Franchise Update Magazine Issue II, 2011 | Page 20

CEO profile:

Sixty percent
of our growth
is coming
organizationally
from existing
franchisees.

of our growth is coming organizationally from existing franchisees. That has
helped us avoid the capital challenges
other organizations have seen. Our franchisees either have phenomenal relations
with local banks or private investors and
internal cash flow. The slowdown was
more about the confidence level about
the economy.

Bottom Line

tionship and you’ve proven your concept
can perform even with some of the dips
in the economy. We use a broker that
helps franchisees find capital, and the
broker may have relations with 20 or
30 institutions. Depending on your net
worth there are banks that are lending.
Our biggest challenge is finding the real
estate we need.

What are your long-term goals for
Moe’s? We have a 5-year plan we started

last year. We want to get to 1,000 units
by 2015, 100 new restaurants a year.
That’s a big goal.
How has the economy changed your
goals? We slipped with our openings and

we slipped with the number of franchise
deals we sold in 2008 and part of 2009.
But it came back so fast. Sixty percent

Where can capital be found these
days? Local banks if you have a rela-

How do you measure success? I

measure success on one thing: Are we
exceeding last year’s performance on

every measurable attribute? That is the
sole indicator of health and growth of
the brand. Sales, food costs, labor costs,
profit, unit sales, and so on.
Your greatest success? Profession-

ally, being afforded the opportunity to
lead a brand that was only 8 years old
and really still in its infancy, struggling
a bit, and turning the brand around so
that the growth is exceptional and the
health of the brand is at an all-time
high. I didn’t do this alone. I brought
in the team.
Any regrets? I do not have a single regret.
What can we expect from Moe’s in
the next 12 to 18 months? You will

see us expand the brand through licensed products, continued development overseas, significant growth in
the U.S., and clever programs that
will enhance the Moe’s experience for
families and kids. n

WALL STREET JOURNAL
FRANCHISE OWNERS HAVE
THE CAPITAL TO INVEST

A recent Wall Street Journal study found that franchise owners
made an initial average investment of over $800,