Franchise Excellence honorees share secrets of their success

SCOTTSDALE, ARIZ. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

The award for Leadership in Franchise Management was presented to El Pollo Loco Inc. of Irvine, Calif.; the award for Franchisee Entrepreneur of the Year went to Greg Flynn, chairman and chief executive of Apple American Group LLC of San Francisco, the largest franchisee of Applebee’s Neighborhood Grill and Bar; and the Franchisee Star Award was given to Coaxum Enterprises Inc., a New Orleans-based McDonald’s franchisee. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Nation’s Restaurant News presents the Franchise Excellence Awards each year to recognize achievements of both franchisees and franchisors in the restaurant industry. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Steve Carley, president and chief executive of the 360-unit El Pollo Loco chain, said the company has developed what it calls “The Franchisee-Franchisor Rules of Engagement” to provide success for franchise groups and the chain as a whole. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“A couple of years ago when we decided embark on expanding across the country, we had to focus the company on supporting franchisees,” Carley said. “We run 160 company stores ourselves, so diverting the resources from that and onto franchising was key. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“We took $1 million and created a ‘franchise restaurant opening group’—FROG,” he explained. “These are operations and training professionals dedicated to helping our franchisees successfully open in new markets.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

As soon as franchise groups sign a development deal, a “FROG person” becomes their direct one-on-one contact, Carley said. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“They are the single point of contact through the whole process, and they have direct access to me if they have any issues,” he said. “They go through the real-estate/site-selection process, construction and pre-opening. There is a team of six people to guarantee that store opens, and they stay a week after.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Greg Flynn, chairman and chief executive of Apple American Group, said the $370 million company’s vision “is to be the premier franchise group in the Applebee’s system.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“It’s a very narrow approach to this industry,” he said. “I believe that by being a category killer and defining our mission very, very closely, we can be better at it.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

The 19-year-old company owns and operates 135 Applebee’s locations in California, Delaware, Indiana, New Jersey, Ohio, Pennsylvania, Washington state and West Virginia. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

It has acquired existing Applebee’s franchise units in addition to developing its own. In February the company bought six restaurants in Flynn’s home area of San Francisco. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“The key is that it’s a development territory,” he said. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“The key to Apple American is a ‘state-and-federal’ model,” Flynn said. “The states are run by ‘governors’ who are genuinely empowered to run the business. They cannot only make operating decisions without going through me or the chief operating officer, but they can run it like it’s their business. They can make mistakes.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

The process, he added, “results in more productive people all around.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“They are equity owners in the business,” he said, “which created a financial opportunity for them.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

The corporation, or “federal level,” supports the units with a team for purchasing, marketing and training, Flynn said. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“We want the focus to be on the field,” he said. “The ‘state’ is where the action is.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Franchisee Star Award winner Coaxum Enterprise and its owner and president, Henry Coaxum, showed franchisee resilience and corporate support. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Ellen Koteff, editor of Nation’s Restaurant News, said the company “has a compelling business story of devastating loss and triumphant recovery.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Coaxum, who spent nearly two decades in corporate management with McDonald’s, opened his first franchise unit in 2002. When Hurricane Katrina devastated the New Orleans area in August 2005, he was forced to close three units. Coaxum, however, rebounded and now owns and operates seven McDonald’s in the area. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“Last year at this time, I was just getting back into the business after losing three of my restaurants, office complex and my own home to Hurricane Katrina,” Coaxum said. “One thing that I’ve learned along the way is how collaboration is key to a franchisee’s success.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Coaxum builds McDonald’s that offer “destination-style” amenities, such as Internet access and even stages for neighborhood music. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“Katrina affected more than 100 McDonald’s locations,” Coaxum said. “Employees were scattered across the country. Schools, homes, businesses and hope were washed away. I was one of four franchisees who were taken completely out of business. I was down for six months, but I’m happy to report that I was able to open five locations last year and another one just this past January.” —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

Fellow operators, suppliers and McDonald’s Corp. have helped bring the market back “in a new, different and better way,” Coaxum said, adding that staffing remains a challenge. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.

“You have to give people a reason to come work with you,” he said. —Executives representing the three 2007 Franchise Excellence Award winners shared their formulas for success during the recent Restaurant Leadership Conference here.