It’s a safe bet to say that there aren’t many people that aren’t concerned about the current state of the economy. The nationwide unemployment rate still lingers at 8.3 percent and the U.S. economy is saturated in debt. Though all of us are feeling the pain of a weak economy, restaurant owners are plagued with addressing this issue on a daily basis.
Fortunately, hope is on the horizon. A recent boom in up-and-coming restaurant franchises addresses many of the concerns that Americans face in their dining choices. Three of the top franchise executives talked about their strategies to expand and at the same time cut costs.
Bill Spae of Cici’s Pizza
CiCi’s Pizza has over 584 units. They are expecting to open 30 this year and have signed agreements with 100 other franchisees. Their strategy to get investors? They are offering an internal funding program.
By setting aside $5 million dollars to investors that are carefully chosen through a strict criteria, they have set up a program that works for all involved. The banks are willing to loan the additional money with a large amount down, CiCi’s gets a low risk investment, and the investor is able to get the backing that is especially hard in this economy.
Mike Liautaud of Milio’s Sandwich System
Liautaud has plans for 200 new locations with 40 units in operation. Liautaud experienced a reprieve in franchising last year, but he refined his system, weeded out unprofitable locations and strategies, and targeted investors that weren’t doing well in the stock market.
Jason Chodash of Tossed System
Tossed System is a new franchise, but there are big plans in the works. Chodash now has six units with two more expected to open in 2012. Although this doesn’t seem like much, over 69 additional units are slated to open.
They feature customizable salads, as well as sandwiches, soups and wraps. All salads are freshly prepared in front of you. His franchise strategy is considered cutting edge with a flexible footprint that works in almost any location.
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