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Wienerschnitzel rolls streamlined prototypes to get leg up on hot dog, frozen-treat competitors

Wienerschnitzel rolls streamlined prototypes to get leg up on hot dog, frozen-treat competitors

IRVINE CALIF. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Irvine-based Galardi Group is the privately held franchisor of 380-unit Wienerschnitzel, whose quick-service outlets are mostly co-branded operations with Tastee-Freez—a symbiosis not unlike the pairing of El Pollo Loco with another California-born soft-serve-and-food concept, Foster’s Freeze. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Systemwide, Wienerschnitzel generates annual sales believed to be in the $250 million range, and units open more than a year average about $800,000 in sales, according to franchise registration filings in 2007. Galardi acquired the now 58-year-old Tastee-Freez brand in 2003, but previously held off franchising the concept alone to see if that would be viable. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Dennis Tase, president and chief operating officer of Galardi Group, said its goal is to entice franchisees of both concepts with lower-cost-of-entry opportunities at a time when the nation’s credit crisis is making it harder to finance new restaurant growth. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Given the challenging macroeconomic climate, lowering the cost of entry is a common theme in the franchising world of late. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Franchisor Johnny Rockets has been growing a streamlined express variant of its standard full-service model that offers almost its full menu but in a smaller footprint, for example. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Officials of Sizzler also have said they are looking for a location to test an express version of that limited-service grill concept, while Burger King is developing a small-scale “Whopper Bar” for possible placement in airports and casinos. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

The new-look Wienerschnitzel stores are available for in-line and end-cap-with-drive-thru locations, which officials say would cut in half the roughly $1 million cost of building a conventional new unit. The majority of Wienerschnitzel locations, most of which sport a retro A-frame design, are free-standing and built by franchisees. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Bob Mathews, Wienerschnitzel’s vice president of development, said the end-cap locations are likely to be more attractive because of their drive-thrus. About 65 percent of the chain’s sales are from drive-thrus. Though franchisees might lose some visibility with end-cap sites, compared with freestanding ones, and sales might be 5 percent to 15 percent lower, the lower opening costs would be appealing, Mathews said. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

The 1,900-square-foot in-line prototype is being tested in Phoenix, and the 2,000-square-foot end-cap version in Apple Valley, Calif. Traditional freestanding locations average about 2,200 square feet. Both new prototype designs have a hip, contemporary look, with counter and table seating, front-lit menu boards, new point-of-sale graphics, and exposed ducts in the ceiling. Menus at the new units have the full lineup of hot dogs, sandwiches and drinks, but the burgers, which historically have been considered a secondary menu item, have been beefed up a bit to offer more variety. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Wienerschnitzel aims to open 20 to 25 new units each year for the next several years, Mathews said. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

When Galardi bought Tastee-Freez, that chain included about 230 units, but the company has pared Tastee-Freez down to fewer than 100 single-brand locations. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Featuring chocolate-dipped soft-serve ice cream cones, sundaes and shakes, Tastee-Freez has been “a huge success” as a co-brand with Wienerschnitzel, accounting for as much as 25 percent of sales in some stores, Tase said. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Galardi has been testing a free-standing Tastee-Freez unit in San Luis Obispo, Calif., where the menu includes burgers, sandwiches and sides. The menu is still being tweaked, and smoothies may be added. “We’re looking to expand the menu to make it more interesting and unique,” said Tom Amberger, Galardi Group’s vice president of marketing. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Immortalized in the John Mellencamp song “Jack and Diane,” Tastee-Freez has a nostalgic appeal that would compete with brands like Dairy Queen that offer food, though franchisees also may opt for an ice-cream-only menu. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

“I think Tastee-Freez will be one of the next big growth concepts in the U.S.,” Tase said. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Galardi is focusing on franchising in “middle America,” where building and opening costs for the roughly 1,350-square-foot Tastee-Freez would run $500,000 to $600,000, Mathews said. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

Galardi also franchises the Hamburger Stand brand, primarily in Colorado. That chain, which began as a conversion vehicle for underperforming Wienerschnitzel locations, has shrunk from 24 units to 16 over the past five years. —Seeking growth in a tough economy, the owner of the nation’s largest hot dog restaurant brand has launched two new prototype Wienerschnitzel stores and this month is relaunching that concept’s co-brand, Tastee-Freez, as a solo franchise vehicle in the soft-serve ice cream sector.

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