered with the Department of Veterans Affairs' VA Business Accelerator program to ensure veterans acquire the professional skills and entrepreneurial knowledge base they need prior to starting a franchise. The VA Business Accelerator provides veterans courses, professional development resources and mentorship to help them start and operate a successful franchise with access to the online Sales and Management Institute through the VA's Vocational Rehabilitation and Employment program.
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Policy and Finance Update
Industry associations weigh in on minimum-wage increase
Industry watchers have weighed in on President Barack Obama's plan to raise the minimum wage, as restaurant brands keep quiet on the issue. IFA President and CEO Steve Caldeira said raising the minimum wage would be an additional cost for restaurant franchisees to absorb, adding to challenges from the fiscal cliff deal, high energy and commodity prices and inaccessible growth capital. He said that IFA members want lawmakers to focus on comprehensive tax reform and immigration reform, "two issues that both the White House and business community agree will help grow the economy and create the jobs this country so urgently needs." Nation's Restaurant News (free registration) (2/26)
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Key challenges that will face the next SBA chief
The next chief of the Small Business Administration will face a still-tight lending market, potential budget cuts and the need to ensure that small businesses know about the services the agency offers. "One of the most important things we hear is the SBA needs to be ubiquitous," said Karen Mills, the agency's outgoing leader. "We do all these things, but people still don't know." Bloomberg Businessweek (2/25), Entrepreneur online (2/22)
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Sequestration issue sparks Republican grass-roots effort
Congressional Republicans want to ignite a grass-roots movement to fight proposed revenue and tax increases aimed at avoiding sequestration. Republican leadership is calling on business groups for support, including the IFA, whose members could be heavily affected by the proposal because many franchisees file taxes as individuals, IFA's Matt Haller said. "Doing comprehensive reform is probably the most important issue for us," Haller said, adding that a spring IFA study will focus on the effects of pulling out separate proposals on the franchise industry. Politico (2/26)
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If you want to truly understand something, try to change it."
-- Kurt Lewin,
German-American psychologist
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