Multi-Unit Franchisee Magazine Issue II, 2013 | Page 46

M U L T I - B R A N D
people have been trying to get in touch
with him about this place, but I’ll give
him your name and number. Sometimes
he comes by,’” Sugarman recalls.
Sugarman said he’d wait. “But I don’t
know for sure if and when he’s coming,”
the manager protested. Sugarman said,
“That’s all right. I’ll just wait, if you
don’t mind. I’m enjoying myself.” Seeing that he had no intention of leaving,
she promised Sugarman that she would
make sure Teitelbaum called him first
thing the next morning.
The next morning Teitelbaum did
call, and Sugarman impressed him with
his detailed comments and understanding of the Johnny Rockets concept. “I
said, ‘I’m not good enough to copy what
you’ve done, but I want to be part of
what you do.’”
Teitelbaum looked into Sugarman’s
financial situation and told him, “You
don’t have enough money to build your
own Johnny Rockets, but you’ve got half

“I said, ‘I’m not good
enough to copy what
you’ve done, but I
want to be part of
what you do.’”

the money. Go to the Bay Area and build
Johnny Rockets on Chestnut Street with
us as your partner.” So Sugarman, without hesitation, moved to San Francisco to
be Teitelbaum’s partner in a new Johnny
Rockets restaurant.
In 1987, Sugarman became Johnny
Rockets’ first franchisee, building five
top-revenue locations in San Francisco.
In 1989, he traded his stores for 10 percent of Johnny Rockets and worked as
vice president of operations and franchise development with his new mentor, Teitelbaum.
By 1991, Sugarman wanted to be back
in the stores, so he kept his ownership in
the company and bought back his restaurants in San Francisco. He also built
other Johnny Rockets, including one in
Santa Monica with a partner. In 1995,
Johnny Rockets was sold, and he traded
in his stores and moved to corporate as
senior vice president of development.
Selling his restaurants this time was

MANAGEMENT
Business philosophy: We’re only as good as the people we have around
us. I always try to allow the managers to run the business as if it’s their own,
and then we sit down and talk about it. If they don’t make decisions, they
can’t make a mistake or a win. If a person doesn’t care, you’re in trouble. I
don’t worry so much about intelligence, I just highly value trust and honesty.
Trust takes years to develop.
Management method or style: When I go into any of our places, I find
things that need to be corrected. Before I meet with the manager, I like to talk
to servers and cooks first since they’re in front of the guests every day. I value
their honest feedback as much as the manager’s since a manager might tend to
say what he knows I’d like to hear.
Greatest challenge: Right now, business is challenged in general. We’re
trying to stay relevant and change what needs to be changed while still going
into different concepts.
How do others describe you? I’m not sure. I think I empower people
who are qualified. My Mall of America general manager has been with me for
10 years and I trust him to make the right decisions.
One thing I’m looking to do better: I like to remember everyone’s
name, and I’d like to know our people better.
How I give my team room to innovate and experiment: I’m open
to all ideas and concepts and I encourage discussion.
How close are you to operations? Pretty close. I’m aware of most
things going on all the time.
What are the two most important things you rely on from your
franchisor? I always hope they’re making their best efforts in purchasing and

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Multi-Unit Franchisee Is s ue II, 2013

getting us the highest-quality products at the best price. I’d also like to rely on
them more for PR and marketing support.
What I need from vendors: Honesty and a constant striving.
Have you changed your marketing strategy in response to the
economy? How? You have to be careful in changing strategy. For example,
discounting and couponing is a difficult road to travel because you don’t want
to become reliant on coupons to drive the business. However, it does work from
time to time.
How is social media affecting your business? I don’t think we see
the effect on a daily basis. Some companies know how to push and strive in
that world, and they’re the ones who captivate. A great social media company
that understands how it works can create cult followings. I think it’s difficult
for older brands, like Johnny Rockets, and that we’ll have more luck with the
Original Soupman.
How do you hire and fire? We hire by looking for what any good operator looks for: smiles and personality. We can teach and train, but you can’t
teach personality and positive energy. As for firing, we promote them to guest.
How do you train and retain? We train on the store level, and training
is part of every job, every day. In retention, acknowledgement and appreciation
are important, and pay is important.
How do you deal with problem employees? Put them on the user
program: promote them to guest.
Fastest way into my doghouse: Being disrespectful with those they
work with, leaving their responsibilities to others, and not taking their jobs
seriously.