Multi-Unit Franchisee Magazine Issue II, 2014 | Page 46

REC ON NECT: M U LT I - B RA N D 50

“Treat your employees like family, and treat
your customers like guests.”
have leveled off as there’s been some
market saturation for burger brands and
the newness of the segment has worn
off.” Still, he’s managed to open two
more Five Guys locations in Michigan
and added one Supercuts in Jacksonville.
He hopes to open one more Five Guys
location and at least one more Supercuts
salon this year.
Reitz, whose growth has been calculated and conservative, says he’s supported by two brands more interested
in getting the right location with the
right demographics and profitability
than simply just adding stores for the
sake of numbers. “That’s important,”
he says.
Today, Reitz says, he’s more focused
on the operations of the Five Guys brand,
and Joanne handles the Supercuts locations. “We have tried to focus more and
more on the customer and the customer

experience,” he says. “We want to do it
perfect every time, and that’s how we
differentiate.”
Two knee surgeries have slo wed
Reitz a bit since we last spoke. But he’s
on the move again, enjoying a round
of golf when he can, and watching his
son pitch for his high school baseball
team. He’s also spent the last 12 years
on the board of the Supercuts Franchisee Association and the Supercuts Advisory Council, which takes him to the
company’s Minneapolis headquarters
six times a year.
Now 60, Reitz remains actively engaged in the business, but recognizes
the slow march of time. He says, if his
son is interested, he’d like to hand the
business over to him in another 10 years.
For now, he’s focused on one customer
at a time and delivering it “perfect every time.”

BOTTOM LINE
Annual revenue: $5.2 million.
2014 goals: To maintain year-over-year unit sales, but to improve efficiencies
within each company to increase profitability.
Growth meter: How do you measure your growth? It seems flat is
the new up. We try to focus on each customer to ensure loyalty, so we always
value the repeat customer measurements that are available. New customers
represent our growth and growth opportunities going forward.
Vision meter: Where do you want to be in 5 years? 10 years? In
5 years I’d like to be less involved in the day-to-day operations while still being
involved in the big-picture decisions. In 10 years I hope to be alive and healthy
and have the business turned over to our son. If he elects to pursue a different
career path, see my 5-year goal.
How is the current economy affecting you, your employees, your
customers? I feel each category is affected, and I feel we all make our
decisions with more caution and more consideration for our options. In a tight
economy even small decisions matter.
Are you experiencing economic growth in your market? I think the
real estate market is returning, but the retail energy is cautiously optimistic.
What did you change or do differently during the economic downturn that you are continuing to do? I think we are being more selective in
our hiring practices, which works better for both us and the employees.

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MULTI-UNIT FRANCHISEE IS S UE II, 2014

How do you forecast for your business? I forecast for staffing requirements and plan for internal development of my current and future managers. I
don’t do very well when I try to forecast for sales performance.
Is capital getting easier to access? Why/why not? I don’t know. I
don’t use outside capital.
Where do you find capital for expansion? All internal.
Have you used private equity, local banks, national banks, other
institutions? Why/why not? Haven’t used it. I try to pay as I go.
What are you doing to take care of your employees? I try to create
a work environment that is conducive to longevity. We offer limited health and
dental insurance and a 401(k).
How are you handling rising employee costs (payroll, healthcare,
etc.)? We look constantly for the best deal in all of our vendor options, but we
are limited by how much is really in our control. We work closely with our insurance providers to find ways to save money and to prevent claims.
How do you reward/recognize top-performing employees? We
are in the locations regularly, so performance recognition occurs in person on
a regular basis. Incentive or contest winners are also congratulated in person,
usually by Joanne.
What kind of exit strategy do you have in place? None yet. I’m still
having a lot of fun.