Multi-Unit Franchisee Magazine Issue I, 2016 | Page 48
“It’s my goal
to upgrade
as many locations
as possible
as we are seeing
happy employees
and increased
sales at all of our
newly remodeled
sites.”
BOTTOM LINE
Annual revenue: $100 million.
me predict and forecast more efficiently.
2016 goals: To add at least two new locations to my existing fleet.
What are the best sources for capital expansion? Capital has been
readily available and quite easy for the last few years. I use different lenders and
different methods depending on the specific requirements and type of deal I am
doing. I have been using many of the same lenders for years now. They have an
understanding of my business and my needs and I have been able to secure all
the capital I have needed and at very competitive rates.
Growth meter: How do you measure your growth? New locations,
profitability, EBITDA, and the strength it provides the total enterprise.
Vision meter: Where do you want to be in 5 years? 10 years?
Enjoying all that I have worked for, spending time with my family and friends, supporting my community, and building new restaurants.
How is the economy in your regions affecting you, your employees, your customers? I am in a lot of regions, and different regions have
different economic issues. For instance, sales in West Texas fluctuate greatly based
on oil prices; this market soars when the price per barrel is high and it declines
when it is not. When people are working, they are spending and that is great for
employees and customers.
Are you experiencing economic growth in your markets? Yes, I am
in about 23 different markets and most all of my major markets are experiencing
growth. The smaller, more rural markets are not experiencing the same growth as
the bigger metropolitan markets but they remain consistent and dependable.
How do changes in the economy affect the way you do business?
Considerably, and we have to be quick to react, realign, and adjust. The great
thing about being in business so long is that I have learned how to see the signs
and know for the most part the impact they will have. Being a part of a franchise
system also helps as Denny’s corporate is usually experiencing the same effects,
and they share their best practices and offer solutions as well. Different situations
require different strategies.
How do you forecast for your business? We have always forecasted quarterly as I feel we are able to be more accurate and precise. So many
things change in the course of a year for each individual location. Quarterly
forecasting, while time-consuming gives me a better picture of what is happening on a more real-time frequent basis—things like road closures, weather issues, utility prices, commodities, etc. These are just a few of the things
that cannot be predicted a year out. Reviewing and budgeting quarterly lets
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Experience with private equity, local banks, national banks, other
institutions? Why/why not? I have worked with all except private equity
because I have not had a need. I am very hands-on and involved in my business
and I like calling the shots. I imagine a time may come when private equity may
be an option and advantageous. It has just not come yet.
What are you doing to take care of your employees? A 401(k), bonus plan, paid time off, incentives, and opportunity for advancement. My business
is dependent upon good-quality employees. We always try to train and develop
from within to give key people an opportunity for advancement.
How are you handling rising employee costs (payroll, minimum
wage, healthcare, etc.)? This is a huge and ongoing challenge that is not in
our control. We can only take price increases every so often to offset these rising
costs, so we are always searching for efficiencies in other areas to help counterbalance these increasing costs.
How do you reward/rec